Property Tax in Georgia
Georgian Real Estate Tax · Annual Real Estate Tax Georgia · Property Wealth Tax Georgia
Definition
Property tax in Georgia is an annual local municipal tax levied on real estate assets and land owned by physical individuals and legal entities. For individuals, tax liability and rates—ranging from 0% to 1.0% of property market value—are determined by annual worldwide household income, whereas corporate property tax is capped at 1% of book value.
In detail
Overview of Georgian Property Tax
Property tax in Georgia is governed by the Tax Code of Georgia and administered locally by municipal authorities. Unlike countries with flat annual property tax rates, Georgia uses a progressive, income-tested system for physical persons (individuals) and a asset-value system for legal entities (corporations).
Individual Property Tax Rates & Income Thresholds
For individual property owners—including non-resident foreign investors—the annual tax rate on real estate (excluding land) depends entirely on the total worldwide household income earned by the owner and their family during the preceding calendar year:
- Worldwide income below 40,000 GEL (approx. $15,000 USD): Exempt from property tax on real estate (0% tax rate).
- Worldwide income between 40,000 GEL and 100,000 GEL: Tax rate ranges from 0.05% to 0.2% of the property's estimated market value.
- Worldwide income exceeding 100,000 GEL: Tax rate ranges from 0.8% to 1.0% of the property's estimated market value.
Non-resident property owners are required by law to declare their global household income to the Revenue Service of Georgia (RS.ge) to determine their applicable tax bracket.
Land Tax Rates
Land tax is assessed separately from buildings and applies regardless of income thresholds:
1. Non-Agricultural Land: Assessed per square meter. Base municipal rates vary depending on location and local municipal coefficients (e.g., central Tbilisi vs. rural regions).
2. Agricultural Land: Taxed at fixed per-hectare rates based on quality, category, and administrative region.
Corporate Property Tax
Legal entities operating in Georgia are subject to property tax capped at 1.0% of the net average annual book value of their taxable fixed assets, uninstalled equipment, and real estate. If property values are not recorded according to International Financial Reporting Standards (IFRS), an independent professional appraisal is required to establish market value.
Declaration and Payment Deadlines
- Filing Deadline: Annual property tax declarations must be submitted electronically via the Revenue Service portal by November 1 of the current calendar year.
- Payment Deadline: The calculated tax must be paid in full to the state treasury by November 15 of the same calendar year.
Georgian context
In Georgia, property tax is uniquely tied to worldwide family income rather than property location or resident status alone. Foreign investors buying apartments in Tbilisi or Batumi must report their global household earnings to the Revenue Service of Georgia to confirm eligibility for the 0% threshold (income under 40,000 GEL) or pay up to 1% annually. Land tax applies separately from building tax. Real estate purchases do not include land tax exemptions, and investors seeking residency through the $150,000 USD property threshold remain subject to standard local property tax filing obligations.
Real example
A non-resident investor buys a residential apartment in central Tbilisi valued at $120,000 USD (~320,000 GEL). During the preceding tax year, the owner's global household income was $65,000 USD (~175,000 GEL), exceeding the 100,000 GEL upper threshold. Consequently, the local municipality applies the maximum tax rate of 1.0% on the market value. The annual property tax owed is $1,200 USD (~3,200 GEL). The investor files an electronic declaration with RS.ge by November 1 and pays the amount before November 15.
Common mistakes
- ×Assuming non-resident foreign citizens are exempt from filing property tax declarations in Georgia.
- ×Failing to declare worldwide income, resulting in automatic assignment to the maximum 1% tax bracket.
- ×Confusing annual property tax with the 5% rental income tax or capital gains tax.
- ×Believing that property tax is automatically included in municipal utility bills or purchase fees.
- ×Overlooking land tax liabilities attached to standalone residential homes or commercial land plots.
Frequently asked questions
Do foreign citizens pay property tax in Georgia?
Yes. Foreign citizens owning real estate or land in Georgia are subject to the same annual property tax regulations as Georgian citizens. Tax rates depend on total worldwide household income.
What household income threshold exempts individuals from property tax in Georgia?
Individuals whose total worldwide household income in the previous calendar year was below 40,000 GEL (~$15,000 USD) are exempt from paying tax on residential real estate (0% rate).
When is the deadline to declare and pay property tax in Georgia?
Property tax declarations must be submitted electronically to the Revenue Service of Georgia by November 1, and the tax liability must be settled by November 15 of the tax year.
Is VAT applied to property tax in Georgia?
No. Annual property tax is a municipal asset tax. Value Added Tax (VAT) is 18%, applies to developer sales of new-build real estate, and is always included in advertised developer pricing, completely separate from annual property tax.
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