Do you pay tax when selling an apartment or a car in Georgia?
Holding periods and the tax rate.
Short answer
Tax on selling an apartment is due if you owned it under 2 years, and on selling a car if under 6 months have passed since title registration. The taxable amount is the gain over your purchase cost at 5% (Tax Code, Articles 81 and 82). The return is filed and tax paid by the 15th of the following month.
Why
- Gain from selling an apartment (house) is exempt if you owned it for more than 2 years (Article 82(1)(f.a)).
- Gain from selling a car is exempt if more than 6 months have passed since title registration (item f.b).
- For a home or car sold earlier, the rate is 5% (Article 81, paragraph 3).
Details
The taxable amount is the difference between the sale price and the acquisition cost. According to the Revenue Service guidance, documented costs of completing or improving the property can be added to the acquisition cost, and for property received free of charge the market value at the time of receipt is used. For an apartment or house the holding period counts from the date the ownership document is drawn up. The return is filed through the eservices.rs.ge portal and tax is due by the 15th of the month following the sale. Other property, including land, is taxed if sold within 2 years (Article 82, item f.c).
If you are only planning a purchase, start here: How can a foreigner buy an apartment in Georgia?. General rates: What are the taxes and VAT in Georgia?
Tip
Keep the purchase documents and records of renovation or completion costs, since they reduce the taxable gain.
What may differ
If selling is part of regular business activity (for example, property trading), different rules apply. For inherited or gifted property, holding periods may be added together. Check your case on rs.ge.
Common misconception
Any sale of an apartment in Georgia is taxed.
What actually happens
No: if you owned the apartment for more than 2 years, the gain from the sale is exempt (Tax Code, Article 82).
People also ask
- Is there a capital gains tax when selling a car in Georgia?
Sources
This answer is for reference only and is not legal advice. Rates and rules change, so check rs.ge.
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