Wealth Tax Planning (Property Tax for Individuals) in Georgia is relevant for individuals whose family's annual income exceeds 40,000 GEL. Under Georgian legislation, property tax for individuals is tied to income: if the family income is below 40,000 GEL, the property tax is 0%; for income between 40,000 and 100,000 GEL, the rate ranges from 0.05% to 0.2%; and for income exceeding 100,000 GEL, it ranges from 0.8% to 1%. Taxable assets include real estate owned by the individual (apartment, house, cottage, garage), land plots (land is taxed regardless of income), yachts, and aircraft. Many citizens mistakenly believe that if they haven't received a notification from the tax authority, they have no obligation. In reality, filing a declaration is the taxpayer's obligation, and failure to do so leads to penalties. Proper planning involves correctly declaring income and adequately assessing the market value of the property to avoid overpaying taxes.
What Does Wealth Tax Planning Service Cover?
Experts on Legal.ge offer a full service to manage your property tax liabilities. The service includes:
- Income Audit: Calculating the family's annual income (salary, dividends, interest, etc.) to determine if a property tax liability arises.
- Property Valuation: Determining the market value of taxable property, which is decisive for the tax amount (market price often differs from registry data).
- Declaration Preparation: Filling out and submitting the annual property tax declaration by November 1.
- Land Tax Calculation: Calculating tax on agricultural and non-agricultural land based on local municipal rates.
- Exemption Utilization: Applying exemptions provided by law for large families and other categories.
Common Situations and Scenarios
A classic mistake involves failing to account for all family members' income. For example, a husband earns 30,000 GEL and the wife 15,000 GEL. Individually, neither is liable, but together (45,000 GEL) they exceed the 40,000 GEL threshold and must pay tax on all family property. A second scenario involves "unfinished construction": a person owns a house frame that hasn't been commissioned yet. By law, unfinished construction is also taxable, which is often overlooked. A third scenario involves a foreigner owning an apartment in Georgia: they assume that as a non-resident, the tax doesn't apply. In reality, if their Georgian-sourced income (e.g., from renting the apartment) exceeds 40,000 GEL, they also become liable.
Georgian Legal Framework
Property tax is regulated by Chapter XXIX of the Tax Code of Georgia. Article 201 defines taxpayers and objects, while Article 202 sets rates. The definition of "family" is provided in the Code and includes spouses, minor children, and parents permanently residing with the taxpayer. The deadline for filing the declaration is no later than November 1 of the calendar year, and the tax payment deadline is November 15.
Step-by-Step Service Process
Working with a specialist on Legal.ge begins with gathering "family income" data. In the first stage, income is declared. In the second stage, a list of real estate is compiled and its value determined (if necessary, involving a professional appraiser). In the third stage, the declaration is filled out on RS.ge. The specialist ensures that property value is not artificially understated (a risk) or overstated (an unnecessary expense).
Why Choose Legal.ge?
Calculating property tax seems simple at first glance, but it has many nuances (e.g., proportional land for an apartment building). Legal.ge gives you access to experts who will accurately calculate your liability and protect you from fines. Through our platform, you can own your property peacefully, without unnecessary tax headaches.
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