In short
If you are UK resident, rent from a flat in Georgia is taxable in the UK. Under the UK and Georgia double taxation convention, the 5% Georgian tax is credited against UK tax on the same income, up to the UK tax due on it. A sale is liable to UK capital gains tax even when Georgia exempts the gain after two years of ownership. Unlike a resident of Germany, a UK resident therefore usually still owes some tax at home.
The rules at a glanceNew UK rules for new arrivals and for inheritance tax have applied since 6 April 2025. This page reflects the position in November 2026 and is not tax advice.
Taxes in Georgia itselfAt a glance
Based on the UK and Georgia convention of 13 July 2004 and HMRC guidance. Amounts are for the 2026 to 2027 tax year.
HMRC treats lettings abroad as an overseas property business. Profits are worked out as for a UK letting and taxed at your marginal rate. Losses cannot be set against profits from a UK property business.
Article 6 of the convention lets Georgia tax the rent. The UK then deducts the Georgian tax from the UK tax on the same income. The credit can never exceed that UK tax, and any excess is lost.
UK residents pay capital gains tax when they dispose of overseas property. Georgia exempts the gain after more than two years of ownership. There is then nothing to credit, so the UK tax applies in full. With a shorter holding period, the Georgian 5% tax on the gain is credited.
From 6 April 2025 inheritance tax depends on residence, not domicile. A long-term UK resident, meaning UK resident in at least 10 of the previous 20 tax years, is within its scope on worldwide assets, including a flat in Georgia.
In practice
Five points where the UK calculation differs from the German one, or where mistakes are common.
Germany exempts Georgian rent. The UK taxes it and gives credit for the Georgian 5%, so you pay HMRC the difference up to your UK rate, whichever band you are in. Budget 2025 sets separate rates for property income from 6 April 2027: 22%, 42% and 47% in England, Wales and Northern Ireland. They apply to property income as defined in Part 3 of the Income Tax (Trading and Other Income) Act 2005. Check with your adviser whether that covers your Georgian rent.
Georgia charges 5% on gross rent. HMRC taxes profit after allowable expenses. The Georgian tax is credited only up to the UK tax on that profit, so with high costs part of the Georgian tax can go unused.
The purchase price and the sale price are each converted into sterling at the rate on the day. If sterling has moved, a taxable gain can arise even though the dollar or lari price is unchanged. The reverse also applies.
Since 6 April 2025, people arriving after at least 10 consecutive tax years of non-residence can claim relief on foreign income and gains for their first four tax years. The claim is made year by year, costs the personal allowance and the CGT annual exempt amount, and rules out credit relief on the income it covers.
To claim credit, you need proof that the Georgian tax was declared and paid. Keep the return filed on rs.ge, payment confirmations and the manager's statements, sorted by tax year.
Frequently asked questions
Rent, credit relief, sale, arrival and inheritance from a UK point of view.
Yes, if you are UK resident. The income goes on your Self Assessment return as an overseas property business. The 5% tax paid in Georgia is credited, up to the UK tax due on that income.
You claim it on the foreign pages of your return. HMRC deducts the Georgian tax from the UK tax on the same source of income. Each source is calculated separately, and an excess cannot be used against other income. HMRC helpsheet HS263 sets out the method.
Yes. Georgia exempts the gain after more than two years of ownership, but the UK still taxes it. With no Georgian tax there is nothing to credit. For 2026 to 2027 the rates are 18% or 24%, after an annual exempt amount of £3,000.
Only if you were not UK resident for at least 10 consecutive tax years before arriving. You can then claim relief on foreign income and gains for up to four tax years, including Georgian rent and a gain on the flat. Whether a claim pays depends on the allowances you give up.
Yes, if the person who dies is a long-term UK resident, meaning UK resident in at least 10 of the previous 20 tax years. The UK has no inheritance tax treaty with Georgia. The Georgian probate procedure is covered on our inheritance page.
Last reviewed on November 2, 2026. Sources: UK and Georgia double taxation convention of 13 July 2004 as amended by the 2010 protocol, Articles 4, 6, 13 and 23 (gov.uk), HMRC Double Taxation Relief Manual DT7750 (entry into force and effect), HMRC helpsheet HS263 Relief for foreign tax paid (2026), HMRC Property Income Manual PIM4702 (overseas property business), HMRC helpsheet HS266 Foreign income and gains (FIG) regime (2026), gov.uk: Capital Gains Tax rates and Selling overseas property (2026 to 2027 tax year), gov.uk: Inheritance Tax if you're a long-term UK resident, HMRC Inheritance Tax Manual IHTM27161 (list of inheritance tax treaties; Georgia not included), gov.uk: Budget 2025, Overview of Tax Legislation and Rates, measure 1.4, and policy paper Income Tax: changes to tax rates for property, savings and dividend income (property income rates from 6 April 2027). This guide is not legal or tax advice.
Read next
Taxes in Georgia itself, the sale, and where you are resident for tax.
The Georgian tax is the basis for your credit. File it properly and you have the evidence HMRC needs.