From 2023, citizens who own real estate or transport are required to pay property tax if their family income exceeds 40,000 GEL. Questions on this topic have become frequent lately. So.

• The deadline for filing a declaration is November 1, 2024.
• The deadline for paying the tax is November 15, 2024.
• ️The tax rate varies from 0.05% to 1% of the market value of the property and depends on the family income and the location of the property.

Who is required to pay the tax?

• Individuals registered as owners of real estate or vehicles.
• Not only personal property is taken into account, but also temporarily imported cars (for example, with temporary Georgian license plates).
• Foreigners, even if they do not live in Georgia and do not have a residence permit or tax resident status, must also pay property tax under general conditions.

Who is exempt from paying tax?

• Owners whose family income did not exceed 40,000 GEL in 2023.
• Individuals with registered rights to future ownership of real estate.

How to determine the amount of income?

• To calculate the tax, all family income (spouses, minor children, dependents) for 2023 is taken into account, including salary, business profit, dividends and interest on loans.
• Both income from sources in Georgia and foreign income are taken into account.
• A closed list of incomes not taken into account when determining annual income for property tax is specified in the Tax Code.

Who must file a tax return?

• Owners whose household income exceeds 40,000 GEL. A declaration is required to fulfill tax obligations.
• Foreign citizens who are not tax residents must file a declaration regardless of the amount of income. If such owners do not file a declaration (even a zero one), the Georgian Revenue Service has the right to calculate the property tax at the maximum rate (according to the Revenue Service Situational Instruction No. 1434). You can challenge the assessed tax by filing a declaration and confirming income below 40,000 GEL.