Tourist Tax in Georgia
RS (Revenue Service of Georgia) · VAT (Value-Added Tax) · Bed tax in Georgia · Occupancy tax Georgia · City tax Georgia · Hotel tax Georgia
Definition
In Georgia, there is currently no municipal or national statutory tourist tax (city occupancy tax) charged per night to visitors. Host and hotel operators are not required to collect guest bed taxes. Instead, real estate investors and accommodation providers fulfill their fiscal obligations strictly through standard national income tax regimes, such as the 5% flat residential rental tax or regular corporate tax frameworks.
In detail
Overview of Tourist Taxation in Georgia
Unlike many international tourism hubs across Western Europe or North America, the Republic of Georgia does not levy a municipal occupancy tax, city tax, or per-night taxe de séjour on visitors staying in hotels, guest houses, or short-term residential rentals. The Georgian tax framework prioritizes administrative simplicity to attract foreign investment and encourage tourism growth.
Because there is no separate bed tax collected at checkout, hospitality providers and individual real estate hosts do not act as municipal tax collection agents for guest stays.
Fiscal Obligations for Short-Term Rental Hosts
While guests are not charged a tourist tax, property owners generating revenue from short-term rentals (e.g., via Airbnb, Booking.com, or direct bookings) are subject to Georgian national tax law enforced by the Revenue Service of Georgia (RS.ge):
- 5% Flat Residential Rental Tax: Under Article 81 of the Tax Code of Georgia, physical persons who rent residential space for living purposes without providing additional commercial hotel services can elect to pay a flat 5% tax on gross rental income without expense deductions.
- Standard Individual Income Tax (20%): If a host offers commercial hotel-style services (e.g., daily cleaning, breakfast, concierge, staff services), the income may be classified as active business income rather than passive residential lease income, subjecting net or gross proceeds to standard personal income tax rules.
- Corporate Income Tax (Estonian Model): Corporate entities operating apartment-hotels or commercial hospitality portfolios pay 15% corporate tax only upon the distribution of dividends, with non-distributed reinvested profits remaining untaxed.
Value-Added Tax (VAT) Considerations
Standard residential property leases in Georgia are generally exempt from Value-Added Tax (VAT). However, commercial accommodation services provided by registered VAT payers (entities exceeding the {{data:vat_threshold_gel}} annual turnover threshold) may trigger an 18% VAT obligation on commercial hospitality transactions. For individual property investors leasing residential units, short-term rentals typically operate under the simplified income tax rules without VAT registration, provided commercial hotel service thresholds are not breached.
Regulatory Landscape and Municipal Proposals
Although local governments in major tourist destinations such as Tbilisi and Batumi have occasionally debated the introduction of municipal resort or tourist fees, no legislative framework establishing local bed taxes exists in Georgia today. All tax collection remains centralized under the national Tax Code of Georgia.
Georgian context
In Georgia, municipalities do not possess autonomous authority to create local city taxes or per-night occupancy fees independently of national tax legislation. Consequently, real estate investors operating short-term rentals in Tbilisi, Batumi, Gudauri, or Bakuriani do not collect city taxes from international tourists. Investors must focus entirely on national compliance via RS.ge, utilizing the beneficial 5% flat rental tax rate where applicable, or registering standard corporate structures.
Real example
A foreign investor owns a studio apartment in Batumi and generates {{data:annual_gross_income_usd}} per year in short-term bookings through Airbnb. Guests booking the property pay no additional municipal tourist tax or per-night bed fee on their invoice. At the end of the tax period, the investor files a declaration with the Revenue Service of Georgia (RS.ge) under the simplified residential rental regime and pays 5% of gross revenue ({{data:tax_due_usd}}) directly to the state treasury.
Common mistakes
- ×Adding an unauthorized city tax or per-night surcharge to guest invoices in Georgia.
- ×Assuming the 1% Small Business Status applies automatically to passive short-term residential rental income.
- ×Failing to register short-term rental activity with the Revenue Service of Georgia (RS.ge).
- ×Confusing commercial hotel service operations (taxed up to 20%) with pure residential leasing (taxed at 5%).
Frequently asked questions
Does Georgia charge a municipal tourist tax or city bed tax to hotel guests?
No. Georgia does not levy any statutory per-night city tax, tourist tax, or municipal bed fee on visitors staying in hotels or residential short-term rentals.
How is short-term rental income taxed for property owners in Georgia?
Individual hosts renting residential property without providing daily hotel services typically qualify for a flat 5% tax on gross rental income. If active commercial hotel services are provided, standard individual (20%) or corporate income tax rules apply.
Can I use the 1% Small Business Status for my short-term rental property in Georgia?
Generally, no. Passive rental income from real estate is specifically excluded from the 1% Small Business tax regime under Georgian law and must be declared under standard rental income rules (such as the 5% flat rate).
Is VAT added to short-term Airbnb rentals in Georgia?
Residential property leases are generally exempt from VAT. However, if a host or management company operates as a registered business entity exceeding the {{data:vat_threshold_gel}} turnover limit and offers commercial hospitality services, 18% VAT may apply.
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