In short
If you buy as an individual, Georgia taxes residential rent at 5% of the gross amount. A Georgian LLC pays no profit tax while it retains its profits and 15% only when it distributes them; a further 5% applies to dividends paid to individuals. In return, the company has bookkeeping and filing duties. Residents of Germany and other countries also need advice on controlled foreign company rules and where the company is managed.
The comparisonThis page sets rules side by side. It is not tax or legal advice and recommends no structure. Have your case checked in Georgia and at home before you buy.
Rental tax and property tax in GeorgiaComparison
The Georgian rules as of November 2026, plus what applies on top for German taxpayers.
Rates under the Tax Code of Georgia and as published by the Georgian government. The comparison does not replace advice.
of gross residential rent, with no deduction of costs
no profit tax on retained profits, 15% on distribution
For an LLC, tax is triggered by the distribution, not by the income. Certain spending unrelated to the business can also trigger profit tax; your Georgian accountant can tell you which.
The rent after tax is yours.
Dividends paid to individuals are taxed at 5% in Georgia.
If you need the income privately, an LLC means tax at two levels. Germany and many other countries tax the dividend as well; the treaty sets how Georgian tax is credited.
Declare rental income to the Revenue Service before 1 April of the following year
Tax returns to the Revenue Service, annual accounts to SARAS by 1 October
In practice an LLC needs an accountant in Georgia. That is a cost every year, even when the apartment is empty.
Individuals pay no tax on the gain after more than two years of ownership.
The proceeds first sit in the LLC; tax arises on distribution.
The tax-free private sale after two years has no direct counterpart in an LLC.
If you are registered as owner and meet the minimum value, you can apply for the temporary permit.
The company is a separate owner. Find out before buying whether its apartment counts for you.
The Public Service Development Agency is responsible. The minimum value rules are on the residence permit page.
Rental income exempt under the treaty, subject to progression
Check attribution under sections 7 to 8 AStG and the place of management
Under section 8(1) no. 6(b) AStG, letting land is not treated as low-taxed passive income if you show that the income would be treaty-exempt had it been received directly. Whether that applies to you is for your tax adviser.
How to declare rental income in Georgia, step by step.
Filing tax in GeorgiaWhat a company involves
Setting up is a one-off step; the obligations recur every year. These questions belong before the purchase, not after it.
An LLC is registered under the Law on Entrepreneurs in the Registry of Entrepreneurs kept by the National Agency of Public Registry. It needs an address in Georgia and a director.
For a company account the bank checks shareholders, beneficial owners and the source of funds. Expect more paperwork than for a personal account.
Bookkeeping, returns to the Revenue Service and annual accounts cost money and time. Weigh those costs against any hoped-for tax saving.
If you take the LLC's decisions from Germany, its place of effective management may be in Germany. It is then fully liable to German corporation tax (section 1 KStG, section 10 AO). Other countries have similar rules.
If you control a foreign company that earns passive income taxed at less than 15%, Germany attributes that income to you (sections 7 and 8 AStG). How Georgia's tax-on-distribution model fits these rules can only be judged case by case. The UK, Austria and Switzerland have their own regimes.
Frequently asked questions
Tax burden, the Estonian model, CFC rules and the residence permit.
There is no general answer. The LLC pays no profit tax on retained profits, 15% on distributions and 5% on dividends to individuals. As an individual you pay 5% of gross rent. Add the company's running costs and the rules of your home country.
Since 2017 Georgia has taxed company profits only when they are distributed. If the company keeps its profit, no profit tax is due. On distribution the rate is 15%.
In Germany, if a resident controls a foreign company with passive income taxed at less than 15%, that income is attributed to them (sections 7 to 8 AStG). There is an exception for letting land if the taxpayer shows that the income would be treaty-exempt had it been received directly.
The property-based residence permit requires you to be registered as the owner. A company is a separate owner. Check with the Public Service Development Agency before buying whether that is accepted in your case.
Last reviewed on November 2, 2026. Sources: Tax Code of Georgia (matsne.gov.ge): profit tax, personal income tax on dividends and rental income, Enterprise Georgia (enterprisegeorgia.gov.ge): tax rates, profit tax on distributions only since 2017, Revenue Service of Georgia (rs.ge), Law of Georgia on Entrepreneurs (matsne.gov.ge); SARAS (reportal.ge): 1 October deadline for annual accounts (notice to reporting entities), German Foreign Tax Act (AStG), sections 7 and 8 (gesetze-im-internet.de), German Corporation Tax Act, section 1; Fiscal Code, section 10. This guide is not legal or tax advice.
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Rental tax in Georgia, German tax and filing with the Revenue Service.
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