Selling a Georgian apartment you have owned for over two years is generally tax-free. Sell sooner and 5% applies. The Ministry of Finance clarified the rules in May 2026.
Georgia has long been attractive to investors partly because selling a home after a short holding period can be tax-free. In May 2026 the Ministry of Finance issued Public Decision No. 143 to clarify how the personal income tax rules on real estate sales work. Here is the practical picture for someone selling a Georgian property, complementing our guide to the costs of renting one out.
The core rule for residential property
Sources from Georgian advisers describe the same structure. A gain from selling a residential apartment or house, including the attached land, is exempt from income tax if you owned it for more than two years. If you sell within two years, a reduced rate of 5% applies. Temporary leasing does not by itself cost you the exemption.
Non-residential property and trading
A 20% rate applies to non-residential property such as bare land, commercial space and warehouses. It also applies to systematic real estate trading or development, where the two-year exemption is not available.
What counts as residential
Under the clarification, a property is treated as residential if it is an independently identifiable registered unit, is designed for residential use, can be connected to basic utilities and is not structurally part of a non-residential operation. Unfinished properties and rental units reportedly keep residential status unless they are part of a systematic business. Property development, trading and systematic flipping lose residential status.
How the gain is calculated
The gain is the sale price minus the purchase price, and under the clarification also minus documented costs that directly increased the property's value, such as renovation and construction work. One source describes this as a change from previous practice, so keep invoices.
When the clock starts
For new construction, the two years are reported to run from the registration of ownership of the completed structure, which matters for buyers of off-plan flats. For an inherited property, the previous owner's holding period is added to yours, and for inherited or gifted property the cost basis is reported as the market value at receipt. Split or merged units are assessed separately.
Non-residents and deadlines
The sources we found do not separate individual non-residents from residents on this question, and none states a filing or payment deadline. Non-resident companies must self-assess corporate income tax on a sale. Treat deadlines and the position of non-resident individuals as open points to confirm with the Revenue Service or a Georgian tax adviser, and check how your home country taxes the same sale.
Sale-day checklist
- Confirm the registered ownership date and count two years from it.
- Make sure the property meets the residential definition and is not part of a trading pattern.
- Collect the purchase contract and invoices for renovation or construction.
- Ask a Georgian adviser about the declaration and payment deadline for your case.
- Check whether your home country taxes the gain and gives credit for Georgian tax.
FAQ
Do I pay tax when I sell an apartment in Georgia? Not if you held residential property for more than two years, according to adviser sources. What if I sell sooner? A 5% rate applies to the gain. What about land or a shop? A 20% rate applies to non-residential property. Can I deduct renovation costs? Under the May 2026 clarification, documented costs that directly increased the value count, so keep the invoices. Is there a filing deadline? The sources we found do not state one, so confirm with the Revenue Service.
How we help
We help you work out the timing of a sale and the documents you need, and connect you with Georgian tax advisers. This article is general information, not tax or legal advice; rules and rulings change, so confirm the details with the Revenue Service or a Georgian tax adviser before you act.