How is rental income taxed in Georgia?

Under Georgia's Tax Code, rental income earned by an individual from letting a residential property, without deducting any expenses, is taxed at 5% (Article 81.2). This sits well below the standard personal income tax rate of 20% (Article 81.1), which applies by default outside this specific regime. Both figures come from the Tax Code text published by Georgia's Revenue Service; current rules in force should be confirmed with a tax adviser before you rely on them.

Why the rate matters for a Batumi buyer

A buyer in the Batumi collection renting out an apartment, whether a delivered unit like Mziuri Gardens or a branded residence like Radisson Blu Residences Gonio, typically falls under this 5% rate on gross rental income, since it applies without deducting expenses. This is different from calculating a net yield, which still requires subtracting management fees, furnishing, maintenance, vacancy and this same tax from your gross rent. Our guide on how to calculate gross and net rental yield sets out that method in full, and applies the same logic whether the property sits in Batumi or Dubai.

How this compares with Dubai

Dubai applies no income tax on rental income for individuals, a structural difference from Georgia's 5% regime. Our Dubai property taxation guide for non-residents sets out the UAE side of that comparison in detail. Neither guide tells you which market suits you better; they simply describe two different tax codes so you can plan with accurate figures rather than assumptions carried over from one country to the other.

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What is not covered by the 5% rate

Local property tax in Georgia depends on household income under a separate set of rules (Articles 202 and 206), without a published flat rate here. Taxation in your own country of residence is also a separate question entirely: Georgia's Tax Code says nothing about how France, the UAE, Saudi Arabia or any other country treats this same rental income on your side, and a double taxation treaty, where one exists, can change the outcome. Check this with a local tax adviser before you rely on the 5% figure as your full tax cost.

Moving forward with Orven

Send your budget and rental objective on WhatsApp at +971 52 776 1939 or to sales@orvenproperties.com. An adviser points you to suitable units in the Batumi collection and puts you in touch with a tax adviser for your specific situation.

FAQ

Does the 5% rate apply automatically to every Batumi rental? It applies to rental income from residential letting by an individual without deducting expenses, under Article 81.2. Confirm your specific case with a tax adviser, since rules can change.

Can I deduct expenses instead of paying the 5% flat rate? That would shift you toward the standard 20% regime on net income instead. Which approach applies, and whether you can choose, is a question for a tax adviser, not stated as a free choice in this guide.

Is there a separate property tax in Georgia? Yes, a local property tax based on household income exists under Articles 202 and 206, without a published flat rate here; confirm the current threshold and rate with a tax adviser.

Do I also owe tax in my home country on this income? That depends entirely on your country of residence and any applicable tax treaty; this guide states no rule for any country besides Georgia.

How do I start? Message us on WhatsApp with your budget and objective; an adviser proposes suitable units and connects you with a tax adviser.

Frequently asked questions

Does the 5% rate apply automatically to every Batumi rental?

It applies to rental income from residential letting by an individual without deducting expenses, under Article 81.2. Confirm your specific case with a tax adviser, since rules can change.

Can I deduct expenses instead of paying the 5% flat rate?

That would shift you toward the standard 20% regime on net income instead. Which approach applies, and whether you can choose, is a question for a tax adviser, not stated as a free choice in this guide.

Is there a separate property tax in Georgia?

Yes, a local property tax based on household income exists under Articles 202 and 206, without a published flat rate here; confirm the current threshold and rate with a tax adviser.

Do I also owe tax in my home country on this income?

That depends entirely on your country of residence and any applicable tax treaty; this guide states no rule for any country besides Georgia.

How do I start?

Message us on WhatsApp with your budget and objective; an adviser proposes suitable units and connects you with a tax adviser.