Property Tax in Georgia
Tax Rate on Rental Income |
|||
| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 5.00% | 5.00% | 5.00% |
Georgia operates under a territorial tax system. Nonresidents are taxed on income sourced within Georgia, and married couples are taxed separately. However, families and married couples have the option to file joint property tax returns.
Nonresident individuals are taxed at a flat rate of 20% on all Georgian-sourced income. However, when leasing out residential property, the tax rate is reduced to 5% on the gross rent.
Corporate Taxation
Income and Capital Gains Tax
Corporations in Georgia are subject to a flat income tax rate of 15%. Taxable corporate income is calculated by subtracting income-generating expenses from gross profits.
Corporate Rental Income Tax
Corporate entities that earn rental income from properties in Georgia are subject to the standard corporate income tax rate of 15%. This tax is applied to net income, which is gross rental income minus allowable expenses.
This structured overview provides a comprehensive look at the tax obligations for both individuals and corporations dealing with property and income in Georgia.
Capital Gains Tax
- Capital gains from the sale of a residential apartment or house with an attached land plot are taxed at a flat rate of 5%.
- Capital gains from the sale of properties associated with business activities are taxed at 20%.
Buying and Selling Taxes/Costs
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TRANSACTION COSTS |
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| Who Pays? | ||
| Transfer Tax | <0.10% | buyer |
| Legal Fees | 0.50% - 1.00% | buyer |
| Notary Fees | <0.10% | buyer |
| Real Estate Agent Fee | 3.00% - 5.00% | seller |
| Costs Paid by Buyer | 0.60% - 1.10% | |
| Costs Paid by Seller | 3.00% - 5.00% | |
| ROUNDTRIP TRANSACTION COSTS: | 3.60% - 6.10% | |
| Source: Global Property Guide, PWC, KPMG | ||
Property Holding Tax
Property tax in Georgia is a local tax applied to the market value of properties (excluding land), with rates determined by the local government based on the annual family revenue of the taxpayer.
Property Tax Rates
| Tax Base, GEL (€) | Tax Rate |
| Up to 40,000 (€14,286) | 0% |
| 40,000 - 100,000 (€35,714) | 0.05% - 0.20% |
| Over 100,000 (€35,714+) | 0.80% - 1.00% |
| Source: Global Property Guide, KPMG | |
Land Tax
Land tax rates in Georgia vary based on land classification and location:
- Economic Activities: Flat rate of GEL0.24 (€0.10) per sq. m, adjustable by territorial coefficients up to 1.5.
- Agricultural Land: Rates vary from GEL1.50 (€0.53) to GEL100 (€36) per hectare, with adjustments by a territorial coefficient up to 150%.