Property Tax for a Georgian Company: What Is Taxed, the Rate and the Return

A Georgian company pays property tax once a year on the tangible assets it carries on its balance sheet, at a rate its municipality sets up to a ceiling of 1% of their average net book value, and separately on any land it owns, by area. For a company whose assets are laptops and desks the bill is small; for one that owns its premises it is a real line in the budget. The return and the payment are due by 1 April, and a company that paid the year before also makes an advance payment in June. The figures below are those of the Tax Code of Georgia at the time of writing.

What a company pays property tax on

The taxable object for a resident enterprise is narrower than the word property suggests and wider than real estate. It is the assets recorded on the balance sheet as fixed assets or investment property, equipment not yet installed, construction in progress, and property the company has handed over under a leasing contract. The Code defines a fixed asset as a tangible asset used in the business for more than a year, so buildings, vehicles, machinery, furniture and computers are in, while software, licences, trademarks and other intangibles, stock held for sale and cash are, on that definition, out. Land is taxed under its own rules, described below.

The base is the average annual net book value: the value of those assets at the beginning of the calendar year plus the value at the end, divided by two. For real estate acquired before 2005 the Code increases the book value before the rate is applied, by up to three times on a scale that depends on the year of acquisition, unless the company carries its real estate under the revaluation model with audited accounts. In cases defined by the Minister of Finance, the Revenue Service may replace book value with market value in an audit.

The rate is set by the municipality, up to 1%

Property tax is a local tax. The Code fixes the ceiling and each municipal council adopts the rate for its territory. Tbilisi's resolution, as last amended in December 2025, sets the enterprise rate at the full 1% of average annual net book value, with a token rate for a few activities such as sports facilities and municipal passenger transport, and at 0.6% of initial book value for assets a leasing company has handed over under leasing, which is the Code's ceiling for that case. A company with assets in another municipality should read that council's resolution: the tax is owed where real estate is located and where movable property is registered.

Land is taxed separately, by area

Land does not go into the book-value calculation. Whoever owns a plot on 1 April of the tax year, or uses state-owned land on that date, pays property tax on land for that year, and the amount depends on area and location, not on value. For non-agricultural land the Code sets a base rate of GEL 0.24 per square metre a year at the time of writing, multiplied by a territorial coefficient that the municipal council sets and that may not exceed 1.5. Agricultural land is taxed per hectare at base rates that vary by municipality and by type of land, which a council may raise to no more than 150% of the base. Where the Revenue Service assesses the land tax itself from registry data, the Code relieves the owner of declaring the land, and a tax notice is issued instead. A company's land tax is due by 15 November.

The annual return, the advance payment and the first year

1. 1

   Keep a fixed-asset register from the first purchase: date, cost, depreciation and net book value at each year end. The return is built from it.

2. 2

   At the year end, take the net book value of the taxable assets on 1 January and on 31 December and average the two.

3. 3

   Apply the municipal rate, add any land held on 1 April, and file the property tax return through rs.ge by 1 April; pay the tax for the past year by the same date, less the advance already paid.

4. 4

   By 15 June pay the advance for the current year, equal to the tax for the year just declared. If the tax is expected to fall by at least 50%, notify the Revenue Service by 1 June to reduce or skip it; a forecast that proves wrong costs late-payment interest.

5. 5

   In the year a company is formed there is no advance, and the tax is calculated in proportion to the part of the year the company existed.

6. 6

   Ask for more time if it is needed: the Code allows a three-month extension of the annual return on a written application made before the deadline, provided the advance for the year was paid; the payment date does not move.

Leasing and renting: who pays

The Code looks for the owner or, under leasing, the lessor. A company that hands assets over under a leasing contract goes on paying property tax on them, and the person who receives property under leasing from a Georgian resident is exempt on it, so one asset is not taxed twice. Property taken from a non-resident is different: a non-resident enterprise is itself a payer of Georgian property tax on what it holds in Georgia, including what it has let out there. An office taken on an ordinary tenancy remains, in practice, the landlord's taxable property and not the tenant's; how a right-of-use asset recognised under accounting standards is treated should be confirmed with your accountant before the first return. One more point for owners: the Code's exemptions do not apply to buildings, or parts of them, that an enterprise lets out.

Exemptions, and the regimes that remove the tax

• International Company status: property other than land is exempt where it is intended or used for the permitted activity.
• Free industrial zone: property located within a zone is exempt; our article on the zones explains who they suit.
• High-mountain settlement enterprise: property located in that settlement is exempt for ten calendar years, counting the year the status is granted.
• Property received under leasing from a Georgian resident, and biological assets, are exempt for any company.
• Agriculture and medicine have their own exemptions for assets used in those activities; the conditions are specific.
• Virtual Zone status is a profit tax relief; the Code's list of property tax exemptions has no entry for it.

What this article does not answer

It does not value your assets: net book value comes from the company's own accounts and accounting policy, and that is your accountant's work. It does not give the land coefficient for your street or the rate adopted by a municipality other than Tbilisi; both are in the council's resolution. It does not cover in any detail the tax on property an individual owns, or the tax consequences of buying or selling real estate. It does not repeat the monthly obligations, which our compliance calendar article sets out. We register companies, keep the compliance calendar that carries the 1 April, 15 June and 15 November dates, and file the return through our accounting service; we assess eligibility for the statuses that remove the tax. We do not carry out valuations or audits.