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Income tax and real estate in Georgia

INCOME TAX AND REAL ESTATE IN GEORGIA

Income tax, which is provided for renting real estate in Georgia, primarily depends on the type of property.

When you rent out the property for the actual residence of the tenants, the income tax will be equal to 5% of the rent you receive or 20% of the difference between the costs associated with the rent and the actual income. In the case of renting out real estate for commercial use, the income tax will also be 20% of the difference.

As for small businesses, the individual entrepreneur, when renting out real estate, will pay 20% of the income received and the preferential rate of 1% does not work. Income tax when renting real estate is always charged at the source of payment (if it is a company or individual entrepreneur). The tax rate is equal for residents and non-residents. For example, if a citizen of any other country owns real estate in Tbilisi and makes a profit from rent, then he is obliged to register with the tax authorities and submit a tax return every year and pay taxes on time by April 1 of the year following the reporting year.

TAXATION OF PROPERTY ON SALE

If you sell a house, building plot, apartment, etc., the income you receive will be taxed at 5%. It’s easy enough to understand what constitutes income – it is the difference between the purchase price and the original sale price. The tax can be reduced thanks to receipts for payment of utility bills, checks on expenses for repairs. The tax rate is equal for residents and non-residents. The declaration must be submitted by April 1 of the year following the reporting year.

You are exempt from paying income tax on the sale of real estate if the property has been owned by the Seller for more than two years.

In order not to waste time learning the intricacies of declaring and paying income tax in real estate transactions, contact professionals of Jara Accounting.

PRICE OF INCOME TAX DECLARATION SERVICE IN GEORGIA

Fill out the form below to get a calculation of the cost of declaring income tax in Georgia.