Owner and landlord taxes in Georgia: rates and thresholds

Georgia belongs on the "low-tax" lists deservedly, but the reason is not a single rate — it is how the system is built: it is territorial. Foreign-source income of a Georgian tax resident is as a rule not taxed at all, and it is that, rather than the rate on rent, which attracts people with international income.

Ownership: property tax and its threshold

The annual property tax in Georgia is unusually constructed: it arises not for every owner but for one whose household income exceeds a set threshold. Below the threshold there is no tax at all; above it the rate is charged on the value of the property and stays within one percent, with the specific figure set by the municipality.

• The threshold is measured by family income, not by the value of the property. A rare construction, and it means two neighbours with identical apartments can pay different tax — or one of them none at all.
• The return is filed by the owner; no notice arrives out of nowhere.
• The rate within the range is set by local authorities and differs by municipality.

Letting: a reduced rate instead of the general one

An individual's income from letting residential property in Georgia is taxed at a reduced rate provided the owner does not claim expenses as deductions. That is a simple bargain with the state: a minimal rate in exchange for giving up deductions and for simple reporting. The general income tax rate in the country is higher, and it applies if the owner chooses the ordinary regime.

• Registration with the tax authority is needed before letting starts, not after the first payment.
• The reduced rate is for residential letting. Commercial letting and activity in an entrepreneur status are treated differently.
• Nightly letting is a separate story with its own accounting, and booking platforms report payouts.

Sale: when there is no tax

The gain on a sale of residential property by an individual is exempt if the property was owned for longer than a set period — two years. A sale before that is taxed, with the base calculated as the difference between the sale price and the documented purchase price. Hence the same practical rule as in other jurisdictions: keep the purchase contract, because it proves the base.

What matters more than the rates

• Territoriality. A Georgian tax resident is not taxed here on income earned outside the country. That is the system's main property, and it is why people move tax residence here rather than for the rate on rent.
• Residence is counted in days. More than 183 days in a year is the base rule; the status does not arise from owning an apartment.
• Your previous country. Giving up one residence does not happen automatically on acquiring another; where you remain resident, Georgian income is declared under those rules.