Georgia

Individual - Other taxes

Last reviewed - 15 January 2020

Social security contributions

There are no social security contributions in Georgia.

Pension contributions

From 1 January 2019, joining a pension scheme is mandatory for all employees, except for:

  • Individuals who have been 60 years of age (55 years of age in case of women) before the enactment
    of the law.
  • Self-employed individuals.

The pension scheme is financed by employer, employee, and government. Particularly:

  • Each employer will transfer 2% of the employee’s salary income to one's private pension account while paying the salary.
  • Each employer will transfer 2% of the employee’s salary income to one's private pension account on behalf of its employee.
  • Each self-employed individual will transfer 4% of one's annual income to the individual pension account.
  • The government will transfer (i) 2% of the income of the participant to one's private pension account when the annual salary of the participant/income of the self-employed individual is less than GEL 24,000 and (ii) 1% of the income of the participant when the annual salary of the participant/income of the self-employed individual is between GEL 24,000 and GEL 60,000. In case the annual salary of an employee/income of the self-employed individual is greater than GEL 60,000, the government will only contribute to the extent of GEL 60,000.

Consumption taxes

Value-added tax (VAT)

The standard VAT rate is 18% and applies to the sale of all goods and services supplied in Georgia carried out as an economic activity.

See the Other taxes section in the Corporate tax summary for more information.

Property tax (except land)

Resident individuals whose annual family income exceeds GEL 40,000 in a calendar year are liable for property tax. The following is subject to taxation:

  • Immovable property owned by the individual (including property received under a lease from non-residents and property that is leased to other persons).
  • Yachts, motor boats, airplanes, and helicopters.
  • Motor cars starting from 2018.

Property tax on land

Individuals shall pay tax on land owned by them as of 1 April of the tax year:

  • on land in their possession
  • on land owned by the state and used or owned by them, and
  • on a parcel of land owned and/or used by a natural person that is registered as property of a deceased person, except for the cases when the parcel of land is used under a lease, rent, usufruct, or similar agreement.

A natural person shall pay property tax and property tax on land no later than 15 November of a calendar year.