Property Taxes: What Should Foreign Owners Know?
4 minute read | Last Updated 5th December 2025
Written by: Lela Gochitashvili
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Introduction
Georgia has become one of the region’s most attractive destinations for foreign investors seeking stable returns, straightforward regulations, and a business-friendly environment. Whether you are purchasing an apartment in Tbilisi, investing in commercial space, or acquiring property for long-term rental income, understanding how property tax works in Georgia will help you to financially plan better and to avoid common mistakes.
This guide explains the rules, rates, obligations, and exemptions related to property tax for foreign property owners, as well as how real estate tax is calculated and paid.
Do Foreigners Pay Property Tax in Georgia?
Yes. Georgia requires all property owners (foreign and local) to pay property tax when certain conditions are met. Property ownership alone does not automatically trigger taxation.
Whether an individual pays property tax depends primarily on:
- the owner’s annual household income
- the market value of the property.
For Georgian residents, household income is assessed based on worldwide income. For non-residents, only income from Georgian sources is taken into account.
Importantly, Georgia does not impose any additional or higher taxes on foreign nationals. Foreigners and Georgian citizens are treated identically for property tax purposes.
How Is Property Tax Determined?
The method of calculation depends on whether the owner is an individual or a legal entity.
Property Tax for Individuals
For individuals, whether foreign or Georgian, the key determinant is household income, not just the property itself.
Georgia uses household income (spouse, minor children, and cohabiting close relatives) to determine the tax bracket.
Income Thresholds:
- Up to 40,000 GEL per year: exempt from property tax (except for land).
- 40,000 – 100,000 GEL: property tax rate: 0.05% – 0.2% of market value.
- Above 100,000 GEL: property tax rate: 0.8% – 1% of market value.
These rates are set annually by local municipalities within the legally allowed range.
Special Rule for Individual Entrepreneurs with Small Business Status
Only 25% of taxable income under the 1% regime counts toward the household income threshold.
Property Tax for Legal Entities
If a foreign investor owns property through a company (LLC or JSC), the rules differ. Legal entities pay property tax on the average annual residual (balance-sheet) value of the asset. The municipality sets the tax rate, which may be up to 1%.
Foreign-owned companies are treated the same as Georgian companies.
What Types of Property Are Subject to Taxation?
In Georgia, property tax applies to:
- Residential apartments and houses
- Commercial and office properties
- Mixed-use buildings
- Industrial facilities and warehouses
- Unfinished construction
- Certain movable property, including vehicles, yachts, and aircraft
- Land plots (taxed separately under municipal rules)
For individuals, tax is calculated based on market value; for companies, based on balance-sheet value.
Who Is Exempt From Paying Property Tax?
Individuals
- Households earning 40,000 GEL or less per year
- Registered low-income families
- Properties used for charitable or public-interest purposes
- Certain categories of agricultural land
- Land in high-mountain zones for residents
- Disaster-affected land
- Exemptions granted by municipal councils
Legal Entities
Certain nonprofit and public institutions may qualify for partial or full exemptions, depending on municipal regulations.
Because exemptions vary by municipality, consulting local authorities or a tax advisor is recommended.
How and When Do Foreign Owners Pay Property Tax?
Property tax is paid once annually.
Legal Deadlines:
- Declaration submission: before November 1
- Payment deadline: before November 15
These deadlines apply to the year following the tax year.
Foreign owners can pay through:
- Georgian online banking
- The Revenue Service taxpayer portal
- Public Service Hall (Justice House)
- Authorized payment terminals
- A representative with power of attorney (for owners who are not physically in Georgia)
What Happens If You Don’t Pay Property Tax?
Failure to pay property tax may result in:
- Penalties and accrued interest
- Restrictions on registering future transactions involving the property
- Enforcement measures by the Revenue Service
Foreign owners should ensure their contact information is updated in the Revenue Service system.
Does Rental Income Trigger Additional Taxes?
Rental income is taxed separately from property tax. Residential rent (long-term or short-term) is 5% tax on gross rental income under the simplified regime. Commercial rent is 20% personal income tax under the standard regime, unless the owner is registered as an Individual Entrepreneur with Small Business Status (1% regime, subject to conditions).
Note that rental income must be declared and paid annually by April 1 of the following year.
Does Property Tax Affect Residency or Tax Residency?
Keep in mind that owning property in Georgia does not automatically grant Georgian residency or Georgian tax residency.
However, property ownership may support residence permit applications and long-term residence strategies.
Property tax obligations apply regardless of residency status.
Practical Tips for Foreign Property Owners
- Verify the property’s market value through official sources.
- Monitor household income to determine the applicable tax bracket.
- Maintain a Georgian bank account for payments.
- Seek legal or tax advice if owning multiple properties or using corporate ownership.
- Keep your Revenue Service profile updated.
Conclusion
Understanding property tax in Georgia is important if you want to stay compliant and avoid common pitfalls. Whether you own an apartment, commercial space, or land, staying compliant with property tax obligations ensures smooth future transactions, legal clarity, and financial security.
Orson Law provides full support for foreign property owners: property due diligence, tax compliance assistance, and legal representation for all real estate matters in Georgia.
For a free consultation, send us a message at info@orsonco.com or via Whatsapp +995 511 77 85 77
