One apartment or several: what changes as a portfolio grows?
For most private investors, one well-chosen flat is a better start than two average ones, and a second flat earns its place only if it adds something the first does not: a different city, a different kind of tenant or a different season. Going from one flat to several also changes the rules you live under. Rent from all your flats counts together toward the GEL 100,000 VAT registration threshold, rent is part of the family income that decides whether your property tax exemption applies, and every bank loan counts toward the National Bank's limit on how much of your income can go to repayments.
This guide covers how to combine flats so they spread risk rather than repeat it, how tax and financing change with each additional flat, when a company makes sense, and how to plan ownership and succession. Buying several flats in one deal is covered in our guide to bulk pre-sale purchases.
Concentrate or spread?
| Question | One larger or better flat | Several smaller flats |
|---|---|---|
| Vacancy | All income stops when it is empty | One empty flat is a fraction of income |
| Management | One tenant, one building | More tenants, repairs and paperwork |
| Market risk | Tied to one building and district | Spread only if the flats differ |
| Tax thresholds | Rent rarely reaches GEL 100,000 | Rent adds up toward VAT registration |
| Financing | One loan within retail limits | Each loan counts toward the same limit |
| Exit | One sale, all at once | Sell in stages, one flat at a time |
Several flats in the same building or district are not diversification: they share the same tenants, the same competition from new supply and the same building risks. Spreading works when each flat answers to a different source of demand.
What each market adds
- Tbilisi: local demand. About 90% of Tbilisi housing demand comes from Georgian residents, according to the National Bank, and TBC Capital found that 80% of purchases are for people to live in. Long lets to local tenants run year-round. Galt & Taggart's Tbilisi yield of 8.5% in July 2026 is based on long-term rents.
- Batumi: international and seasonal. Nearly 40% of Batumi demand came from non-residents in June 2025, and TBC Capital found 85% of Batumi purchases were made for investment. Income peaks in summer: Batumi's average nightly rate in the first quarter is roughly half the third quarter's. Galt & Taggart's Batumi yield of 7.1% in June 2026 is based on short-stay rates, so it cannot be compared directly with the Tbilisi figure.
- Ski resorts: winter. Gudauri and Bakuriani earn most in January and February, the quietest months on the coast. Their markets are small and the latest published sales data are from 2024.
Prices have moved at different speeds too. Between 2023 and 2025 Galt & Taggart's new-build average rose about 11.4% in Tbilisi (white frame, $1,233 to $1,373 per m²) and about 18.9% in Batumi (turnkey, $1,569 to $1,865). No analyst publishes a measure of how closely the two markets move together, so the case for combining them rests on their different buyers and seasons, not on a statistic.
How to build a portfolio step by step
Start with an anchor
A flat that local tenants want all year, in a district with many sales, so it can be let and sold easily.
Run it for a year
Real income, costs, vacancy and tax for one flat tell you more than any forecast for the next.
Add a different exposure
A second city, a different letting model or a different season, rather than a copy of the first flat.
Check the thresholds
Add up total rent against the VAT threshold and family income against the property tax test before each purchase.
Keep a reserve
Several months of costs and loan payments for all flats, in lari, so one empty flat does not force a sale.
Plan ownership early
Decide whose name each flat is in, and whether a company or co-ownership fits, before buying, not after.
How tax changes with each flat
- Income tax on rent. The 5% rate on residential rent received by an individual has no limit on the number of flats in the Tax Code. It allows no deductions.
- VAT. Using property to earn regular income counts as economic activity for VAT, and we found no VAT exemption for residential leases in the current Tax Code. On that reading, rent from all your flats adds up, and once it exceeds GEL 100,000 in any 12 consecutive months you must register for VAT within two business days and charge 18% from that point.
- Property tax. An individual's property is exempt if the family's income in the previous year was GEL 100,000 or less. Rent counts as family income, so a growing portfolio can cross the line, and then every flat, not only the newest, is taxed at 0.8% to 1% of its market value.
- Small business status. The 1% regime for small businesses does not cover income from letting property.
- Selling. Each flat is judged separately: no tax is due on the gain once you have owned it for over two years. Public Ruling No 175 of June 2026 states that the number of homes owned, how long they are held and their later sale do not by themselves make the owner a business.
As a rough guide, flats letting for $500 a month each bring in about GEL 15,600 a year each at the official rate of 2.5982 lari per dollar on 17 October 2026, so about seven of them would pass the VAT threshold on rent alone. Other income in the family counts toward the property tax test, which can be reached much sooner.
To be added by the team: the partner accountant to confirm that residential rent counts toward the VAT threshold, whether an owner registered as an individual entrepreneur keeps the 5% rate on rent, and at what point letting several flats is treated as a business.
Personally or through a company?
| Item | Personally | Through a company |
|---|---|---|
| Tax on rent | 5% of rent, no deductions | No tax while profit stays in the company; 15% profit tax plus 5% on dividends when paid out, about 19.25% of profit |
| Property tax | Exempt if family income was GEL 100,000 or less | Up to 1% of average net book value every year |
| VAT | GEL 100,000 threshold | Same threshold |
| Setting up | Nothing to set up | Registration GEL 200 (one working day) |
| Running costs | Annual declaration | Monthly filings and accounting |
For most owners of a few flats, personal ownership is simpler and cheaper. A company can make sense when profits are reinvested in more property rather than paid out, when several partners invest together, or when the portfolio is large enough to justify accounting costs; one accounting firm lists packages for companies from GEL 350 a month plus VAT. Moving flats you already own into a company raises its own tax questions. Our guide to buying property through a company explains the model in detail.
