An individual selling property in Georgia doesn't always pay tax — what matters is how long you owned it and what kind of property it is. Only the gain is taxed, not the whole price — the difference between the sale and purchase price (Tax Code, Articles 81–82).
In short
| Property | Tax-free | If taxed |
|---|---|---|
| A flat or house (with its land) | If you owned it for more than 2 years | 5% of the gain |
| Land, commercial premises, other property | If you owned it for more than 2 years and didn't use it in business | 20% of the gain |
| A car | If you owned it for more than 6 months from registration | 5% of the gain |
How the 2 years are counted
- From the date of the document by which your ownership was registered — for example, the purchase contract
- The sale date is the date of the sale contract
- If you received the property from a first-degree relative — spouse, parent or child — by inheritance or gift, their period of ownership counts too
- If one property was split, the period runs from when you owned it before the split
How the gain is calculated
- Bought property — sale price minus purchase price
- Property received as a gift or inheritance — sale price minus its market value on the day you received it
- No gain, no tax
For example: you bought a flat for GEL 150,000 and sold it a year later for GEL 180,000. The gain is GEL 30,000 and the tax is 5%, or GEL 1,500. If you sell the same flat after 2 years, there is no tax.
When the exemption doesn't apply
- If you used land or commercial premises in a business before selling — although if 2 years have passed since that use ended, the exemption applies again
- If buying and selling property is your regular activity, it may count as a business and be taxed differently
The tax return
If tax is due, you declare it yourself: the return is filed with the Revenue Service by 1 April of the year after the sale (Article 153). This applies to non-residents too — foreigners selling property in Georgia. Keep documents proving the purchase price — without them, proving your gain is hard.
Receiving property as a gift or inheritance
On receiving property itself: first- and second-degree relatives — spouse, children, grandchildren, parents, siblings, nieces and nephews — pay no tax on property received by gift or inheritance; grandparents, uncles and aunts — up to GEL 150,000 a year (Article 82).
How we help
- We calculate the tax before the sale and check whether the exemption applies
- We draft or review the sale contract
- We help with the tax return, including for non-residents
- In a dispute, we represent you before the Revenue Service and in court
Legal basis
Official texts (in Georgian) — Legislative Herald of Georgia, matsne.gov.ge.
This article is general information and does not replace advice from a lawyer on your specific case.
Every case is different — don't rely on general information. Contact a lawyer for advice.
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