Sell after two years and the gain on your flat is exempt

The taxable amount is the sale price minus what you paid for the property, less expenses directly related to it, with renovation costs given as an example. This matters more than the rate for anyone who bought off-plan years ago and finished the flat themselves: receipts for the works are part of the calculation, not a separate matter. The headline rate for an individual selling a residential apartment is 5% of that net figure, where the general personal income tax rate on gains is 20%.

The two-year exemption is not purely about the calendar. Andersen's note explains that for property which generated income, the use matters: a residential flat let for residential purposes still qualifies, but a residential property rented out commercially does not. For non-residential property operated as a commercial facility or let commercially, the exemption does not apply even after two years of ownership. It can become available again two years after the income-generating activity stops. Owners who have been running a flat as nightly accommodation should treat this as the point to check with an accountant before listing it for sale, because the answer turns on how the letting was structured rather than on the property itself.

Two practical consequences follow. First, the date on the registration extract is the date the two-year clock runs from, so it is worth knowing exactly when ownership was recorded rather than when the preliminary contract was signed. Second, the acquisition price and the cost of works are what reduce a taxable gain if you do sell early, and neither can be reconstructed from memory years later. Andersen's note reflects the law as of October 2025 and PwC's page was reviewed in September 2026; both describe the same 5% rate, but a sale large enough to matter is worth putting in front of a Georgian tax adviser rather than settling from any single article, including this one.