Property Tax on Physical Persons
By November 1, 2025, physical persons who owned real estate and/or transport vehicles in 2024, and whose annual family income in 2024 exceeded 40,000 GEL, shall be obligated to submit a property tax declaration and pay the tax by November 15, 2025.
The tax rate depends on the owner's income and the location of the property, ranging from 0.05% to 1% of the property's market value.
The declaration is submitted via the taxpayer’s personal account, for the activation of which a tax identification number is required. The tax shall be paid to the Unified Budget Account: 101 001 000.
Frequently Asked Questions (Q&A)
Who is considered a property owner?
A physical person whose ownership right to a real estate object is registered in the Public Registry. Important: the tax is payable if you are the owner of a real estate object, including unfinished construction. If you are a prospective owner and have only entered into a preliminary purchase and sale agreement with a developer, it is not yet required for you to pay property tax.
Who is considered a vehicle owner?
A person who owns a vehicle registered in Georgia. Such vehicles include both those acquired in Georgia and foreign vehicles located in Georgia under the temporary admission regime (bearing temporary Georgian registration plates).
What property is NOT subject to tax?
What constitutes Family Income?
The aggregate income of the owner, their spouse, minor children, and stepchildren, as well as the owner’s parents, children, stepchildren, sisters, brothers, grandfathers, grandmothers, and grandchildren who constantly reside with the owner and conduct a common household.
What income is considered for the purpose of determining family income?
In accordance with Article 202, Clause 6 of the Tax Code of Georgia, for property tax purposes, the income received by a family during a tax year shall include ALL INCOME, including profit without taking into account tax exemptions, specifically:
What income is NOT considered for the purpose of determining family income?
In accordance with Article 202, Clause 7 of the Tax Code of Georgia, the following shall NOT be included in income (the list is exhaustive):
Should income received from foreign sources be considered for property tax purposes?
Yes, for property tax purposes, all income received in 2024 from both sources in Georgia and sources outside Georgia (except for the exclusions mentioned above) shall be considered. This rule does NOT apply only to citizens of Georgia — their income from a source outside Georgia is NOT taken into account for property tax purposes.
This provision of the Tax Code of Georgia is confirmed by an individual clarification from the Revenue Service, which was received upon our request. You may review the original response here.
What is the market value of property and how is it determined?
The market value of property is the price at which the property could be acquired on a free market. The market value is determined by the owner themselves and indicated in the tax declaration. The tax authority has the right to revise the value specified by the owner if it clearly does not correspond to the market value. We recommend ordering an independent appraisal of the property's market value or relying on public sources when determining the market value (including websites for the sale of real estate and transport vehicles).
On what date is the market value of property determined?
As of December 31, 2024.
How does the tax rate depend on the owner’s income?
Does the tax amount depend on the period of property ownership (if the owner held the property for less than a year and/or was no longer the owner as of December 31, 2023)?
The tax is calculated in the general manner and is charged proportionally to the period of property ownership. If the owner held the property for 3 months during 2024, the tax amount shall be 1/4 of the annual amount.
How to submit the declaration
The declaration can be submitted ONLY electronically via the taxpayer’s personal account.
How to create/obtain access to the taxpayer’s personal account
Every holder of a tax identification number possesses a taxpayer’s personal account.
How to obtain a tax identification number
We have covered this in this article.
Is it necessary to attach any documents to the declaration?
No, at the time of submitting the declaration, no documents are attached to it.
What are the consequences of failure to submit a declaration?
If the property owner is a foreign person who is not a tax resident of Georgia, in the case of failure to submit a declaration, the tax authority may calculate an assessed property tax at the maximum rate. The assessed tax calculated in this manner may be challenged by submitting a tax declaration and supporting documents confirming the actual income.
What are the penalties for late tax payment?
The tax rate depends on the owner's income and the location of the property, ranging from 0.05% to 1% of the property's market value.
The declaration is submitted via the taxpayer’s personal account, for the activation of which a tax identification number is required. The tax shall be paid to the Unified Budget Account: 101 001 000.
Frequently Asked Questions (Q&A)
Who is considered a property owner?
A physical person whose ownership right to a real estate object is registered in the Public Registry. Important: the tax is payable if you are the owner of a real estate object, including unfinished construction. If you are a prospective owner and have only entered into a preliminary purchase and sale agreement with a developer, it is not yet required for you to pay property tax.
Who is considered a vehicle owner?
A person who owns a vehicle registered in Georgia. Such vehicles include both those acquired in Georgia and foreign vehicles located in Georgia under the temporary admission regime (bearing temporary Georgian registration plates).
What property is NOT subject to tax?
- Property received under a lease from a resident of Georgia;
- Property located in the territories defined by the Law of Georgia on Occupied Territories — temporarily, until the resolution of the conflict and the management of the economic situation;
- Property owned by an entrepreneur of a high-mountain settlement located within the territory of the said high-mountain settlement — for a period of 10 calendar years after the granting of the relevant status (including the calendar year the status was granted);
- Other types of property provided for by Article 206 of the Tax Code of Georgia.
