Georgia’s Property-Tax Rewrite Could Move the Secondary Market First

Georgia’s Parliament is expected to revisit the property-tax system for individuals during the autumn session, before the annual declaration deadline. Paata Kvizhinadze, chair of Parliament’s Finance and Budget Committee, told BM.GE that four possible models are being considered and that no final threshold or structure has yet been agreed.

Under the current framework, households with annual income of up to GEL 40,000 are exempt from property tax on taxable property other than land. The Revenue Service’s current property-tax guidance separates households into income bands and confirms the standard 1 November declaration and 15 November payment deadlines.

One widely discussed option is to raise the exemption threshold to at least GEL 100,000. That level has been publicly proposed by several politicians and tax specialists, who argue that the GEL 40,000 figure no longer reflects nominal incomes and property values after more than two decades.

For the housing market, however, the threshold itself is only half the story. The decisive variables are whether tax rates change, how taxable value is determined, and whether the reform remains income-based or moves toward a stronger property-value or ownership-based model.