Legal Right to Buy Apartments / Apart-hotels in Batumi

Foreigners are allowed to buy apartments / apart-hotels in Batumi. In many countries, the purchase of real estate is restricted and is subject to certain conditions, whereas in Georgia / Batumi – these restrictions do not apply at all. Moreover, apartments in Batumi are heavily bought primarily by foreigners, such as Turks, Russians, Belarusians, Israelis, etc.

Low prices of Real Estate in Batumi

Many people are dreaming to buy an apartment on the seashore for rental purposes and to have a sweet spot for their family to visit whenever they want. However, buying such real estate in other countries is normally super expensive, especially buying such apartment in a modern, futuristic city.

Batumi still has many affordable real estate options. We assume that the low prices on real estate in Batumi are due to a super high supply of properties. There are tons of developers creating hundreds of thousands of square meters in Batumi and although there is high demand for properties in Batumi – the supply of real estate is still higher not allowing prices of real estate to increase dramatically.

Investors shall also take into consideration that obviously Batumi real estate is physically bound by Batumi boundaries and at a certain point it will not be possible to build much in Batumi as there physically will not be enough space. We assume that based on that the real estate prices in Batumi will rise at that point. At the same time, because of this problem is already pretty close – the nearby city of Kobuleti is starting its rise.

War In Ukraine

War in Ukraine created a huge demand for real estate in Georgia in general. After the war started a lot of people from northern countries found their new home in Batumi. Especially we would notice people from Belarus, then Russians and Ukrainians. Obviously many of them have already moved to other countries, but a certain percentage stay in Batumi as of today. We really hope that the war ends soon, but for investors, Batumi still can be considered a safe spot that can be a nice place for people leaving regions with armed conflicts and whose number in the region unfortunately is steadily growing.

Diverse Real Estate Portfolio

The price range in Batumi’s real estate market is equally diverse, with properties ranging from $35,000 to millions of dollars. However, experts predict that the era of budget housing will end by 2025, making now the ideal time to invest.

Properties developed by reputable developers are also highly sought after. The demand for real estate in Batumi is expected to grow, fueled by the city’s economic transformation and increasing tourism potential. At the same time, there is a huge problem with the timely finishing of developments.

Late finishing of Developments in Batumi

There are many developers in Batumi who promise you:

1. Low price
2. Super high ROI (return on investment)
3. Superior quality of building and your apartment
4. Development finishing in a few months / one year

But in any other industry – this is too good to be true. We receive so many letters from many investors who invested in Batumi real estate but either their development is late with a couple of years, or they never got it, or the quality is very poor. This can take place in an environment with too much economic freedom as it is in Georgia.

This is why we suggest either buying apartments in already built real estate in Batumi or buying property only from certain developers with established reputations on the market. Our real estate agency is here for you.

To buy or not to buy real estate in Batumi? This is the question.

In short – it depends on your short-term and long-term goals. But one is for sure – if you decide to buy any sort of real estate in Batumi: villa/hotel / apart-hotel / apartment/land – you need proper due diligence and assessment on that. We are here to help              Apartment Renovation in Tbilisi, Georgia

Apartment renovation services in Georgia, especially in cities like Tbilisi and Batumi, are in very high demand. Studies mention that construction sector’s annual turnover increases by 18% on average in Georgia for last 8 years. In addition with existing real estate / apartments renovation needs in Georgia – new developments and constructed apartments – both are in need of renovation company.

Georgia has become attractive for investors from all over the world. Investors are actively buying apartments in Georgia from developers or on the secondary market. Normally, intention is to keep it for family vacations and for getting stable high ROI from rental of the real estate in Georgia. When one buys apartment from the developer or on secondary market – normally – apartment needs renovation.

Home renovation services in Georgia normally start with blueprint / measurements and respective home design services. On this stage it is crucial to find professional renovation company, which can provide services under one roof.

Condition of property in Georgia to be renovated

There are typically several conditions in which the properties are passed to the new owner:

• Black frame;
• White frame;
• Green frame;
• Old Renovated;
• Newly Renovated.

All these conditions have some objective characteristics, however they are more for very general reference purposes and in each case the condition details must be agreed in advance.

Black frame

The condition in which apartment has basically only walls with windows and entrance door. Plain area without separating walls.

When apartment is in such condition – all the renovation works are needed, including putting pipes /electricity into the floor and filling the floor / screeding.

