Georgia has lifted many restrictions on foreign property ownership, making it an attractive destination for international investors. While non-residents and foreign individuals can freely purchase residential and commercial real estate, the only exception is agricultural land, which remains off-limits to non-citizens unless acquired through a Georgian company.
Who Can Buy Property in Georgia?
Foreign nationals and legal entities can acquire apartments, houses, retail and office space, and even plots of rural non-agricultural land. The only area off-limits is agricultural land. However, with the right legal structure—such as forming a local LLC—foreign investors can access farmland under certain conditions. Rezoning of land is possible, but each transaction requires careful legal review to verify permitted use and ownership rights.
Residency Through Real Estate Investment
Investing in Georgian real estate opens the door to residency programs. Automatic eligibility for a one-year renewable Residence Permit begins at a minimum investment of USD 100,000, which can be a single property purchase or the combined value of multiple properties. A higher-tier option exists for investments above USD 300,000, granting a five-year investor residence permit. Holding these permits and fulfilling presence requirements (30 days per year minimum) can lead to permanent residency after six years.
Property Types and Local Market Terminology
The Georgian property market offers products from “white frame” (fully finished) apartments to “black frame” (structure only), “green frame” (partial finishing), and “bare bones”, which require full interior completion. Tbilisi dominates the market with high demand and rental potential, while coastal Batumi attracts holiday-home and tourism-oriented investors. Kutaisi and other secondary cities offer affordable up-and-coming options. Pricing varies based on finish level, location, developer reputation, and project quality.
Financing Property Purchases
Foreign buyers can obtain mortgages from leading Georgian banks such as Bank of Georgia, TBC, and Liberty, though stricter requirements apply. Typically, banks require a 30–40% down payment, proof of stable foreign income, and often a residence permit. Interest rates range from 7–10% in GEL and slightly lower in USD/EUR, with loan terms extending up to 20 years. Alternatively, many foreign investors choose cash purchases to avoid international paperwork and secure quicker deals.
Due Diligence and Legal Safeguards
Before closing a purchase, comprehensive due diligence is essential. This includes verification of title history, encumbrances, developer financial standing, and examination of property zoning through the House of Justice or a licensed law firm. Foreigners should not bypass these checks, as transparent registry systems can still hide liens or disputes. When cleared, the Sales Contract is signed—typically at a Public Service Hall—and ownership is registered within a day through the National Agency of Public Registration (NAPR).
Costs, Taxes, and Registration
Foreign property buyers pay minimal fees: registration costs between GEL 50–200, notary verification up to GEL 200, and annual property tax from 0.05–1% of assessed value. No purchase taxes or stamp duties apply. Sale of property within two years triggers a 5% capital gains tax; beyond two years, sales proceeds are exempt. Foreign sellers who never resided in Georgia face a flat 3% withholding tax on sale. Rental income is taxed at an effective 5% for individuals, and gross rental revenue may be zero- or 1% taxed depending on business structure.
Advantages of Georgian Real Estate
Georgia offers one of Europe’s most cost-effective property markets, with property values often 30–50% lower than similar European cities. Rental yields in Tbilisi and Batumi commonly hit 7–10% annually, and tenants from international companies, diplomats, and tourists often pay in USD or EUR. Maintenance costs, including utilities and service fees, remain low. Renters are frequently from the private or business sector, including foreign embassies, NGOs, and global consulting firms seeking short or long-term housing.
Repatriation of Funds and Currency Options
Georgia allows full repatriation of investment proceeds and rental income in foreign currency. Banks facilitate multi-currency accounts (GEL, USD, EUR). Notably, Georgia is not CRS-compliant, which means clients from certain countries may benefit from greater financial privacy compared to EU or OECD jurisdictions.
Special Considerations: Agricultural Land and Rezoning
Foreigners cannot directly purchase agricultural land. However, investors may create a Georgian LLC, respected under Georgian law, which then purchases rural land. If a parcel holds non-agricultural status (e.g., informal settlements or “private household plots”), it is often eligible for foreign ownership—especially if successfully rezoned through municipal authorities.
Professional Support: Lawyers, Agents, Developers
Working with a Tbilisi-based law firm is critical to guard against hidden risks. Legal professionals perform full due diligence, draft purchase agreements, and ensure free and clear titles. Reputable international real estate developers provide full-package housing with financing, warranties, and post-sale customer support. However, independent verification is always advised.
Final Thoughts
For international investors, Georgia’s real estate market stands out due to its affordability, transparent processes, tax efficiency, and optional path to residency. While the market is fairly open, performing rigorous due diligence, understanding zoning restrictions, and navigating local mortgage and legal systems remain vital. With the right professional guidance, Georgia offers an attractive and stable environment for both property investment and global portfolio diversification.
Reach out to Nomos Georgia for expert legal advice on property acquisitions, investment residency, and regulatory compliance at every stage—securely, remotely, or in-person.
