Airbnb Regulation in Georgia

Regulatory Framework for Short-Term Rentals

Short-term rentals (STRs) operating via platforms such as Airbnb and Booking.com in Georgia fall under the regulatory authority of the Ministry of Finance of Georgia, the Revenue Service (RS.ge), and national property legislation. Unlike major North American or European metropolitan areas, Georgia does not require property owners to obtain a specific municipal short-term rental license, nor does it enforce caps on the number of days a residential unit can be rented per calendar year.

Tax Obligations for Short-Term Rental Hosts

Taxation is the primary regulatory mechanism for Airbnb operations in Georgia. Short-term rental income is governed by the Tax Code of Georgia under distinct taxation frameworks depending on how the activity is structured:

• Standard Concessional Rental Tax (5%): Under Article 81 of the Tax Code, individual property owners renting residential property for living purposes without providing auxiliary hotel-style services (such as daily cleaning, breakfast, or concierge) may qualify for a 5% flat tax rate on gross income, without expense deductions.
• Standard Personal Income Tax (20%): If the short-term rental operation provides full hotel-like services or is conducted by a non-registered entity operating commercial daily rentals, the net or gross income is taxed at the standard 20% flat personal income tax rate.
• Small Business Status Exclusion (1%): Georgian tax law explicitly excludes real estate rental activities from Small Business Status (the 1% preferential tax rate for individual entrepreneurs). Attempting to declare Airbnb rental income under Small Business Status is a violation of tax regulations.
• Value-Added Tax (VAT) Threshold: If an owner's aggregate gross revenues across all commercial activities exceed 100,000 GEL in any consecutive 12-month period, mandatory registration for 18% VAT is triggered.

Condominium and HOA Rules

Under the Law of Georgia on Occupants' Association (Condominium Law), co-owners of an apartment building hold collective rights over common areas (hallways, elevators, courtyards). While individual unit ownership grants absolute rights to lease residential space, Homeowners' Associations (HOAs) can establish internal rules regarding:

• Security systems, building access control, and electronic key fobs.
• Noise ordinances and maintenance fee allocations for high-frequency common area usage.
• Explicit restrictions on commercial access if specified in the building's registered charter.

Tourist Tax and Registration

Currently, Georgia does not levy a municipal tourist tax or occupancy tax on platform bookings. However, international hosts must register with the Revenue Service (RS.ge) to obtain a Tax Identification Number (TIN) and submit monthly income tax declarations online.

An international investor purchases an apartment in Tbilisi and lists it on Airbnb, generating an average annual gross revenue of {{data:airbnb_gross_revenue_gel}} GEL. The investor registers with the Revenue Service (RS.ge) as an individual property owner. Because the property is rented as a residential dwelling and gross turnover remains below the 100,000 GEL mandatory VAT threshold, the owner files monthly electronic tax returns and pays a flat 5% tax on gross revenue, incurring an annual tax liability of {{data:airbnb_tax_liability_gel}} GEL without needing to maintain complex expense accounts.