The starting point for reforming Georgia’s individual property tax should be people’s real purchasing power, according to Kreston Georgia Managing Partner Davit Papiashvili. He said the current GEL 40,000 income threshold was set more than 15 years ago and no longer reflects today’s prices and inflation.
Papiashvili argues that people whose real financial situation has not improved should not face a higher tax burden simply because their nominal income has risen. He also considers it unfair to tax families whose combined income exceeds the outdated threshold due to money earned by family members working abroad.
He also highlighted the GEL 100,000 threshold, above which the property tax rate can rise from 0.2% to 1%. According to Papiashvili, this four- to fivefold increase can place a significant burden on the middle class. He believes both thresholds should be adjusted to reflect changes in the value of money.
The issue of raising the property tax threshold is currently being discussed by Georgia’s parliamentary majority, with four possible models reportedly under consideration. In 2025, individuals paid around GEL 121 million in property taxes, 30% more than a year earlier. The tax is paid when a household’s taxable income exceeds GEL 40,000, with payments directed to local municipal budgets.
