The Complete Guide to Real Estate Taxes in Georgia
What expenses does an owner and investor incur: a full breakdown with figures and examples
Georgia remains one of the most loyal countries for property owners. There is no tax on the purchase of housing, there is no annual property tax for most individuals, and property registration takes only one day. But at the same time, there are nuances that are important to know in advance in order to correctly assess future expenses.
In this article, we analyze in detail the taxes and additional expenses at all stages — purchase, sale, renting out and ownership. The material is based on legislation and real cases handled by the company Sea Inside.
Taxes and Expenses When Purchasing Real Estate: The Complete Guide to Real Estate Taxes in Georgia
Tax on purchase in the context of The Complete Guide to Real Estate Taxes in Georgia
There is no tax on the purchase of real estate in Georgia. That is, neither citizens nor foreigners pay a duty when acquiring housing — in contrast to many countries in Europe or the CIS.
Example for understanding: In Armenia — 2–4%, in Turkey — 4%, in Spain — 6–10%, in Georgia — 0%. This is one of the key advantages that attracts investors.
Registration of the transaction under The Complete Guide to Real Estate Taxes in Georgia
Expenses apply only to registration: standard registration, which takes four working days, costs 50 GEL. Accelerated registration, carried out in one working day, costs 150 GEL. Urgent registration, carried out on the same day, costs 200 GEL.
Registration is paid by the buyer. Most often foreigners choose the accelerated option — it is still cheap compared to almost any other country.
Official source: National Agency of Public Registry
Notary (if required) within The Complete Guide to Real Estate Taxes in Georgia
Transactions in Georgia can be executed without a notary, which also reduces costs. But a notary is required if the transaction is made by power of attorney, the parties do not speak the same language, the buyer or seller is a minor, a mortgage is arranged through a bank. The average cost of a notary is 200–500 GEL.
Translation of documents in relation to The Complete Guide to Real Estate Taxes in Georgia
Rarely exceeds 30–50 GEL. If a contract (10–15 pages) is translated, the price can be up to 120 GEL.
Legal support for buyers following The Complete Guide to Real Estate Taxes in Georgia
Usually costs 300–800 USD, depending on the complexity of the transaction and the number of documents. If the transaction is simple (an apartment from a developer), legal support usually costs less.
Specialists at Sea Inside note: “For the primary market, legal risks are minimal, but legal support helps to avoid mistakes in payment schedules, delivery dates and warranty obligations.”
Additional expenses charged by the developer in The Complete Guide to Real Estate Taxes in Georgia
Some developers have additional fees: the commission for arranging an installment plan ranges from zero to three percent, the fee for registering a contract (MoU) is 50–200 GEL, the fee for servicing a bank account for international transfers is 20–40 USD. Not all developers practice this, but such expenses should be taken into account.
Taxes and Expenses When Owning Property: The Complete Guide to Real Estate Taxes in Georgia
Annual property tax explained through The Complete Guide to Real Estate Taxes in Georgia
In Georgia it exists, but it does not apply to everyone. Individuals pay this tax if the total annual income of the family received in Georgia exceeds 40,000 GEL. That is: if you are a foreigner and do not work in Georgia the tax equals zero. If your income comes only from rent or business abroad the tax equals zero. If you have opened an individual entrepreneur (IE) in Georgia and receive local income higher than 40,000 GEL the tax will apply.
Rates range from 0.05% to 1% and depend on local municipalities.
Official source: Revenue Service of Georgia
For an apartment worth 100,000 USD (approximately 270,000 GEL), the tax will range from 135 to 2,700 GEL per year, but only if the conditions above are met. Most foreign property owners do not pay this tax at all.
Utilities and building services within The Complete Guide to Real Estate Taxes in Georgia
They are not taxes, but they are regular expenses: electricity costs from 0.22 to 0.28 GEL per kilowatt hour, water costs from 2.0 to 3.0 GEL per cubic meter, gas costs 0.56 GEL per cubic meter. For a studio of 25–35 m², expenses are usually 50–120 GEL per month; for a large apartment — 150–300 GEL.
HOA / management company details in The Complete Guide to Real Estate Taxes in Georgia
In resort complexes, maintenance is more expensive. Average rates: in standard complexes the cost is from one to two USD per square meter per month, in premium complexes by the sea — from two and a half to four USD per square meter, in apart-hotels — from three to six USD per square meter.
