The 5% on rental income comes with a condition most landlords never read

PwC's Georgia summary, last reviewed on 2 September 2026, states that personal income tax of 5% applies to rental income from residential space where the individual makes no deductions from that income. The rate is not unconditional: it is the price of a simple return with no expenses claimed against it. Landlords who assume they can take 5% and also net off repairs, agency fees or interest are combining two things the rule keeps apart.

For a flat owned outright and let unfurnished on a long lease, expenses are usually small enough that a flat 5% on the gross is hard to beat and far easier to file. The calculation changes when the costs are real: a recent renovation, a managing agent, a mortgage, or heavy turnover in furnished short-stay lets. Those are the cases worth putting in front of an accountant rather than defaulting to the headline number.

The summary also describes a fixed-rate regime for short-stay accommodation income, available on application to the tax office, to taxpayers not registered for VAT and with income under 100,000 lari in any consecutive twelve months — and it dates that regime from the start of 2023 to the end of 2025. If you run a holiday flat, that is exactly the kind of provision whose current status you confirm with the Revenue Service or an adviser before filing, rather than assuming last year's treatment still applies.

The summary notes that non-residents may deduct expenses connected with their Georgian-source rental income. That is a meaningful difference from the no-deductions basis, and it means the right answer for an owner living abroad is not automatically the same as for a neighbour down the corridor. It also sits alongside whatever your home country does with the same income, which is the part that most often costs people money.