How much tax do you pay on property in Georgia?

How is rental income taxed in Georgia?

Residential rent is taxed at a flat 5% on the gross rent, no deductions (PwC Tax Summaries Georgia, Jan 2026). In Italy the flat regime is 21%, rising to 26% from the second short-let property.

On $540/month of gross rent (the indicative rate for a 50 sqm flat in Batumi), the gap between 5% and 21% shows up every single month.

What about real estate capital gains?

Sell after 2 years of ownership and the capital gain is 0%. Sell earlier and it’s 5%. In Italy, gains are taxable if you resell within 5 years of purchase (Georgian Tax Code; PwC Jan 2026).

How does Georgian income tax work?

Georgia applies a 20% flat tax with a territorial principle for individuals: as a general rule, foreign-source income of individuals is not taxed in Georgia (PwC Jan 2026).

If you also move a business, the Small Business Status taxes 1% of turnover up to GEL 500,000 a year.

Can Georgian taxes rise overnight?

Georgia has a rare constitutional lock: under the Organic Law on Economic Freedom, introducing a new national tax or raising a rate ceiling requires a national referendum (limited exceptions: excise duties and temporary emergency increases). Primary source: matsne.gov.ge.

An honest disclaimer

These figures describe the general framework — they are not personal tax advice: tax residency, double-taxation treaties and your specific position change the outcome. Every yield quoted on this site is gross, and gross is not net.