Maintenance of real estate in Georgia ✅ Taxes on purchase, sale, ownership. ✅ How much does it cost to maintain an apartment in Georgia? | Sea Inside
Georgia’s tax system is considered one of the most liberal in the world. In the World Bank index “Ease of doing Business-2020”, the country is in 7th place. In 2005, a reform was carried out here, the purpose of which was to allow the economy to grow and business to develop. Judging by the results, the approach paid off: international investments flowed into the country.
Taxes in Georgia
Before the reform, there were 21 types of payments to the state budget in the country, today there are six:
1. Income 20% (including 2% pension), for individuals
2. Profit tax (15%), for legal entities
3. VAT
4. Excise duty
5. For import
6. On property
What is a real estate tax?
This is a type of mandatory payments to the state budget that exists in more than 100 countries, which the owner of an apartment or house is obliged to make. There are two types: for purchase and ownership (for example, for purchase in Israel 9%, in Greece 24%, and for ownership in Greece $9 per 1 sq.m, in Israel more than 700%). What are the taxes on real estate in Georgia? None. This is one of the few countries where there are no tax payments either for the purchase or for the ownership of real estate (regardless of who is buying: a citizen of the country or a foreigner).
The only payment is the registration fee. You can get a house in your name for $17. The standard renewal period is 4 days. However, the buyer can speed up the registration for an additional fee. The data will be entered into the Registry the next day for $60 or the same day for $100. For example, in Croatia, registration will cost $14,000 and last up to 2 months.
How to get around Property taxes in Georgia
There is no need to bypass them, because they are already as simplified as possible. They need to be paid only if the owner plans to earn money by renting out the house. In this case, he must pay 5% of the profit to the state budget (this applies equally to both citizens and foreigners). Perhaps this is the smallest real estate tax. In terms of money, $370 (in Spain $ 2,100, in Croatia $2,220).
The utility costs include payment for water, electricity, gas, Internet. On average, a communal apartment with an area of 90 sq.m will cost about 200-250 lari per month ($70-$75). We will tell you more about this in the following publications.
When buying an apartment abroad, the buyer often does not know that in addition to its cost, additional expenses will have to be borne: the services of a lawyer, translator, etc. Because of this, the final price sometimes rises by a third. We hope that the advice of Sea Inside will help you to correctly calculate the budget and choose the right house.
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