Guide 03

Gross yield versus net yield: what your rent actually becomes

The figure you are shown is almost always gross. The one you bank is net — after costs, voids, management, currency conversion and tax. Here is how to get from one to the other honestly.

By Rédaction Investir en Géorgie — JL HOME · validated by Validation éditoriale JL HOME (ordre de publication du 26/07/2026) · updated 26 July 2026

A gross yield is a headline, not a result

Gross yield divides annual rent by purchase price. It ignores everything else: acquisition costs, voids, service charges, management, repairs, currency conversion and tax. It is a presentation ratio, not a measure of what reaches your account.

The same unit can show a flattering gross figure and deliver a very different net one. That gap is not evidence of bad faith — a gross yield simply does not, by construction, count any cost.

What separates gross from net

On the denominator — the real cost of entry. The advertised price is not the acquisition cost. Depending on the case, add registration fees at the public registry, legal fees, translation and legalisation, banking and transfer charges, and furniture if the unit is let furnished.

On the numerator — what is actually collected.

Voids. A theoretical annual rent assumes twelve occupied months. No operation sustains that. In short-let mode the question is not voids but occupancy rate, which swings sharply with the season.

Service charges and routine maintenance.

Management, a percentage of collections on a long let, and typically far more on short lets once platform commissions, cleaning and linen are counted.

Furniture replacement, which is a recurring cost to provision for, not a surprise.

Works and make-good between tenants.

Then conversion. You collect in lari or dollars and measure your wealth in euros. The outcome depends on the rate applied. The National Bank of Georgia publishes dated official rates; these are publication references, not the rate your bank will execute at, nor the fees it will charge.

Finally tax. Georgian-source rental income falls under the Georgian tax code, and the tax authority identifies a dedicated category for renting residential space for residential purposes. The applicable rate, its conditions and how it interacts with tourist letting could not be confirmed on an official source on 26 July 2026 — so we publish no percentage. To be confirmed with a qualified professional. Separately, your obligations at home remain: a tax treaty allocates a right to tax, it does not remove a filing duty.

Key takeaways

Gross is a presentation ratio; net is a result.

Real entry cost exceeds the advertised price.

Currency conversion and tax are two distinct steps, both after operating net.

No Georgian market yield appears here: no official source supports publishing one.

Risks to be aware of

Comparing a gross figure to a net one. The most common error, and the one that distorts a decision most. Always compare two calculations built the same way.

Using a peak month as the reference. On short lets, high season is not the year.

Forgetting the non-operating period. On a purchase under construction no rent is collected until handover, but costs run.

Ignoring exit cost. Resale fees, any disposal taxation and time-to-sell eat into total return — never into the advertised yield.

Checklist for the calculation

Have I added every acquisition cost to the advertised price?

Is my occupancy assumption annual rather than seasonal?

Does the management percentage include platform commissions, cleaning and linen?

Have I provisioned for furniture replacement and works?

At which rate and on which date did I convert? Is the rate frozen with the result?

Has the tax treatment been validated by a professional, in Georgia and at home?

Is the figure I am comparing against another offer built the same way?

Illustrative example

This example is fictional and only illustrates the mechanics. No amount is an observed price or an expected performance.

A buyer takes an annual rent assumption and computes a gross figure on the advertised price. They then redo the calculation: acquisition costs go into the denominator; two months of voids, management, service charges and a replacement provision come out of the numerator; the result is converted at the official rate of a stated date; then a reserve is set aside for tax whose rate remains to be confirmed.

The second figure is markedly lower. That is expected — the first was not measuring the same thing. The useful question is not "which one is true" but "does the second still meet my objective".

Why publish no average yield for Georgia?

Because no official source consulted on 26 July 2026 publishes one. The averages in circulation come from aggregated commercial listings, which reflect asking prices, not realised results.

Which tax rate should I apply to the rent?

We do not assert one. The Georgian tax authority identifies a dedicated category for residential letting, but the detailed content of that section could not be verified at the consultation date. To be confirmed with a qualified professional, both in Georgia and in your country of residence.

Does the simulator give the real yield?

No. It computes a result from your assumptions, makes them explicit, and stress-tests them. A simulator replaces neither an on-site check nor professional advice.

Going further

A €70,000 budget: total cost, item by item.

Currency risk across the euro, the dollar and the lari.

The simulator: your assumptions, their stress tests, and the rate frozen with its date.

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We put together three projects, each with the verification level actually reached and "to be confirmed" wherever a document is still missing.

Sources

Every regulatory statement in this guide rests on the official sources below. They were consulted on the date shown; check they have not changed since.

National Bank of Georgia — Monetary Policy — Currency (taux officiels). https://nbg.gov.ge/en/monetary-policy/currency (consulté le 2026-07-26)

Legislative Herald of Georgia (Matsne) — Tax Code of Georgia. https://www.matsne.gov.ge/en/document/view/1043717?impose=translateEn (consulté le 2026-07-26)

Revenue Service of Georgia — Persons — Preferential Taxation. https://www.rs.ge/PersonsPreferentialTax-en?cat=5&tab=1 (consulté le 2026-07-26)

Disclaimer

This guide is general information. It is not legal, tax or investment advice and takes no account of your personal circumstances. Capital, rents and liquidity are not guaranteed. A purchase in Georgia is governed by Georgian law and does not carry the French protections that apply to off-plan sales at home. Engage independent counsel in Georgia and, for your French obligations, a tax adviser.

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