Question 1

What is the tax rate on rental income?

Accepted Answer

Georgia applies a final withholding tax of 5% on gross rental income for individuals, declared monthly via rs.ge. No other charges or social contributions are due on this income.

Question 2

Is there an annual property tax?

Accepted Answer

Yes, but only for household annual incomes exceeding 40,000 GEL. The rate varies from 0.05% to 1% of the cadastral value, determined by the municipality. Most foreign investors are not subject to this tax.

Question 3

How is capital gains tax applied on resale?

Accepted Answer

No capital gains tax is due if the property is held for more than 2 years by an individual. Before 2 years, a 5% tax applies to the net gain. Companies are subject to a 15% corporate income tax.

Question 4

Does VAT apply to new builds?

Accepted Answer

The 18% VAT is included in the price displayed by the developer and is not recoverable for residential use. A company status with commercial rental activity may allow for recovery under certain conditions.

Question 5

Are there inheritance taxes?

Accepted Answer

Georgia does not apply any inheritance or gift taxes between close relatives. A simple notarized act is sufficient to transfer the property to heirs, with re-registration in the public registry costing approximately 200 USD.

Question 6

How do I declare my Georgian income in France?

Accepted Answer

The 2007 France-Georgia tax treaty assigns taxation to Georgia and neutralizes it in France via a tax credit equal to the French tax on this income. Form 2047 must be attached to the declaration.

Question 7

Is the Georgian self-employed status advantageous?

Accepted Answer

The Small Business status imposes a 1% tax on turnover up to 500,000 GEL per year. It does not apply to individual rental income but becomes relevant for property management or concierge activities.

Question 8

Do I need to declare my Georgian bank account?

Accepted Answer

Yes, any French tax resident must declare their foreign accounts (form 3916) or risk a fine of EUR 1,500 per undeclared account. To date, Georgia does not automatically exchange bank data with the EU.

Question 9

Is Georgia on a tax blacklist?

Accepted Answer

No. Georgia is neither on the EU nor the OECD blacklist or grey list. It has signed the BEPS convention and adopted international transparency standards.

Question 10

Can I deduct expenses from my rental income?

Accepted Answer

The 5% regime applies to gross income without deduction. A 20% regime with actual deduction exists but is rarely advantageous for a foreign individual.

Question 11

How does a French tax resident declare their Georgian rental income?

Accepted Answer

A French tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided for by the convention with Georgia. The 5% Georgian tax generally provides a tax credit in the country of residence.

Question 12

How does a Belgian tax resident declare their Georgian rental income?

Accepted Answer

A Belgian tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided for by the convention with Georgia. The 5% Georgian tax generally provides a tax credit in the country of residence.

Question 13

How does a Swiss tax resident declare their Georgian rental income?

Accepted Answer

A Swiss tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided for by the convention with Georgia. The 5% Georgian tax generally provides a tax credit in the country of residence.

Question 14

How does a Canadian tax resident declare their Georgian rental income?

Accepted Answer

A Canadian tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided for by the convention with Georgia. The 5% Georgian tax generally provides a tax credit in the country of residence.

Question 15

How does a Moroccan tax resident declare their Georgian rental income?

Accepted Answer

A Moroccan tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided for by the convention with Georgia. The 5% Georgian tax generally provides a tax credit in the country of residence.

Question 16

How does a Tunisian tax resident declare their Georgian rental income?

Accepted Answer

A Tunisian tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided for by the convention with Georgia. The 5% Georgian tax generally provides a tax credit in the country of residence.

Question 17

How does an Algerian tax resident declare their Georgian rental income?

Accepted Answer

An Algerian tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided for by the convention with Georgia. The 5% Georgian tax generally provides a tax credit in the country of residence.

Question 18

How does a Senegalese tax resident declare their Georgian rental income?

Accepted Answer

A Senegalese tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided for by the convention with Georgia. The 5% Georgian tax generally provides a tax credit in the country of residence.

Question 19

How does an Ivorian tax resident declare their Georgian rental income?

Accepted Answer

An Ivorian tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided for by the convention with Georgia. The 5% Georgian tax generally provides a tax credit in the country of residence.

Question 20

How does a Lebanese tax resident declare their Georgian rental income?

Accepted Answer

A Lebanese tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided for by the convention with Georgia. The 5% Georgian tax generally provides a tax credit in the country of residence.

Question 21

How does an Emirati tax resident declare their Georgian rental income?

Accepted Answer

An Emirati tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided for by the convention with Georgia. The 5% Georgian tax generally provides a tax credit in the country of residence.

Question 22

How does a Saudi tax resident declare their Georgian rental income?

Accepted Answer

A Saudi tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided for by the convention with Georgia. The 5% Georgian tax generally provides a tax credit in the country of residence.

Question 23

How does a Qatari tax resident declare their Georgian rental income?

Accepted Answer

A Qatari tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided for by the convention with Georgia. The 5% Georgian tax generally provides a tax credit in the country of residence.

Question 24

How does a Turkish tax resident declare their Georgian rental income?

Accepted Answer

A Turkish tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided for by the convention with Georgia. The 5% Georgian tax generally provides a tax credit in the country of residence.

Question 25

How does a German tax resident declare their Georgian rental income?

Accepted Answer

A German tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided for by the convention with Georgia. The 5% Georgian tax generally provides a tax credit in the country of residence.

Question 26

How does an Italian tax resident declare their Georgian rental income?

Accepted Answer

An Italian tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided for by the convention with Georgia. The 5% Georgian tax generally provides a tax credit in the country of residence.

Question 27

How does a Spanish tax resident declare their Georgian rental income?

Accepted Answer

A Spanish tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided for by the convention with Georgia. The 5% Georgian tax generally provides a tax credit in the country of residence.

Question 28

How does a Portuguese tax resident declare their Georgian rental income?

Accepted Answer

A Portuguese tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided by the convention with Georgia. The Georgian tax rate of 5% generally provides a tax credit in the country of residence.

Question 29

How does a British tax resident declare their Georgian rental income?

Accepted Answer

A British tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided by the convention with Georgia. The Georgian tax rate of 5% generally provides a tax credit in the country of residence.

Question 30

How does an American tax resident declare their Georgian rental income?

Accepted Answer

An American tax resident declares their rental income in their country and applies the double taxation elimination mechanism provided by the convention with Georgia. The Georgian tax rate of 5% generally provides a tax credit in the country of residence.

Taxation