What Taxes Residents of Georgia Have to Pay

What taxes residents of Georgia have to pay — clear guide 🇬🇪

If you're moving to Georgia or investing in real estate, understanding taxes helps avoid surprises. This guide outlines the main tax types, how they affect buyers and landlords, and practical steps to protect your investment.

1. Tax residency — the starting point

Whether Georgia taxes your worldwide income depends on your tax residency. For anyone buying property, this status affects how rental income, dividends and other earnings are declared. Confirm your status with a tax advisor to avoid misinterpretation.

2. Main taxes to know

• Personal income tax: applies to income of individuals. Residency and income source matter for how it's applied.
• Corporate tax: if you own property through a company, corporate rules and profit distribution taxes are relevant.
• VAT (value added tax): can apply to purchases from developers or registered businesses; private-to-private sales are often treated differently.
• Property taxes and municipal charges: many municipalities have minimal or no annual property tax, but local fees and charges can exist.
• Transactional taxes: depending on seller's legal status, there may be specific reporting or fees when transferring property.

3. Rental income and reporting 🏡

Rental income must be declared. If you live in Georgia and rent out a property, report the income according to local rules. Investors should consider whether to hold property personally or via a company — each approach has tax and administrative consequences.

Practical tip: keep records of rental contracts, receipts and expenses to support your declarations.

4. Buying and selling property — what to watch

• Check whether the price from a developer includes VAT and whether the developer is a VAT-registered entity.
• Private sales may not carry VAT, but other implications for capital treatment can apply.
• When selling, consider tax treatment of any gain and whether exemptions apply after long-term ownership.

Tip: request seller documentation and conduct a legal title check before the transaction.

5. Preferential regimes and small business options

There are simplified tax regimes designed for micro and small businesses. If you plan to rent multiple properties or run short‑term rental activities at scale, a simplified business status may reduce tax burden and simplify reporting.

6. Tax planning for investors

• Decide whether to hold property personally or within a corporate structure.
• Evaluate tax on dividends, retained earnings and potential sale proceeds.
• Consider bilateral tax treaties if you have foreign income.

Example: an investor with several rental units may find benefits in a company structure for liability and specific tax treatments, depending on long‑term plans.

7. Records, reporting and professional help ✅

• Keep sales contracts, payment proofs, rental agreements and acceptance acts.
• Work with a local accountant or tax lawyer for regular reporting and when circumstances change.
• If you need assistance finding or managing property, see our listings: https://buyhome.ge/en/search

Conclusion — simple steps to reduce uncertainty

1) Clarify your tax residency.
2) Ask about VAT and seller status before signing.
3) Decide on personal vs corporate holding.
4) Keep detailed records.
5) Consult professionals for tailored planning.

If you’re looking to buy property in Georgia or want help assessing tax implications for a specific deal, contact our team. We’ll help you choose the right property and explain tax implications in practical terms.