Rental tax and property tax
Which taxes owners in Georgia pay on an ongoing basis.
Property in Georgia. What German taxpayers should know.
In short
Under the double tax treaty, Georgia may tax rental income from an apartment in Georgia. Germany exempts it but includes it when setting the rate on your other income, known as the progression clause. So you still have to declare it. There is no inheritance tax treaty with Georgia.
What you should knowThis page gives an overview and does not replace tax advice.
Rental tax and property tax in GeorgiaWhat you should know
Four points for German taxpayers.
The basics under the 2006 treaty. A tax adviser clarifies your case.
Double tax treaty
Income from property may be taxed by the country where it is located (Article 6). Germany avoids double taxation by exempting this income (Article 23).
Progression clause
Georgian rental income belongs in your German return. It is not taxed itself but raises the rate on your other income.
Sale
Georgia may also tax a gain on sale (Article 13), and Germany exempts it. In Georgia it is tax-free after more than two years of ownership; before that 5% applies.
Inheritance and gifts
There is no inheritance tax treaty with Georgia. Residents of Germany pay German tax on inheritances and gifts worldwide, including an apartment in Georgia.
Frequently asked questions
Questions about taxes in Germany.
Rental income, losses, sale and inheritance for German taxpayers.
Do I pay German tax on rental income from Georgia?
Not directly. Germany exempts the income, but it raises the rate on your other income, so it belongs in your return.
Can I deduct losses from Georgia in Germany?
Usually not. Rental losses from countries outside the EU can only be used to a very limited extent in Germany (section 2a of the Income Tax Act).
What applies when I sell?
Georgia may tax the gain and Germany exempts it. In Georgia a sale after more than two years of ownership is tax-free.
What happens on inheritance?
There is no treaty with Georgia. If the deceased or the heirs live in Germany, German inheritance tax usually applies.
Last reviewed on November 1, 2026. Sources: Germany–Georgia double tax treaty of 1 June 2006 (Federal Law Gazette 2007 II), Articles 6, 13 and 23, German Income Tax Act, sections 2a and 32b, German Federal Ministry of Finance. This guide is not legal or tax advice.
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