Tax Treaty: Protection from Double Taxation
Double Tax Treaty Exists
Israel and Georgia signed a DTT in 2014. You will not pay tax twice on the same income.
Example:
- • Rental income: $12,000
- • Georgia tax (5%): $600
- • Israel tax (31%): $3,720
- • Foreign tax credit: -$600
- • Payable in Israel: $3,120
Track 122A: Simple but Expensive
Track 122A Features:
- ✓ Fixed 15% on gross income
- ✗ No expense deductions
- ✗ No foreign tax credit
- ⚠️ Total: 5% + 15% = 20%
Marginal Track: Real Savings
Recommended for Serious Investors
Income added to salary, taxed at marginal rate (31%-50%), but with deductions!
Track 122A
- • Income: $12,000
- • Total tax: $2,400 (20%)
Marginal Track
- • Income: $12,000
- • Total tax: $2,004 (~16.7%)
CRS Warning: Banks Report Automatically!
CRS = Automatic Reporting
Georgia banks report to Israeli Tax Authority. They already know about your accounts!
Solution: Report Properly
- • Report all Georgian income
- • Keep all receipts
- • Work with experienced CPA
- • Use tax treaty for credits
For Israeli Tax Residents
This guide applies to Israeli tax residents. Always consult a qualified CPA for international taxation.
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Legal Disclaimer
The data and returns presented are for illustrative purposes only and are based on past performance or market estimates. This information should not be considered as a guarantee of returns, investment advice, or a substitute for individual tax advice. Real estate investment involves risks, including regulatory changes, currency fluctuations, changes in property condition, and local market conditions. RealFix does not guarantee the displayed returns and is not responsible for losses resulting from investment. It is recommended to consult with a Certified Public Accountant and tax consultant before making investment decisions. E&OE.
