Property Tax in Georgia: What You Need to Know JUST Advisors' accountant Mzia Kheladze answers the key questions property owners should consider

Property tax obligations can easily be overlooked: Filling deadlines are strict, and common assumptions such as "I am a foreign national," "I do not live in Georgia," or "I do not rent out my apartment" do not, by themselves, mean that no tax liability arises.

Who should assess whether they are liable for property tax, and what type of property is taxable?

Mzia Kheladze: Individuals who own an apartment, house, commercial premises, unfinished property, or an ownership interest in such property should assess their potential tax liability regardless of citizenship, residence permit status, or place of residence. Under The Tax Code of Georgia, taxable property also includes passenger cars and certain other vehicles. For individuals engaged in economic activities, certain business assets may also be subject to property tax. Applicable tax exemptions should be considered when determining whether a liability arises.

How does the GEL 100,000 income threshold work, and who qualifies as a family member?

Mzia: An individual's taxable property, excluding land, is exempt from property tax if their family's income for the preceding calendar year does not exceed GEL 100,000. For property tax purposes, family members include the individual, their spouse, minor children, and minor stepchildren. Parents, adult children and stepchildren, siblings, grandparents, and grandchildren may also be included if they permanently reside with the individual and share a common household. It is therefore important to consider the income of the family as a whole, rather than the property owner's individual income alone.

What types of income are included in family income?

Mzia: Family income generally includes accrued salary, rental, interest, dividends, business, and other taxable or relevant income. For a small-business taxpayer, 25% of income generated under the applicable special tax regime is taken into account, together with income earned outside that regime. Exclusions include, among other things, property received from a family member by inheritance, gift, or following divorce; income from the sale of residential property held for more than two years; and income earned by micro-business and fixed-taxpayer status holders from the relevant activities.

How are market value and the applicable tax rate determined?

Mzia: For individuals, the property tax base is generally determined by reference to the property's market value at the end of the relevant tax year. Under the rules applicable to property tax declarations for 2026, individuals whose family income for the preceding year does not exceed GEL 100,000 are exempt from property tax on assets other than land. Where family income exceeds GEL 100,000, the applicable property tax rate ranges from 0.8% to 1%, depending on the rate established by the relevant municipality. The original purchase price, cadastral records, and valuations prepared for mortgage lending purposes may not necessarily reflect the property's current market value. An updated valuation may therefore be necessary.

How are co-ownership interests and a partial year of ownership treated?

Mzia: A co-ownership interest constitutes the taxable share of the property, and each co-owner assesses the position by reference to their own family circumstances. An individual's property tax is calculated in proportion to the period of ownership, so buying or selling a property during the year does not eliminate the liability. For each property, the ownership share, value, months of ownership, and any applicable exemption should be checked.

Why is land taxed separately?

Mzia: The GEL 100,000 threshold does not apply to land.the relevant ownership or possession status is generally determined as at 1 April of the tax year. For non-agricultural land, the annual rate is GEL 0.24 per square metre, multiplied by a coefficient not exceeding 1.5; agricultural land is taxed at rates determined by its category and location. Exemptions may apply. Where the tax is assessed on the basis of data held by the Public Registry or the municipality, a separate tax return may not be required, but the assessment notice should still be reviewed.

When must the return be filed, and what does automatic assessment mean?

Mzia: An individual must file the property tax return no later than 1 November and pay the tax no later than 15 November.For 2026, the applicable deadlines are 2 November for filing and 16 November for payment, as the standard deadlines fall on non-working days. Property other than land is reported for the preceding year, while land is reported for the current year. Prior-year information may be carried forward automatically, but the value, listed properties, ownership shares, and exemptions should be reviewed. If the filing obligation no longer exists, a person who previously filed a return must notify the tax authority by 1 November.

Do the rules differ for an Individual Entrepreneur and a company?

Mzia: An Individual Entrepreneur remains an individual for property tax purposes: Holding small-business status does not eliminate property tax liability or exempt one from it. The GEL 100,000 threshold does not apply to a company; the rate is up to 1% of the average annual net book value of taxable property. The annual return and principal payment are due by 1 April, the current payment by 15 June, and land tax by 15 November.

How does property tax interact with rental income and the sale of property?

Mzia: Rental income may increase family income and may also be subject separately to personal income tax; on a sale, personal income tax and, in some cases, VAT must be considered. Property tax does not replace those taxes. Before filing, review the Public Registry data, family income, market value, land, available exemptions, and any prior assessment.