Georgia’s Law No. 1888, issued on 15 October 2026 and in force since publication on 16 October, extends the VAT exemption (with right of deduction) for property supplies in legacy unfinished projects from 1 January 2029 to 1 January 2033. It is a narrow measure for developers, banks and buyers in those projects. Ordinary new-build and resale purchases are untouched. As of 23 October 2026.
The short answer, and the longer answer
The short answer: four more years of an existing exemption, relevant to a small corner of the market. The longer answer follows, with the dates and what I could not verify.
| Item | Before | Now |
|---|---|---|
| End of exemption, Tax Code art. 309(79) | 1 Jan 2029 | 1 Jan 2033 |
| Supplies covered | up to 1 Jan 2029 | 1 Jan 2015 to 1 Jan 2033 |
| Window to obtain the commissioning act | not verified | by 1 Jan 2033 |
| In force | – | 16 Oct 2026 |
The text was published on Matsne, Georgia’s legislative gazette, on 16 October. A Revenue Service notice dated 19 October confirms the extension. I have not seen the previous wording of article 309; the 2029 date comes from the Revenue Service and press reports.
Who this matters to
- Buyers in legacy unfinished projects. More time for the developer and its bank to finish and commission the building. Completion risk is unchanged.
- Developers and project banks. The practical beneficiaries.
- Buyers of ordinary new-build or resale property. No effect. This is not a general change to VAT on property, so do not assume a VAT-free purchase.
- Landlords and investors. No direct effect.
The mistake I see buyers make most often: treating a tax measure as a delivery guarantee. An exemption lowers a cost for the developer. It does not put a roof on a block.
What I could not confirm
- Which projects qualify. Georgia Today (13 October) describes projects started before 8 August 2008 and still unfinished. That cut-off does not appear in the amended subparagraphs I read (79(a) and 79(d)), so treat it as a press attribution.
- Parliamentary votes. I could not locate the second and third reading results. Press reported expedited first-reading support from the Finance and Budget Committee.
- Rate and thresholds. The law states no monetary thresholds and I did not verify a VAT rate in this check.
Limitation periods
New paragraph 81-2 sets limitation periods for exempted operations under paragraphs 79 and 80: 18 years for 2015, falling by one year per year, to 4 years for 2029. The Revenue Service notice cites the paragraph as 81(2), so check the official PDF.
If you are looking at a flat in an older unfinished project
Here’s the clause I always look for: the tax status of the supply and who bears any VAT liability if the project fails to qualify.
- Ask the developer in writing whether the project falls under article 309.
- Check the commissioning status and how the financing bank plans to complete the building.
- Check this before you sign: the contract should say what happens if the exemption does not apply.
FAQ
Is VAT on Georgian property now zero?
No. Only supplies in legacy unfinished projects are covered.
When did the change take effect?
16 October 2026.
New end date?
1 January 2033.
Official sources
- Law No. 1888-VIმს-XIმპ, Matsne (Georgian text; no English translation)
- Tax Code of Georgia with list of amendments, Matsne
Checked 23 October 2026. This is general information, not legal or tax advice. Rules may change; confirm details with the Georgian Revenue Service and a lawyer.
