Should you buy Georgian property through a company?
Sometimes, but less often than buyers expect. Georgia taxes individuals lightly on residential property: rent from a home let for living is taxed at 5%, a sale after two years of ownership is exempt from income tax, and there are no transfer or stamp duties. A company changes almost all of that. It pays 15% profit tax when it distributes money, its property is subject to company property tax, and it brings accounting and reporting every year. On top of that, a flat owned by a company does not support a residence permit for the person behind it.
A company makes sense for some buyers: several commercial units, a business that already operates in Georgia, partners who want a clear structure, or an investment that will be reinvested rather than paid out. This page compares the two routes and shows when each fits.
To be added by the team: the partner accountant to confirm the VAT position of a company letting or selling residential apartments, and how company property tax interacts with land tax on a typical flat.
Owning personally or through a company
| Question | Personal ownership | Through a Georgian company |
|---|---|---|
| Tax on residential rent | 5% of the rent if no deductions are claimed | No tax while profit stays in the company; 15% profit tax when it is distributed |
| Tax on sale | Exempt after two years of ownership; otherwise 5% of the gain | No tax until distributed; then 15% profit tax |
| Paying money out to you | Not applicable | Dividends subject to 5% withholding, subject to treaties |
| Annual property tax | Depends on family income and property value | 1% of the average residual value of fixed assets and investment property, plus land tax |
| Residence permit | Yes, if the flat is in your name and worth more than $150,000 | No: the property right is the company's, not yours |
| Running costs | Low | Accounting, monthly and annual filings, a bank account for the company |
| Selling later | Sale of the flat, registered in the Public Registry | Either the flat or the company's shares can be sold |
Who usually asks about a company
The question comes up most often from three groups: investors who already hold property through companies at home, buyers who were told that a company makes the purchase "tax-free", and business owners who want the flat to belong to the business. The first group usually knows the trade-offs; the second often discovers that the personal route in Georgia is already low-tax; the third should check whether the business really needs to own the property or only to rent it.
How the company profit tax works
Since 2017 Georgia has used a model in which a company does not pay profit tax on what it earns, but on what it distributes. The 15% applies when profit is paid out as dividends, and also to non-business expenses, free supplies and excessive representation costs. A company that collects rent and reinvests it in more property pays no profit tax until money leaves the company. That is the main reason investors consider a company: it defers tax while profit is reinvested. It is also why a company rarely pays off for a single flat whose rent you plan to spend: the 15% on distribution, plus withholding on dividends, comes to more than the 5% an individual pays on residential rent.
A worked example over one year
Take a flat worth $150,000, let for living at $9,000 a year, with the rent spent rather than reinvested. The figures below are illustrative and simplified; your accountant will refine them.
| Item | Personal ownership | Through a company |
|---|---|---|
| Rent received | $9,000 | $9,000 |
| Accounting and filings | - | about $1,500 |
| Tax on rent or on distribution | $450 (5%) | about $1,100 (15% on $7,500 paid out) |
| Dividend withholding | - | about $300 (5%) |
| Company property tax | - | up to about $1,500 (1% of residual value) |
| Left for you | about $8,550 | about $4,600 |
The personal route also keeps the two-year exemption on a sale. The company route only starts to compete when rent is reinvested in more property rather than paid out, or when the property is commercial and the tenants need a company to invoice them.
Selling the company instead of the flat
A company that owns property can be sold by selling its shares. The buyer then takes over the company with everything in it, including any debts and tax history, so a careful buyer will ask for a full review of the company, not only the extract of the flat. The tax treatment of a gain on shares differs from that on a flat held personally.
To be added by the team: the partner accountant to confirm how a gain on the sale of shares in a Georgian property company is taxed for a foreign individual, and how the company's own property gain is treated in that case.
A Georgian company or a foreign one?
Some buyers already own a company abroad and consider buying through it. A foreign company that owns Georgian property and earns rent from Georgian tenants is taxed in Georgia on that Georgian-source income, and the treaty between Georgia and the company's country decides how much. Depending on the arrangement, tax may be withheld at source by a Georgian tenant that is a business, or the company may have a taxable presence in Georgia. This is a question for an accountant who knows both countries, and the answer differs case by case.
