An 8% gross yield sounds impressive on paper and by regional standards, it genuinely is. Galt & Taggart\u2019s 2025\u20132026 data puts Tbilisi\u2019s average gross yield at around 8.5%, ahead of nearly every comparable capital in the region except Ankara and Astana. But gross yield and what actually lands in your pocket are two very different numbers.<\/p>\n\n\n\n
Property management (if you use it):<\/strong> For owners who don\u2019t live in Tbilisi or don\u2019t want to handle tenant relations, viewings, and maintenance themselves, professional management typically takes a meaningful cut of monthly rent. This is often the single largest recurring deduction from gross yield for absentee owners.<\/p>\n\n\n\n Income tax:<\/strong> Registered landlords pay a flat 5% tax on gross rental income when renting to individuals or to a company where the owner is properly registered in Georgia\u2019s landlord registry. This is genuinely low by international standards, but it\u2019s a real deduction most first-time calculations forget to subtract.<\/p>\n\n\n\n Vacancy periods:<\/strong> Even in a healthy market, apartments don\u2019t rent from day one. A month or two of vacancy between tenants common during off-peak seasons or after a tenant\u2019s lease ends can shave a full percentage point or more off your annualized yield.<\/p>\n\n\n\n Maintenance and repairs:<\/strong> Wear and tear, appliance replacement, and periodic touch-ups are unavoidable costs of being a landlord, particularly in older or heavily used units.<\/p>\n\n\n\n Furnishing depreciation:<\/strong> If you furnished the unit to attract tenants faster (a smart move in most districts), that furniture wears out and needs periodic reinvestment.<\/p>\n\n\n\n If you strip out a realistic combination of management costs, the 5% tax, a modest vacancy allowance, and ordinary maintenance, an 8.5% gross yield commonly nets down to somewhere in the 5.5\u20137% range for a self-managed, well-tenanted property and can dip further for owners living abroad who rely fully on third-party management.<\/p>\n\n\n\n Even after those deductions, Tbilisi\u2019s net yields tend to outperform comparable investments in most Western European cities, where gross yields of 3\u20134% are common before any expenses are even subtracted. Combined with Georgia\u2019s flat, low tax rate, no capital gains tax after a two-year hold, and no restrictions on foreign ownership, the after-expense picture in Tbilisi remains genuinely competitive on a regional and even global basis.<\/p>\n\n\n\n Don\u2019t evaluate your investment on the gross number alone. Build a simple annual budget rent income, minus tax, minus management (if used), minus an honest vacancy estimate, minus maintenance and use that net figure to judge performance. An apartment yielding a net 6% after all costs is still a strong result; just don\u2019t market or plan around the gross 8% as if it were spendable income.<\/p>\n\n\n\n Data referenced: Galt & Taggart rental yield data (2025\u20132026); Georgian tax authority landlord registration rules (5% flat rate); general market commentary on property management costs in Tbilisi.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" An 8% gross yield sounds impressive on paper and by regional standards, it genuinely is. Galt & Taggart\u2019s 2025\u20132026 data puts Tbilisi\u2019s average gross yield at around 8.5%, ahead of nearly every comparable capital in the region except Ankara and Astana. But gross yield and what actually lands in your pocket are two very different […]<\/p>\n","protected":false},"author":73,"featured_media":13463,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-13462","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/theaddress.ge\/ka-ge\/wp-json\/wp\/v2\/posts\/13462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theaddress.ge\/ka-ge\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theaddress.ge\/ka-ge\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theaddress.ge\/ka-ge\/wp-json\/wp\/v2\/users\/73"}],"replies":[{"embeddable":true,"href":"https:\/\/theaddress.ge\/ka-ge\/wp-json\/wp\/v2\/comments?post=13462"}],"version-history":[{"count":1,"href":"https:\/\/theaddress.ge\/ka-ge\/wp-json\/wp\/v2\/posts\/13462\/revisions"}],"predecessor-version":[{"id":13464,"href":"https:\/\/theaddress.ge\/ka-ge\/wp-json\/wp\/v2\/posts\/13462\/revisions\/13464"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theaddress.ge\/ka-ge\/wp-json\/wp\/v2\/media\/13463"}],"wp:attachment":[{"href":"https:\/\/theaddress.ge\/ka-ge\/wp-json\/wp\/v2\/media?parent=13462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theaddress.ge\/ka-ge\/wp-json\/wp\/v2\/categories?post=13462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theaddress.ge\/ka-ge\/wp-json\/wp\/v2\/tags?post=13462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}A rough real-world picture<\/a><\/h2>\n\n\n\n
Why 8% is still meaningfully good<\/a><\/h2>\n\n\n\n
The takeaway<\/a><\/h2>\n\n\n\n