Rental income tax: ordinary income tax charged on rent, not a levy of its own
Rental income tax is the Georgian personal income tax (საშემოსავლო გადასახადი) on rent an individual receives: 5% of the gross rent, with no deductions, when residential space is let for living, and 20% of taxable income in most other cases.
The phrase itself appears nowhere in the Tax Code of Georgia. Art. 81(1) sets the general rate of 20% "unless otherwise provided by this Code", and Art. 81(2) provides otherwise for income a natural person receives from letting residential space for residential purposes, when no deductions are claimed. Art. 81(5) leaves the Minister of Finance to set the rules for the register of persons letting residential space and for the relief when the tenant is a legal person.
We found no tax-free band for landlords and no separate rent return in the Code, and on the 5% route repairs, furniture, agent fees and loan interest are simply not counted. Our guide to rental income tax in Georgia compares the rates in depth; here we cover the term, its wording and its paper trail.
The words of Article 81(2), one at a time
Each phrase narrows the 5% rule, read with Art. 111-2 of the instruction in Order No 996 of 31 December 2010.
| Element | What it covers | Outside it (20% for an individual) |
|---|---|---|
| Natural person | An individual owner, resident or not | A company owner (profit tax rules) |
| Residential space | A flat or house, including one under construction | Offices, shops, land; see commercial space |
| For residential purposes | Someone actually lives there | A home let as an office |
| Any tenant | An organisation, legal person or natural person | Nothing; a company tenant adds the register condition |
| No deductions | Tax on the gross rent | An owner who deducts costs |
Order 996, Art. 111-2(1), names a flat or house under construction as residential space, so a pre-sale unit is not excluded by that word alone. A hotel room is another matter: Public Ruling No 143 of 14 May 2026, written for sale gains, lets actual function decide and treats a room within hotel infrastructure as not a residential flat. See also living area.
Four legal routes for the same rent, and who pays on each
The owner is always the taxpayer; the route sets the rate, the base and who hands the tax over.
| Route | Base and rate | Who hands the tax over |
|---|---|---|
| Home let for living (Art. 81(2)) | 5% of gross rent | The owner, or a company tenant at source |
| General rule (Art. 81(1)) | 20% of taxable income | The owner, or a company tenant at source |
| Hotel unit, tourist enterprise (Art. 133-2) | 5% of the operator's payment, final | The tourist enterprise |
| Fixed short-stay tax (Art. 309(24)-(32)) | GEL 10 per m² a month, until 1 January 2028 | The owner, quarterly |
The tax agent. A legal person, enterprise, organisation or individual entrepreneur paying an individual rent withholds the tax (Art. 154(1)(c) and (d)). For a non-resident owner, Art. 134(1)(d1) calls the rent a "lease service amount" taxed at source at the Art. 81 rate. A private tenant is never a tax agent.
The register: a duty for all, a condition for one. Order 996, Art. 111-2(2), makes entry a duty for every landlord letting for living without deductions, but paragraphs (8) and (9) tie 5% to it only for a company tenant. A withholding company applies 5% only if the landlord is registered when the liability arises (the Order's example: rent paid 27 May 2016, application 29 May, 20% withheld). Rent from a non-withholding company keeps 5% if entry comes before 1 April of the next year. Espero.ge reports a GEL 100 fine for late registration, citing Revenue Service manual No 1518; we could not find its legal basis.
Hotel units and short stays. A tourist enterprise's 5% is final, and up to 60 free days a year for the owner are exempt (Art. 82(1)(z6)); see aparthotel. The fixed tax applies only on application, for a year or chosen months. Art. 309(30) exempts a manager who leases the flat and re-lets it nightly during the owner's fixed-tax period from profit or income tax on that letting. Rent is also outside the 1% small business rate (Resolution No 415, Annex 5).
