Raising the property tax threshold for individuals from GEL 40,000 to GEL 100,000 is a positive step but does not amount to a real reform, economist and former MP Roman Gotsiridze told BMGTV.
Gotsiridze said the GEL 40,000 threshold was introduced in 2005, when economic conditions and property prices were significantly different. However, he warned that if the current 0.8%-1% property tax rate for families earning GEL 100,000 or more is maintained, households could face a sharp increase in their tax burden once they cross the threshold.
He argued that property tax should be based primarily on the value of the property rather than household income. Gotsiridze also called for lower and progressive rates, exemptions for primary residences or lower-value properties, and a unified state methodology for property valuation.
According to the Revenue Service, raising the threshold to GEL 100,000 will exempt around 81,000 families from property tax payments totaling GEL 22 million. In January-November 2025, individuals paid GEL 114 million in property taxes, including GEL 83 million specifically from individual property tax.