What constitutes Family Income?
The aggregate income of the owner, their spouse, minor children, and stepchildren, as well as the owner’s parents, children, stepchildren, sisters, brothers, grandfathers, grandmothers, and grandchildren who constantly reside with the owner and conduct a common household.
What income is considered for the purpose of determining family income?
In accordance with Article 202, Clause 6 of the Tax Code of Georgia, for property tax purposes, the income received by a family during a tax year shall include ALL INCOME, including profit without taking into account tax exemptions, specifically:
- Taxable income from economic activity, except for income received by a person having the status of a micro business;
- Any income, including profit, not related to economic activity (for example: gain received from the sale of property, dividends, interest under loan agreements);
- Accrued salary (i.e., gross salary — BEFORE tax deductions);
- Income of an Individual Entrepreneur (IE) with small business status — in the amount of 25% of the taxable income;
What income is NOT considered for the purpose of determining family income?
In accordance with Article 202, Clause 7 of the Tax Code of Georgia, the following shall NOT be included in income (the list is exhaustive):
- The value of property received from family members by inheritance, through a gift, or based on the dissolution of marriage;
- Income received by a physical person from the realization of a residential property (house) (including by a first-degree heir of their own and the decedent’s property combined), which had been in their ownership for more than 2 years; (Note: If the tax period in the country where the property is located is longer (e.g., 3 or 5 years in the Russian Federation), in this specific case, income from the sale of property after 2 years is NOT included in the aggregate income for Georgian tax purposes);
- Income from the initial realization of property provided for by Article 82, Clause 1, Sub-clause "n" of the Tax Code of Georgia; (Note: This refers to property received as compensation by persons with refugee or humanitarian status, or internally displaced persons, in exchange for temporary housing under privatization programs; state compensations provided to such persons; and income from the initial sale of such property);
- Income of a fixed tax payer and a person with micro business status received from the said economic activity;
- Income exempted from income tax in accordance with Article 82, Clause 1, Sub-clauses "b.1" and "b.2" of the Tax Code of Georgia; (Note: b.1 - income from a state-established non-entrepreneurial (non-commercial) legal entity within the scope of charitable activities; b.2 - income from charitable organizations to finance expenses for treatment or/and medical services);
- The benefit received by an employee from a vehicle owned by the employer that is in the employee's personal use;
- Income of citizens of Georgia from a source outside Georgia.
Should income received from foreign sources be considered for property tax purposes?
Yes, for property tax purposes, all income received in 2024 from both sources in Georgia and sources outside Georgia (except for the exclusions mentioned above) shall be considered. This rule does NOT apply only to citizens of Georgia — their income from a source outside Georgia is NOT taken into account for property tax purposes.
This provision of the Tax Code of Georgia is confirmed by an individual clarification from the Revenue Service, which was received upon our request. You may review the original response here.
What is the market value of property and how is it determined?
The market value of property is the price at which the property could be acquired on a free market. The market value is determined by the owner themselves and indicated in the tax declaration. The tax authority has the right to revise the value specified by the owner if it clearly does not correspond to the market value. We recommend ordering an independent appraisal of the property's market value or relying on public sources when determining the market value (including websites for the sale of real estate and transport vehicles).
On what date is the market value of property determined?
As of December 31, 2024.
How does the tax rate depend on the owner’s income?
- For families with incomes up to 100,000 GEL — the tax rate ranges from 0.05% to 0.2% of the market value of the property;
- For families with incomes of 100,000 GEL or more — the tax rate ranges from 0.8% to 1% of the market value of the property.
Does the tax amount depend on the period of property ownership (if the owner held the property for less than a year and/or was no longer the owner as of December 31, 2023)?
The tax is calculated in the general manner and is charged proportionally to the period of property ownership. If the owner held the property for 3 months during 2024, the tax amount shall be 1/4 of the annual amount.
How to submit the declaration
The declaration can be submitted ONLY electronically via the taxpayer’s personal account.
How to create/obtain access to the taxpayer’s personal account
Every holder of a tax identification number possesses a taxpayer’s personal account.
How to obtain a tax identification number
We have covered this in this article.
Is it necessary to attach any documents to the declaration?
No, at the time of submitting the declaration, no documents are attached to it.
What are the consequences of failure to submit a declaration?
If the property owner is a foreign person who is not a tax resident of Georgia, in the case of failure to submit a declaration, the tax authority may calculate an assessed property tax at the maximum rate. The assessed tax calculated in this manner may be challenged by submitting a tax declaration and supporting documents confirming the actual income.
What are the penalties for late tax payment?
- Late payment interest in the amount of 0.05% per day of the overdue tax amount;
- If the delay period does not exceed 2 months — a penalty in the amount of 5% of the unpaid tax amount;