Is there inheritance tax or gift tax in Georgia?
Not as separate taxes. Georgia treats property received by inheritance or as a gift as income of the person who receives it, and then exempts most family transfers. Close relatives, the first and second "lines" in the Tax Code, pay nothing on a flat of any value. More distant relatives, the third and fourth lines, are exempt up to GEL 150,000 a year. Anyone else can receive gifts of up to GEL 1,000 a year from an individual free of tax; above that, and for an inheritance outside the family lines, the value is income taxed at the general rate of 20%, on our reading of the Code.
This page sets out who is exempt, how a taxable transfer is valued, declared and paid, the notary and registry costs, what happens to the deceased's tax debts, and how your home country may tax the same property. The civil-law steps are on our pages on inheritance of a foreigner's property and giving property as a gift.
Who pays and who is exempt
| Relationship to the person who gives or leaves the property | Gift | Inheritance |
|---|---|---|
| First line: spouse, child, adopted child, grandchild, great-grandchild and their child, parent, adoptive parent | Exempt | Exempt |
| Second line: brother, sister, nephew, niece and their children | Exempt | Exempt |
| Third line: grandparents and their parents | Exempt up to GEL 150,000 a year | Exempt up to GEL 150,000 a year |
| Fourth line: uncle, aunt | Exempt up to GEL 150,000 a year | Exempt up to GEL 150,000 a year |
| Anyone else, from an individual | Exempt up to GEL 1,000 a year | No exemption found |
| An employee, from the employer | Taxable | - |
The lines are defined by the Tax Code for gifts and wills, and they are not the same as the civil-law order of heirs. The GEL 150,000 limit for the third and fourth lines covers gifts and inheritances together in one tax year. Property received on a divorce is exempt as well (Article 82(1)(e)).
How a taxable transfer is valued and taxed
Where no exemption applies, the value of the property is income of the recipient, taxed at the general 20% rate (Article 81(1)). The Code speaks of "the value of property" received; in practice this is its market value when the recipient receives it, the same figure that later becomes the starting value if the property is sold (Article 82(4)(b)). A recent valuation report is the safest evidence.
| Transfer | Value | Exempt | Tax at 20% |
|---|---|---|---|
| A mother gives her son a flat | GEL 400,000 | All | 0 |
| A nephew leaves his aunt a flat | GEL 400,000 | GEL 150,000 | GEL 50,000 |
| A friend leaves a flat by will | GEL 300,000 | None found | GEL 60,000 |
The last two rows are the ones to watch: when a flat goes to a more distant relative or to a friend, a fifth of its value above any exemption can go in tax. Planning the transfer during the owner's lifetime, for example as a sale or a gift spread over several tax years, can change the result, but should be checked with an accountant first.
To be added by the team: our accountant to confirm that an inheritance outside the four lines is fully taxable at 20%, which valuation the Revenue Service accepts, and how a non-resident heir declares and pays.
Declaring and paying
- Notice from the registry. Before registering the new owner of a gifted or inherited property that is not fully exempt, the Public Registry must tell the recipient about the duty to declare and pay (Article 153(6)).
- Annual return. The return for such income is due before 1 April of the year after the transfer, for residents and non-residents alike (Article 153(1)).
- Two years to pay. When gifts and inheritances to third- and fourth-line relatives reach GEL 150,000 or more within one year, the tax may be paid over up to two calendar years, on dates set by the Minister of Finance (Article 153(7)).
- Gifts from companies. A company or entrepreneur that gives property may have to withhold the tax as a tax agent; an individual donor does not.
The deceased's tax debts
Heirs inherit tax arrears as well as property. Under Article 57 of the Tax Code, the deceased's tax arrears on the day of death are paid by the heirs in proportion to their shares, from the day they receive the certificate of inheritance. An heir who knows of such arrears must tell the tax authority, which sends a notice within 30 days of learning that the certificate was issued. The arrears are written off if there is no heir, if the heir waives the inheritance, or to the extent they exceed the value of what was inherited. Unpaid property tax can also leave a tax lien registered against the flat, which a buyer from the heir would inherit, so check the registry extract before you accept.
Notary and registry costs
| Step | Cost |
|---|---|
| Certificate of inheritance | Calculated from the value of the inheritance, for each heir in proportion to their share |
| Flat bought during a marriage | Only the deceased spouse's part is counted, valued from Public Registry data |
| Changing or cancelling a certificate, or appointing an estate manager | GEL 18 |
| Notarial will | GEL 16 |
| Notarised gift contract worth GEL 400,000 | GEL 962.50 on the bilateral scale, never more than GEL 10,000 |
| Registration of the new owner | GEL 150, GEL 270 or GEL 350 depending on speed |
Documents from abroad, such as a death certificate or a foreign certificate of inheritance, must be apostilled or legalised and translated into Georgian by a certified translator, which adds its own costs. A gift contract does not have to be notarised; the signatures can be certified instead, which is cheaper.
Gift, sale or will: the tax compared
| Route | Tax for the parent | Tax for the child | Main cost |
|---|---|---|---|
| Gift during life | None | None | Registration, and notary if the contract is notarised |
| Sale at a low price | 5% on any gain if owned two years or less; the price may be replaced by market value between relatives | None | As for any sale |
| Will | - | None | Certificate of inheritance and registration |
For a child or spouse the tax result is the same whichever route is chosen; the differences are timing, cost and control. A gift takes effect on registration and is hard to undo, while a will can be changed until death. A sale between relatives below market value gains nothing for tax and may be reassessed, because the tax authority can apply a market price to transactions between related parties.
