In recent years, Georgia has attracted more and more attention of foreign investors looking for opportunities to purchase real estate abroad. This country offers unique opportunities for investors due to its hospitality, unique culture, magnificent scenery and, of course, an attractive real estate market. We hope that this guide will be useful for those who are considering options for investing in real estate in Georgia and will help to make the purchase process as transparent and understandable as possible.
Legal aspects of real estate acquisition by foreigners in Georgia
Georgia has an open and welcoming policy towards foreign investors who want to purchase real estate. Georgian legislation provides foreign citizens with the opportunity to acquire and own real estate in the country on an equal basis with Georgian citizens.
In Georgia, foreign citizens can become full owners of residential and commercial real estate. This means that they can buy, sell, rent or pass on their property by inheritance without any restrictions.
However, despite the general openness of Georgian legislation, there are some restrictions that apply to agricultural land. Foreign citizens and companies in which the share of foreign participation exceeds 50% cannot acquire land ownership. However, they can rent land for a long time (up to 99 years), which allows them to use the land for business or housing construction.
It is important to note that when buying real estate in Georgia, it is recommended to use the services of a lawyer or realtor, who will help you check the legal purity of the object, prepare all the necessary documents and accompany the transaction. This will help avoid possible problems and make the real estate purchase process as transparent and secure as possible.
Types of properties available for purchase by foreigners
In Georgia, foreigners can purchase various types of real estate, which include residential, commercial properties and land plots for construction.
Residential property options in Georgia include apartments and houses. Apartments in new buildings in Tbilisi and Batumi cost an average of $600 to $1000 per square meter, depending on the location and class of housing. Prices for second homes start at $400 per square meter. Houses in the suburbs of Tbilisi and Batumi can be purchased for $50,000 - $100,000, depending on the area and condition of the house.
Land plots for construction are also available for purchase by foreigners. Land prices vary depending on the region and purpose of the plot. On average, the cost of a land plot in the suburbs of Tbilisi or Batumi starts from $10,000.
As already mentioned, the acquisition of agricultural land by foreigners is prohibited, but it is possible to rent it for a long time.
The real estate purchase process
Buying a property in Georgia involves several stages, each of which has its own characteristics and requires certain actions on the part of the buyer. Here's a step-by-step process for purchasing a property:
Stage 1: Object search
At the first stage, the buyer is looking for a suitable property. You can do this yourself by studying ads on real estate sites, or by using a realtor who will help you choose a property that meets all the requirements and budget of the buyer.
Stage 2: Negotiate the price and terms of the transaction
After selecting the object, the stage of negotiations with the seller about the price and terms of the transaction follows. A realtor who has the necessary skills and experience can help in this process.
Stage 3: Checking the legal integrity of the object
Before making a transaction, you must check the legal purity of the object. This is an important step that helps you avoid possible problems in the future. You can perform the verification yourself or with the help of a lawyer.
Stage 4: Preparation of documents for the transaction
At this stage, all the necessary documents for the transaction are prepared. This includes the purchase and sale agreement, real estate documents, passports or other documents confirming the identity of the buyer and seller. In some cases, you may also need to provide documents confirming that there are no outstanding taxes and utility bills.
Step 5: Completing the transaction
Making a transaction with a notary is an important stage of the real estate purchase process, which provides legal protection of the rights of both parties-the buyer and the seller.
The notary checks all submitted documents for their compliance with the law, and also confirms that the seller is the legal owner of the property and has the right to sell it.
If all the documents are in order, the notary certifies the purchase and sale agreement. This confirms that the transaction complies with the law and both parties have given their consent to the transfer of ownership.
After the contract is certified, the buyer is obliged to pay a state fee, the amount of which is about 0.05% of the value of the property.
After paying the state fee, the notary issues the buyer a certificate of ownership of the property. This document confirms that the buyer is the legal owner of the property.
It is important to note that all these procedures may take some time, so it is recommended to plan a visit to the notary in advance.
Stage 6: Registration of ownership rights
After the transaction is completed, the new owner registers his ownership in the registration chamber. This is the last stage of the property purchase process, after which the buyer becomes the full owner of the property.
Financial aspects of buying a property
When buying real estate in Georgia, in addition to the cost of the property itself, it is important to take into account other financial aspects that may affect the total cost of the transaction.
The cost of real estate in Georgia varies depending on the region, type of object and its condition. The average price per square meter in new buildings in Tbilisi starts from $600, in Batumi-from $500. Prices for second homes start at $400 per square meter. Houses in the suburbs of Tbilisi and Batumi can be purchased for $50,000 - $100,000, depending on the area and condition of the house.
In addition to the cost of the property itself, it is necessary to take into account taxes and fees, which include the tax on the transfer of ownership (1% of the value of the object) and the state fee for registration of ownership (0.05% of the value of the object).
In addition, you should take into account other possible expenses, such as the services of a realtor (usually 3-5% of the cost of the object), the services of a lawyer, the cost of translating documents if they are provided in a foreign language, and the cost of real estate insurance.
If your own funds for the purchase of real estate are not enough, you can consider obtaining a mortgage loan. Some Georgian banks provide mortgage loans to foreign citizens, but the terms of lending may differ from those for Georgian citizens.
Advantages of investing in real estate in Georgia
Investing in real estate in Georgia offers a number of advantages that make this country attractive for foreign investors.
- Stability and growth prospects of the real estate market: The real estate market in Georgia has shown stable growth in recent years, due to the active development of the country's economy, increased tourist flow and improved infrastructure. This creates favorable conditions for investment and promises good returns in the future.