Financing a second or third flat
- Payment limit. The National Bank caps total loan payments as a share of income: for lari loans, 25% for incomes under GEL 1,500 a month and 50% above; for foreign-currency loans, 20% and 30%. Every loan counts, including those from other lenders, and from 2027 the 25% band will cover incomes under GEL 2,000 and then under GEL 2,500.
- Loan-to-value. Up to 90% for lari mortgages and 70% for foreign-currency ones.
- Income from abroad. These limits do not apply to a mortgage where the borrower's income from outside Georgia is proven and at least 20% of the value is paid in cash.
- The second let flat. A loan to buy a flat for letting can be treated as a business loan, outside the retail limits, only if the borrower already lets at least one other unit; the bank then applies its own criteria.
- Currency. Since July 2026 the lari is compulsory for loans of GEL 1,000,000 or less, unless you are not a Georgian citizen or your income is in the loan's currency.
Developers' own instalment plans are another way to spread payments over several flats, but they are a contract with one company, not a bank loan, and the flat is not yours until it is registered. Our page on currency risk explains why the loan's currency matters.
Managing several flats
Each flat adds tenants, repairs, utility accounts, building fees and tax records. Management companies in Tbilisi and Batumi publish fees of about 15% to 30% of income depending on the type of letting; we found no published discount for several units, so ask for one. One manager for all flats in a city keeps reporting consistent; flats in different cities usually need different managers. Insure each flat separately and check that the policy covers damage by tenants.
Ownership, partners and succession
- Spouses. Under the Civil Code, a flat a married couple acquires during the marriage belongs to both spouses, unless they have agreed otherwise in a marriage contract.
- Co-owners. Shares are equal unless agreed otherwise, rent is shared in proportion to shares, other co-owners have a pre-emptive right if one sells a share, and any co-owner can ask to end the co-ownership. Put the rules in writing.
- Partnerships. Under the Tax Code, a partnership of individuals can later distribute property to its members without VAT or income tax if its membership has not changed and it is not registered for VAT.
- Inheritance. Property inherited or received as a gift by first- and second-line heirs is free of income tax, and a first-line heir can count the previous owner's years toward the two-year holding period. An estate must be accepted within six months of the death.
Our guide to inheritance for foreign owners explains which country's law applies.
To be added by the team: the partner lawyer to confirm the co-ownership and partnership rules for foreign investors and how foreign marriage regimes affect property bought in Georgia.
Planning the exit
A portfolio can be sold one flat at a time, which spreads the sales over better and worse markets and keeps each sale within the two-year rule. Sell the flats that are hardest to let or most exposed to new supply first, and keep the ones that local buyers will always want. How quickly flats sell, and where, is covered in our page on resale liquidity.
Risks and exceptions
- False diversification. Several flats in one area share the same risks.
- Thresholds. Combined rent can trigger VAT and property tax.
- Leverage. Every loan counts toward the same payment limit.
- Management load. More flats mean more vacancies, repairs and paperwork.
- Unclear ownership. Co-ownership without written rules leads to disputes.
Frequently asked questions
Is it better to buy one flat or several?
Start with one good flat; add others only if they bring a different market, tenant or season.
Does the 5% rent tax apply to every flat?
The Tax Code sets no limit on the number of flats for the 5% rate on residential rent.
When do I need to register for VAT?
On our reading of the Tax Code, when total rent exceeds GEL 100,000 in 12 months; an accountant should confirm.
Does owning several flats make me a business?
Not by itself, according to Public Ruling No 175 of June 2026.
Should I use a company?
Usually only if profits are reinvested or partners invest together; distributions are taxed at about 19.25%.
Can I get several mortgages?
Yes, but all loans count toward the National Bank's payment-to-income limit.
Is inheritance of flats taxed?
Not for first- and second-line heirs.
Should my flats be in different cities?
That spreads risk better than several flats in one district.
Sources
- Tax Code of Georgia (Articles 81, 82, 88-90, 97, 98, 130, 158, 160, 165, 171, 202 and 206), Legislative Herald of Georgia (accessed 19 October 2026)
- Public Ruling No 175 of the Minister of Finance, 8 June 2026, Legislative Herald of Georgia (accessed 19 October 2026)
- Public Ruling No 143 of the Minister of Finance, 14 May 2026, Legislative Herald of Georgia (accessed 19 October 2026)
- Government Resolution No 415 on special tax regimes, Legislative Herald of Georgia (accessed 19 October 2026)
- Fees and terms, National Agency of Public Registry (accessed 19 October 2026)
- Accounting pricing, ExpatHub (accessed 19 October 2026)
- Financial Stability Report 2025, National Bank of Georgia (accessed 19 October 2026)
- TBC Capital presents research at International Real Estate Forum, Georgia Today, 10 February 2026 (accessed 19 October 2026)
- Tbilisi Residential Real Estate, 2025 Full Year Overview, Galt & Taggart (accessed 19 October 2026)
- Batumi Residential Real Estate, 2025 Review and 2026 Outlook, Galt & Taggart (accessed 19 October 2026)
- Batumi Residential Real Estate, 2Q26 Overview, Galt & Taggart (accessed 19 October 2026)
- National Bank of Georgia Order No 44/04 on lending to individuals, Legislative Herald of Georgia (accessed 19 October 2026)
- Georgia to tighten lending rules from February 2027, Georgia Today, 30 September 2026 (accessed 19 October 2026)
- Civil Code of Georgia (Articles 954-961, 1158, 1336, 1424), Legislative Herald of Georgia (accessed 19 October 2026)
Change log
- - Guide published from the Tax Code, Public Rulings No 143 and 175, Resolution No 415, NBG Order 44/04, the Civil Code, Galt & Taggart, TBC Capital and the National Bank.