Moving to Georgia
is an important decision for foreign citizens who decide to leave their home countries. No matter if one decides to relocate here because of a new job or for starting a business, an important decision that comes with it is buying a property in Georgia
Foreign citizens and companies have the right to acquire real estate in Georgia
without complications, however, they need to respect the requirements imposed by the Civil Code
. Also, there are several steps that need to be completed in order to ensure the purchase process is done without any problem. Below, our lawyers in Georgia
explain the steps for buying a property
in this country. You can rely on us for purchasing any type of property in Georgia
Foreigners seeking to buy real estate in Georgia
has become an open country when it comes to foreign investments, however, the government still imposes certain restrictions on ownership of land, which is also common in other small European countries. Most of the types of properties that can be purchased in Georgia
are usually in the residential or commercial areas of cities like Tbilisi
, and intended for these purposes. There are no restrictions when buying properties
are natural persons who have moved to Georgia
and looking for a place to live.
Companies can also buy various types of commercial properties intended for commercial or industrial use. The only restriction applicable to foreign investors is related to the purchase of agricultural land, however, these can concession such land and still develop farming activities, for example. If you are a foreign investor or citizen and want to move to Georgia, you can buy a property here without having to worry about lengthy procedures or hassle.
Steps in buying real estate in Georgia
Buying a property
is an important decision when deciding to move to another country and Georgia
makes no exception. Our lawyers in Georgia
can explain more about the procedure. There are a few steps to complete once the decision was made and, among these, we mention the following:
choose the most suitable region/city in accordance with the needs or requirements;
get in touch with a real estate agency or the seller, if the buyer is sure about the decision;
complete a real estate due diligence check-up
in order to make sure there are no problems with the selected property
start the buying procedure by signing a pre-sale agreement before perfecting the transaction;
register the property with the Land Register once the purchase is completed.
Even if the real estate due diligence
is not a mandatory step in buying a property
, our law firm in Georgia
recommends it as a measure of precaution. It is always advised to address to a team of specialists, familiarized with the latest modifications of the real estate laws
How to choose the region in which to buy real estate in Georgia
Georgia is a small country which is why finding and buying a property here is not complicated. The region around the capital Tbilisi is very sought and also cheap. Another city which attracts foreign buyers is Batumi which is chosen by many foreign investors willing to start companies in Georgia. No matter the choice, real estate due diligence which can be completed with the Land Register in Georgia is recommended. Our lawyers in Georgia can complete various types of verifications related to real estate purchases.
How to find a property to buy in Georgia
There are various channels through which a foreign citizen or investor can find a property. While some go for the advice of locals who know the market (however, this applies to small portion of foreign people who know someone in Georgia), seek the help of real estate agencies or simply perform an online check, each person decides the most comfortable way to find a property.
Most foreign citizens are attracted by developed regions, such as the one of the capital city Tbilisi
. However, Georgia
has evolved into an European recognized tourism destination which is why it is not uncommon for people to also consider regions in which they can buy real estate for rental purposes
. No matter where you decide to buy a property, our law firm in Georgia
is at your service for guidance in completing all the necessary procedures.
Property verification in Georgia
When deciding to buy real estate in Georgia
, a verification of the property
is always recommended. The due diligence procedure
depends on the type of property to buy
. While foreign citizens can purchase houses and apartments
, companies can buy constructions and various commercial properties. It should be noted that agricultural land cannot be bought by foreigners in Georgia
. Companies interested in completing agricultural activities can, however, concession land for such purposes.
The main aspects that need to be verified when buying real estate in Georgia
are related to the property title
and encumbrances, such as unpaid mortgages and other debts related to the respective real estate
. In the case of commercial properties, searches should be more extensive. Our lawyers in Georgia
can complete such verifications on properties to be acquired by citizens and investors.
What is the property in tax in Georgia?
One of the taxes that are charged under the applicable legislation in Georgia
is the property tax
, one the basic taxes imposed at a national level, along with the corporate tax, the personal income tax or the value added tax. The property tax
is charged during the transfer of ownership as well as during the period when a person is the owner of a property
This means that if you want to buy a property in Georgia, a part of the overall costs of the transaction will be represented by the property tax, which will be charged as a transfer tax. However, once a person becomes the owner of a property, the said person will be liable to taxation on yearly basis, as owning property in this country requires the payment of a small yearly tax.
The tax is imposed based on the household income and not the value of the property (but it is highly unlikely that persons with a very low annual income live in high end residential properties) and one must know that there is also a tax exemption applicable here. Our team of lawyers in Georgia can present more details on the types of tax exemptions that individuals can benefit from, but in this section, our team is focused on presenting legal information regarding the property tax.
Please mind that the local legislation does not impose any property tax for the sale of real estate properties to foreigners and one must also know that there isn’t a direct tax applied on the transfer of ownership, but there is a fee that is imposed to the new owners when addressing to the Land Registry for the change of ownership.
From a legal point of view, the property tax is charged to the owners of a property and, as said above, it is calculated based on the household income obtained in a financial year. Here, one should know that a tax exemption is applied when the household income is of maximum, GEL 40,000.