Deadlines, sanctions and how many landlords pay
Art. 153(1) requires a return "before 1 April of the year following the reporting year", so 31 March is the last day, from residents and non-residents alike when rent was not taxed at source. Rent fully withheld by a company is generally not declared again.
| Situation | Rule |
|---|---|
| Return filed late | 5% of the tax due up to 2 months, 10% after; nothing if the tax is zero (Art. 274) |
| Tax paid late | 0.05% a day (Art. 272) |
| Rent understated | 10%, 25% or 50% of the understated tax (Art. 275) |
A non-resident taxed at source may file before 1 April for a recalculation, capped at the tax withheld (Art. 134(3)-(4)); it matters mainly when a company wrongly withheld 20%.
Revenue Service figures reported by BM.ge show individuals received GEL 344 million in rent (flats, shops and offices) from January to July 2025, up 12% year on year, with 28,300 lessors in July 2025 against 26,300 a year earlier. Interpressnews reported in February 2015 that 10,918 people paid rental tax in 2014.
Where the tax shows up: Code wording, forms, leases and statements
- The Code. Art. 81(2) speaks of income from letting residential space "for residential purposes" (საცხოვრებელი მიზნით); Art. 134(1)(d1) says "საიჯარო მომსახურების თანხა", a lease service amount.
- The register application. Annex VII2-01 to Order 996, headed in translation "application on entering or removing data in the register of persons letting residential space", serves both ways. Data are entered within 2 working days and a confirming document issued; an incomplete file gets up to 15 working days.
- The lease. A copy goes with the application only when a legal person or organisation rents. Wording that the flat is let for living (საცხოვრებლად) supports 5%.
- The company's payments. Rent arrives net of 5% or 20%, reported in the company's monthly return by the 15th (Art. 153(5)).
- The annual return. Rent goes in Annex B of form II-04, paid to treasury code 101001000; dollar rent converts at the National Bank rate of each day received (Art. 73(10)).
- The fixed tax. Application VII-01, decided in 3 working days, certificate VII-02; payments by 15 April, 15 July, 5 October and 15 January. Order 996 (Instruction Art. 110(5)) still prints 15 October for the third quarter; the Code (Art. 309(27)) says 5 October, so follow the Code.
We found no tax field in ss.ge or myhome.ge adverts; net or gross rent is a lease clause. A management company withholds only when it pays you as an enterprise buying a service (Art. 154(1)(d)). Filing step by step is in declaring rental income.
Worked example: one 60 m² Saburtalo flat, four tax outcomes
Our calculation, for an assumed 60 m² Saburtalo flat let for living at USD 11.3 per m² a month (Galt & Taggart weighted average rent for the district, December 2025), at GEL 2.5982 per dollar (National Bank, 17 October 2026). A real return uses each day's rate.
- Rent. 60 x 11.3 = USD 678 a month, USD 8,136 a year, about GEL 21,139.
- Private tenant. 5% is about GEL 1,057, declared and paid before 1 April of the next year.
- Company tenant, owner registered. USD 33.90 a month withheld; nothing more to declare for that rent.
- Company tenant, owner not yet registered. 20%, or USD 135.60 a month, is withheld: USD 101.70 a month more (Order 996, Art. 111-2(8)).
| Route | Tax a year |
|---|---|
| 5%, let for living | about GEL 1,057 |
| Fixed tax, nightly lets all year | GEL 7,200 (60 x 10 x 12) |
| Fixed tax, 4 summer months | GEL 2,400 (60 x 10 x 4) |
The fixed figure ignores income: against AirROI's estimated GEL 13,900 median yearly gross bookings for a Tbilisi two-bedroom listing (12 months to September 2026), a full year on 60 m² would take about 52%. Order 996's own example taxes only the rooms let, not auxiliary space and bathrooms, so the taxed area may be below 60 m². It suits busy flats and part-year use; this is an illustration, not advice. Our long-term or short-term comparison adds the costs.
