Purchase, ownership, and property taxes in Georgia

The purchase of property and the costs of property ownership are key aspects for potential investors and homebuyers in Georgia. As in many countries, there are a number of taxes and expenses here that are important to consider at various stages of the process.

Interest in Georgian real estate

Among foreign buyers of real estate in Georgia, the largest number of acquisitions are made by Russian citizens. According to the Georgian Government Commission on Migration, Russians have become the owners of a significant number of properties on the local market in recent years. owners of a significant number of objects on the local market. In addition to Russians, interest in Georgian real estate are citizens of Iran, Ukraine, Armenia, Turkey, Azerbaijan and the United States. Statistics show an increase number of real estate registrations by foreign citizens, which indicates the attractiveness of the Georgian market.

State duty

One of the primary expenses when purchasing real estate in Georgia is the state fee for registering the sales contract. Currently, this fee is 150 lari (about 52 US dollars) for registration within four working days, or 51 lari (approximately 18 US dollars) for expedited registration.

Ownership costs

Owning real estate also involves regular expenses for the maintenance of the building or dwelling house, including utilities. including utilities. Maintenance costs can vary significantly depending on specific project and the status of the property. Owners are also liable to pay tax on rental income, which is 5% of the amount of income received.

Property tax

The property tax in Georgia applies to both individuals and legal entities. For individuals, the tax includes both completed and unfinished buildings.

The deadline for submitting the tax declaration in Georgia.

The deadline for submitting the tax declaration in Georgia is November 1, and payment must be made by November 15. The property tax rate for individuals depends on the family's income and ranges from 0.05% to 0.2% for income up to 100,000 lari. For income exceeding 100,000 lari, the tax can range from 0.8% to 1%. A person must submit a declaration if their family's income in the previous year exceeded 40,000 lari.

Tax benefits and exemptions

The tax legislation of Georgia provides benefits to land tenants who have been using the land for more than two years. Property owners are exempt from paying taxes if they have owned the property for more than two years. When selling real estate, the owner is required to pay a profit tax of no more than 5%, which applies only to residents of Georgia.

Taxes on gifts and inheritance

Gift and inheritance taxes in Georgia provide for exemption from taxation on assets transferred to close relatives, regardless of their value. For third and fourth degree relatives, inheritance tax is not levied on assets valued up to 150,000 lari.

Tax rates for businesses

The following tax rates apply to business in Georgia: income tax - 15%, VAT - 18%, import tax - 0%/5%/12%, excise taxes depending on products and services, property tax up to 1%. Tax on dividends is 5%.

Mandatory contributions to the pension fund

Since 2019, Georgian companies are also required to contribute 2% of salaries to the country's pension fund.