The deadline for individuals in Georgia to file their property tax returns is fast approaching, with declarations due by November 3 and payments to be made by November 17.
Under current legislation, individuals whose family income exceeded GEL 40,000 in the previous year and who own taxable property are required to pay property tax. However, experts argue that this threshold, introduced nearly two decades ago, no longer reflects the country’s economic reality.
Zurab Dznelashvili, founder of Tax & Legal Solutions, says the exemption limit should be raised to GEL 100,000 to account for changes in income levels and inflation.
“The GEL 40,000 threshold was established back in 2004. Since then, nominal incomes have increased considerably, even if purchasing power hasn’t improved at the same pace. It’s simply outdated,” Dznelashvili told BMG.” Raising it to GEL 100,000 would better reflect the financial situation of most families today.”
The Ministry of Finance has been developing a property tax reform that would change the taxation principle for both individuals and companies, ensuring that property tax is no longer tied to income levels.
However, Deputy Finance Minister Giorgi Kakauridze has not yet specified when the reform will be introduced.
