Inheriting an apartment in Georgia is logically arranged: the heir's citizenship is irrelevant, the acceptance period is six months, and close relatives pay no tax. The complications start where heirs are distant, the inheritance was not accepted in time, or the property was never re-registered. Let us take it in order.
- Six months to accept the inheritance from the day it opens. A court may extend the deadline for a justified reason.
- Citizenship is no obstacle: foreigners can inherit property in Georgia.
- First and second class heirs — children, spouse, parents, siblings, grandparents, grandchildren — are exempt from income tax on the inheritance.
- Distant relatives and non-relatives pay 20% on the value above the statutory threshold.
- Title must be re-registered in the Public Registry — until then the apartment cannot be disposed of.
Who inherits and in what order
Inheritance is either by law or by will. Under the law there is an order of classes, and the first class consists of the deceased's children (including adopted ones), the spouse and the parents. Later classes inherit only if the earlier ones do not exist or have renounced.
The class matters not only for who receives the property but for tax: whether the inheritance is subject to income tax depends precisely on it.
The will
A will in Georgia is made in one of two ways:
- Notarial — drawn up and certified by a notary in the presence of two witnesses. Two originals are produced: one kept by the notary, the other by the testator.
- Sealed — the testator writes and seals the document personally and hands it to the notary for safekeeping.
An heir under a will may be any person regardless of citizenship — natural or legal, including foreign organisations. Georgian succession law contains no citizenship restriction.
Six months, and what follows
The inheritance must be accepted within six months of its opening, that is from the day of death. After that period, succession certificates are issued to the heirs.
Missing the deadline is the most common problem for heirs living abroad: they learned of the death late, documents took time, travel was impossible. The term can be extended by a court if the reason is found justified, but that is a separate process requiring evidence.
The practical conclusion: if you are an heir living in another country, start the process immediately rather than "when I can travel" — a representative under a power of attorney can do almost everything.
Tax on inheritance
| Who inherits | Income tax |
|---|---|
| First and second class heirs (children, spouse, parents, siblings, grandparents, grandchildren) | Exempt |
| Third and fourth class heirs (uncle, aunt, cousins) and non-relatives | 20% on the value above the statutory threshold |
The thresholds in the Tax Code differ by situation (figures of 1,000 and 150,000 GEL appear), so when inheriting from a distant relative or a non-relative it is worth confirming the applicable threshold with a tax adviser — the amount depends on it directly.
Remember separately the property tax: it is charged to the heir from the moment ownership is registered, if the household's annual income exceeds 40,000 GEL. More in our article on property taxes.
Re-registration in the registry
The succession certificate is not the finish line. Ownership arises from the entry in the Public Registry, so the apartment has to be re-registered to the heir. Until then it cannot be sold, mortgaged or given away.
The registration procedure, documents and timing are in our article on the Public Registry. It also explains how to read an extract: an heir would do well to check straight away whether the property carries encumbrances left by the deceased — a mortgage or a freeze.
Heirs abroad
If you are not in Georgia, the routine is standard and well established:
- A power of attorney for a representative — notarised, with an apostille or consular legalisation, translated into Georgian with the translation certified in Georgia.
- Proof of kinship — birth and marriage certificates, apostilled and translated where required.
- Handling of the case by the representative: approaching the notary, obtaining the certificate, registering the title.
The same principles of acting through a power of attorney are covered in detail in the remote purchase, including the risks of giving a PoA to the wrong person.
What to do with the apartment next
After re-registration an heir usually has three options, each with its own tax logic:
- Keep it. Property tax appears if household income exceeds 40,000 GEL a year.
- Rent it out. Residential rent is taxed at the reduced 5% with no deductions, or 20% on net income through an IE — see renting out.
- Sell it. The two-year ownership rule applies; how the period and the tax are counted is in selling an apartment.
To see what the property is worth today and how liquid it is, look at the medians and time on market for the district on the district pages, and comparable listings in the sale search.