Georgia Rental Income Guide 2026

Overview — Rental Income Tax in Georgia

Rental income from letting or leasing of immovable property in Georgia is chargeable to income tax at the standard flat rate of 20%. The tax is based on net income (gross rent minus allowable deductions), not gross rent. There is no withholding tax on rent paid between Georgian residents — the landlord declares and pays the tax through the annual self-assessment return. Short-term lettings (Airbnb, holiday rentals) are treated the same as long-term lettings. The territorial system applies: rental income from property located outside Georgia is exempt from Georgian tax.

Tax Rate — Flat 20% on Net Income

Rental income is added to the landlord's other income and taxed at the flat 20% rate. The taxable amount is the net rental income: gross rent received minus allowable expenses. Allowable deductions include:

• Mortgage interest — interest on loans used to acquire or improve the rental property
• Repairs & maintenance — not capital improvements (those are depreciable)
• Property management fees — paid to licensed agents
• Insurance premiums — building and liability insurance
• Utilities — if paid by the landlord
• Property tax — the annual self-assessed property tax
• Depreciation — at 5% per annum for buildings (straight-line)

Capital improvements (e.g., new roof, extension) are not immediately deductible but can be depreciated over the useful life of the improvement. The landlord must maintain proper records of all income and expenses.

Filing & Payment Requirements

Rental income is reported on the annual personal income tax return, due by April 1 of the following year. The landlord calculates the net rental income, applies the 20% rate, and pays any tax due with the return. If the annual tax liability from rental income exceeds GEL 1,000, the landlord may be required to make quarterly estimated tax payments. There is no withholding tax on rent paid between residents, simplifying compliance for tenants. Non-resident landlords are subject to 20% tax on gross rental income from Georgian property, withheld by the tenant.

Vacant Property & Short-Term Lettings

Rental income is only taxable when the property is actually let. There is no deemed rental income for vacant or owner-occupied properties. For short-term lettings (Airbnb, Booking.com, etc.), the full rental income received from each booking is taxable, but the same expense deductions apply. Platforms may report income to GRS under tax information exchange agreements. Landlords using short-term letting platforms should ensure they are registered with GRS and declare all income.

FAQs

Do I need to register as a business to rent out property?

For renting one or two properties, you can declare rental income as an individual on your personal tax return. If you operate a large portfolio (multiple properties, active management), you may need to register as a sole proprietor or company.

Can I deduct the cost of furnishing a rental property?

Furniture and appliances are depreciable assets. You can deduct the cost over their useful life (typically 5–10 years). Small items under GEL 500 may be expensed immediately.

What if I rent to a company or business?

The same tax rules apply. The tenant does not withhold tax. You declare the rental income on your annual return. If you rent commercial property, the 20% rate still applies.

Disclaimer

This guide provides general information about Georgian rental income 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.