How Georgia's Tax System Works — 2025

Quick guide to Georgia's tax system in 2025 🇬🇪

Georgia remains attractive for property buyers and investors thanks to a relatively transparent and flexible tax environment. In 2025 the system keeps focusing on a balance between simplicity and competitiveness, with special regimes that can benefit buyers, landlords and businesses.

Main types of taxes to know

• Personal income taxes and residency rules
• Business taxes and special regimes
• Value added tax and indirect taxes
• Local property charges and annual duties
• One-off state fees at registration and transfer

Understanding which category applies to your situation is the first step. Buying to live, buying to rent, and buying to develop are taxed differently.

Personal taxation and residency

Tax residency affects how your global income is treated. If you plan long-term residence, clarify residency rules early and consider how they interact with tax obligations in your home country.

Practical tip:

• Consult a tax professional before moving to confirm your status and reporting requirements

Rental income and property investments

Rental income is taxable, but the calculation method varies depending on whether you report as an individual or via a company. Investors often choose a legal entity when managing multiple properties to streamline accounting and take advantage of business regimes.

What to do:

• Keep clear records of rent and allowable expenses
• Compare personal reporting versus company structure
• Ask which costs are deductible for your case

Business regimes and investor incentives

Georgia offers several regimes for businesses, including simplified schemes for small enterprises and incentives for technology and export-focused firms. These regimes may substantially change how much you pay and how you report.

Investor advice:

• Check whether forming a local company makes sense for your portfolio
• Explore special statuses for IT and export activities

VAT, purchases and construction

VAT can apply to new constructions, commercial transactions and certain services. Secondary market sales are often treated differently. When buying a developer property, check VAT applicability and whether it is included in the price.

Checklist:

• Ask the seller about VAT and registration costs
• Budget for one-off fees related to transfer and registration

Local charges and annual obligations

Municipalities may levy local property charges. Generally, annual ownership costs for apartments in Georgia are moderate, but check regional rules and past payments on the property.

Quick checks:

• Verify outstanding local charges with the seller
• Confirm any municipal obligations attached to the property

Incentives and special programs

Special regimes exist for IT companies and export businesses, which can reduce business tax burdens and attract entrepreneurs. Small business schemes also simplify administration.

Steps to reduce risk when buying

1. Define the purpose of the purchase and the expected holding period.
2. Choose the appropriate legal structure for ownership.
3. Obtain a preliminary tax opinion from a specialist.
4. Keep transparent accounting and legal documents.

Final thoughts

Georgia offers a favorable environment for property acquisition and investment thanks to clear tax options and targeted incentives. Still, tax outcomes depend on the specifics of each deal, so expert advice is essential.

If you are looking to buy or invest in Georgian real estate, BuyHome can help you understand tax implications and choose the right structure for your purchase. Contact us for assistance and tailored support. https://buyhome.ge/en