White frame

On the level of white frame – screed floor, separating walls, electricity and plumbing spots are done.

⁠Green frame

On the level of green frame – all the perks of white frame, plus heating system pipes installed, walls are plastered, doorframe in-between the rooms is done. And area is prepared for final paint job/tile works.

Old Renovated

Old renovated apartment in Georgia is normally called 30+ years old renovation. Such apartment normally always need a full renovation, including taking off the wallpapers, getting rid of old furniture, changing tiles / electricity / machines / sanitary points.

Newly Renovated

If you are fine with the newly renovated apartment – you still may need to make minor renovation in apartment / cosmetic renovation. Such renovation normally is related to updating different home appliances, changing visual part in accordance with preferences of the new owner.

Cost of renovation of apartment in Tbilisi

Obviously, this is impossible to say in advance what is the price of renovation of apartment in Tbilisi. Price of the renovation of any real estate in Georgia highly depends on the following:

1. Taste and preferences of the new landlord –Often landlords are trying to use more economy type furniture, and appliances with consideration that the tenants will be negligent towards the Apartment. On the other hand for premium type of apartments, the landlords are trying to purchase and install only premium type of appliances and furniture.
2. Condition of the apartment –Renovation of old renovated apartment is normally the most expensive if the renovation is too outdated and the word out. Black frame might be cheaper to be renovated as there is nothing to demolish in it comparing to old renovation apartment.
3. Type of apartment – Investors in Georgianeed to decide whether they are intending to rent out in newly built apartments / old or very old apartments. Renovating old type of apartments (which are 30 – 60 years old) – is normally cheaper as they are rented for economy tenants. Renovating very old apartments is normally the most expensive, because for example, making renovation in historical type of building, requires special permit, and or special type of renovating brigade, which will follow special instructions in order to have apartment in compliance with the condition it must be.

FAQs:

What are the benefits of renovating an apartment in Tbilisi, Georgia?

The better the shape of apartment – higher is its market value for sale and rental purposes.

How long does an average apartment renovation take?

It depends on the condition of apartment. For cosmetic renovation for small apartment, one can count on minimum of one week in the best case scenario. Bigger the place and deeper the renovation shall go – longer the time needed for renovation.

How do I choose the right renovation company for my project in Georgia?

Choosing right renovation company in Georgia is pretty hard for the foreigner. Often the renovators are physical persons, not legal entities. Often, they do not put contracts. We believe that the right renovation company is the one that can provide their portfolio, multiple references from previous employers, in case of renovation of a very old historic buildings in Center of the Tbilisi – hiring brigade, that has a special license on renovation of a very old historical buildings. Putting contract on renovation is crucial in order to protect your interests.

Why is it risky to start my renovation without having a design plan?

Exterior and interior design is crucial in order to have the final image of apartment in advance. It helps avoiding surprises and clearly identifies what is expected to be done by the renovation company.

Buy Real Estate In Georgia Remotely

Apr 08,2024Read 12 min

Buy Real Estate In Georgia Remotely

Georgia offers a good legal framework for buying real estate remotely. The Georgian real estate market is booming, and many of the buyers are foreigners or immigrants from Georgia. Therefore, in order to buy real estate for investment or for living in Georgia, remote property registration is possible.

The System of Buying Real Estate in Georgia Remotely

The system of buying real estate in Georgia remotely consists of the following:

• The party(-ies) to the real estate sale and purchaseagreement that are staying outside of Georgia or that are unable to be physically presented – shall issue a power of attorney in a proper way (discussed below);
• Appointed representative(s) of the party(-ies) to the real estate sale and purchase agreement shall further make respective notary procedures in Georgia once the PoA is obtained;
• Once the notarial acts are finalized – duly authorized representatives shall represent the buyer and or seller – at the National Agency of Public Registry of Georgia (NAPR);
• At NAPR, the representatives shall present a number of documents to register the sale of property. These documents mainly include PoAs, duly prepared identification documents of the party(-ies), and a sale-and-purchase agreement. The representatives shall also sign respective applications; however, each case is individual and may need additional documents/annexes.
• Registration can be done in any NAPR office in Georgia for any property located in Georgia (except temporarily occupied territories of Georgia). So, whether the person is in Batumi and wants to buy apartments  in Tbilisi– application and documents can be provided in Batumi, and vice versa.
• Registration can be done the same day or within four working days (there are a couple of options, depending on the payment amount).
• It is noteworthy that proper due diligenceprocedures shall be conducted before buying property in Georgia to minimize respective legal or other risks related to purchasing property.

