Should you sell a let flat in Georgia or keep renting it out?
Compare 2 numbers: what the flat returns each year if you keep it, which is its rent after costs plus any rise in its value, and what the money would earn if you sold, after the costs of selling. In Tbilisi in July 2026 an average new flat let long term for USD 10.1 per m² a month, a gross yield of 8.5% according to Galt & Taggart, while a 12-month dollar deposit at the two largest banks paid 1.40% to 1.50% and a lari deposit 8.85% to 9.25%. Selling costs an agent's commission of about 3% to 5% and a Public Registry fee from GEL 150; the gain is tax-free for a home owned more than 2 years and taxed at 5% before that, whether or not the flat was let. A tenant does not have to leave when you sell: the buyer takes over the lease.
This page sets the two options side by side, with the current figures for each, a worked comparison, the rules for selling with a tenant inside, and how buyers' financing and the market affect how quickly a flat sells. How a sale works step by step is covered in our resale service page.
Keeping or selling at a glance
| Question | Keep renting | Sell |
|---|---|---|
| Yearly return | Rent after vacancy, costs and 5% tax, plus or minus the change in the flat's value | Interest on the proceeds: 1.40% to 4.00% in dollars, 8.00% to 10.70% in lari for 12 months |
| One-off cost | None now; repairs and new furniture as the flat ages | Agent about 3% to 5%, Public Registry GEL 150 to 350, notary if used |
| Tax | 5% of rent received for a home let to live in | 0% on the gain after more than 2 years of ownership; 5% within 2 years |
| Work | Tenants, repairs, the annual return, or a manager's fee | None after the sale |
| Main risk | Empty months, falling rents, the building and the market | The bank, inflation and, in lari, the exchange rate |
| Access to the money | Takes a sale, usually weeks to months | Available at the end of the deposit term |
Neither column wins in every case. The comparison turns on where the flat is, what it really earns, how long you have owned it and which currency you think in.
What the flat earns if you keep it
A let flat earns twice: the rent, and any change in its price. In Tbilisi, Galt & Taggart's benchmark rent for a new 50 to 60 m² flat stayed close to USD 10 per m² a month throughout 2026, at USD 9.9 in March and May and USD 10.1 in June and July, with a gross yield of 8.4% to 8.5%. New-build prices rose 6.1% in the year to May 2026, and Galt & Taggart expects growth of 5% to 7% a year. In July 2026 a flat in a newer building resold for USD 1,372 per m² on average against USD 1,426 for a new one.
Batumi looks different. Galt & Taggart's yield for the city fell from 8.8% in 2024 to 7.4% in 2025, and it expects price growth to slow to 4% to 6% in 2026. Analysts quoted by International Investment put net yields for Batumi short stays at about 3% to 4% after management, cleaning, platform fees, utilities and empty nights. Colliers reported new-build prices 22% higher in June 2026 than a year earlier, while resales in the city fell 26.4%.
Gross yield is not what you keep. Take off empty weeks, the 5% tax on rent, building fees, repairs and, if you use one, a manager's fee; our page on real rental income shows how wide the gap between the average and the typical flat can be.
What the money earns if you sell
| Deposit | In lari | In dollars |
|---|---|---|
| TBC Bank, 12 months | 8.85% | 1.40% |
| Bank of Georgia, 12 months | 9.25% | 1.50% |
| Lowest to highest among listed banks | 8.00% to 10.70% | 1.40% to 4.00% |
| Market average for new term deposits, July 2026 | 8.91% | 2.52% (all foreign currencies) |
The National Bank kept its policy rate at 8.25% on 21 October 2026, after raising it from 8.0% in May, with inflation at 5.6% in September. Its next decision is due on 16 December 2026, so check the banks' current offers on the day you decide. Deposits are insured up to GEL 50,000 per depositor in each bank.
The high lari rates come with currency risk for anyone who measures wealth in dollars or euros. The lari strengthened over the past year, from GEL 2.7079 per dollar on 20 October 2025 to GEL 2.5979 on 20 October 2026, which helped lari savers, but the movement can run the other way. A dollar deposit avoids that risk but at the two largest banks pays less than a fifth of a Tbilisi flat's gross yield.
A worked comparison
| Line | Keep and let | Sell and deposit |
|---|---|---|
| Value or sale price | 82,320 | 82,320 |
| Cost of selling | - | -2,470 agent at 3%, -58 registry |
| Money working | 82,320 | 79,792 |
| Rent, 11 months of 12 | 6,666 | - |
| Tax on rent at 5% | -333 | - |
| Income for the year | 6,333 | 1,197 at 1.50% in dollars |
| If prices rise 5% | +4,116 | - |
| If prices stay flat | 0 | - |
On these figures keeping the flat earns about 7.7% of its value before running costs, against about 1.5% for a dollar deposit, and a 5% price rise would add another USD 4,116. The same proceeds in a lari deposit at 9.25% would earn about USD 7,381 in lari terms, more than the rent, but only if the exchange rate holds. Running costs narrow the gap for the flat, and a manager's fee of 15% to 25% would take USD 1,000 to 1,667 of the rent; a fall in prices or a year of weak lettings would close it. Put your own flat's numbers into the table rather than relying on the averages.
