Georgia Real Estate Taxation • 5% vs 0% Article 82 Rules • RS.ge

Georgia Capital Gains Tax Calculator 🇬🇪

Compute statutory Capital Gains Tax on residential apartments, commercial buildings, and vehicles under the Tax Code of Georgia: 5% under 2-year holding, 0% tax-free relief after 2 years, and 20% commercial in Lari (GEL ₾).

Determines statutory holding relief thresholds

≥ 24 months (2 yrs) qualifies residential for 0% tax exemption

GEL (₾)

Gross contract sales value registered at NAPR

GEL (₾)

Historical acquisition cost per purchase deed

GEL

Officially documented invoices and building renovation expenses added to cost basis

Capital Gains Tax Due (RS.ge)
₾ 0.00
≈ $0.00 USD
Applicable Tax Rate 5.0% Article 82 Assessment
Total Cost Basis ₾ 0.00 Buy + Improvements
Net Capital Gain ₾ 0.00 Sale minus cost basis
Net Retained Profit ₾ 0.00 Gain minus tax
Exemption Status Taxable Holding evaluation

Tax Code of Georgia: Capital Gains Tax Matrix

Asset Category Holding Period Threshold Statutory Tax Rate Tax Treatment (Article 82)
Residential Real Estate Owned ≥ 2 Years (24 Months) 0.0% (100% Exempt) Completely tax-free capital gain
Residential Real Estate Owned < 2 Years (< 24 Months) 5.0% Preferential Levied only on net profit above costs
Commercial Property & Land Any holding period 20.0% Standard PIT No holding period exemption applies
Motor Vehicles / Cars Owned ≥ 6 Months 0.0% (Exempt) Tax-free disposal after 6 months
Motor Vehicles / Cars Owned < 6 Months 5.0% Flat Levied on net vehicle margin

Frequently Asked Questions (FAQ) - Capital Gains in Georgia

What is the 2-year holding rule for real estate capital gains in Georgia?

Under Article 82 of the Tax Code of Georgia, any capital gain realized by an individual from selling a residential apartment or house that was owned for more than 2 full calendar years (730 days) is 100% tax-exempt (0% CGT).

What is the tax rate if residential property is sold within 2 years in Georgia?

If a residential property is sold within 2 years of purchase, the net capital gain (selling price minus purchase cost and documented capital improvements) is taxed at a preferential flat rate of 5.0%.

How is capital gain on commercial real estate taxed in Georgia?

Commercial properties, office spaces, and commercial land do not benefit from the 2-year holding exemption. Net gains from commercial property sales are taxed at the standard 20.0% Personal Income Tax rate.

Can renovation costs be deducted from the sales price to reduce tax?

Yes. Documented and officially invoiced capital improvement expenses (renovations, structural additions, major equipment) can be added to the original purchase cost basis, directly reducing taxable capital gains.

What is the capital gains holding period rule for motor vehicles?

Capital gain from the sale of an automobile or motor vehicle owned for 6 months or longer is 100% tax-free. If sold within 6 months of acquisition, a 5.0% tax applies on the net gain.

MS

Engr. Muhammad Shahzad

Verified Technical Author

Principal Civil & Systems Software Engineer specializing in real estate cadastral valuation, Tax Code of Georgia holding relief rules, and RS.ge capital gains algorithms.

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📊 Revenue Service of Georgia (RS.ge) & Pension Agency Matrix

Statutory Component / Legal Deduction Item Calculated Amount (GEL)
Primary Net / Statutory Payable Amount 0.00 ₾