Example: an apartment of 40 m² in a complex by the sea, with a rate of three USD per square meter, will cost 120 USD per month.
Taxes When Renting Out Property: The Complete Guide to Real Estate Taxes in Georgia
Long-term rent according to The Complete Guide to Real Estate Taxes in Georgia
If you rent out an apartment and are not registered as an entrepreneur, the tax is 5% of income (for individuals). Example: you rent for 1,000 USD, so you pay 50 USD per month. To reduce the tax, many open a small business IE (individual entrepreneur) with a one-percent turnover tax.
IE: tax of only one percent within The Complete Guide to Real Estate Taxes in Georgia
If you have registered as an individual entrepreneur (IE), the rate is one percent of turnover for income up to 500,000 GEL per year. For investors this is the most advantageous solution.
Short-term rent (Booking, Airbnb) in The Complete Guide to Real Estate Taxes in Georgia
There are specifics here: you become a VAT payer if your turnover is higher than 100,000 GEL per year. An IE with one percent is ideal as long as turnover is lower than 500,000 GEL.
Additional expenses: cleaning — 40–70 GEL per change, property management — 15–25% of income, consumables — 50–150 GEL per month.
Taxes and Expenses When Selling Property: The Complete Guide to Real Estate Taxes in Georgia
Capital gains tax explained via The Complete Guide to Real Estate Taxes in Georgia
If the property has been owned for less than two years, a tax applies: 20% of the difference between the purchase price and the sale price. Example: you bought for 80,000 USD, sold for 100,000 USD. The profit is 20,000 USD and the tax is 4,000 USD. If the property has been owned for more than two years the tax equals zero. This is an important point that investors often use.
Agency commissions within The Complete Guide to Real Estate Taxes in Georgia
They are usually paid by the seller: from one to three percent of the property value.
Notary (if required) within The Complete Guide to Real Estate Taxes in Georgia
When selling, a notary may also be required (200–500 GEL).
Valuation certificate in The Complete Guide to Real Estate Taxes in Georgia
If the state suspects that the price has been understated, it may require a certificate from an independent appraiser — 200–400 GEL.
Additional Expenses Often Overlooked: The Complete Guide to Real Estate Taxes in Georgia
Renovation and improvements under The Complete Guide to Real Estate Taxes in Georgia
In new buildings, most apartments are sold in black frame or white frame condition. Average prices: for white frame, full renovation costs 350–550 USD per square meter. For black frame, renovation costs 500–800 USD per square meter.
Furniture and setup in The Complete Guide to Real Estate Taxes in Georgia
A “ready-to-rent” furniture package for a studio costs from 3,000 to 6,000 USD. For a large apartment — from 7,000 to 15,000 USD.
Management company (rental) in The Complete Guide to Real Estate Taxes in Georgia
The average commission is 15–25% of income.
Bank commissions related to The Complete Guide to Real Estate Taxes in Georgia
If the buyer pays from abroad: an international bank transfer costs 20–40 USD, conversion ranges from zero point five percent to one point five percent.
Total Expenses: Summary of The Complete Guide to Real Estate Taxes in Georgia
When purchasing
0% tax
50–200 GEL for registration
200–500 GEL for notary services (if needed)
Legal support (optional but recommended)
When owning
0% tax for most foreigners
1–6 USD per square meter for maintenance
Utilities
When renting out
5% or 1% tax
Management company 15–25%
When selling
0% tax if the property has been owned for more than two years
20% of profit — if earlier
Agency commission
Notary, if necessary
Conclusion: Final Insights from The Complete Guide to Real Estate Taxes in Georgia
Georgia really remains one of the most convenient countries for real estate investors. It has low tax rates, no tax on purchase, transparent rules and clear procedures. But it is important to take into account additional expenses in advance: notary services, management company fees, renovation, registration of IE, and building maintenance.
According to the company Sea Inside, most mistakes made by buyers are related precisely to underestimating additional expenses. Proper budget planning increases the profitability of the property and helps avoid surprises.
If you need to calculate individual expenses or compare properties by real profitability, specialists at Sea Inside will help you select the most advantageous option and calculate the tax burden for your situation.