Ways of issuance of Power of attorney to purchase real estate in Georgia

When the issuer is in Georgia

Suppose the issuer of PoA for the purchase of real estate in Georgia is physically in Georgia. In that case, s/he may issue PoA at any notary office without passing the original to the appointed representative. The notaries typically have translators working with them who will help prepare documents. In such cases, there is no need for additional actions other than giving notarial act details (even screenshots) to the representative.

Issuance of PoA when a person stays abroad has a residence permit or citizenship of Georgia.

If a person has a residence permit or citizenship in Georgia, they can issue power of attorney in Georgia remotely through a Georgian notary. Georgian notaries may use Skype or another type of technical communication program.

Issuance of PoA when the person stays abroad and does not have a residence permit or citizenship of Georgia

If a person issues a PoA outside of Georgia, it must go through a notarization process locally. However, depending on the country of issuance, it may additionally need an Apostille or legalization procedure.

• CIS or ex-CIS countries are usually parties to the Minsk Convention, which makes procedures easier. There is no need for apostille or legalization—documents from those countries are practical in Georgia once translated (without apostille or legalization)—examples: Ukraine, Russia, Azerbaijan, Armenia, etc.
• Countries where the Apostille Convention is effective (e.g., France, Germany, USA, Australia, etc.)—such PoA shall be apostilled and sent to Georgia only after apostillisation.
• In countries where the Apostille convention is ineffective (e.g., UAE, China, etc.), such PoA shall be legalized in the Georgian embassy and sent to Georgia only after legalization procedures outside of Georgia are completed.

PLEASE NOTE

A power of attorney to buy real estate in Georgia must have specific provisions to avoid problems with proper property registration; otherwise, the application may be declined/rejected.

There are not many Tbilisi apartments for sale compared to the demand on the market. However, our real estate agency with prime brokerage services has a huge clientele—both buyers and sellers of properties in Georgia. It doesn’t matter whether we are talking about Tbilisi real estate, Batumi real estate, Gudauri real estate, or Bakuriani real estate. We have you covered.

Why Invest In Georgia?

Georgia offers a diverse climate, low cost of living, attractive tax system, and infrastructure development. Its property market has seen increased capital appreciation and rental yields, making it an attractive investment.

Strong Rental Market

In 2022, the Georgian real estate market experienced a tumultuous year, with rent prices shooting to unprecedented levels. Sales prices grew modestly, but in some districts, they rose by as much as 35%. Tbilisi long-term lettings can yield 8% to 12% average rental yields, while well-managed short-term lettings can produce 20% or more. However, you might prefer to rent apartments in Tbilisi if you plan to visit the country for a short period of time.

Easy Entry

Foreigners’ purchase of non-agricultural real estate in Georgia is permitted on the same basis as that of domestic buyers. Property registrations are conducted by Public Service Halls (PSHs) throughout Georgia. Agricultural land, however, is restricted to foreigners due to zoning laws. Many areas of small towns and villages still need to be zoned agricultural, resulting in a problematic rezoning process.

Low Tax Regime

• Real estate transactions in Georgia do not require a stamp duty to be paid. However, registering a property typically ranges between $20 and $80.
• It is important to remember that property taxes in Georgia are determined by various factors, including the locality in which you purchase a home and household income.
• Owners who register as landlords in residential tenancies are subject to a 5% tax, and a 20% tax is imposed on commercial tenancies.

Improving Infrastructure

By the end of the decade, all highways will be completed in Georgia; households will have access to unrestricted water supplies; modern regional centers will replace municipal landfills; regions will be socially and economically developed; and municipalities will be strengthened. Georgia has a well-developed internet infrastructure. A fiber internet connection of 20Mbps to 100Mbps is available in Georgia, but if you need more than that, it may pose a problem.

How Can ReInvest Help You?

The Georgian real estate market can be very uncertain. Our real estate services will give you the right context, support, and objective advice to feel confident at every process stage. ReInvest provides tailored advice and assistance to help you make an informed decision about investing in Batumi, Tbilisi, and the rest of the Georgian real estate market. Our team of experts can help you identify the best investment opportunities, negotiate the best deals, and provide the support you need to ensure your investment is successful.

