FAQ about buying and renting real estate in Georgia

The country has one of the lowest levels of taxes in the world on income of individuals and legal entities. Preferential taxation regimes in Georgia are an important incentive for the development of small businesses.

Corporate income tax:

The taxable profit of the enterprise is taxed at the rate of 15 percent. If the profit is withdrawn to the personal account of the founder of the company, at the same time there is an obligation to pay tax on distributed dividends in the amount of 5%.

The Georgian government has adopted the Estonian taxation model, in which there is no corporate tax on the re-investment of funds from the company's income (profits, dividends) - if the founders reinvest profits, they are exempt from income tax. If, for example, you do not withdraw dividends at the beginning of your journey, but send funds for business development, you do not pay any monthly taxes.

Summary table of tax rates in Georgia:

• income tax (personal income tax) - 20%;
• income tax for individual entrepreneurs (having the status of a small business) - 1%;
• income tax for individual entrepreneurs (having the status of a micro-enterprise) - 0%

• on the profit of the organization - 15%;
• when withdrawing dividends - 5%;
• social security (pension fund) - 2%;
• value added tax (VAT) - 18%;
• real estate tax - 1%.

In accordance with the laws of Georgia, each resident of the country (citizen or foreigner with permanent residence) opens a pension account, to which monthly transfers will be made in the following amount:

• 2% employer
• 2% employee;
• 1% -2%, there are additional payments from the state, which depend on the size of the employee's income.

• Property Transfer Tax: This is a 3% tax on the value of the property.
• Annual property tax - 1%

• Accompaniment of the purchase and sale transaction: a tax of 1% of the value of the property for additional services, such as legal support for the transaction.

• Utility payments (electricity, heating, water, garbage) for an apartment of 85m2 - 183 GEL (64 euros)

Internet (60 Mbps and above) - 55 GEL (19 EUR)

*as of early 2023

• Apartment (1 bedroom) in the city center 2 371 lari (833 euros)
• Apartment (1 bedroom) outside the center 1 661 lari (584 euros)

• Apartment (3 bedrooms) in the city center 4,208 lari (1,479 euros)
• Apartment (3 bedrooms) outside the center 2675 lari (940 euros)

• Price per square meter when buying an apartment in the city center 4,916 lari (1,728 euros)
• Price per square meter when buying an apartment outside the center 2,741 lari (963 euros)

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