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.