FAQs

• How can I buy commercial real estate in Georgia? 

Buying commercial real estate in Georgia typically involves finding a property, conducting due diligence, negotiating terms, and completing the purchase through a lawyer or real estate agent.

• Can I buy real estate in Georgia remotely?

Yes. You can engage real estate agents, lawyers, or agencies to facilitate the process on your behalf.

• What services does your agency offer to assist with property management post-purchase?

Our agency offers comprehensive property management services post-purchase, including tenant screening, rent collection, maintenance, and property marketing.

• What are the legal requirements for foreigners buying real estate in Georgia?

Legal requirements for foreigners buying real estate in Georgia include obtaining a tax ID number, registering the purchase with the Public Registry, and complying with relevant laws and regulations.

• What are the tax implications of international investors owning real estate in Georgia?

Tax implications for international investors owning real estate in Georgia may include property taxes, income taxes on rental income, and capital gains taxes upon sale.

• What types of properties are available for sale in Tbilisi and Batumi?

Available properties in Tbilisi and Batumi include apartments, houses, commercial spaces, and land parcels, catering to various preferences and budgets.

• Can your agency assist with renovation services for an acquired property?

Our agency can assist with renovation services for acquired properties, coordinating with reputable contractors and overseeing the renovation process to meet your specifications.

Real Estate Agency on Buying Apartment in Georgia: Tbilisi or Batumi

Apr 23,2024Read 12 min

Guide of Real Estate Agency on Buying Apartment in Georgia: Tbilisi or Batumi

Buying Apartments in Georgia is the most popular demand we deal with in Ri.GE real estate agency. Real estate/apartments in Tbilisi and Batumi are obviously the most in-demand directions. This is caused by the fact that Tbilisi is the official capital and economic center of Georgia, whereas Batumi is the entertainment capital of Georgia, with sea, casinos, and relaxed vibes.

Both cities have international airports. Therefore, in both cities, we have enough demand for real estate from locals, expats, and tourists. Obviously, there are cities like Kutaisi, Rustavi, Poti, and others, but they are in less demand between expats and tourists, nor there are as many locals as in Tbilisi.

Therefore, below we discuss real estate investment opportunities in two of these major Georgian cities: Tbilisi and Batumi. Namely, we discuss investment in Georgian apartments in Tbilisi and apartments in Batumi.

Why an Apartment in Georgia and not a House?

The simple fact is that when the intention of the person is to invest funds wisely, we shall aim for the highest return on investment. The highest return on investment can be achieved through investments in smaller real estate and the smaller it is – normally the higher the ROI, as the bigger the investment – the higher the risks related to it and the funds needed to fix and maintain the real estate. On the other hand, the smaller the investment – less will be the digits in absolute terms, though percentage of ROI might be less than in case of bigger investment. Therefore, finding sweet spot lays somewhere in between.

Houses are normally much bigger than apartments in multifamily houses. Plus, they need constant maintenance related to its outdoor and indoor infrastructure. Utilities are normally also higher, as the residential area is bigger and energy efficiency normally lower. Thus, people who plan to live in Tbilisi / Batumi are more looking for apartments, rather than house. As real estate investor shall look at the real estate with higher demand – obviously apartment option shall work more efficiently, as it will be much easier to find tenants.

There is also certain type of apartments called aparthotels. Aparthotels are hotel-type apartments, which often are presented in the building with internationally recognized franchises. Such apartments have become popular in Batumi.

Buying real estate in Tbilisi

Tbilisi is the capital of Georgia. Construction is one of the major directions of Georgian economy. Nowadays, construction in Tbilisi is booming, and that is the reason why you would want to invest in Georgia. There are many developers constructing high multifamily houses in the city. When investing in an apartment in Tbilisi there are two main things you must consider: the year of construction of the house, area of Tbilisi.

Year of construction of apartment in Tbilisi

Apartment in Tbilisi can be in a new development / under development or old building. Old buildings are also two types: soviet era apartments or 19^th century apartments. In this article we discuss apartments under development, under development and old buildings of 19^th century.

Apartment in Tbilisi under development

New development means that you have a possibility to buy apartments in Tbilisi or any other city for a big discount (earlier you buy – higher yield). Additionally, having apartment that was not used before might be pleasant experience for a person who lives there first. Finally, you have a chance to plan renovation from scratches, based on the preferences of the owner. All of this sound very attractive.

