Property tax for individuals on one table
Since 30 September 2026 the Tax Code exempts an individual's buildings and flats if last year's family income was GEL 100,000 or less, and sets a band of 0.8% to 1% for everyone above that line; each municipal council chooses the rate inside the band. Tbilisi and Batumi, the two cities where most foreign buyers own property, have both set 0.8%, the bottom of the band.
| Family income | Tax Code band | Tbilisi | Batumi |
|---|---|---|---|
| GEL 100,000 or less in the previous year | Exempt (land still taxed) | Exempt | Exempt |
| More than GEL 100,000 | Between 0.8% and 1% of market value | 0.8% | 0.8% |
The percentages apply to the market value of the property at the end of the tax year. Land is taxed separately, at a rate per square metre, and is not covered by the income exemption.
What changed on 30 September 2026
Until then the Code had three tiers: exemption up to GEL 40,000 of family income, a band of 0.05% to 0.2% for families between GEL 40,000 and GEL 100,000, and 0.8% to 1% above that. Law No 1874, adopted by Parliament and in force on 30 September 2026, removed the middle tier and raised the exemption to GEL 100,000. Its transitional article applies the new rules also to the property tax that has to be declared in 2026, which is the return due by 1 November 2026, based on the family's income for 2025. Media reports estimated that about 81,000 people no longer pay as a result.
For a foreign owner whose family income sits between GEL 40,000 and GEL 100,000, the change means no tax on the flat at all, where until this year Tbilisi and Batumi charged 0.2% of its value. Owners above GEL 100,000 see no difference.
To be added by the team: our accountant to confirm how amounts already paid in 2026 under the old middle band are treated, and whether Tbilisi and Batumi will amend their local resolutions, which still list the old 0.2% rate.
Who pays it?
Under Article 201(1)(c) of the Tax Code, a natural person pays property tax on real estate he or she owns, including unfinished construction, buildings and parts of buildings. The article sets no condition about citizenship or tax residence, so a foreign individual who owns a flat in Tbilisi is within its scope in the same way as a Georgian owner. Whether any tax is actually due then depends on two things: the family-income test, which decides the band, and the market value, to which the rate is applied.
The same Code taxes land on a different basis. The person who owns the land on 1 April of the tax year pays the land tax for that year (Article 203), at rates set per square metre for non-agricultural land in each municipality.
The family-income test
The band depends on the income of the taxpayer's family, not on the value of the flat. Article 202(6) defines that income widely: all income, including income that is exempt from income tax, salaries, and income not connected with any business. Article 202(7) then removes some items: what a family member passes to you by inheritance, gift or a divorce settlement, and the money from selling a home you owned for over two years.
Two consequences matter for owners. First, rent counts: the income from letting your flat is part of family income, so a flat that is exempt in its first year can become taxable once its rent and your other income together pass GEL 100,000. Second, the exemption looks backwards: it depends on the family income of the year before the tax year (Article 206(1)(a)).
To be added by the team: how the family-income test is applied to an owner who is not a Georgian tax resident and has income only abroad, and how the market value is established for an individual's return, confirmed by our accountant with the official source.
Worked examples
A flat worth $120,000 at the end of the year is about GEL 314,880, converted at 2.624 lari per dollar, the National Bank's official rate on 5 August 2026. The tax in Tbilisi or Batumi, depending on the family's income, is:
| Family income | Rate | Tax a year |
|---|---|---|
| GEL 100,000 or less | Exempt | GEL 0 |
| More than GEL 100,000 | 0.8% | about GEL 2,519 |
If you bought the flat in the middle of the year, the tax is charged only for the time you owned it (Article 202(9)): roughly half of the figures above for a purchase on 1 July. The real amount also depends on the exchange rate and on the market value at the year end, which is why these figures are an illustration, not a bill.
Land: a separate tax with no income exemption
An owner of a house with a garden, or of a plot, pays land tax even when the house itself is exempt, because the income exemption in Article 206(1)(a) excludes land. The rates for non-agricultural land are set by each council per square metre:
- Tbilisi. GEL 0.24 per m² multiplied by a territorial coefficient of 1.0 to 1.5, so between GEL 0.24 and GEL 0.36 per m² depending on the district.
- Batumi. GEL 0.31 per m² in the central zone, GEL 0.24 in the intermediate zone and GEL 0.17 in the peripheral zone.
For a 600 m² plot in Tbilisi, that is between about GEL 144 and GEL 216 a year. Agricultural land is taxed per hectare under separate rates, and in any case cannot be owned by foreigners except by inheritance.
The return and the payment: dates that matter
Check the band
Add up the family's income for the previous year, including rent.
