Whether you’re a non-resident investing in Georgian real estate or a local landlord, understanding how rental income is taxed is crucial for staying compliant and avoiding costly surprises.

In this guide, we’ll break down the essential tax rules, including income tax and VAT obligations for property owners in Georgia.

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Income Tax on Rental Income

Even if you’re not a resident of Georgia, you’re still required to declare your rental income and pay the corresponding taxes if your property is located within the country.

Here’s how the tax structure works based on who your tenant is and whether you’re properly registered:

Standard Tax Scenarios

1. If your tenant is an individual (without entrepreneurial status):
   → You pay 5% of the monthly rental income.
2. If your tenant is a company and you’re registered in the landlord registry:
   → You also pay 5% of the monthly rental income.
3. If you’re not registered in the landlord registry (or other cases):
   → A 20% income tax applies, calculated on the net income (i.e., rent minus allowable expenses such as maintenance).

Lease Duration Doesn’t Matter

Whether you’re renting short-term or long-term, the tax rate stays the same. There are no special rates for Airbnb-style rentals versus traditional leases.

Currency for Declaration

All rental income must be declared in Georgian Lari (GEL) — not in USD or EUR, even if your tenant pays in those currencies.

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VAT on Rental Income

If your overall income in Georgia — including rental income — exceeds 100,000 GEL over any 12-month period, you’re legally required to register for Value Added Tax (VAT).

Here’s what that means for you:

• Threshold: Once you surpass 100,000 GEL, you must pay 18% VAT on all income above that amount.
• Declaration: VAT returns must be filed monthly, no later than the 15th of the following month.
• Payment: Taxes must be paid within the same timeframe as the declaration.

Note: If you’re close to hitting the threshold, it’s wise to plan in advance — VAT registration comes with added bookkeeping responsibilities.

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Final Thoughts

Understanding your tax obligations as a landlord in Georgia is key to operating legally and efficiently. Whether you own one apartment or multiple properties, make sure to:

• Register with the landlord registry (if eligible),
• Keep accurate records of income and expenses,
• Monitor your total annual revenue to avoid surprise VAT registration.

Need help navigating taxes in Georgia? It’s always a good idea to consult a local tax advisor or accountant familiar with real estate regulations.