- Transparency and simplicity of the purchase process: The process of buying real estate in Georgia is quite simple and transparent, which reduces the risks for foreign investors. All real estate transactions are registered in the unified state register, and the rights of owners are reliably protected by law.
- Possibility of obtaining a residence permit or citizenship through investment in real estate: Georgia offers programs for obtaining a residence permit or citizenship through investment in real estate. This may be interesting for those who want to move to Georgia for permanent residence or get a second citizenship.
- High standard of living: Georgia is a country with a magnificent nature, rich history and culture, friendly people and a high standard of living. Here you can find excellent conditions for recreation and living, as well as great business opportunities.
- Favorable tax conditions: Georgia offers favorable tax conditions for property owners, including low property tax rates and no tax on rental income for individuals.
- Potential for rental income: Благодаря активному развитию туризма, real estate in Georgia может приносить стабильный доход от аренды. Это особенно актуально для объектов недвижимости в туристических регионах, таких как Тбилиси, Батуми или Кутаиси.
- Low cost and maintenance of real estate: Compared to many European countries, the cost of real estate in Georgia is much lower. In addition, the costs of maintaining real estate, such as utility bills, insurance, taxes, are also relatively low, which makes it economically profitable to own real estate in Georgia.
- Investment security: Georgia is a politically stable country with a robust legal system that provides a high level of protection for foreign investors. All real estate transactions are registered in the state register and are subject to verification by a notary, which eliminates the risk of fraud or unfair actions on the part of the seller.
- Ability to earn income in a foreign currency: If you plan to rent out your purchased property, you can earn income in foreign currency. This can be especially beneficial for those who live in a country with an unstable economy or high inflation.
- Potential for capital gains: The Georgian real estate market continues to grow, and there is every reason to expect that this trend will continue in the future. This means that a property purchased today can significantly increase in value in a few years, providing a good capital gain when it is sold.
Popular regions for buying real estate
Georgia offers a wide range of regions for buying real estate, each of which has its own characteristics and advantages. Here are some of the most popular regions among foreign investors::
Tbilisi: The capital of Georgia attracts with its historical atmosphere, rich cultural heritage and developed infrastructure. Here you can find various types of real estate-from old houses in the historical center to modern apartments in new buildings. Tbilisi is also the largest business center in the country, which makes it attractive for business immigration.
Batumi: This city on the Black Sea coast is known for its beaches, modern architecture and entertainment infrastructure. Real estate in Batumi — this is a great choice for those who want to live by the sea or plan to rent out their accommodation to tourists.
Kutaisi: The second largest city in Georgia attracts with its history, beautiful nature and peaceful lifestyle. Real estate here is much cheaper than in Tbilisi or Batumi, which makes Kutaisi attractive for buying housing or investing.
Gudauri and Bakuriani: These ski resorts are popular with outdoor enthusiasts. Here you can buy apartments or cottages for your own use or rent out. Thanks to the development of tourism, real estate in these regions can bring a good income.
Rural areas and wine regions: For those looking for privacy and proximity to nature, Georgia offers many options in rural areas and wine-growing regions such as Kakheti. Here you can buy a house or land plot for building a house, winery or agro-tourist complex.
Customer experience and reviews
Foreigners who have bought real estate in Georgia share their experience and leave positive feedback about the process of buying and living in this amazing country. Here are some real-life stories:
- A family from Germany"We bought a house in the suburbs of Tbilisi and are very happy with our choice. The purchase process was simple and transparent, and the realtor helped us with the translation of documents and registration of the transaction. We love our new home and are happy to have taken this step."
- A couple from Australia"We purchased an apartment in Batumi as an investment and plan to rent it out to tourists. Property prices here are much lower than in Australia, and the potential for rental income is great. We are very happy that we have decided to invest in real estate in Georgia."
- Retired person from the USA"I bought a small house in Kakheti and moved here for retirement. I love this region with its vineyards, mountains and friendly people. Life here is calm and measured, and I really like it."
- Investor from the UK: "I have purchased several apartments in a new building in Tbilisi for the purpose of their subsequent sale. I am satisfied with the quality of construction and the level of service. The Georgian real estate market is showing steady growth, and I am confident in the success of my investment."
These stories show that buying a property in Georgia can be successful and profitable both for those who are looking for a new home or vacation spot, and for those who see it as an investment.
Buying real estate in Georgia by foreigners is a simple and transparent process that offers many advantages. Thanks to a stable and promising real estate market, attractive pricing policy, the possibility of obtaining a residence permit or citizenship, as well as a unique culture and nature, Georgia is becoming increasingly popular among foreign investors.
The prospects of the real estate market in Georgia look promising. Taking into account the current trends of rising real estate prices and increasing interest from foreign buyers, we can expect further development of this sector.
If you are considering buying a property in Georgia, our team of professionals is ready to offer you a full range of services, ranging from assistance in choosing a property and ending with legal support of the transaction.
Yes, foreigners can buy most types of real estate in Georgia without restrictions, but there are restrictions on the purchase of agricultural land.
Foreigners can purchase residential and commercial properties, as well as land plots for construction.
It is recommended to use the services of a local realtor or lawyer to ensure the legal purity of the transaction and compliance with all necessary procedures.
You will need a passport or other identification document, as well as documents on the ownership of the object to be purchased and the purchase and sale agreement.
In addition to the cost of the property, you need to take into account taxes, state duties, expenses for the services of a realtor and lawyer, as well as possible expenses for translation of documents and insurance.
Some Georgian banks provide mortgage loans to foreigners, but the conditions may differ from those for Georgian citizens.
Georgia offers a stable real estate market, a transparent purchase process, the possibility of obtaining a residence permit or citizenship through investment, favorable tax conditions and the potential for rental income.