This means that if the family’s/ individual’s yearly income is of maximum GEL 40,000, the owners of the household with benefit from a tax exemption on the property tax. Then, another category is when the household income is of GEL 40,000 and maximum GEL 100,000. In this particular case, the owners will be charged with the property tax, calculated at a rate of 0.05% to 0.2% from the value of the property.
The value of the property is established based on the market value associated with the respective type of property for the respective financial year. This is done through a method which is named property valuation and if you need to find out more information regarding this, we invite you to call our team of Georgian lawyers.
A third category where the property tax is applied is for households where the income is above GEL 100,000. In this particular situation, one will be charged with the property tax, but at higher rates, which can vary between 0.8% to 1% of the value of the property.
Please mind that once a person becomes the owner of a property
, a maintenance tax can apply as well, depending on the type of property
the person lives in. Our law firm in Georgia
can present further information on this and you can also address to our team if you need information on other types of taxes can apply to properties
Please mind that that taxes will also apply for the rental of properties in Georgia; the tax rates will differ based on the nature and the purpose of the property (residential, commercial, industrial); our team of lawyers in Georgia can inform you on the current tax rates if you are interested to rent your Georgian property.
The sale-purchase agreement in Georgia
When buying real estate in Georgia it is always best to first sign a pre-sale agreement in order to retain the property until the final documents are ready. During this stage, an advance deposit is made. Then, the sale-purchase contract can be signed, and the buyer can transfer the remaining amount of money to the bank account of the seller. The contract needs to be notarized by a public notary and registered with the Public Service Hall. In case of contracts drafted in a foreign language, these must be translated.
Once the transaction is completed, the buyer has the obligation of registering the property with the Land Registry
based on the sale-purchase contract and the Extract issued by the Public Service Hall
. Foreign citizens buying real estate in Georgia
can grant a power of attorney
to one of our lawyers
in order to complete the procedure on their behalf.
Buying residential real estate in Georgia
The procedures related to buying a property in Georgia
as a foreign citizen and as a company
are not different, however, it is simpler to purchase residential real estate
because of the fewer documents and preparations to make. Furthermore, it is simpler to find a place that matches the taste and needs of an individual or a family.
If you are a foreign citizen who has decided to buy a property
and you want to work with us, you can grant one of our lawyers in Georgia
a power of attorney through which most of the formalities will be completed without you having to come here. Once all the documents are ready, we will let you know so that you can come and finalize the transaction yourself. Also, the payment can be made by bank transfer in order to simplify the entire procedure.
Buying commercial real estate in Georgia
The purchase of commercial real estate in Georgia is not complicated, however, we do recommend extensive due diligence procedures in order to make sure the property respects all your demands, especially considering the fact such transactions usually involve significant amounts of money.
Our Georgian lawyers
can verify all documents attached to the property
, as well as the sale-purchase contract in order for you to rest assured you have made a good decision for your company
. If you have any questions related to the legal procedures associated with purchase any type of property, for commercial or industrial use, please send them to us by email.
The real estate market in Georgia
Georgia has become an appealing investment destination during the last few years which has determined the development of the real estate market. Below, you can find few important details regarding this matter. Nevertheless, prices here remain quite competitive compared to other European destinations. It is worth noting that:
properties rented in Tbilisi can yield profits of 12% to 18% of the rental price;
the property tax in Georgia is calculated based on the value of the property and does not exceed 1% of this value;
for EUR 100,000, foreign citizens can obtain residence by investment through the purchase of a property.
FAQ on real estate buying procedures in Georgia
Must I present in the country for the purchase of a property?
No, you don’t need to travel here for formalities such as real estate due diligence or agreement drafting procedures, as our lawyers can handle this part of the process. Our law firm in Georgia can present more information on the obligations you can have during the purchase of a local property.
Is it hard to buy real estate in Georgia?
No, it is not, as there are no special requirements to comply with once you have found the property you want to buy. You simply have to be able to purchase the property and follow the basic rules on changing the ownership of the respective property.
Must I pay an advance once I decide on a property?
Yes, in order to retain the respective property, it is recommended to make a deposit as a sign of good faith, however, there are no specific requirements in this sense. Our lawyers can advise you on how you should make payments if you have decided to purchase a local property.
How long does it take to buy a property in Georgia?
The purchase procedure can be completed in a matter of weeks, however, it all depends on how soon the documents are ready. This is why we strongly recommend you to request legal advice on the procedure from local lawyers, because the process can be delayed due to various misunderstandings.
Are there any other formalities I need to complete after I buy a property in Georgia?
Yes, the last step you need to complete in order to become the legal owner of a Georgia-based property is to register it with the Land Registry. We can present the legal formalities you have to complete when addressing to the Land Registry in order to change the ownership documents of the property.
Can I own more properties in Georgia?
Yes, you can. There are no restrictions related to the number of properties a person can own. You can also purchase properties
for commercial purposes, if you are interested in starting a business in Georgia
. For assistance in buying real estate in Georgia
, please contact our law firm