Property taxes in Georgia: what investors need to know

Article outline — what we'll cover

• Typical costs and taxes at purchase
• Ownership taxes and recurring charges
• Taxation of rental income
• Buying as an individual vs a company
• Possible tax incentives and special regimes
• Due diligence checklist and professional help
• Practical examples and BuyHome recommendations

Introduction

Investing in Georgian real estate is attractive to many foreigners. Beyond location and price, taxes influence net returns and legal structure. This guide explains the main tax considerations for property purchases, ownership and rental activity, and offers practical steps to reduce surprises. 🏠📌

Common costs when buying property

• Registration fees and notary expenses are standard parts of closing a deal.
• Bank transfer fees and costs related to international payments may apply.
• Transaction-related taxes depend on the seller and property type.

Tip: Keep a contingency budget for miscellaneous expenses like translations, certified copies, or advisory fees.

Ownership taxes and recurring charges

Local municipalities may levy property-related charges; their existence and level vary by location and property category. Many investors find the overall recurring tax burden in Georgia moderate compared to other countries, but this is context-dependent.

Best practice: Check with local authorities or your accountant whether the specific property has annual charges and how they are calculated.

Taxation of rental income

Rental income is typically taxable for individuals and legal entities. Important considerations:

• Maintain clear records of rental income and related expenses.
• Eligible expenses (repairs, management fees, insurance) may reduce taxable income.
• If you work with an agency, keep contracts and financial reports for your records.

Advice: Register rental income correctly; transparent reporting reduces future risks and fines.

Individual ownership vs corporate ownership

Owning property through a company may help structure investments and account for costs, but it introduces corporate accounting and compliance. Georgia’s corporate tax rules have characteristics that may benefit reinvestment strategies, but distributed profits are typically subject to taxation.

Considerations:

• Personal ownership is often simpler for a single residential unit.
• A corporate vehicle can be useful for multiple assets or commercial properties — consult a tax advisor to compare scenarios.

Tax incentives and special regimes

Georgia sometimes offers incentives related to construction, rehabilitation, or tourism development. Depending on the project and location, these may affect tax treatment or reporting requirements.

Tip: Investigate whether your property or development qualifies for any local or national incentives before finalizing the purchase.

Due diligence checklist

1. Obtain an extract from the property registry and verify ownership.
2. Check land status and any encumbrances (easements, leases).
3. Confirm that local taxes and utilities have been paid by the seller.
4. Discuss ownership structure (individual vs company) with a tax professional.
5. Verify any outstanding debts or fines attached to the property.

How BuyHome can help

We assist with property search, negotiations, and basic tax-related advice. For detailed tax optimisation or complex corporate structures, we work with experienced local accountants and lawyers and can connect you to them.

Final practical tips

• Include tax planning in your investment analysis before signing contracts.
• Keep thorough records of all income and expense items related to the property.
• Discuss scenarios for personal vs corporate ownership with professionals.

If you'd like tailored advice to structure your purchase or evaluate tax implications, contact us at https://buyhome.ge/en — we will help you choose the best property and ownership model. 📧