However, apartment in Tbilisi under development is normally bearing highest obvious risks:

• fraud (when the developer is not finishing the development);
• inadequate quality of development (not finishing parking area / poor quality of materials used, safety issues);
• postponing of finalization of development for too long time (sometime developers are 3-5 years late).

Apartments in such condition in Tbilisi require highest level of trust to the developer and is mostly suitable for people who can bear high risks for intention to get higher income.

Newly developed apartment in Tbilisi

A newly developed apartment is the perfect option, based on the fact that the most modern materials are used, it is already developed and you can make proper assessment of what you buy exactly. Plus to that, newly developed apartment has a resource to serve you well for tens of years (if developed well). Normally, such apartments have highest level of comfort (or at least you exactly know the level of comfort it can provide, if checked properly!).

And last but not least – it most likely will have a lift to get to whichever floor you live.

Newly developed apartment’s con is mostly related to its price, as risks related to apartment are lower than in case of the apartment under development.

Newly developed apartment in Tbilisi is best option for personal purposes (not for investing), but at the same time it is good for investment in prestigious areas of Tbilisi for rentals on foreigners and high-income earners.

Old developed apartment in Tbilisi

Old developed apartments are normally built in 19^th century and have historical or cultural heritage status. They are constructed in Old Tbilisi: Chugureti, Ortachala, Mtatsminda, Sololaki, Vera, Avlabari.

Best part of it is that they are located in the most central locations, and such apartments often have additional immaterial value, as they are often unique with historical flavor. Such apartments are highly preferred by the tourists to “feel” real Georgian heritage.

On the other side – the resource of such houses is close to zero and many of the buildings are in emergency and need additional structures for fortification. Additionally, the neighbors must be considered (in some cases there are problems with common space, etc.). And last but not least, if the building has special status – there will be certain restriction related to it. In particular, it might need a permission to make changes inside or outside. If the previous owner has made any changes where s/he was not allowed – you might be in big trouble as there are very high fines and even worse, there is a chance that the building might collapse because of certain changes.

Buying apartment in Batumi

When buying apartment in Batumi, exactly same issues must be considered as in case of Tbilisi. However, Batumi as additional type of buildings – skyscrapers. Plus to that, in Batumi you additionally look at the distance of the apartment towards the sea – closer to the sea – more prestigious it is.

Biggest developers of skyscrapers in Batumi are Orbi and Alliance Group. Both are giants in the sphere. Apartments built by them are normally in the first line or almost in the sea!

Difference between apartment in Tbilisi and Batumi

Difference of income generated from real estate in Tbilisi and Batumi is that income from real estate located in Batumi is mostly seasonal (though during time the tendency is changing and Batumi is becoming all-year-round livable). Income from short-term rentals is significantly higher than in case of long-term rental in both cities. Short-term rental in summer is normally much higher in Batumi, than in Tbilisi. Prices on property in both cities rise dramatically last few years. But it is still cost-effective to rent apartment in Tbilisi for foreigners.

You either buy from the developer or from the secondary market, however there exist significant legal risks related to purchase of apartment both from the developer as from the secondary seller. Everyone tries to sell, but not everyone discloses all the things related to apartment related obligation, mortgage, seizure, status, condition, reputation, neighborhood and many other.

As there are many variables, we suggest buying apartment in Tbilisi / Batumi only through a professional real estate broker, who can provide full due diligence of property (as separate service) in order to minimize all the risks mentioned in the article above.

The content of this webpage is not an investment advice and does not constitute any offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial circumstances. Investment involves risk.

Renting an Apartment: Everything You Need to Consider Renting an apartment is an important decision that you should take into account before making it, especially if you want to rent an apartment in Tbilisi, Batumi, Kutaisi and other cities. The cost of renting an apartment in Georgia has increased significantly in recent years due to changes in the real estate market. Analysts and experts attribute the 70-80% increase in apartment rental prices during the year to the settlement of different nationalities, especially Russians, in Tbilisi.

Despite the fact that the rent price of an apartment has decreased in the last month, if the demand for apartment rent by tourists increases, the rent price will increase in direct proportion. It is because of this volatility that you should consider the following important factors before renting an apartment.

