How is income from renting out an apartment taxed in Georgia?

Checked on 2026-10-25

Under the Tax Code of Georgia, an individual who rents out residential space to an organisation or a person for residential purposes, and makes no deductions from that income, pays income tax at 5%. If deductions are claimed, the 5% rate doesn't apply and taxable income is taxed at the general 20% rate instead.

Key facts

What	The law says	Source
Rate for renting out housing for living in	5%, if you make no deductions from this income	Tax Code, art. 81(2)
Who the tenant can be	An organisation, a legal person or a natural person	Tax Code, art. 81(2)
Otherwise	The general rate of 20% on taxable income	Tax Code, art. 81(1)
Register of landlords	The Minister of Finance sets the procedure for the register of people renting out residential space, and for tax privileges when renting to legal persons	Tax Code, art. 81(5)
Annual return	Resident individuals whose income isn’t taxed at source file by 1 April of the next year	Tax Code, art. 153(1)(a)

The 5% rate

Article 81(2) of the Tax Code says income a natural person receives from renting out residential space to an organisation, a legal person or a natural person for residential purposes is taxed at 5%, if the person makes no deductions from this income. If you do claim deductions, the 5% rate doesn’t apply, and taxable income is taxed at the general 20% rate (art. 81(1)).

The Minister of Finance sets the procedure for keeping the register of people renting out residential space and for using the tax privilege when renting to legal persons (art. 81(5)).

Filing

Resident individuals whose income isn’t taxed at source file an income tax return by 1 April of the following year (art. 153(1)(a)).

Selling the apartment later: the gain is exempt after more than two years of ownership; otherwise it is taxed at 5% (Tax Code, arts. 81(3), 82(1)(f.a)).

Sources

Tax Code of Georgia, No 3591 of 17 September 2010, arts. 81, 82 and 153 (consolidated English text, Legislative Herald of Georgia, matsne.gov.ge) checked 2026-10-25

Change history

2026-10-25: Page created

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