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Georgia

Situation improving

Last Updated: November 30, -0001

Georgia (pop. 4,371,000; GDP/cap US$986) is in the eastern coast of the Black Sea bordered on the north by Russia and on the south by Turkey, Armenia, and Azerbaijan.

The Rose Revolution in 2003, spurred by rampant corruption, led the incumbent president Eduard Shevardnadze to resign from his post, which he had held since 1995. After his resignation, Mikheil Saakashvili won the presidential election held on January 2004. However, in May 2004, a second revolution took place in Ajaria, an autonomous region of Georgia, and led to the removal of Ajaria’s corrupt dictator, Aslan Abashidze.

Progress on market reforms and democratization has been made, but progress has been complicated by civil conflicts in the breakaway regions of Abkhazia and South Ossetia, which remain outside the control of the central government and are ruled by de facto, unrecognized governments, supported by Russia.
Taxes and Costs Last Updated: November 30, -0001

Georgia’s new tax code is in effect since January 2011

Rental Income: Nonresidents earning rental income are taxed at a flat rate of 18% for 2013.

Capital Gains: Capital gains realized from sales of properties not connected with business activities are exempt from taxation if the property was held for more than two years before it was sold.

Inheritance: First and second degree relatives are fully exempt from inheritance taxes.

Residents: Residents are taxed on their Georgian-sourced income at a flat rate of 18% for 2013. The income tax rate will be reduced to to 15% in 2014.

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Title: Property in Georgia | Georgian Real Estate Investment

Description: A look at real estate investment in Georgia from the perspective of property income, taxes and Georgian investment prospects

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