How the Tax System Works in Georgia

Quick guide: Taxes in Georgia for buyers and investors 🇬🇪

Georgia's tax system aims to be transparent and investor-friendly. For anyone buying, investing in, or moving to Georgia, understanding tax rules helps make confident decisions. This guide explains the main tax types and practical implications for real estate.

Key principles and who collects taxes

Taxes are administered by national authorities and local municipalities. For property buyers it's essential to know which taxes and fees apply at the transaction stage and during ownership. Investors should plan for tax effects on yields and structure.

VAT and property transactions 🧾

Value-added tax may apply to certain property sales and construction services. When considering a new development or commercial purchase, clarify whether VAT is included in the advertised price and how it will be handled in the sales contract.

Practical tip: get written confirmation in the contract about VAT treatment — included, excluded, or to be paid separately.

Personal income tax and tax residency 👥

Tax residents are generally taxed on worldwide income while non-residents are taxed only on income sourced in Georgia. If you plan to live or earn in Georgia, confirm your residency status to avoid unexpected taxation.

Example: rental income from a Georgian property must be reported according to your residency status and local filing rules.

Corporate tax and investor considerations 🏢

If you invest through a company, corporate tax rules determine how profit is taxed and when. The choice between holding property personally or through a legal entity affects tax efficiency and liability.

Advice: consult a tax advisor when planning ownership structure, especially for multiple properties or larger investments.

Property taxes, registration fees and local charges 🌍

Local fees and registration costs may apply when registering property or changing ownership. These transactional costs should be included in your purchase budget.

Action point: request a full list of expected fees from the seller or real estate agent before committing.

Rental income and short-term letting 🏡

Income from long-term leasing and short-term platforms is taxable and requires proper record-keeping. Hosts using online platforms should keep invoices and rental agreements to support declared income.

Recommendation: maintain separate accounting for each property and retain contracts and receipts.

Practical checklist for buyers and investors ✅

1. Conduct tax-focused due diligence before signing an agreement.
2. Clarify the seller’s tax position and any existing obligations.
3. Decide on the ownership structure (personal vs company) with tax advice.
4. Budget for registration fees and local charges.
5. Keep accurate records and file declarations on time.

Common mistakes to avoid

• Underestimating tax-related costs when calculating returns.
• Skipping professional tax advice.
• Failing to properly report rental or platform income.

Avoid these by preparing the transaction thoroughly and engaging local professionals.

Final thoughts and next steps 👣

Taxes are an important factor when buying property or investing in Georgia. Take a structured approach: verify the property, plan ownership structure, estimate tax burden and consult specialists. If you need help finding property or understanding tax implications, the BuyHome team can assist — browse listings on https://buyhome.ge/en/search or contact us for personal guidance.