Short term rental rules in Tbilisi get answered wrong in a specific way. There is no Airbnb licence to buy, so hosts conclude there is nothing to do. Then the first assessment arrives and the 5% rate everyone quotes turns out to be 20%, because of a register nobody mentioned. Here is what the law actually demands, what it does not, and where the money leaks.
What Tbilisi does not require
Start with the negatives, because most guides get them half right and stop.
There is no municipal short-term rental permit in Tbilisi. No night cap, no zoning overlay, no registration counter at City Hall, no star classification to submit to before you list.
There is also no tourism-side registration for accommodation. The Law of Georgia on Tourism sets out who has to appear in the tourism administration's database, and the May 2026 consolidation deleted the general registration duty in Article 11. What remains names tourist guides, tour operators and travel agencies. Someone letting a flat by the night is not on that list.
That is the whole permit question. Everything else that bites is tax, and it bites through classification rather than through a licence.
The tax routes, and why hosts pick the wrong one
Georgia has no short-term rental tax. It has ordinary treatments a nightly let can fall into, and which one you land in depends on how the activity is characterised, not on what you call it.
| Route | Headline rate | What it needs | Where it breaks |
|---|---|---|---|
| Natural person, residential letting | 5% of gross, no deductions | Entry in the Revenue Service's Residential Area Tenants Register | The test is "for residential purposes", and a two-night tourist stay arguably is not |
| Individual Entrepreneur, small business status | 1%, rising to 3% above 500 000 GEL a year | IE registration plus a separate status application | Lease of property sits outside the 1% regime |
| Natural person, general treatment | 20% of taxable income | Annual return, deductions permitted | Deductions need records almost no host keeps |
| Georgian LLC | Profit taxed on distribution, not accrual | Company registration, bookkeeping, monthly filings | Heavy for one flat, sensible once you run several |
The 5% rate and the register behind it
Article 81(2) of the Tax Code taxes a natural person at 5% on income from renting out residential space to an organisation, a legal person or a natural person for residential purposes, where that person makes no deductions. The general rate in Article 81(1) is 20%.
The condition everyone skips is procedural. The Revenue Service's guidance on renting out residential space states that to use the 5% rate your data has to sit in its Residential Area Tenants Register. You apply online or at a service centre with an extract from the public registry, and the entry is made within two working days.
Where the income is not taxed at source, the Revenue Service applies the 5% rate if the landlord's data is entered before 1 April of the year following the reporting year. Miss that and the same income sits at 20%.
Then there is the wording. "For residential purposes" is the test, and nightly stays sold to tourists look much more like an accommodation service. The Law on Tourism even defines accommodation as a travel service not intended for residential purposes. Two statutes, one phrase, opposite directions. Get a written view from tax advisors in Tbilisi before you build a model on 5%.
Why 1% status does not cover rent
This is the most expensive misunderstanding in the Tbilisi hosting market.
Small business status taxes an Individual Entrepreneur at 1% of taxable income, and 3% above 500 000 GEL a year. Our guide to 1% small business status covers who qualifies.
The Revenue Service's small business guidance also lists the income types that sit outside the regime and fall under the general rule instead. Lease of property and real estate is first on it.
Holding small business status does not put rental income at 1%. Lease of property is excluded from the regime by name, which means 20% unless the 5% residential treatment applies and you are in the register. Hosts who filed monthly at 1% get a reassessment covering every month they operated.
VAT arrives at 100 000 GEL
VAT catches hosts who never thought of themselves as businesses. Any person independently carrying out economic activity is a taxable person, and using property for regular income is economic activity.
Registration becomes compulsory once taxable supplies over any continuous 12 calendar months exceed 100 000 GEL, and you have two working days from that moment to apply. The rate is 18% and the reporting period is a calendar month. Our breakdown of VAT registration in Georgia walks the mechanics.
Do not assume letting is exempt. Article 171 lists the transactions exempt without the right of deduction, and residential letting is not among them.
The threshold runs on any continuous 12-calendar-month window, not the calendar year. A strong summer plus a strong New Year can cross it in a period that never matches a tax year.
One more line almost no guide mentions. Article 161 of the Tax Code of Georgia applies VAT reverse charge to a service provided to a Georgian tax agent by a supplier not established here, which is the shape of a booking platform's commission. Whether it lands on you depends on your status, so ask your accountant rather than assuming the platform handled it.
Property tax on the flat itself
A natural person owning taxable property in Georgia files a property tax return if the family's income in the previous year exceeded 40 000 GEL. Below that threshold the property is exempt.
Article 202(5) of the Tax Code sets the annual rate by family income: 0.05% to 0.2% of market value for families under 100 000 GEL, and 0.8% to 1% at 100 000 GEL and above. The municipality picks the point inside the band, so confirm the Tbilisi figure for the year you are declaring. Our guide to property taxes and fees sets out the rest of the ownership costs.
| Filing | Who it applies to | Deadline |
|---|---|---|
| Monthly income tax return, small business regime | Individual Entrepreneurs holding the status | 15th of the following month |
| VAT declaration | Hosts registered for VAT | Monthly |
| Annual income tax return | Natural persons whose income is not taxed at source | 1 April following the reporting year |
| Property tax return | Natural persons whose family income passed 40 000 GEL last year | 1 November |
| Property tax payment | The same taxpayers | 15 November |
Three calendars, three penalty regimes. This is where most hosts stop doing it themselves, and English-speaking accountants in Tbilisi cost less than reconstructing a year of bookings in March.
