The Essence and Rates of the Property Tax of an Individual
The property tax of an individual is a tax of local character defined uniformly by the Tax Code of Georgia, and its rate depends on the annual income of the family: the amount of the tax depends not only on the value of the property but also on how much the family receives as income. This page explains which property is taxed, how the rate is determined, when declaration and payment take place and which exemptions exist — according to the exact norms of the Code.
The Object of Taxation and the Payer
A physical person pays the property tax, first of all, on immovable property in his or her ownership — including unfinished construction, buildings or parts thereof; also on yachts, helicopters, airplanes and light vehicles determined by code 8703 of the national commodity nomenclature. In addition, tax is levied on property received in leasing from a nonresident and, where economic activity is carried out, on balance assets, uninstalled equipment and property leased out. A separate rule concerns property registered in the name of a deceased person: the payer is the person in possession or use of the property, except where it has been transferred under a lease, rent or usufruct contract.
Rates According to Family Income
The annual rate on the taxable property of a physical person is differentiated by the income of the family during the tax year. For families with income of up to 100 000 GEL the rate is not less than 0.05 and not more than 0.2 percent of the market value of the property at the end of the tax period; for families with income of 100 000 GEL or more it is significantly higher — not less than 0.8 and not more than 1 percent. Family income includes all income, including benefits, without regard to tax allowances: income from economic activity, unrelated income and accrued salary; for small business status — 25 percent of the income under the special regime, for a market trader — 15 percent of sales income. Income does not include, for example, property received by inheritance or gift from family members, or income from the sale of a dwelling owned for more than 2 years. The liability is determined at the rate effective on 31 December, and the tax is computed proportionally to the time of ownership.