Georgia has extended the VAT exemption for ‘old’ unfinished projects until 2033

Georgian Law No. 1888 on amendments to the Tax Code, enacted on 15 October 2026 and published on 16 October, extended the VAT exemption with the right to offset for the supply of property in ‘old’ unfinished projects from 1 January 2029 to 1 January 2033. The Act came into force upon publication. This change does not affect buyers of standard new-build properties or properties on the secondary market. Data as at 23 October 2026.

What has changed

Law No. 1888-VIმს-XIმპ ‘On Amendments to the Tax Code of Georgia’ has been published on the website of the Georgian Official Gazette Matsne 16 October 2026 and came into force on the date of publication. The amendments affect Article 309 of the Tax Code, which sets out a special regime for ‘legacy’ projects that were started some time ago and have not yet been completed. A notice from the Revenue Service dated 19 October 2026 confirms that the deadline for the exemption with the right to a deduction has been postponed from 1 January 2029 to 1 January 2033.

The previous version of the article in the original source has not been verified: the date of 2029 was taken from a statement by the Revenue Service and media reports.

Who is this for?

The narrow mode. It is important for three groups:

• developers who are completing long-stalled projects;
• banks that finance such projects;
• buyers of flats in such developments. According to media reports, the city council has set up a support programme for affected co-investors in Tbilisi.

The extension gives participants more time to complete construction and obtain the certificate of commissioning. However, it does not eliminate the risk of missing the deadline.

Who is not affected

This change does not apply to general property taxation. Buyers of new-build properties from standard developers and of second-hand properties will not be affected. The law does not directly affect property owners or landlords. It cannot be assumed that every purchase in Georgia is now VAT-exempt.

Limitation periods for settled transactions

The new version of the Act (clause 81-2) sets limitation periods for transactions exempted under clauses 79 and 80: 18 years for transactions in 2015, thereafter one year less for each subsequent year, and 4 years for 2029. The table in the Act covers the years 2015–2029, with reporting periods from 1 January 2015 to 1 January 2030. The numbering of the paragraph (81-2 in the text of the Act, 81(2) in the Revenue Service’s notice) requires cross-referencing with the official PDF.

What has not been confirmed

• Which specific projects fall under this scheme? According to a report in Georgia Today dated 13 October 2026, this refers to projects that were started before 8 August 2008 and have not yet been completed. This criterion is not mentioned in the text of the law as published: only sub-clauses ‘a’ and ‘e’ of clause 79 have been amended.
• Voting on the second and third readings: the parliamentary page containing the results could not be found. According to media reports, the Finance and Budget Committee supported the bill at the first reading under an expedited procedure.
• The VAT rate and financial thresholds are not specified in the text.

Frequent questions

Do you have to pay VAT when buying a new-build property in Georgia?

This rule remains unchanged: the law applies only to supplies in ‘old’ uncompleted projects under Article 309.

Until what date has the exemption been extended?

Until 1 January 2033, instead of 1 January 2029.

From what date does the law come into force?

From 16 October 2026, the date of publication.

How can I check whether a project falls under the scheme?

Please check with the developer and the Georgian Revenue Service, and verify the conditions against the text of Article 309.

Official sources

• Law No. 1888-VIms-XImp, Matsne (text in Georgian)
• The Tax Code of Georgia, including a list of amendments, Matsne

Checked on 23 October 2026. This is general information and does not constitute legal or tax advice. Regulations are subject to change, so please check with the Georgian Revenue Service and a lawyer.