The GEL 40,000 property tax exemption threshold for individuals is outdated and should be immediately raised to GEL 100,000, according to Zurab Dznelashvili, founder of Tax & Legal Solutions. He said the threshold is now so low that even low-income families, including teachers and pensioners, can exceed it and become liable for property tax.
Dznelashvili also believes the income thresholds used to determine differentiated property tax rates should be revised proportionally. Currently, the tax rate changes when family income exceeds GEL 100,000. If the lower exemption threshold is doubled or tripled, he argues, this income threshold should also be adjusted accordingly.
Regarding the so-called “Estonian model” of property taxation, the former Deputy Finance Minister said the ministry had considered several options. He said he would comment on the proposals after reviewing the final document submitted to Parliament.
The issue of raising the property tax threshold is currently being discussed by the parliamentary majority. Finance and Budget Committee Chairman Paata Kvizhinadze said four possible models are under consideration, which could replace the existing system. The Finance Ministry has said since 2023 that it is working on an “Estonian model” property tax reform and has prepared a regulatory impact assessment, although the initiative has not yet been submitted as a bill.
