Georgia · Returns · 4 min
Georgia: 5% Rental Tax and Real Returns in Tbilisi and Batumi
Long-term residential rentals by individuals in Georgia are taxed at 5% of gross rental income, with no deductions. Gross yields are 8-9% in Tbilisi and around 7% in Batumi; after tax and vacancy, a realistic figure for Tbilisi is around 7%.
Key figures
How the tax works
Under Article 81 of the Tax Code of Georgia, an individual's income from renting out residential property for residential use is taxed at a rate of 5% if the taxpayer does not claim deductions. The general personal income tax rate is 20% (Matsne). The tax return must be filed by 1 April of the following year if the tax has not been withheld at source.
If the tenant is a company, it usually withholds tax as a tax agent. If the tenant is an individual, the owner pays the tax directly. The 5% rate applies to gross rent: expenses for repairs, furniture and management do not reduce the taxable amount.
Non-residents and short-term rentals
For a non-resident receiving rental income from a person who is not a tax agent, the Code sets out a separate procedure: tax applies to the difference between income and deductions (Matsne, PwC Tax Summaries). Non-residents should confirm with the Revenue Service whether the 5% rate applies to their specific circumstances before proceeding with a transaction.
For short-term rentals (group 55.2 - short-term accommodation), a fixed tax regime was available from 1 January 2023 to 1 January 2026 for those who applied to the tax authorities and had turnover of up to 100 000 GEL (PwC Tax Summaries). The regime in effect after that date has not been confirmed in the sources reviewed - check the rules before starting short-term rentals.
Property registration
Registering title with NAPR costs 150 GEL for a 4-business-day service, 270 GEL for one-day service, or 350 GEL for same-day service (NAPR). This is a one-time payment and has little impact on yield.
Before buying, it is worth ordering an extract from the property register. It shows the owner, any mortgage and any seizure or attachment. This is a standard check that helps protect against the most common title problems.
What analysts say
All figures are gross: annual rent divided by the purchase price, before taxes, repairs, furnishings and vacancy.
The one-point difference between the two Tbilisi analysts reflects differences in methodology and reporting month. The trend matters more for investment decisions: yields in Tbilisi are holding in the 8-9% range, while in Batumi they are declining because prices are rising faster than rents.
Gross yield is calculated on the purchase price. If an apartment is bought below market price during construction, its actual yield after completion may be above average; if bought at a premium, it may be lower.
- Tbilisi, Galt & Taggart: 9,4% in September 2026 - a seasonal peak at the start of the academic year (BM.ge); the company's estimate of the long-term average is 8-9%;
- Tbilisi, TBC Capital: 8,3% in August 2026, down 0,1 percentage points year on year (Homesoverseas);
- Batumi, Galt & Taggart: 7,1% in Q1 2026, with the average daily rate down 7,3%; analysts note the large volume of projects under construction and a gradual decline in yields (GBC).
Real yield: an example
Tbilisi, 8,3% gross. A 5% tax on rent gives: 8,3% × 0,95 ≈ 7,9%. With one month of vacancy per year: 7,9% × 11/12 ≈ 7,2%. If the apartment is purchased as a shell, renovation and furniture costs must be added to the investment, reducing the yield on the total amount invested. In Batumi, income is mainly generated during the tourist season, so the difference between strong and weak properties is greater than in Tbilisi.
The same calculation for Batumi: 7,1% × 0,95 ≈ 6,7%, before seasonal vacancy, which is greater in a resort city than in the capital. For short-term rentals, additional costs include management, cleaning and platform fees, and the applicable tax regime should be confirmed separately. Long-term rentals in Tbilisi offer a simpler and more predictable calculation.
Capital appreciation is calculated separately: it is realized only upon sale and is not guaranteed.
This material is for informational purposes and is not legal or tax advice. Confirm the terms for the specific property before proceeding with a transaction.
What this means for buyers
- The 5% rate applies to long-term residential rentals with no deductions.
- Tbilisi: 8-9% gross, around 7% after tax and vacancy.
- Batumi: around 7% gross, with a downward trend.
- Non-residents and short-term rental operators should confirm the tax regime with the tax authorities before buying.
Current as of . This is general information, not legal or tax advice.
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