How to Legally Transfer Rental Income Abroad

Introduction

If you earn rental income in Georgia and plan to transfer funds abroad, do it legally and with clear documentation. This guide outlines practical steps: choosing transfer methods, preparing documents, handling taxes, and minimizing risks.

Quick outline (structure) ✅

• Understand tax status of rental income
• Choose the right transfer method
• Bank transfers: documentation and requirements
• International payment services: pros and cons
• Corporate structures and payment flow
• Accounting, reporting and record keeping
• Practical tips and a checklist

1. Understand tax and legal context 📌

Ensure rental income is registered and declared in Georgia. Undeclared income may lead to fines or problems later. Treatment depends on whether income is reported personally, through a sole proprietor, or via a company.

Tip: consult a local accountant experienced with foreign transfers and non‑resident issues.

2. Bank transfers — the most transparent option 🏦

A bank transfer through a Georgian bank is usually the most reliable and compliant approach. Banks will ask for supporting documents: lease agreements, handover acts, tax declarations and transfer requests.

Pros:

• Clear audit trail for tax and legal checks
• Ability to use SWIFT and established correspondent banks

Cons:

• Bank commissions and intermediary fees
• AML/KYC checks that require time and documentation

Practical advice: agree with your bank in advance on required documents and recommended currency for the transfer.

3. International payment services and e‑wallets 🌍

Payment platforms can be fast and convenient for recurring smaller transfers. They may be less straightforward for tax reporting.

Recommendations:

• Use business accounts where possible
• Keep exported statements for accounting
• Keep lease contracts and transaction confirmations as backups

4. Corporate structures: when to consider a company 🏢

Some owners create a company to hold and manage rental property. This can simplify operations or provide benefits, but requires careful planning:

• Choose the right jurisdiction and company form
• Understand tax implications of dividends and transfers
• Factor in extra reporting and administrative costs

Tip: compare administrative costs against potential benefits with your adviser before setting up a company.

5. Documents and accounting — basic safety kit 📁

Essential documents to keep:

• Lease agreement and handover acts
• Bank and cash statements
• Tax returns and payment receipts
• Powers of attorney and management contracts if applicable

Store documents both digitally and in paper for recommended retention periods under Georgian law.

6. Practical tips and checklist ✅

• Confirm tax status and declarations first.
• Compare bank transfers vs payment services.
• Check fees and exchange rates before sending.
• Keep a separate business account for rental flows.
• Keep clear contracts and issue receipts for each tenant.
• Export and save statements monthly for your accountant.
• For significant transfers, review corporate or trust solutions with a lawyer.

Example scenario (no exact numbers) ✏️

An owner collects rent into a dedicated Georgian account, issues receipts, pays applicable taxes, and transfers net proceeds abroad via bank transfer with attached lease and tax documents — creating a clear chain of evidence.

Conclusion

Transferring rental income abroad legally is straightforward when you set up clear accounting, use transparent payment channels, and consult professionals for tax and legal questions. If you need help finding property, managing tenants, or organizing payments, explore our listings at https://buyhome.ge/en or contact our team.

We can advise on the best way to handle your transfers and help with property management. Contact BuyHome for a friendly consultation.