File the return if tax is due
Individuals file the property tax return with the Revenue Service by 1 November (Article 205(12)).
Or notify that none is due
If you filed last year but owe nothing this year, tell the tax authority by 1 November; otherwise it may assess you on last year's data (Article 205(13)).
Pay
Pay the tax the authority calculates from your return by 15 November.
Keep the records
Keep the return, the payment and the basis for the value you declared.
What "market value" means in practice
The Code links the rate to the market value of the property at the end of the tax year, not to the price you paid or to a cadastral figure. In a rising market the two can differ noticeably after a few years. Keep the evidence behind the value you use: a recent valuation report, if you had one for a residence permit, or the prices of comparable flats in the same building or street. How the Revenue Service reviews the value in an individual's return is one of the points our accountant is confirming.
In the year you sell
Because the tax is charged pro rata for the time you owned the property, the year of a sale is taxed only up to the date ownership passed to the buyer. The gain on the sale is a separate matter, taxed under the income tax rules, and the proceeds of selling a home you owned for more than two years do not count towards family income for the property-tax test. Keep the sale contract and the registration date with your tax papers for that year.
An owner's yearly routine
- January. Note the property's value at the end of the previous year and your family's income for that year.
- 1 April. If you own land, the land tax for the year falls on whoever owns it on this date.
- Autumn. Decide whether a return or a notification is needed.
- 1 November. File the return or the notification.
- 15 November. Pay.
Does renting out the flat change anything?
Renting out brings its own tax: an individual who lets a home for people to live in pays 5% of the rent when claiming no deductions (Article 81(2)). That income tax is separate from property tax and does not replace it. Its indirect effect is the one described above: the rent adds to family income, and family income decides whether the flat is exempt or taxed at 0.8% in Tbilisi and Batumi. An owner whose family income from elsewhere is above GEL 100,000 pays from the first year of ownership.
And if a company owns the flat?
A company is taxed on a different basis: the rate for an enterprise is at most 1% of the yearly average net book value of what it owns and must tax (Article 202(1)), and companies file before 1 April. Whether owning through a company makes sense is a wider question of tax, accounts and exit, covered in our money and taxes guide.
Risks and exceptions
- Forgetting that rent counts. It can move you out of the exemption.
- Forgetting the land. It is taxed even when the house is exempt.
- Missing the notification. After a year with a return, silence can mean an automatic assessment.
- Assuming a foreign owner is exempt. The article has no residency condition.
Frequently asked questions
Do foreigners pay property tax in Georgia?
The Tax Code applies to natural persons who own real estate, without a citizenship or residency condition. Whether tax is due depends on family income and the property's value.
What is the property tax rate in Tbilisi?
0.8% of market value once the family's income for the prior year is above GEL 100,000. At GEL 100,000 or less, buildings are exempt.
Is it the same in Batumi?
Yes, Batumi's council has also set 0.8%. Land rates differ by zone.
Did the rules change in 2026?
Yes. From 30 September 2026 the exemption covers family income up to GEL 100,000 and the 0.05% to 0.2% band no longer exists; the change applies to the return due in 2026.
When do I file and pay?
The return is due by 1 November and the payment by 15 November.
Do I pay for the whole year if I bought in autumn?
No. The tax is pro rata for the time you owned the property in the year.
Is property tax deductible from rental income tax?
Not under the 5% regime, which applies when no deductions are claimed. Whether another regime suits you is a question for an accountant.
All the taxes of buying, owning and selling are set out in money and taxes for a foreign buyer.
Sources
- Tax Code of Georgia (Articles 81, 201 to 206), Legislative Herald of Georgia (accessed 18 October 2026)
- Law of Georgia No 1874 of 30 September 2026 amending the Tax Code, Legislative Herald of Georgia (accessed 18 October 2026)
- Parliament approves abolition of the GEL 40,000 property tax threshold, SOVA (accessed 18 October 2026)
- Tbilisi City Assembly Resolution No 20-90 of 30 December 2014 on local tax, consolidated 26 December 2025, Legislative Herald of Georgia (accessed 12 October 2026)
- Batumi City Council Resolution No 2 of 31 January 2011 on local taxes, consolidated 25 November 2024, Legislative Herald of Georgia (accessed 12 October 2026)
- Lari strengthens in July too, GBC (accessed 12 October 2026)
Change log
- - Explainer published from the Tax Code and the Tbilisi and Batumi council resolutions on local tax; being reviewed by the partner accountant. Updated 18 October 2026 for Law No 1874 (exemption raised to GEL 100,000, middle band removed).