Rental income tax beside the sale-gain tax, the fixed tax and property tax
| Term | What is taxed | How it is reported |
|---|---|---|
| Rental income tax, 5% | Gross rent from a home let for living (Art. 81(2)) | Annual return before 1 April, or company withholding |
| Capital gains tax, 5% | The gain on selling a flat or house with its land (Art. 81(3)) | Its own return, due by the 15th of the following month (Art. 153(12)) |
| Fixed short-stay tax | Area intended for short lets, GEL 10 per m² a month, whatever the income | By application; quarterly; until 1 January 2028 |
| Property tax | Owning buildings, for individuals only when last year's family income exceeded GEL 100,000 | Separate return; rent counts towards that income |
The two 5% rates sit one paragraph apart in Art. 81 but differ in object and timing. Whether nightly letting outside the fixed regime can use 5% we could not confirm. And the register entry is not taxpayer registration, which a foreigner needs first.
The term in five languages
| Language | Rental income tax | Landlord register |
|---|---|---|
| Georgian | ქირის შემოსავლის გადასახადი | საცხოვრებელი ფართობის გამქირავებელ პირთა რეესტრი |
| English | rental income tax | landlord register |
| Russian | налог на доход от аренды | реестр арендодателей |
| Hebrew | מס על שכר דירה | מרשם המשכירים |
| Arabic | ضريبة دخل الإيجار | سجل المؤجرين |
The Tax Code and Order 996 use საშემოსავლო გადასახადი, personal income tax, with the long description from Art. 81(2); ქირის გადასახადი is the everyday word of the press and of listings.
Mistakes owners make with the term
- Deducting costs on the 5% route. That moves the rent to 20%.
- Registering after a company's first payment. Every payment a withholding company makes before the entry is taxed at 20%.
- Skipping the register with a private tenant. It is still a duty, even though it is not a condition of 5% in that case.
- Diarying 1 April. The return is due before 1 April; 31 March is the last day.
- Ignoring the home country. See double taxation for treaty credits.
To be added by the team: add a redacted register confirmation document, a screenshot of Annex B of form II-04 with rent entered, a redacted company withholding statement and a redacted fixed-tax certificate (form VII-02).
How to identify which rental income tax applies to your flat
Name the space
Residential, under construction, hotel room or commercial.
Name the use
Someone lives there, short stays, or business use.
Name the tenant
A private person, a company or a tourist enterprise.
Decide on deductions
None for 5%; costs mean 20%.
Enter the register
Form VII2-01, before a company's first payment.
Diary the deadline
Annual return before 1 April, or fixed-tax quarters.
Frequently asked questions
Is rental income tax a separate tax in Georgia?
No. It is personal income tax on rent, under Tax Code Art. 81.
What is the rate on a home let for living?
5% of the gross rent, with no deductions (Art. 81(2)).
When does 20% apply?
For non-residential space, other uses, or when costs are deducted (Art. 81(1)).
Must I join the landlord register?
Yes, it is a duty; it is a condition of 5% only when the tenant is a company.
Who pays when a company rents my flat?
The company withholds the tax and pays it over as tax agent.
When is the annual return due?
Before 1 April of the following year; the last day is 31 March.
Is there a fine for late registration?
Espero.ge reports GEL 100; we could not confirm its legal basis.
How is nightly letting taxed?
The owner may choose the fixed tax: GEL 10 for each m² of letting area per month, available until 1 January 2028. Outside it, the rate (5% or 20%) is unconfirmed.
Sources
- Tax Code of Georgia, consolidated text of 15 October 2026, Matsne (accessed 2 November 2026)
- Order No 996 of the Minister of Finance, Instruction Art. 111-2, Matsne (accessed 2 November 2026)
- Mandatory landlord registration and taxes, Espero.ge
- Rental income, January to July 2025, BM.ge, 7 August 2025
- Law No 1061, fixed short-stay tax extension, Matsne
- Public Ruling No 143, 14 May 2026, Matsne
- Resolution No 415, Annex 5, Matsne
- Tbilisi residential real estate, December 2025, Galt & Taggart
- Official rate, 17 October 2026, National Bank of Georgia
- Tbilisi short-term rental market, AirROI
Change log
- - Glossary entry published from the Tax Code of Georgia, Order No 996, Public Ruling No 143, Resolution No 415, Law No 1061, Espero.ge, BM.ge, Galt & Taggart, the National Bank of Georgia and AirROI.