Investing in Israel or Georgia? The 2026 numbers compared
Purchase tax, net rent after tax, price trends: Tel Aviv vs Tbilisi on the same budget.
Tel Aviv or Tbilisi? Instead of talking in general terms, we ran the numbers on the same budget: the price of an average Tel Aviv apartment. All figures are estimates for illustration, with sources at the end.
The starting point: ₪4.59 million
According to Israel's Central Bureau of Statistics, the average Tel Aviv apartment cost around ₪4,590,000 in early 2026, roughly $1.48 million (at ₪3.10 per dollar).
Purchase tax: the first gap
In Israel, purchase tax depends on your situation. Using the current brackets (2024–2027):
| Case | Rate | Tax on ₪4.59M |
|---|---|---|
| Only home | 0% up to ₪1,978,745, 3.5% up to ₪2,347,040, 5% above | about ₪125,000 |
| Investor / additional home | 8% from the first shekel (up to ₪6,055,070) | ₪367,200 |
| Georgia | No purchase tax | ₪0 + a 150–350 GEL registration fee |
Non-residents of Israel pay the investor rate, even on a first purchase.
What does the same budget buy in Tbilisi?
A new-build studio in a quality Tbilisi project starts at around $68,000. The budget of one Tel Aviv apartment therefore buys about 21 studios, or a mix of larger units.
Rent: about 2% vs about 8%
- Tel Aviv: about 2.1% gross yield (average over the past year), i.e. roughly ₪96,000 a year for an average apartment.
- Tbilisi: about 8% gross yield on studios (Global Property Guide, August 2026), i.e. roughly ₪354,000 a year for 21 studios.
Tax on rental income, here and there
In Israel, residential rent has three tracks: an exemption (up to ₪5,654 a month in 2026, eroded above that ceiling), a flat 10% on gross rent, or marginal rates with expenses deducted. At about ₪8,000 a month most of the exemption is already gone, so the 10% track usually wins: about ₪9,600 a year.
In Georgia, an individual renting out a residential apartment pays 5% on rental income.
But an Israeli tax resident must also report foreign rent in Israel: either a flat 15% (section 122A) with no credit for Georgian tax, or the marginal track with expenses and a foreign tax credit. To stay conservative, we used the least favourable case: 5% in Georgia plus 15% in Israel.
| Tel Aviv | Tbilisi | |
|---|---|---|
| Gross rent per year | ~₪96,000 | ~₪354,000 |
| Tax | 10% in Israel | 5% Georgia + 15% Israel |
| Net per year | ~₪87,000 | ~₪283,000 |
Even in the conservative case, net income is about 3 times higher.
And prices?
- Israel is slowing down: almost 86,000 unsold new homes, and most deals close below the asking price.
- Batumi: new-build prices rose 9.4% in 2025 (Galt & Taggart).
- Tbilisi: the new-build index rose about 3.5% year on year, and up to about 12.5% in the most expensive central districts (Geostat, Q4 2025).
When you sell
In Georgia, an individual's gain on selling a residential apartment is tax-free after two years of ownership (5% on the gain before that). An Israeli resident still owes Israeli capital gains tax (generally 25% of the real gain), with a credit for any foreign tax paid. A foreign apartment is not covered by Israel's Real Estate Taxation Law, so the only-home exemptions do not apply.
Bottom line
| Tel Aviv | Tbilisi | |
|---|---|---|
| Purchase tax (investor) | ₪367,200 | ₪0 |
| Net rent per year, same budget | ~₪87,000 | ~₪283,000 |
| Price trend | Slowing | Rising |
Investing in Georgia is not for everyone: there is currency risk, the developer must be chosen carefully, and the market is smaller. On paper, though, the gap is clear. Want us to run the numbers on your budget? Book a call or try the simulator.
Figures are estimates only and are not tax or investment advice. Check your own situation with an accountant.
Sources: Kol Zchut (purchase tax and rental exemption calculations), Israel Tax Authority, Israel CBS, ice (Tel Aviv yield), Global Property Guide (Tbilisi yield), Andersen Georgia (tax on sale), Galt & Taggart, Geostat.
Frequently asked questions
How much purchase tax is due on an investment apartment in Tel Aviv?
An additional home is taxed at 8% from the first shekel up to ₪6,055,070. On a ₪4.59 million apartment that is ₪367,200. As an only home, the same apartment costs about ₪125,000 in purchase tax.
Is there a purchase tax in Georgia?
No. Georgia has no purchase tax on apartments. You only pay a public registry fee, 150 GEL (4 working days) to 350 GEL (same day).
How is rent from a Georgian apartment taxed for an Israeli resident?
Georgia taxes residential rent at 5%. In Israel you can choose a flat 15% on the income with no foreign credit, or marginal rates with expenses deducted and a foreign tax credit. Check with an accountant which track suits you.
Is the gain on selling a Georgian apartment tax-free?
In Georgia, yes, for a residential apartment held more than two years (5% on the gain before that). An Israeli resident still owes Israeli capital gains tax, generally 25% of the real gain.