We research the real estate agencies working in Tbilisi and rank the ones worth paying. Independently researched, re-checked quarterly, free to read.
See the ranked list
The building, the neighbours and the lease you signed
Your neighbours cannot vote your flat off the platform
Article 7(1) of the Law of Georgia on Homeowners' Associations says an owner may use the individually owned parts of the building as he or she sees fit, and may preclude interference from third persons, provided this does not violate the law or the rights of others. The association's remit is the common property, not what happens inside your apartment.
So a meeting cannot resolve you out of the short-term rental business. What it can decide is everything you depend on: entrance codes, key boxes on common walls, lift access, the maintenance cost split. Decisions pass on a majority of members present, which in a building of long-term residents is rarely a majority sympathetic to suitcases at midnight.
The phrase "rights of others" is the second hook. Persistent disturbance is a civil claim brought against you personally, not a municipal complaint.
If you are a tenant, you probably cannot re-let
Article 549 of the Civil Code is unambiguous: a lessee has no right to transfer the rented thing to a third person without the lessor's consent, and a family member does not count as a third person. Article 550 softens this for dwellings where the tenant has a valid reason, with broad exceptions.
Arbitrage on a long lease therefore needs written consent in the contract, obtained before you list. Our guide to renting long term in Tbilisi covers how Georgian leases are drafted and what to ask for at signing.
Three things to settle before the first booking
Confirm what you own. Pull a fresh extract from the public registry and check for co-owners, mortgages and use restrictions, which anyone buying an apartment as a foreigner should treat as routine.
Read the building before you buy into it. New developments with a resident management company often set house rules on nightly letting, and some sale contracts assign that right to the operator. Real estate agencies in Tbilisi working the investment end of the market know which buildings tolerate short stays.
Price the operating side honestly. Cleaning, linen, check-ins and commission separate a headline yield from a real one, and property management companies in Tbilisi publish rates you can benchmark against your own time.
Key takeaways
- Tbilisi issues no short-term rental permit, and the Law on Tourism does not require accommodation providers to register.
- The 5% rate under Article 81(2) depends on your data sitting in the Revenue Service's Residential Area Tenants Register, and on the letting being for residential purposes.
- Small business status does not put rental income at 1%. Lease of property is excluded by name and taxed under the general rule.
- VAT registration is compulsory at 18% once taxable turnover passes 100 000 GEL in any continuous 12 calendar months, with two working days to apply.
- Property tax applies where family income passed 40 000 GEL last year, declared by 1 November and paid by 15 November.
- Your homeowners' association controls the common property, not your apartment. Tenants need the landlord's written consent to sublet.
FAQ
Do I need a licence to run an Airbnb in Tbilisi?
No. There is no municipal short-term rental permit, and the Law of Georgia on Tourism requires registration from tourist guides, tour operators and travel agencies rather than from accommodation providers. Your obligations here are tax obligations, not licensing ones.
How much tax do I pay on Airbnb income in Georgia?
It depends on how the activity is classified. A natural person letting residential space for residential purposes can be taxed at 5% of gross income with no deductions under Article 81(2) of the Tax Code, and otherwise the general 20% rate applies. Confirm your position before the first filing.
What is the Residential Area Tenants Register?
It is the Revenue Service register you have to appear in before the 5% rate is available to you. You apply online or at a service centre with an extract from the public registry, and the entry is made within two working days. Where the income is not taxed at source, it has to exist before 1 April of the following year.
Can I use 1% small business status for short-term rental income?
No. The Revenue Service lists lease of property and real estate among the income types that fall outside the small business regime and are taxed under the general rule. Holding the status for other activity does not extend it to rental income.
When do I have to register for VAT as a host?
Once taxable supplies exceed 100 000 GEL across any continuous 12 calendar months. You then have two working days to apply. The rate is 18% and the reporting period is a calendar month.
Do I pay property tax on a flat I rent out?
Yes, if your family's income last year exceeded 40 000 GEL. The annual rate runs from 0.05% to 0.2% of market value below 100 000 GEL of family income and 0.8% to 1% above it, with the municipality setting the figure inside the band. The return is due by 1 November and payment by 15 November.
Can my building association ban short-term rentals?
Not directly. Article 7(1) of the Law on Homeowners' Associations lets an owner use individually owned space as they see fit, subject to the law and the rights of others, and the association's authority runs to common property. It can still make life difficult through entrance codes and access rules.
Can I sublet my rented apartment on Airbnb?
Only with the landlord's consent. Article 549 of the Civil Code prohibits transferring the rented property to a third person without it, and Article 550's softer rule for dwellings comes with broad exceptions. Get the permission written into the lease before you list.
Do foreigners pay Georgian tax on rental income from a Tbilisi flat?
Yes. Rent from immovable property located in Georgia is Georgian source income regardless of where the owner lives or where the money is paid. Non-residents whose income is not taxed at source are registered as taxpayers by the tax authority and file accordingly.
Should I hold the apartment personally or in a company?
For a single flat, personal ownership is usually simpler, because the 5% residential route and the property tax rules are written for natural persons. A Georgian company starts making sense once you run several units, since corporate profit is taxed on distribution rather than accrual. Model both before the second apartment.