Guide · Tax on Sale

Selling property in Georgia: capital gains, the two-year rule and how to file

What the Georgian Tax Code says when a foreigner sells an apartment: when the tax is zero, when it is 5%, how the gain is computed, when to file and where sources disagree.

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Updated:

In Short
0%tax on the gain from a residential apartment owned more than 2 years (Tax Code, Art. 82(1)(f.a))
5%of the gain if owned two years or less (Art. 81(3); PwC; law firms)
by the 15thfiling and payment: month after the month of sale (PwC, 2 September 2026)

The two-year rule: what is confirmed

The primary source is the Tax Code of Georgia (matsne.gov.ge, current consolidated version, last amended by Law No. 1888 of 15 October 2026). Art. 82(1)(f.a) exempts from income tax the surplus from selling a residential apartment (house) with its attached land owned for more than two years. The “no economic activity” condition sits in sub-paragraph f.c, for other assets; the residential sub-paragraph lacks it.

The rest comes from law-firm summaries (Andersen, Kreston, Eurofast, ExpatHub) of Ministry of Finance Ruling No. 143 of 14 May 2026; its official text we could not open.

Sources disagree. A Kreston summary says selling within 2 years of purchase suffices for exemption: this contradicts the Code and the rest (probably a translation slip); we rely on the Code. PwC says only “5% on profit from selling an apartment with land”: incomplete, not contradictory.

Rates and status: resident or non-resident

The English text of Art. 81(3) says “provision”, not “sale”; law firms and the Ministry ruling apply it to sales. A tax resident is someone in Georgia 183 days or more in any continuous 12-month period ending in the tax year (Art. 34(2) of the Code; PwC). Any partial day counts as a day (Art. 34(5)), but time in Georgia “for treatment or leisure” does not count towards the 183 days (Art. 34(4)(d)); ask a tax adviser how this applies to your case. For residents, Art. 80(1) takes total annual income as the tax base, but Art. 82(1)(u) exempts a resident’s income (including gains) that is not Georgian-source, and PwC says the same. So we do not write that residents are taxed on worldwide income; for this sale it changes nothing, because a gain on a Georgian apartment is Georgian-source. Non-residents pay only on Georgian-source income, and Art. 80(4) names the non-resident who sells property: tax on gross Georgian-source income less related deductions.

Chambers (Real Estate 2026) says gains on Georgian real estate are generally taxable in Georgia, subject to double-tax treaties. We found no separate non-resident rate and no rule denying them the exemption, but no Revenue Service confirmation either: ask a Georgian accountant.

Income tax rates on the gain from a sale (individual)
SituationRateBasis
Residential with land, owned over 2 years0% (exempt)Code, Art. 82(1)(f.a)
Residential with land, owned 2 years or less5% of the gainCode, Art. 81(3); PwC; law firms
Non-residential, land, other assets, trading as a business20% (general rate)Code, Art. 81(1); Eurofast, Kreston

How the gain is computed

Tax is charged on the gain: the sale price minus the value of the asset. Under Art. 148 that value includes acquisition costs and other costs that increase it; for assets received free, the market price on receipt. Summaries of Ruling No. 143 add that documented renovation or construction costs count; earlier they were often ignored.

Filing and paying: by the 15th

Since 1 January 2024 the tax period for an individual’s income from selling property outside business activity is the calendar month (Art. 135(5)); declaration and payment are due by the 15th of the month after the transaction. PwC (reviewed 2 September 2026) and the law firm Revera confirm this, including for non-residents; in the Code itself see Art. 135(5) (accounting period: calendar month) and Art. 153(12) (return by the 15th of the month after the accounting month). Before registering the new owner, the registry must notify an individual seller of the duty to report and pay the tax (Art. 153(6)).

Sources disagree: PB Services (15 September 2026) gives “April 1 of each year”, the older annual procedure. We follow the Code and PwC.

  1. Identify the month of the transaction: under Art. 82(4)(a2) it is the month of the document on the basis of which the transfer is registered (normally the sale contract), not the month of the registry entry.
  2. File in your rs.ge personal account. Per PB Services, access comes from a Revenue Service branch or a representative with a notarised power of attorney; how a non-resident does it online is not officially confirmed.
  3. Pay by the same date (PB Services: from a Georgian bank account; take details from rs.ge) and keep the receipt.
Penalties for a late return (Art. 274 of the Code): a delay of up to two months costs 5% of the tax payable for each full or incomplete month; a delay of more than two months costs 10%; if the tax payable is zero, no fine is imposed (Art. 274(3)). Late payment separately accrues penalty interest of 0.05% of the unpaid amount per day (Art. 272(4)). Whether a return is needed at all at 0% (owned over two years) we did not find stated in the Code: ask an accountant before the sale.
From deciding to sell to paying the taxSix seller steps; the rate depends on how long you owned
  1. 1

    Holding period

    From the date of the title document (contract): over 2 years 0%; two years or less 5% of the gain

    0% or 5%
  2. 2

    The gain

    Sale price minus purchase price and documented renovation

  3. 3

    Contract

    Notary or House of Justice; seller bears costs unless agreed

  4. 4

    NAPR registration

    ₾150 for 4 days, ₾270 for 1 day, ₾350 on the day of filing

    ₾150–350
  5. 5

    Declaration

    Personal account on rs.ge, by the 15th of the month after the sale

    by the 15th
  6. 6

    Pay the tax

    By the same date; late: 5% or 10% fine plus 0.05% per day

    5% / 10%

Tax Code; PwC (2 September 2026); NAPR; Chambers; Revera

Non-resident details and deductibility of selling costs are not confirmed.

