Property Tax at Georgia (Tbilisi)
What Taxes Are Levied On Residential Property At Time Of Purchase?
At the moment of purchase of residential property, you, as a buyer, will not be subject to any taxes.
What Taxes Are Levied If I Choose To Sell The Residential Property?
Generally, capital gains from the sale of residential property are subject to 20% personal income tax. However, if you have owned the property in question for more than 2 years prior to the sale, your income will be tax exempt.
What Taxes Are Due On Residential Property I Own? How/When Are Those Taxes Paid?
A natural person, including an entrepreneur natural person is obliged to submit a Property Tax Return:
- If he/she has taxable property on the territory of Georgia and the previous year's income of this person's family exceeds 40,000 GEL.
- If he/she has taxable land on the territory of Georgia, regardless of the amount of income;
- For an income of up to 100,000 GEL - not less than 0.05 percent and not more than 0.2 percent of the market value of taxable property by the end of the tax period;
- For an income of 100,000 GEL or more - not less than 0.8 percent and not more than 1 percent of the market value of taxable property by the end of the tax period
In what timeframe and where should a natural person file a property tax declaration?
- A natural person submits a property tax declaration to the tax authority no later than November 1 of the calendar year. Data on taxable property shall be entered in the declaration according to the previous tax year, and data on taxable land - according to the current tax year.
In what time frame should natural person pay property tax?
A natural person pays property tax on property and land no later than November 15 of the calendar year.
If the property is owned by more than one party, property taxation is a little more complicated and it’s worth checking the situation with a tax adviser.
What Taxes Will I Pay If I Rent Out The Property?
Normally, rental income is subject to a 20% personal income tax. However, if you rent out your property strictly for residential purposes, you can register at the landlord registry and start paying 5% personal income tax on your rental income. Deductions, in this case, won’t be allowed.