Property Tax in Georgia: Explanation by Shalva Khachapuridze

What is property tax, and who is required to pay it?

Property tax is a local tax, meaning that its payment is mandatory within the municipality
where the property is located. KH & PARTNERS’ founder and leading attorney, Shalva
Khachapuridze, explains:

“Property tax often becomes a matter of dispute because taxpayers lack precise information
about whether they are obligated to pay it. It is essential for every taxpayer to understand how
and when to make their payments to avoid fines and legal complications.”

Who is required to pay property tax?

• Legal entities – both resident and non-resident businesses in Georgia.
• Individuals – private persons whose total annual family income exceeds 40,000 GEL.

What is included in total income?

• Salary (including personal income tax)
• Income from economic activities
• Any other benefit unrelated to economic activities

What is not included in total income?

• Inherited, gifted, or property received during divorce settlements
• Income from the sale of a house owned for more than two years

How should property tax be declared?

• All landowners must pay property tax, regardless of their income.
• For other real estate, tax liability depends on the amount of income.

Declaration submission deadline:

• No later than November 1st
• Tax payment deadline: No later than November 15th
  

Tax rates:

• For incomes between 40,000 – 100,000 GEL → 0.05% – 0.2%
• For incomes above 100,000 GEL → 0.8% – 1%

Why is it important to pay property tax on time?

Shalva Khachapuridze emphasizes:

“Complying with legal deadlines is crucial to avoid financial penalties. In our practice, we often
see individuals neglecting tax declaration, which later causes significant problems. KH &
PARTNERS is ready to assist anyone in need of legal guidance.”

What should you do now?

• If you have already submitted your tax declaration, do not forget to pay the tax by November 15th to avoid penalties.
• If you have any questions or require legal consultation, KH & PARTNERS’ attorneys are
• ready to assist you.
• Contact us for further information.