Taxes in Georgia: what residents and investors should know

Taxes in Georgia: practical guide for residents and investors 🏠

Buying property or investing in Georgian real estate raises questions about taxes. This guide gives clear, practical information to help you plan without surprises.

Who is a tax resident? 📑

Tax residency determines which of your worldwide or local incomes are taxed in Georgia. It's usually based on how long you stay in the country and where your main interests are located. If you plan to live in Georgia most of the year and use local banking and services, check your status with an accountant — it affects your tax obligations.

Main taxes that matter for property owners 🧾

• Income tax (including rental income)
• Tax on profit / capital gains when selling property
• Property-related municipal charges
• VAT for commercial transactions
• Special regimes for small businesses and self-employed people

Understanding the tax base and allowed deductions is often more important than the headline rate.

Rental income: practical points 💼

Whether you rent long-term or via short-stay platforms, taxes depend on the chosen regime. Tips:

• Keep detailed records of income and expenses (repairs, commissions, utilities).
• Find out if a simplified regime applies or if you should register as a business.
• Consider using a local management company if you manage properties remotely.

Selling property: planning ahead ⚖️

Tax on profit from sales depends on how long you owned the property and your residency status. Practical advice:

• Keep all purchase papers and invoices for improvements.
• Ask an advisor whether to sell as an individual or through a company.
• Consider double taxation agreements if you pay taxes in another country.

VAT and commercial real estate 🏢

If you develop properties or operate commercial rentals (offices, retail), VAT registration may be required. VAT rules affect commercial sales and some leases.

Municipal fees and local charges 🏛️

Some municipalities charge annual registration or land fees. They are usually modest but should be included in ownership cost planning.

Practical steps for residents and investors ✅

1. Get a local tax number and register if you will receive taxable income.
2. Keep organized records: contracts, bank statements, receipts.
3. Consult a local tax specialist before major transactions.
4. Consider ownership structure: personal ownership, company, or management agreements.
5. Use local property platforms to compare offers and market prices, for example https://buyhome.ge/en/search.

Tips and examples 🌟

• Long-term rentals often suit simpler accounting and allow expense deductions.
• Short-term rentals may require different registration or reporting.
• Investors with multiple properties should consider professional management and bookkeeping to optimize taxes and reduce risks.

Conclusion and next steps 🤝

Taxes in Georgia are manageable with proper planning: check residency status, select the right tax regime, and keep clear records. If you are searching for a property to live in or invest, we can help evaluate tax implications and select the best option.

Want help choosing a property and understanding taxes? Contact us — we’ll guide you through options and document checks. Start your search at https://buyhome.ge/en or view listings at https://buyhome.ge/en/search. 📞