Real estate market research

Before you start looking for a home, you should research the real estate market. Rent prices depend on the location, size, and arrangement of the apartment. Our real estate agency brokers can help you and provide you with information on where you can rent an apartment based on your budget.

30% rule: determination of apartment rent

The most important factor to consider before renting an apartment is your budget. In general, it is recommended that you should not pay more than 30% of your income in rent, for example, if you agree to pay 2000 GEL in rent, your income should be at least 6000 GEL per month (although this is a general recommendation). Do not forget to take into account such costs as utilities, internet, and in many cases insurance. Before renting an apartment in Tbilisi, landlords often ask for the first and last month’s rent in advance – keep this factor in mind so that you don’t get in the way of choosing the apartment you want.

Finding the right apartment

At first glance, it is easy to find an apartment that suits your needs, but it often happens that the customer does not take into account the complexity of renting an apartment. In many cases, this process turns into endless searching, calling, and uncertainty. The stress of choosing an apartment for rent leads to the fact that we often ignore our own wishes even if we rent an apartment. So don’t get stuck, once you start looking for a home, clearly list the factors that are most important to you. Think about what you prefer – how many rooms/bathrooms do you want? If you have a pet, don’t miss out on finding a pet-friendly apartment. What amenities would you like to have in the apartment? Is it necessary for the renovation to be done now? Do you pay attention to interior design? If you want to rent a private house, what are your requirements – what should be the landscape design? Make a small list of what is necessary and what is desired. And if you get tired in the process, don’t give up, our real estate agency will help you in the process of renting an apartment.

Transition costs

Do not miss the cost of moving to a new apartment. You will need help moving furniture, things, and clothes. After the move, you may want to arrange the apartment according to your taste and preferences. You will need new dishes, cleaning products for the apartment, hygiene products, etc

Clarify the conditions before renting the apartment

Before you rent an apartment, be sure to find out who lived in the apartment before you and what is the reason for leaving the apartment. It would be best if you could contact the previous residents and ask this question in person. In this way, you will be able to find out if the reason for leaving the apartment is discomfort, uncomfortable apartment, noisy neighbors, etc. It would also be good if you ask if it is possible to remodel the apartment, paint the walls, change the design, etc., because your taste, may differ from the taste of the renter, you need to know if you can afford it or not to renovate the apartment.

Apartment for rent in Tbilisi

The rent price of an apartment in different districts of Tbilisi is different. If the location is not important to you and you want to rent an apartment in the suburbs, you can do it for $300-500. If you want to rent an apartment in the area of ​​Vake-Saburtalo, Old Tbilisi, Sololak, you will have to pay more.

Apartment for rent in Batumi

Before renting an apartment in Batumi, you should think about your preferences – where do you want to rent an apartment – near the park, the sea, and the boulevard, or in a quieter neighborhood, away from tourists. Before renting an apartment in Batumi, it is necessary to take into account the season – in the summer, the number of vacationers increases significantly, and therefore the rent price. If you can afford it, try to rent the apartment in the off-season.

Before renting an apartment, you must consider important factors such as budget, costs, expected hazards, location, real estate market, etc. Be prepared for the news. Our real estate agency will help you not only in renting an apartment, but also in buying an apartment, maintaining it, and even appraising real estate.

Frequently Asked Questions:

What is the average monthly rent in Tbilisi?

On average, the rent starts at $500-600. The price increase depends on the location, condition of the apartment, number of rooms, etc

Can I negotiate the rental price?

Yes, you can. Talk to the landlord and tell him the price that is acceptable to you.

At least how long should I rent an apartment?

It depends on the request of the landlord, however, most of them prefer to rent the apartment for at least 1 year.

How can I be sure that I am renting an apartment safely?

Entrust finding and renting an apartment to a reliable real estate agency in Tbilisi. Professional brokers will review the lease agreement and ensure everything complies with the law and regulations. 

Residency Through Property

Foreign Applicants who make an investment in non-agricultural real estate in Georgia are eligible for a residence permit if certain conditions are met.  According to new regulations that came into force on July 5th, 2019, the minimum price requirement for real estate increased and became USD 100,000 (instead of the USD 35,000 it was previously).

The Temporary residence permit of Georgia is issued for periods of 6 months up to 6 years. Usually, the first issue is for a period of 6 months or 1 year.

After the applicant receives their Georgian Residence Card, his/her spouse and children are also eligible for a TRP.

