Georgia's 5% on residential rent comes with one condition: you claim nothing

An individual letting residential space to a company or to another individual can be taxed at 5% personal income tax, and the condition attached is that no deductions are taken against that income. The alternative is the ordinary treatment, where expenses related to earning the rent reduce the taxable base but the rate applied is the standard one. So the choice is a rate against a deduction, and it turns on how heavy your costs are: a furnished flat with an agent, repairs and a service charge may do better on deductions, while a bare long-let with almost no outgoings usually does better at 5%.

A special fixed-rate arrangement existed for individuals running short-stay accommodation, available on application to the tax office, to people not registered for VAT and with no more than GEL 100,000 of such income in any twelve consecutive months. As set out in the standing tax summary, that arrangement was written to run from the start of 2023 to the end of 2025. Anyone still filing on that basis should confirm in writing whether it was extended before assuming it applies to this year.

A non-resident owner is taxed on Georgian-source rent net of the deductions related to earning it, which makes record-keeping matter more, not less, for someone living abroad. Keep the lease, bank receipts, agent invoices and repair bills in one place from the first month, because reconstructing a year of costs from memory is where the deduction route quietly loses its advantage.

The summary these figures come from was last reviewed at the start of September 2026, which is why the expiry date on the short-stay arrangement is worth treating as live information rather than settled history. Rental taxation is one of the areas where blog posts age badly, so before you file, put the question to the Revenue Service or an accountant who signs their advice.