Timing matters too. If you bought the flat for USD 70,000 less than 2 years ago, a sale at USD 82,320 would carry tax of 5% on the gain, about USD 616 on these figures, calculated in lari at the National Bank's rates on the dates of purchase and sale. Waiting until more than 2 years have passed removes the tax, as our guide to capital gains tax explains.
What selling costs
- Agent. Commission is not fixed by law and is usually paid by the seller. Topbroker publishes 3% of the sale price; Tbilisi Home publishes 3% for a portal listing, 4% for its full service and 5% for a premium service, paid only on sale. Under the Civil Code a broker is paid only if the sale is concluded (Article 744). We found no published rate for Batumi; our guide to choosing an agent covers the contract.
- Public Registry. Registering the transfer costs GEL 150 with a wait of 4 working days, GEL 270 for next-working-day service or GEL 350 for registration on the day of filing; certifying the parties' signatures at the registry costs GEL 7. The full fee list is on our Public Registry fees page.
- Notary. Optional for an ordinary sale, but required where a party signs through a power of attorney issued abroad. Under Government Resolution No 507 the fee for a deal of GEL 100,001 to 500,000 is GEL 362.5 plus 0.2% above GEL 100,000, about GEL 687 on a sale of about USD 100,000.
- Tax. 5% of the gain on a home owned 2 years or less (Tax Code Article 81(3)); none after more than 2 years (Article 82). The Ministry of Finance's Public Ruling No 143 of 14 May 2026 confirms that letting a flat does not by itself change its residential character, and documented renovation costs are added to the purchase price. The seller declares and pays by the 15th of the month after the sale.
Selling with a tenant inside
A lease does not end because the flat is sold. Under the Civil Code a person who acquires a rented flat takes the landlord's place (Article 209), and where the flat has been handed to the tenant the rights and duties under the lease pass to the buyer (Article 572). The buyer therefore gets the tenant, the rent and the deposit obligation together with the flat.
Ending the lease early to sell vacant is limited. The general notice period is 3 months (Article 561), and a landlord may end a residential tenancy only for the reasons listed in Article 562(2), such as a serious breach by the tenant or needing the flat for themselves or close relatives; wanting to sell is not on the list. For a furnished flat the landlord may always end the lease by giving the notice (Article 562(3)), and every termination must be in writing (Article 563). A tenant has no right to buy first: under the Civil Code a right of first refusal arises only from a contract (Articles 516 to 519) or between co-owners (Article 173(4)).
In practice a tenanted flat suits an investor who wants income from the first day, and a vacant flat suits a buyer who will live in it. Agree viewing times with the tenant in writing before the flat goes on the market.
Who is buying, and can they borrow?
Tbilisi's resale market was active in 2026. In July, 2,294 flats were resold, 18.8% more than a year earlier and the highest monthly figure since 2022, about half of the 4,475 flats sold in the city that month. Over the first 7 months, sales were worth USD 2.5 billion, 27.3% more than a year before, and Galt & Taggart linked the growth to a stronger lari and lower interest rates. Georgian citizens bought about three quarters of new flats in mid-2026.
In Batumi the picture is mixed: Colliers counted 1,468 transactions in June 2026, 8% more than a year earlier, but resales fell 26.4% while new-build sales rose 11%, so a resale flat there competes with developers' instalment offers. No source publishes how many days a flat stays on the market in either city; our page on resale liquidity collects what the data do show.
Your buyer's ability to borrow also matters. National Bank rules allow banks to lend up to 90% of the value in lari and 70% in foreign currency, and from 1 July 2026 loans up to GEL 1 million must be in lari, with exemptions that include borrowers who are not Georgian citizens. Most local buyers of an ordinary flat will therefore take a lari mortgage. The payment-to-income limit is 25% for borrowers earning less than GEL 1,500 a month, and from 1 February 2027 that band widens to incomes below GEL 2,000, which may reduce how much some buyers can borrow.
Signs that point one way or the other
These are the factors that move the comparison, drawn from the figures above rather than a rule:
- Towards selling. The flat's net income, after all costs, is below what a deposit in your own currency pays. You need the capital within a year or two. Major repairs or a new furnishing round are due. The building has problems that will lower its price later. You have owned the flat for more than 2 years and the market for flats like yours is busy.
- Towards keeping. The net yield is well above a dollar deposit and the tenant is reliable. You have owned the flat for less than 2 years, so selling now would cost 5% of the gain. A manager carries the work at a fee you can afford. Prices in the district are still rising.
- Either way. If the flat is a short-stay unit, compare its last 12 months of payouts, not the advertised yield, before deciding.
