Why Georgia is tax-attractive
Georgia is known for a simple, low-tax system — one reason for the inflow of property investors. Rates for individuals on housing transactions are substantially lower than in many countries.
Below are the main taxes relevant to an investor. Exact figures and reliefs depend on your status (resident/non-resident) and the transaction type, so the final calculation should always be checked with a tax advisor.
Tax on rental income
An individual's income from renting out residential property in Georgia is taxed at a preferential rate (a commonly cited rate for residential rent is around 5%; confirm the current value and conditions).
We build this tax into the net-yield calculation on the Rental strategy page so you see real, not gross, figures.
Tax on sale
Selling property may trigger a capital-gains tax. A common pattern: holding the property beyond a set period (often over two years) exempts the sale from tax; selling earlier is taxed at around 5% on profit. Confirm exact conditions.
For flipping this matters: the holding period directly affects the final return, and we account for it in the financial model.
Property tax
Annual property tax for individuals in Georgia depends on total family income and usually does not exceed 1% of the property's value. For many investors this is a small amount.
Non-residents have their own administrative nuances — we help navigate these as part of deal support.
FAQ
Do I pay tax if I'm a non-resident?
Income sourced in Georgia (e.g. rent from Georgian property) is generally taxed in Georgia regardless of residency. Confirm details and possible credits in your home country with an advisor.
How to reduce tax on sale?
Often it is enough to hold for the minimum period after which the sale is tax-exempt. This is planned in advance in the investment model.