Spouses and jointly owned flats
A flat bought during a marriage is, under the Civil Code, joint property of both spouses unless a marriage contract says otherwise, even if only one of them is named in the registry. When one spouse dies, only the deceased's share forms part of the inheritance; the survivor's own share is not inherited and is not taxed. The notary's fee for the certificate of inheritance is likewise calculated only on the deceased's part. If the couple's home-country law treats marital property differently, the result can differ, which is a question for a lawyer before the will is written.
Heirs who live abroad
An heir who lives abroad follows the same tax rules as a resident: exemptions depend on the family line, not on residence. If tax is due, the heir must register as a taxpayer in Georgia and use the Revenue Service's online portal, or can act through a representative with a notarised power of attorney, who can also deal with the notary and the registry. Plan for the time needed to apostille and translate documents from abroad, because the six-month period to accept an inheritance runs from the opening of the succession, not from the day the papers arrive.
After the transfer: selling and property tax
A recipient who later sells the flat is taxed on the difference between the sale price and the market value when it was received. A first-line heir or donee adds the previous owner's years of ownership, so a flat the parents owned for decades can be sold at once without tax; anyone else starts a new two-year period. The details are on our page on tax on a sale.
Property tax follows the new owner. For the family-income test that decides whether an individual pays property tax, the value of property received from family members by inheritance, gift or divorce does not count as income, so inheriting a flat does not by itself push a family over the GEL 100,000 line.
When the giver is a company
A company registered for VAT that gives away a flat for which it deducted input VAT is treated as supplying it for payment, so 18% VAT can arise on its value. Only gifts worth up to GEL 50 a year to one person are outside this rule. The company's gift is also a free supply for profit tax. Transfers from a company to its owners are covered on our page on tax on company-owned property.
Inheritance tax in your home country
Georgia's tax treaties cover taxes on income and gains, and we found none that covers inheritance or gift taxes, so a Georgian exemption does not stop another country from taxing the same flat. Three examples:
- United Kingdom. Since 6 April 2025, a long-term UK resident, generally someone resident in 10 of the previous 20 years, is subject to UK inheritance tax on worldwide assets, at 40% above the GBP 325,000 nil-rate band.
- United States. Federal estate tax applies to US citizens' and residents' worldwide estates, with a basic exclusion of USD 15,000,000 for deaths in 2026.
- Germany. Inheritance tax applies to the whole estate where the deceased or the heir lives in Germany, with tax-free allowances such as EUR 500,000 for a spouse and EUR 400,000 for each child.
Planning a transfer, step by step
Identify the line
Work out the recipient's line under the Tax Code, not under civil law.
Value the flat
Obtain a valuation if the transfer may be taxable.
Check for debts and liens
Review the registry extract and ask about tax arrears.
Declare in time
File before 1 April of the following year if tax is due.
Check your home country
Ask an adviser there before the transfer, not after.
Risks and exceptions
- Distant heirs. Gifts and inheritances outside the family lines can be taxed at 20%.
- Inherited debts. Tax arrears pass to heirs in proportion to their shares.
- Valuation disputes. A low value can be challenged by the tax authority.
- Home-country tax. Georgian exemptions do not apply abroad.
- Company gifts. VAT and profit tax can arise.
Frequently asked questions
Does Georgia have an inheritance tax?
Not a separate one; inherited property is income of the heir, and close family is exempt.
Do children pay tax on an inherited flat?
No; children are first-line heirs and fully exempt.
What about nephews and nieces?
They are second line and fully exempt.
How much can grandparents or an aunt receive tax-free?
Up to GEL 150,000 a year in gifts and inheritances together.
Can I give a flat to a friend tax-free?
Only up to GEL 1,000 a year; above that the friend pays 20% on the value.
When is the tax declared?
Before 1 April of the year after the transfer.
Do heirs pay the deceased's taxes?
Yes, in proportion to their shares, but never more than the value inherited.
Will my home country tax the Georgian flat?
It may; the UK, US and Germany all tax worldwide estates in certain cases.
Sources
- Tax Code of Georgia (Articles 57, 81, 82, 153 and the property tax articles), Legislative Herald of Georgia (accessed 19 October 2026)
- Resolution No 507 on notarial tariffs, Government of Georgia (accessed 19 October 2026)
- Fees and terms, National Agency of Public Registry (accessed 19 October 2026)
- Georgia: income determination for individuals, PwC Worldwide Tax Summaries (accessed 19 October 2026)
- Inheritance Tax Manual: long-term residence, HM Revenue and Customs (accessed 19 October 2026)
- UK inheritance tax rates and thresholds for expats and non-residents, Taxes for Expats (accessed 19 October 2026)
- 2026 federal estate exemption, Bowditch and Dewey, 28 October 2025 (accessed 19 October 2026)
- German inheritance tax FAQ, German probate lawyer (accessed 19 October 2026)
Change log
- - Explainer published from the Tax Code, the notarial tariff and official or adviser guidance on inheritance tax in the UK, the US and Germany.