Tourism Sector to be Fully Exempt from Property Taxes in 2020

Prime Minister Giorgi Gakharia said the tourism sector will be fully exempt from property taxes in 2020, making the relevant statement at the presentation of the Anti-Crisis Plan to Open Tourism on Thursday. 

The head of the government explained that the income taxes of the companies working in the tourism sector will be postponed until the end of the year.

"During 2020, the tourism sector will be fully exempt from property taxes, which is a very important step for the sector. In addition, the income taxes of companies operating in the tourism sector will be postponed for 9 months, until the end of the year. We cannot promise a complete write-off of anyone's income taxes, but it is possible to talk about the schemes of gradual payment,” the PM said.  

In addition, the government of Georgia will finance 80% of interest rates on the hotel business bank loans, in amounts up to GEL 5 million, for the hotels with an annual turnover of up to GEL 20 million. 

“We are launching an unprecedented program of subsidizing 80% of the interest rates on hotel business loans, in amounts up to GEL 5 million, for all the hotels, with an annual turnover of no more than GEL 20 million,” said Natia Turnava, Minister of Economy of Georgia, adding that the program will last for 6 months.

The Minister noted that this applies to the vast majority of hotels, practically more than 95% of the hotel industry.

By Ana Dumbadze