Applicants who are interested in establishing a company in Georgia do not necessarily need to visit the country to do so; using the power of attorney, our service partners in Georgia will be able to handle all the paperwork and bureaucratic processes and also make the necessary submission for applying for temporary residency.

After 10 years of continuous, legal residency in Georgia, foreigners may be eligible to apply for Georgian citizenship, if they meet certain conditions, such as knowing the local language, history, and customs, and/or have married a Georgian citizen, or are engaged in economic activities considered important to the Georgian state and economy.

Investment

Real Estate

Purchase of non-agricultural real estate in Georgia worth a minimum of USD 100,000.

Requirements

– Documents certifying USD 100,000 investment in real estate or investment in a newly-formed Georgian company.
– Criminal Record report from your local police agency.

Restricted Nationalities

No nationality is officially restricted

Dual Citizenship

Dual citizenship is not recognized in Georgia. To become a citizen of Georgia, you must renounce your previous nationality.

Dual Citizenship is not permitted except by a special Presidential Decree

Documents Required

• Certificate of legal stay in the country
• Certified copy of passport
• Real estate sales and purchase agreement
• Proof of ownership or rental housing
• Dual Citizenship No
• Family Members Included Yes
• Land Ownership Yes
• Physical Residence Required No
• Personal Visit Required No
• Language Skills Required No
• Interview Required No
• Investment Single $100,000
• Investment Family 4 $100,000
• Minimum Annual Income –
• Time To Citizenship 120
• Time To Permanent Residency 66
• Visa-Free Countries 122
• Financing Available 

Benefits

Citizenship Benefits

Visa-free or Visa on arrival to 122 countries, including Schengen Area, Brazil, UAE

The right to live and work in Georgia at all times

Permanent Residency Benefits

The right to live and work in Georgia, without any time limit

Fast and easy process

Business-friendly policies

Potentially profitable investment

Territorial tax system

Low tax jurisdiction

Country Details

National Flag of Georgia

Currency GEL

Area Code 995

Capital Tbilisi

Continent Asia

Native Languages, Russian,

Population 4,630,000

Georgia is a former Soviet Republic, located on the border between Europe and Asia, on the east coast of the Black Sea. It shares borders with Russia to the north, with Turkey and Armenia to the south, and Azerbaijan to the southeast. It has a population of just over 3.7 million inhabitants, half of which live in Tbilisi, its capital. Its official language is Georgian and its legal tender currency is the Georgian Lari (GEL).

Visa Free Travel

With your new passport from Georgia, you’ll be able to access 122 countries visa-free

Taxes

Tax residents in Georgia are those who reside for at least 183 days in Georgian territory.

Tax residents are only taxed on their Georgian-source income. This means that income earned abroad is not subject to Georgian taxation.

The flat tax rate is 20%, although dividends and interest income are taxed at a 5% final withholding tax on source and not included in the personal tax base.

Rental income from residential properties is also subject to a reduced 5% tax rate, provided that no deductions are taken from this income.

Capital Gains are usually subject to the income standard tax rate, but an exemption may apply from gains on the sale of real property if it has been held for at least two years. Gains on the sale of a residential property with an attached land plot are subject to a reduced tax rate of 5%.

Individuals owning real estate are subject to a real property tax ranging from 0.8% to 1% on the property market value. However, households with annual income below GEL 40,000 are exempted and those with annual income between GEL 40,000 and GEL 100,000 are subject to a reduced tax rate ranging from 0.05% and 0.2% on the property market value.

In Georgia, there are no net wealth, inheritance, or transfer taxes. Gifts of a certain value may be subject to taxation.

The V.A.T. standard rate is 18%. Certain goods and service transactions are tax-exempt.

Regarding corporate taxation, resident entities are subject to a 15% tax on their profits, whether derived from local or foreign sources. Undistributed profits are not subject to taxation. If you want to learn more about Georgia’s corporate taxation, legal framework, and tax treaties, you can check out incorporations.io/georgia.

This should not be construed as tax advice. We have access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances. Contact us for further information.

• Property Tax Yes
• Transfer Tax No
• Inheritance Tax No
• Net Worth Tax No
• CFC Law No
• Tax Residency Days 183
• Personal Income Tax Rate 20%
• Capital Gains Tax Rate 20%
• Investment Income Tax Rate 5%
• Territorial Taxation