Real estate agencies positively assess the government’s decision to cut real estate tax from 20% to 5%.

Neli Goguadze, Director of the real estate agency "kibe.ge", says  that the landlords  will not hide taxes thanks to the amendment.

"Following this decision, all landlords, who did not pay taxes and their number reaches 80%,  will begin to pay them. The vast majority of them believe that 20%  is too much so they are trying to avoid paying tax. In addition, a high real estate  tax leads to an increase in apartment’s  value, "- she  notes.

In her words, today, if the owner wants to get $ 500  a month from the  rent of an apartment, he is forced to rent it for $ 600.

"Now, this change will also contribute to the legalization of business and lower prices, as 5% is not such a big amount that someone will not be able  to pay to the budget," - she says.

According to Director of "Beruka" company  Avtandil Gugeshashvili,  in 2002-2003 real estate tax was  12%, then increased to 20%, which created problems for  landlords.
 

"The new law will lead to lower prices for apartments in an average of 10-15%," - he says.

Source;commersant.ge