If you are a property owner in Georgia and rent out your home, especially a non‐resident, it is important to be aware of the new requirements of the tax service effective in 2025.

One of the key questions ESPERO is asked is: Do I need to register as a landlord and how does it affect taxes?

Let’s break it down in order.

Compulsory registration of landlords: from 2023 — under new rules

According to the Situation Manual No. 1518 of 07.06.2023, owners who rent out real estate are obliged to register in the Register of Landlords.

📅 The deadline for registration is by April 1 of the year following the reporting year.

💻 You can do this remotely — through the personal cabinet of the taxpayer.

If you rent an apartment, for example, in 2024, you must register in the register by April 1, 2025.

Even if you register after filing a declaration, but before April 1, the requirement is considered fulfilled, and there will be no penalty.

The penalty for failure to register is 100 GEL.

How does registration affect taxation?

The 5 % rate for individuals — only if you register

• If your tenant is an individual, you pay income tax yourself at the rate of 5 % of the rental income.
• If your tenant is a legal entity (company), it is the company that acts as a tax agent and is obliged to withhold tax for you.

But! If you are not registered in the register of landlords, the company cannot apply the 5 % rate and is obliged to withhold 20 % tax from the income.

Example from ESPERO practice

A client rented an apartment to a resident sole proprietor without being registered in the register. As a result, the sole proprietor, acting as a tax agent, withheld 20 % tax instead of 5%, despite the lease agreement. The loss amounted to hundreds of GEL, which could have been avoided by simple registration.

How ESPERO helps landlords

• We register in the landlord register — remotely and quickly.
• We advise on rates and filing returns.
• We help to optimize taxes and avoid penalties.
• We keep records of rental income and reporting for individuals and legal entities.

If you rent an apartment in Georgia:

• Register in the landlord registry by April 1 — even if you rented last year.
• This will save you from penalties and ensure a favorable tax rate of 5 %.
• Especially important: with legal tenants to avoid withholding tax at the 20 % rate.

👉 Contact ESPERO. We will help you with registration, reporting and tax optimization without any hassle.