High mountain settlement is not a marketing phrase. It is a defined legal status that applies both to a territory and to the enterprises operating there, and it comes with measures meant to support development. This article explains where the line runs between the status of an enterprise and your own position as an individual.
What this article is based on
The information below draws on the status Oxygenia has stated publicly and on the general framework of the legislation. It is not legal or tax advice.
What the status means
Supporting the development of high mountain settlements is part of state policy. The logic is simple: economic activity in mountainous areas is more expensive and more difficult, so the state tries to offset part of that difference.
The territorial dimension
The status is granted to a specific settlement rather than to a region in general, so exactly where a property sits matters.
The enterprise dimension
An enterprise operating in a settlement with this status forms its own category, with its own conditions.
The individual dimension
The status of a permanent resident is a separate question and does not follow automatically from buying a plot.
The Oxygenia case
Oxygenia is a high mountain settlement enterprise and is exempt by law from property and profit tax. That concerns the company and the tax treatment of its business activity.
| Matter | Who it concerns | Position |
|---|---|---|
| Property tax | The enterprise | Exempt |
| Profit tax | The enterprise | Exempt |
| Individual tax position | The plot buyer | Individual |
| Transaction related costs | Both parties | To be confirmed |
This table reflects the status the company has stated publicly. An individual position is verified case by case.
Where the line runs
What is known
- The status of the enterprise and its tax treatment
- The location of the settlement and the territory it belongs to
- The individual cadastral code of each plot
What is verified individually
- Your own tax position as an individual
- Anything tied to registering a permanent residence
- The tax consequences of a specific transaction
Verify before you act
Tax legislation changes. Before making any financial decision, check the position against official Revenue Service sources and with a tax adviser. Information on a website is a starting point, not a ruling.
What you should check
- 1Confirm the exact location of the propertyThe cadastral code and the address are the starting data for any check of this kind.
- 2Verify against official sourcesThe Revenue Service and the Legislative Herald are the primary sources, not a blog or a social media post.
- 3Take professional adviceA tax adviser or lawyer will assess your specific circumstances rather than the general rule.
- 4Get everything in writingA verbal assurance carries no weight with a tax authority. Documents do.
Frequently asked questions
It is a status defined by legislation and granted to specific settlements. It comes with measures designed to support development, including measures of a tax nature.
Oxygenia is a high mountain settlement enterprise and is exempt by law from property and profit tax.
No. The status of an enterprise and the status of an individual are separate matters. Your own position needs to be checked individually.
On the Revenue Service website, in the Legislative Herald of Georgia, and with a tax adviser or lawyer.