The proposed property tax changes do not fundamentally alter Georgia’s existing taxation system or introduce a new framework, according to Davit Papiashvili, managing partner at Kreston Georgia. He described the changes as a compromise, saying that raising the exemption threshold from GEL 40,000 to GEL 100,000 is positive, but that several existing shortcomings remain.
Papiashvili said the previous system created a sharp increase in tax once household income exceeded GEL 100,000, with the rate rising from 0.2% to 0.8–1%. In his view, a more gradual system would have reduced the rate to around 0.5% for incomes between GEL 100,000 and GEL 200,000–250,000, while applying the 1% rate only to higher-income households.
He also argued that raising the rate above 1% would not be appropriate. According to Papiashvili, property tax rates of 1% or 1.5% in many European countries are generally applied to cadastral or tax values that can be significantly below market prices, whereas Georgia calculates the tax based directly on market value.
The Parliament is considering the tax amendments under an accelerated procedure. The bill would replace the existing multi-tier system with a GEL 100,000 income threshold for full exemption. According to the bill’s sponsors, the change is expected to affect around 81,000 taxpayers whose incomes fall between GEL 40,000 and GEL 100,000 and whose assessed property tax totaled GEL 22.3 million in 2025.
