Property Taxes in Georgia for Foreigners in 2026
Updated: November 2026
In short. A foreigner in Georgia pays no tax on buying property — only a registration fee. Since 30 September 2026, property tax applies only to households with an annual income above GEL 100,000. Residential rental income is taxed at 5%. There is no tax when you sell a home you have owned for more than two years.
All taxes in one table
| Stage | Tax | Rate | Conditions |
|---|---|---|---|
| Purchase | No tax | 0% | Only the fee for registering ownership in the Public Registry |
| Ownership | Property tax | 0% for household income up to GEL 100,000; 0.8–1% of market value above the threshold | Threshold raised from GEL 40,000 to 100,000 from 30.09.2026. Declaration by 1 November, payment by 15 November |
| Rental | Income tax | 5% on residential rental income | If the owner does not deduct expenses. With expenses deducted, the general 20% rate applies |
| Sale | Tax on profit | 0% after more than 2 years of ownership; 5% on the profit if owned for less than 2 years | For residential property. Does not apply to those who resell property as a business |
| Inheritance and gifts | — | Usually 0% | From close first-degree relatives; the previous owner’s holding period counts |
On purchase
Georgia has no property purchase tax for citizens or foreigners. The buyer pays only the fee for registering ownership in the Public Registry. The amount depends on how quickly you need the registration.
During ownership: the new property tax threshold
Since 30 September 2026, individual property tax is paid only by households whose income in the previous year exceeded GEL 100,000. Before that the threshold was GEL 40,000. For those above the threshold the rate is 0.8% to 1% of market value per year; the exact figure is set by the municipality. The declaration is filed by 1 November and the tax paid by 15 November.
A foreigner should understand what counts as “household income” in their case. It depends on tax residency, so check the rule with a tax adviser.
When renting out
An individual’s income from renting out a home is taxed at 5% if the owner does not deduct expenses from it. This is one of the lowest rental income rates in the region. Income from property in Georgia is Georgian-source income, so the tax is paid in Georgia regardless of where the owner lives.
On sale
If you have owned a home for more than two years, the income from its sale is not taxed. If you sell earlier, you pay 5% on the profit — the difference between the sale and purchase price. Documented renovation costs that increased the value can be added to the purchase price, as clarified by Georgia’s Ministry of Finance in public explanation No. 143 of 14 May 2026. The exemption does not apply to those who systematically buy and resell property as a business.
Taxes in your country of residence
Georgian exemptions do not cancel taxes in your country of tax residence. Many countries require foreign income to be declared. Georgia has double taxation treaties with many countries — check your case with an adviser.
How it works at Lagoon Resort
The owner of an income residence at Lagoon Resort does not pay the rental tax personally. Rental income is split 60/40, and the 5% tax is part of the share of the management company, HSC Group. That share also covers utilities, insurance and reporting. The residences have residential status, so the housing exemptions apply: 5% on rental income and no tax on sale after two years of ownership. There is no purchase tax, and after two years of ownership there is no capital gains tax either.
Frequently asked questions
Does a foreigner need to register as a sole proprietor to rent out a home?
Not for the 5% residential rental rate — it applies to individuals. At Lagoon Resort the 5% tax is paid by the management company out of its share.
Is there inheritance tax in Georgia?
As a rule, no, when property passes to close first-degree relatives.
When is the property tax declaration due?
By 1 November, with payment by 15 November. If household income is below GEL 100,000, no tax is due.
This article is for reference only and is not tax advice.
Sources: new property tax threshold, property tax rates and deadlines, PwC: rental and sale of housing, selling property in 2026.
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