If you’re earning income from selling assets in Georgia — especially as a non-entrepreneurial individual — there’s an important change you should know about. As of January 1, 2024, the Tax Code of Georgia has been amended to shift income tax reporting from annually to monthly for individuals earning from non-entrepreneurial activities, such as property sales.

Below is everything you need to know to stay compliant and avoid unexpected fines.

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What Changed in 2024?

The main update is this:

Income tax declarations are now submitted every month instead of once per year.

This applies to individuals (not companies) who receive income from asset sales that are not part of a registered business activity — such as selling a personal apartment or land.

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Who Is Affected?

You are affected if:

• You are not registered as an entrepreneur.
• You sell an asset (e.g., real estate) and make a profit.
• The sale was a personal transaction and not part of ongoing business operations.

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How Is the Tax Calculated?

The tax is calculated based on the income surplus — in simple terms, your profit.

Example:

• You bought an apartment for 100,000 GEL.
• You sell it later for 130,000 GEL.
• The taxable amount is 30,000 GEL (130,000 – 100,000).

That 30,000 GEL will be considered taxable income.

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When to Declare and Pay

Both declaration and payment must happen on a monthly basis.

Deadline: You must file your income tax declaration by the 15th of the following month after the income was received.

So, if you sold a property in March, your tax declaration must be submitted by April 15, and payment must be made by the same date.

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How to Declare Your Income

You can declare your income:

• Online via the Revenue Service Portal
• Or by visiting your local tax office.

Make sure to:

• Keep proof of purchase and sale documents.
• Maintain clear records of any associated expenses (like renovation or legal fees), which might reduce your taxable profit if applicable.

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Penalties for Non-Compliance

Failing to declare your income or pay on time can lead to:

• Fines
• Interest on overdue amounts
• Possible restrictions on financial activities

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Pro Tips for Property Sellers

• Plan ahead when selling property to understand your tax liability.
• If unsure, consult with a tax advisor or accountant familiar with Georgian tax law.
• Keep digital and printed copies of all documentation related to your property transaction.

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Final Thoughts

This tax update brings Georgia closer to international tax practices, aiming for better transparency and revenue tracking. As a property owner or investor, it’s crucial to adapt to the new rules and submit your declarations on time to stay compliant.

If you’re thinking about selling property or other personal assets in Georgia, being informed and proactive will help you avoid unnecessary complications.