Hotel Taxes in Georgia: Buying, Running and Selling (2026)

Investors usually buy a hotel in Georgia through a Georgian company. Below are the main taxes for 2026. The rates come from PwC and EY tax summaries.

Profit tax: 15% only on distribution

Georgia uses the "Estonian model". A company pays no profit tax while profit stays in the business. The 15% tax applies when profit is distributed.

Dividends count as distribution. Expenses unrelated to the business also count. Representation expenses above 1% are taxed too.

This is convenient for an investor. Money spent on renovation and growth is not taxed.

Dividend tax: 5%

The company withholds 5% when it pays dividends. The rate is the same for residents and non-residents. A double tax treaty may reduce it.

VAT: 18%

The standard VAT rate is 18%. Registration is mandatory when turnover exceeds GEL 100,000 in any 12 consecutive months. Hotel accommodation is taxed at the standard rate.

Property tax and land

A company pays property tax of up to 1% per year. The base is the average net book value of fixed assets, excluding land.

Tax on non-agricultural land starts from a base rate of GEL 0.24 per square metre. The municipality applies a coefficient of up to 1.5.

Staff salaries

Personal income tax is 20%. The employer withholds it. Pension contributions: 2% from the employee and 2% from the employer.

Registering the purchase

There is no property transfer tax. The Public Registry (NAPR) charges a fixed registration fee:

• GEL 150 — within 4 working days;
• GEL 270 — within 1 working day;
• GEL 350 — on the same day.

Notary and legal fees are paid separately.

Tourism registry

From 1 June 2026, Georgia has a mandatory registry of tourism service providers. It covers tour operators, travel agencies and guides. Hotels are not in this registry. If the hotel sells tours itself, check whether it must register.

Taxes when you sell the hotel

If a company sells the hotel, profit tax arises when money is paid out to owners. The sale of a non-residential building is subject to 18% VAT. Bare land is VAT-exempt. If a building is sold together with its land, VAT usually applies to the whole deal.

If an individual sells, the rules have changed. Since 15 May 2026, hotel rooms used in a hotel business are taxed at 20% on the gain. The reduced 5% rate now applies only to housing.

The sale of company shares is taxed separately. The rate depends on who sells and on the tax treaty.

What to check before the deal

• Who buys: a company or an individual.
• An asset deal or a share deal.
• Whether the seller has tax debts.
• Whether the hotel is registered for VAT.
• Whether the hotel sells tours and needs to join the tourism registry.

Tax rules change. Before the deal, consult a tax lawyer in Georgia.