ROI Calculator

Real estate return on investment in Georgia

Model the full return of a Georgian investment over several years: net rental cashflow, resale capital gain, exit costs and taxes. The simulator applies the Georgian rule exempting capital gains after 2 years of holding.

Initial investment

Property price

USD

Closing costs and notary

USD

In Georgia, budget 200 to 500 USD all-in for a new-build purchase.Furniture

USD

Holding period

Holding period (years)

After 2 years, resale capital gain is fully exempt from Georgian tax.

Rental income

Annual net rental cashflow

USD

Use the output of the Rental Yield Calculator for this value.

Market

Annual property appreciation

Historical average 6 to 10% in Batumi and Tbilisi over the last 5 years. Stay cautious: 4 to 6% for a conservative projection.

Resale

Exit costs (agency, marketing)

Budget 2 to 3% of resale price for marketing by a local agency.

Results

Total investment: $94,400
Cumulative cashflow over period: $30,000
Estimated resale value: $120,440
Capital gains tax: $0
Exit costs: $3,613
Net resale proceeds: $116,827
Total gain: $52,427
Money multiple: 1.56×
Annualized IRR (CAGR): 9.24 %

Indicative estimates. Past prices do not guarantee future performance. The simulator applies Georgian 2025 tax law: 5% capital gains before 2 years, exempt after.

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2-year capital gains exemption

Georgian law exempts any capital gain realized by an individual on the resale of real estate held for at least 2 years. This rule, unique in Europe, makes Georgia particularly attractive for medium-term investors.

IRR components

The IRR (annualized internal rate of return) combines annual cashflows and net resale proceeds. A Batumi or Tbilisi investment targets an IRR of 12 to 18% over 5 to 7 years, combining net rental yield (7 to 10%) and property appreciation (4 to 8%).

What the simulator simplifies

The simulator assumes constant annual cashflow. Reality includes a 3 to 6 month launch phase with reduced occupancy, then a plateau. It does not model French or European tax on foreign income nor double-tax treaties.