Tax on selling an apartment in Georgia: two years, 5 % of the gain and the declaration

Tax on selling an apartment in Georgia should be worked out before you go to market, not at the notary. It determines the minimum price worth accepting, and sometimes whether to sell now or wait a few months. We calculate the tax from your documents, gather what legally reduces it and remind you about the declaration after the deal.

Tax on selling an apartment in Georgia: the main rule

If you have owned a home for more than two years, there is no tax on the sale. The rule is the same for Georgian citizens and foreigners, residents and non-residents. So the first thing we look at is the date from which ownership counts and how long remains until two years.

If only a few months remain until two years, it is sometimes better to wait with the main deal: sign a preliminary contract with a deposit now and the main one after the period ends. This is decided together with a tax consultant, because the tax authority looks at the substance of a deal, not only the dates. The buyer must also agree to wait, and that condition is written into the contract too.

If less than two years have passed: 5 % of the gain

With a shorter period of owning a residential apartment, 5 % is paid on the difference between the sale price and the purchase price. Confirmed renovation costs are added to the purchase price, and the difference becomes smaller: this was clarified by the Ministry of Finance of Georgia on 14 May 2026.

Without renovation contracts and receipts, the same sale would give a gain of 60 000 GEL and a tax of 3 000 GEL. So keep contractor agreements, acts and receipts from day one: recovering them a year later is hard.

Commercial premises, land and hotel rooms: 20 %

For commercial premises and bare land the non-residential rate of 20 % applies. A room operating in the hotel business may be taxed the same way, even if it is sold as an apartment. We check this with a tax consultant against the documents and how the room was used.

The tax authority may treat regular reselling as business activity, and then the exemptions for homes do not apply. If you buy and sell several apartments a year, we discuss the arrangement with a consultant in advance.

If the apartment was let

An apartment let for living, according to tax consultants, does not lose the two-year exemption. It is different for a property used in economic activity, for example let as an office or a shop: the exemption may not apply even after two years of ownership. For short-term letting there is no single interpretation, so we go through such a case with a tax consultant before the sale.

Taxes on the rental income itself are calculated separately; we cover them on our page about rental income tax. The annual property tax is a separate matter too; more on our page about property tax.

The declaration and payment deadline

Since 1 January 2024 an individual who sold property outside business activity and received income, according to consultants, files a declaration by the 15th of the month following the sale and pays the tax by the same date. The rule also applies to non-residents.

The tax authority charges a fine and a daily penalty for lateness, so we plan the deal date and the filing together. If you are selling remotely, your representative or accountant can file the declaration; more on our page about selling by power of attorney.

How to reduce the tax legally

There are few legal ways, and all of them come down to documents. Confirmed renovation costs reduce the gain. The purchase price must be evident from the contract and payment documents, not just from your word. If the apartment was bought off-plan, the date from which the two years count is decided with a tax consultant based on the contract and the registration.

Understating the price in the contract does not reduce the tax but creates risks for you and the buyer: on audit the tax authority may recalculate the tax at market value, and such a price stops the buyer from getting a residence permit and a mortgage. How the buyer looks at taxes from their side is covered on our page about taxes on buying.

How much a tax calculation costs

A calculation of the tax on sale with a list of supporting documents starts from 240 ₾. A consultation with a property lawyer of up to an hour starts from 155 ₾, an accredited valuer's report from 330 ₾, a sale contract drafted with a translation from 660 ₾. If we handle the sale, the tax calculation is part of our work on the sale.

The final price is set after we review your documents and agree the scope of work. The tax itself, an accountant's fee for the declaration, the notary's charges and the registry fee are paid separately.