Georgia Capital Gains Tax Guide 2026

Overview — CGT in Georgia

Georgia treats capital gains as ordinary business or personal income, subject to the standard flat rates. There is no separate capital gains tax regime with different rates or allowances. The territorial system applies to capital gains: only gains from the disposal of assets situated in Georgia are taxable. Gains from the disposal of foreign assets (including foreign shares, foreign property, and foreign securities) by Georgian tax residents are not subject to Georgian tax. This makes Georgia highly attractive for holding and disposing of foreign investments.

Treatment of Share Disposals

Gains from the sale of shares in Georgian companies are generally subject to tax at 20% for individuals or 15% for companies. However, Georgia provides a participation exemption: gains from the sale of shares in a Georgian company may be exempt if the seller has held at least 10% of the shares for at least 2 years. This effectively brings the rate to 0% in many cases. Gains from the sale of shares in foreign companies are exempt under the territorial system, as the asset is located outside Georgia. This makes Georgia an excellent jurisdiction for holding investment portfolios and SPVs.

Treatment of Property Disposals

Gains from the disposal of real estate located in Georgia are taxable. The gain is calculated as the difference between the sale price and the acquisition cost (plus improvement expenses). Individuals pay 20% on net gains; companies pay 15%. There is no principal residence exemption. However, for individuals who have held the property for more than 2 years, the gain is indexed for inflation using the official consumer price index, which can significantly reduce the taxable gain in a high-inflation environment. Gains from the disposal of real estate located outside Georgia are exempt under the territorial system.

Offshore & International Considerations

Georgia does not have controlled foreign company (CFC) rules or exit tax provisions. A Georgian tax resident who disposes of foreign assets (including cryptocurrency, foreign shares, foreign property) generally does not owe Georgian tax on the gain. This, combined with the absence of wealth tax and inheritance tax, makes Georgia a European hub for international asset holding. However, taxpayers should ensure they are not creating a taxable presence in Georgia through their investment activities. Professional advice is recommended for structuring international investments through Georgia.

FAQs

Do I pay tax on profits from selling shares in a Georgian company?

If you hold less than 10% or for less than 2 years, the gain is taxed at 20% (individual) or 15% (company). The participation exemption eliminates tax for qualifying holdings. Foreign shares are exempt under the territorial system.

Is there a separate CGT return?

No, capital gains are reported on the standard annual income tax return. There is no separate CGT filing requirement in Georgia.

Can I offset capital losses against capital gains?

Yes, capital losses in a tax year may be offset against capital gains in the same year. Unrelieved losses may be carried forward for up to 5 years but cannot be offset against other income.

Disclaimer

This guide provides general information about Georgian capital gains tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Georgian tax advisor or the Georgia Revenue Service for advice specific to your situation. InvestmentKit does not provide tax advice.