Registering the sale and the seller’s costs

Title passes on registration at NAPR, not on signing (Chambers). The contract is usually concluded before a notary or at a House of Justice. Georgia has no separate transfer tax, and a private seller is outside VAT (Chambers). Under Art. 479 of the Civil Code the seller bears contract and registration costs unless agreed otherwise (Chambers).

Selling costs (NAPR tariffs, October 2026)
ItemAmountComment
Title registration: 4 working days / 1 day / same day₾150 / ₾270 / ₾350NAPR tariff
Confirming the parties’ signatures₾7NAPR tariff
Notaryno figuredepends on the deal value
Agent’s commissionno verified figureterms in the agency agreement

Typical pitfalls

Worked example (illustrative)

Invented numbers, not market data or a forecast. In dollars for simplicity; in practice the calculation is in lari at the National Bank rate. Bought for $100,000, documented renovation $8,000, sold for $125,000. Selling costs are not deducted because deductibility is not confirmed.

Illustration: gain 125,000 − (100,000 + 8,000) = 17,000
ScenarioGainRateTax
Owned over 2 years$17,0000%$0
Owned 2 years or less$17,0005%$850
Series of sales as a business (per Eurofast)$17,00020%$3,400
A sale in March means filing and payment by 15 April.

Your home-country tax and what to check

Georgia taxes the gain on its own property. Whether you report the sale at home and how Georgian tax is credited depends on your country and any double-tax treaty: check with a tax adviser; we make no claims about other countries’ taxes.

Before the deal you need a local lawyer and a check with an official source (rs.ge, napr.gov.ge): this guide is not legal or tax advice. To verify: the original Ruling No. 143, how the two years run for a new build, non-resident status, a declaration at 0%, deductibility of selling costs.

Frequently Asked Questions

What tax do I pay when selling an apartment in Georgia?

None on the gain if you owned it more than two years (Tax Code, Art. 82(1)(f.a)). If two years or less, 5% of the gain: sale price minus purchase value including documented renovation.

From when do the two years count?

From the date of the title document drawn up for registering the right with the registry (for a purchase normally the sale contract), not from the date of the registry entry, up to the date of the document on which the sale is registered (Tax Code, Art. 82(4)(a), (a2)). The testator’s or donor’s period is added if you are their first-line heir (Art. 82(4)(a1)). For a new build and unusual cases, check with an accountant.

Does a non-resident pay tax when selling property in Georgia?

Yes, the income has a Georgian source (Art. 80(4)). We found no separate non-resident rate; confirm with an accountant that the exemption applies to you.

When must I file after selling property in Georgia?

Since 2024, by the 15th of the month after the sale, with payment by the same date (PwC, September 2026). One source gives 1 April, but that is the older annual procedure.

Can I deduct renovation costs and the agent’s fee?

Documented renovation counts toward the asset’s value, per summaries of Ruling No. 143. The agent’s and notary’s fees we could not confirm.

Sources: Tax Code of Georgia, Legislative Herald (Arts. 34, 80, 81, 82, 121, 135, 148, 153, 272, 274; version with Law No. 1888 of 15.10.2026) · Tax Code of Georgia, Art. 34 (English text, consolidated version of 15.10.2026) · PwC Tax Summaries: Georgia, tax administration (2 September 2026) · PwC Tax Summaries: Georgia, residence (2 September 2026) · PwC Tax Summaries: Georgia, income determination · PwC Tax Summaries: Georgia, taxes on personal income · NAPR: fees for registering rights to immovable property · Chambers: Real Estate 2026, Georgia · Kreston Georgia: Ministry of Finance Ruling No. 143 (20 May 2026) · ExpatHub: selling property in Georgia, 2026 rules · Eurofast: Georgia’s new rules on real estate sales tax (4 September 2026) · Andersen Georgia: Capital Gains Tax in Georgia (March 2026) · Andersen Georgia: Tax Obligations upon Sale of Residential Property (October 2025) · Revera Legal: changes in declaring income from the supply of property (from 2024) · PB Services: individual property taxes in Georgia (15 September 2026)

See Also

Property taxes in Georgia How to buy property in Georgia How to check an apartment before the deal Net rental yield Analysis: rental income tax
Topic: Selling