Introduction: Tax Obligations for Individuals
Tax payment in Georgia concerns not only companies but also individuals who have income from various sources. Individual Tax Preparation is a service that helps citizens, individual entrepreneurs, and resident foreigners correctly declare their income. Often people think that if they receive a salary and the employer pays income tax, they have no other obligations. However, if you rent out an apartment, sell real estate, work as a freelancer for a foreign company, or receive dividends, you incur tax liabilities. Qualified assistance allows you to take advantage of legal benefits (e.g., Small Business Status, 5% rental regime) and avoid fines for late filing.
What Does This Service Cover?
The service is tailored to the specific income sources of an individual. Specialists offer:
- Income Tax Declaration: Preparing an annual declaration for individuals with untaxed income.
- Small Business (1%) Administration: Monthly declaration of 1% turnover tax for Individual Entrepreneurs.
- Rental Income Tax: Registering in the "Landlord" registry and submitting the annual 5% declaration.
- Property Tax for Individuals: Calculating and declaring property tax based on annual family income (if it exceeds 40,000 GEL).
- Capital Gains Tax: Calculating tax (5% or exemption) on profits from selling an apartment or car.
- Foreign Income: Analyzing whether funds received from foreign sources are subject to taxation in Georgia.
Common Situations and Scenarios
A very common scenario is "Airbnb Hosts": they receive income from tourists. If they do not register, they face a 20% tax plus fines. The specialist registers them as a Small Business, reducing the tax to 1%. A second scenario involves resident foreigners: a person lives in Georgia for more than 183 days and works remotely for a US company. They wonder—should they pay tax in Georgia? The consultant analyzes the definition of "foreign source" and helps make the right decision. A third case is family income: if the total family income (salaries, remittances, etc.) exceeds 40,000 GEL, they must pay real estate tax, which they often are unaware of.
Georgian Legal Framework
Taxation of individuals is regulated by the Income Tax chapter of the Tax Code of Georgia (Articles 79-82). Specifically, Article 81 defines the individual income tax rate (standard 20%). Special tax regimes (Micro and Small Business) are outlined in additional parts of the Code. Property tax liability is determined by Articles 201-202. It is also important to know that the Tax Code provides for exemptions (e.g., selling a residential apartment owned for more than 2 years), the correct use of which significantly reduces the tax.
Process: How is the Service Provided?
The process begins with a consultation where the specialist determines all income sources and the residency status of the person. Then registration on RS.ge takes place (if not already registered). In the case of Small Business, the declaration is sent monthly (by the 15th of the following month). Property and income declarations are sent once a year, by November 1. The specialist fills out the forms, calculates the tax, and provides payment instructions. They also keep your documentation for 3 years, as required by law.
Why Choose a Specialist on Legal.ge?
Specialists on Legal.ge will help you navigate the tax labyrinth. Especially for foreign citizens, the Georgian tax system can be difficult to understand due to the language barrier. Our experts speak your language and ensure that your personal finances are in full order with Georgian legislation. Do not pay extra due to ignorance—use tax benefits with the help of professionals.
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