When a company makes sense
- Several properties, reinvested income. A portfolio that grows from its own rent benefits from deferred profit tax.
- Commercial property. Offices, shops and warehouses are usually let to businesses that expect invoices from a company.
- Partners. Shares in a company can be easier to divide, transfer and govern than shares in a flat.
- An existing Georgian business. Its premises may belong on its balance sheet.
When personal ownership is better
- One or two homes, or holiday flats. The 5% personal rate and the two-year sale exemption are hard to beat.
- You need a residence permit. Only property in your own name counts.
- You want to keep paperwork low. A company needs bookkeeping and filings even in a year with no income.
- You plan to sell after two years. An individual's gain on a home held longer than two years is exempt.
Questions to settle before you choose
- Will you spend the rent, or reinvest it in more property?
- Do you need a residence permit from this property, now or later?
- Is the property residential or commercial, and who will the tenants be?
- How many properties do you expect to own in five years?
- Are there partners, and how would one of them leave?
- When do you expect to sell, and would a buyer prefer the flat or the company?
If the answers are "spend it", "yes", "residential" and "one or two", personal ownership is almost always the better route.
Setting up and running the company
Register the company
A limited liability company is registered with the National Agency of Public Registry; foreigners can be founders and directors.
Open the company's bank account
Banks apply full checks on the owners and the source of funds.
Buy in the company's name
The sale contract names the company as buyer, signed by its director.
Keep the books
Monthly declarations and annual reporting, through an accountant.
The right to work matters here: since March 2026, a foreigner who runs a business in Georgia generally needs a right to work unless they hold an exempt status, as our page on the work permit from 2026 explains. A company that only holds property may need little management in Georgia, but ask the lawyer how your role is classified.
Risks and exceptions
- Losing the residence permit route. A company's flat does not count for you.
- Paying more tax, not less. For a flat whose rent you spend, 15% plus withholding exceeds 5%.
- Running costs. Accounting and filings continue every year.
- Hidden history in a company you buy. A share purchase takes on the company's debts and tax record.
- Work rules. Managing the company in Georgia may require a right to work.
Frequently asked questions
Can a foreign company buy property in Georgia?
Yes, residential and commercial property. Agricultural land is subject to separate restrictions; ask a lawyer before buying any.
Does a company pay tax on rent?
Not while the profit stays in the company; 15% applies when profit is distributed.
Can I get a residence permit through my company's flat?
No. The property route needs the property right in your own name.
Is there a transfer tax when a company buys?
No. Georgia has no transfer or stamp duties; the registry fee and notary costs apply as for an individual.
Can two partners own a flat through one company?
Yes. The partners own shares in the company, and the company owns the flat; the company's charter sets how decisions and exits work.
Do I need a Georgian company to let my flat on Airbnb?
No. Individuals let flats in their own name; the tax rules for short stays are explained on our rental pages.
Can I move a flat from my name into a company later?
Yes, by a sale or contribution registered in the registry, but it has tax consequences; ask an accountant first.
The residence options for business owners are compared in our page on business routes.
Sources
- Georgia: corporate taxes on income, PwC Worldwide Tax Summaries, last reviewed 2 September 2026 (accessed 14 October 2026)
- Georgia: other corporate taxes, PwC Worldwide Tax Summaries (accessed 14 October 2026)
- Georgia: withholding taxes, PwC Worldwide Tax Summaries (accessed 14 October 2026)
- Tax Code of Georgia (Articles 81 and 82), Legislative Herald of Georgia (accessed 14 October 2026)
- Law of Georgia on the Legal Status of Aliens and Stateless Persons (Article 15(j)), Legislative Herald of Georgia (accessed 14 October 2026)
Change log
- - Comparison published from PwC corporate tax summaries, the Tax Code and the Aliens Law; being reviewed by the partner lawyer and accountant.