Can Foreigners Buy Real Estate in Georgia?
In recent years, Georgia has become an increasingly attractive destination for foreign investors. This is driven by numerous factors, including the country's location, a growing economy, and the dynamics of the real estate market.
With all that in mind, you might be wondering: what’s the actual deal for international buyers, and why are so many of them choosing us?
Can foreigners buy real estate in Georgia?
The answer to this question is unequivocal: yes, they can. Georgian legislation makes almost no distinction between foreign citizens and local residents when it comes to buying real estate in Georgia. Foreigners can acquire residential apartments, houses, and commercial spaces with full ownership rights. They also have the right to use, sell, or rent out the property they have purchased.
The only exception is agricultural land. The Constitution and the Organic Law explicitly prohibit the direct purchase of this type of land by foreign citizens, stateless persons, and foreign companies. Consequently, if a foreigner wishes to buy an apartment in Tbilisi or Batumi, they will face no barriers; however, they will not be able to purchase a plot of land to build their own house [if that land is designated as agricultural].
Do foreigners need residency to purchase property?
Residency status is not mandatory for purchasing real estate. Foreign citizens can buy property as non-residents and, furthermore, can do so entirely remotely based on a Power of Attorney (POA). This means the buyer does not need to physically travel to Georgia to become a property owner here.
In this regard, Georgia operates under a fairly lenient policy, unlike many European countries where foreign investors often have to navigate significantly stricter conditions and bureaucracy.
How safe is it for foreigners to invest in Georgia?
In terms of protecting real estate investment, the country has created a highly reliable environment. The registration process is managed by the National Agency of Public Registry (NAPR), whose system is fully electronic and transparent.
Moreover, Georgia consistently holds high positions in global rankings regarding ease of doing business, which further indicates a favorable environment for investment. Naturally, as in any country, certain risks exist here as well, such as regional factors or bureaucratic delays. Therefore, a detailed legal due diligence check before purchase - specifically to verify title deeds and property boundaries - is always recommended.
What is the property purchasing process for foreigners?
The process of buying real estate for foreigners is the same as it is for locals. It begins with searching for and selecting a suitable property. Following this, although not mandatory, legal due diligence is advisable; during this step, with the help of a lawyer, the buyer verifies the legal status and documentation of the property. This is followed by the negotiation stage, where the parties agree on the price and payment terms.
Once an agreement is reached, a Purchase Agreement is drawn up in Georgian, and payment is made according to the agreed schedule. After this, all necessary documents are submitted to the Public Registry for registration. The final stage of the process is receiving the Title Certificate, which confirms the new owner's rights to the purchased property.
What taxes do foreigners pay in Georgia?
Compared to other countries, taxes related to purchasing real estate in Georgia are low. For instance, there is absolutely no property transfer tax. An 18% VAT may be added in specific cases, primarily when buying property from a VAT-registered developer. The main cost is the registration fee (standard service is approximately 50 GEL, while expedited service ranges from 150 to 200 GEL).
As for annual taxes, property tax depends on the annual income of the owner's family. If the income is less than 40,000 GEL, there is no tax. For income between 40,000 and 100,000 GEL, the tax ranges from 0.05% to 0.2% of the market value, and for income exceeding 100,000 GEL, it ranges from 0.8% to 1%.
Does owning real estate help foreigners obtain residency?
Owning real estate does not grant citizenship directly, but it simplifies the process of legally staying in the country. Purchasing real estate valued at a minimum of 100,000 USD gives the owner the opportunity to obtain a temporary residence permit. This permit typically extends to family members as well and is issued for a period of 6 months to 1 year, with the prospect of future renewal.
To obtain a permanent residence permit, one usually needs to live legally in the country for a continuous period of 6 to 10 years, although an investment of 300,000 USD expedites this process. Citizenship is generally achieved through naturalization, which often requires 10 years of legal residence, integration, and meeting other criteria.
Can foreigners rent out their property?
Foreign owners have the full right to rent out their property. The taxation system is simple and depends on the purpose of the rental. When renting out residential property, a fixed rate of 5% applies to the total gross rental income, which is a quite favorable condition for investors.
Renting out commercial and other types of property is taxed at the standard 20% income tax rate, calculated on net income. It should also be noted that if the annual turnover exceeds 100,000 GEL, registration as a VAT payer may become necessary.
How do foreigners manage property remotely?
There are several ways for non-resident owners to manage property remotely. The most common is hiring professional management companies that offer full-service solutions to clients. They take responsibility for finding tenants, managing finances, handling operational issues, and managing tenant turnover. Such services cost approximately 10-20% of the monthly rental income.
What news do foreign investors expect in 2025?
Prospects for 2025 remain positive. The market continues to grow, particularly in Tbilisi and Batumi. New development projects are offering foreign buyers increasingly more comfort and flexible management services. Legislative changes are mainly directed toward strengthening investment protection and developing digital services, which further simplifies remote transactions.
Furthermore, the tax system regarding property sales remains unchanged: residential property sold more than two years after purchase is exempt from capital gains tax. If the sale occurs within two years, the profit is taxed at 5%. In the case of non-residential property, the standard 20% rate applies.
Why do foreigners trust Georgia?
Georgia’s appeal to foreign investors is based on several key factors:
Legislation that makes almost no distinction between them and locals;
A fast, transparent, and digital registration system;
Relatively low taxes;
Well-developed options for remote property management.
Obviously, investors must take into account existing restrictions regarding agricultural land. However, the freedom and security available in the residential and commercial real estate segments create sufficient motivation for them.
The experienced development company "Materia" is well-acquainted with the needs of both local and foreign investors. Our team is ready to share our experience and help you make the best decision.
Frequently Asked Questions
1. What is "Materia"?
Materia creates residential projects with unique concepts. The company's vision is to offer owners a high-quality foundation (the materia), which allows them to transform it into a comfortable and complete home.
2. How was "Materia" formed?
Materia was formed as a result of rebranding the well-known market brand, Outlook Development. Essentially, it is the successor to this company and continues its operations with a renewed vision.
3. Who performs the construction work on Materia projects?
The construction direction of the projects is led by Outlook Construction. This is a company with 15 years of experience in the field. This experience is confirmed by successful projects such as the fully sold-out Outlook Vake and the new project Outlook Forest.
4. What are the main directions in which Materia operates?
The company is represented in the market in three main directions:
Materia Living: Premium class residential apartments.
Materia Estate: Land plots equipped with infrastructure for individual projects.
Materia Hills: Exclusive villas.
5. Where is the Materia sales office located?
To receive detailed information about apartments under construction and other projects, you can visit our sales office at: 84 Vasil Barnov Street, Tbilisi, or contact us at +995 0322 11 11 10.