For a short-stay flat the switch between nightly and monthly letting is another option before selling; our comparison of long-term and short-term rental sets out the numbers.
Taking the money home
Georgia does not restrict sending sale proceeds abroad: it accepted the IMF's Article VIII obligations on payments and transfers from 20 December 1996, and its investment law gives a foreign investor the right to repatriate income without limit after tax. Cash above GEL 30,000 must be declared when it crosses the border. A bank may ask where a large transfer comes from, so keep the sale contract, the registry extract and proof of any tax paid ready. Routes and fees are compared in our guide to transferring money abroad.
Deciding step by step
Collect 12 months of figures
Rent received, empty weeks, costs and tax.
Value the flat
Use recent sales in the district, not asking prices.
Price the sale
Agent, registry, notary if needed and any tax.
Check your ownership date
2 years from registration decides the tax.
Compare in your currency
Net yield against today's deposit rate.
Decide on the tenant
Sell with the lease or give notice in writing.
Risks and exceptions
- Selling inside 2 years. The gain is taxed at 5%.
- Currency. A lari deposit can lose value in dollars.
- Comparing gross with net. Rent must be measured after all costs.
- A tenant who stays. Wanting to sell is not a reason to end a lease.
- A thin resale market. Batumi resales fell in mid-2026.
Frequently asked questions
Is it better to sell or rent out an apartment in Georgia?
It depends on the flat's net yield, your ownership period and your currency; compare them as on this page.
Do I pay tax when I sell a flat I have let?
Not if you owned it more than 2 years; within 2 years, 5% of the gain.
Does letting the flat remove the tax exemption on sale?
No. Public Ruling No 143 of 2026 confirms letting does not by itself change its residential character.
Can I sell a flat with a tenant in it?
Yes. The buyer takes over the lease.
Can I end the lease because I want to sell?
Not for that reason alone, unless the flat is let furnished.
How much does a Georgian bank pay on deposits?
About 1.40% to 4.00% in dollars and 8.00% to 10.70% in lari for 12 months, in October 2026.
What does an agent charge to sell a flat?
Usually 3% to 5% of the price, paid by the seller.
Can I move the sale money out of Georgia?
Yes, without limits after tax.
Sources
- The value of apartment sales in Tbilisi reached USD 2.5 billion, GBC, citing Galt & Taggart's July 2026 review (accessed 20 October 2026)
- Tbilisi apartment sales and rent, May 2026, GBC, citing Galt & Taggart (accessed 20 October 2026)
- Tbilisi rent and yield, March 2026, GBC, citing Galt & Taggart (accessed 20 October 2026)
- Tbilisi real estate market report for June 2026, Homesoverseas, 10 August 2026 (accessed 20 October 2026)
- Tbilisi prices and inflation, Trend, citing Galt & Taggart, 7 September 2026 (accessed 20 October 2026)
- Sector snapshot: Batumi residential real estate, Investor.ge, citing Galt & Taggart, 20 April 2026 (accessed 20 October 2026)
- Batumi housing prices rose by 17% in 2025, International Investment, 23 February 2026 (accessed 20 October 2026)
- Batumi housing market in June 2026, Homesoverseas, citing Colliers, 7 August 2026 (accessed 20 October 2026)
- Effective interest rates for deposits, National Bank of Georgia (accessed 20 October 2026)
- Bank deposits at the end of July 2026, 1TV, citing the National Bank of Georgia, 26 August 2026 (accessed 20 October 2026)
- Monetary policy rate kept at 8.25%, National Bank of Georgia, 21 October 2026 (accessed 21 October 2026)
- PTI and LTV requirements, National Bank of Georgia (accessed 20 October 2026)
- Lari lending threshold rises to GEL 1 million from 1 July, GBC (accessed 20 October 2026)
- Georgia to tighten lending rules from February 2027, Georgia Today, 30 September 2026 (accessed 20 October 2026)
- Immovable property registration fees, National Agency of Public Registry (accessed 20 October 2026)
- Government Resolution No 507 on notarial fees, Legislative Herald of Georgia (accessed 20 October 2026)
- Services and commission, Topbroker, and Sell your property, Tbilisi Home (accessed 20 October 2026)
- Public Ruling No 143, 14 May 2026, and Public Ruling No 175, 8 June 2026, Ministry of Finance of Georgia (accessed 20 October 2026)
- Civil Code of Georgia, Legislative Herald of Georgia (accessed 20 October 2026)
- Official exchange rate of the lari, National Bank of Georgia (accessed 20 October 2026)
- Georgia accepts Article VIII obligations, International Monetary Fund, 27 January 1997 (accessed 20 October 2026)
- Crossing the customs border of Georgia, Revenue Service of Georgia (accessed 20 October 2026)
Change log
- - Comparison published from Galt & Taggart and Colliers market reports, National Bank of Georgia deposit and lending data, Public Registry and notary fees, published agency commissions, the Tax Code, Ministry of Finance rulings and the Civil Code.