Foreigners can purchase a property in Georgia
following the same regulations available for the local citizens. There is no distinction between local and foreign persons wanting to acquire a property
here. Foreign businessmen can also purchase a property for commercial purposes
and it is important to know that the procedure is carried through the Ministry of Finance and Economy
. Investors who want to open a company in Georgia
are advised to start the due diligence procedure and our team of company formation representatives
can offer advice and assistance in this sense.
Types of properties in Georgia
Foreigners can purchase a property
residential or commercial purposes without any types of restrictions. However, purchasing Georgian properties
that are included in agricultural land is no longer available for foreigners, this regulation being applicable starting with May 2017. Persons who are interested in this matter must know that the definition of “agricultural land”, under the Georgian legislation
, defines any type of property
that is located outside the local towns.
Thus, purchasing a property in Georgia
that is located in the countryside can become an issue, as this type of property
is generally considered agricultural land; our team of Georgian lawyers
can advise on the latest regulations that refer to the purchase of a local property
Businessmen interested in company formation in Georgia
can purchase a property
where they can develop businesses in the following sectors: tourism, construction, gambling, manufacturing or logistic services. Those who want to purchase a property in Georgia
will need to file an application with the Ministry of Finance and Economy
in which they will provide identification details (this is required for both natural persons and legal entities).
Legal entities purchasing properties in Georgia
will need to provide information on the company, the company’s directors and the identification code of the business form; our team of company formation agents in Georgia
can provide more information on this matter and can assist foreigners with advice on the purchase procedure and the documents that need to be prepared.
What should a foreigner known when purchasing a Georgian property?
A foreigner who wants to open a company in Georgia
or to relocate there can benefit from a set of legal rights, that are mostly the same as the ones that are offered to Georgian citizens
. With regards to the purchase of a residential property
, the purchase procedure
implies the same steps that would be followed by locals. Foreigners are not required to provide additional documents, nor do they have to pay additional taxes. Some of the highlights of the purchase procedure
available here are the following:
- • the purchase procedure can be completed relatively fast, and this is also available for the registration of the new ownership;
- • the purchase procedure does not require the payment of the stamp duty;
- • the legal system in Georgia allows a standard registration procedure, which is generally concluded in a period of four days (with the payment of a fee);
- • however a foreigner can request the express procedure, which can be completed in a single day, through the payment of a higher fee;
- • foreigners can benefit from full ownership on their properties and this is also available in the case of commercial properties.
What does the purchase procedure imply in Georgia?
During the procedure of purchasing a Georgian property, a foreigner should expect to go through a set of typical steps. The conclusion of the sale is done through a purchase contract, that is signed by the seller and the buyer. The next step is to make the first payment, as agreed in the purchase contract – in this case, the buyer will make the respective payment in the seller’s bank account, this being the most common way to conclude this transaction.
After this procedure is completed, the Public Service Hall
, working under the Ministry of Justice in Georgia
, will register the change of ownership
for the respective property
. When purchasing a real estate property
from a local developer, the payment will be concluded in the national currency.
As we presented above, it is highly recommended to perform the due diligence procedure on a property prior to purchasing it, in order to verify if there are any hidden flaws and to see if the property itself matches with the information provided in the purchase documents.
Thus, persons who are interested in this matter can easily verify at the Georgian Public Registry relevant information on the property and its owner; matters such as debts, litigations, mortgages and any crucial information on the owner of the property can be obtained through an extract issued by the institution.
Still, foreigners must know that this document is issued in the Georgian language, but an official translation can be obtained on request. This service is available for foreigners, who have to pay a small fee (calculated for each page of the translated document, which generally has maximum six pages). The translated document will then have to be notarized at a public notary in Georgia, a procedure that also imposes the payment of a small fee.
What are the characteristics of Georgian properties?
One of the things foreigners should expect when buying an apartment in Georgia is to purchase it as “white frame” property. A white frame real estate refers to a type of property that is sold with just the bare minimum, in the sense that one should expect an apartment to have the following: a metal door at the main entrance, the windows, the lighting system, electricity and water, internet and phone cables and the heating system.
This means that a typical apartment available for sale, which is bought from a developer, will be offered with bare concrete floors and walls. Most of the apartments are delivered as such, due to the characteristics of the local consumer market. Georgian citizens prefer to design their apartments or houses from scratch and the developers working on the local market respect this wish.
Still, since the Georgian property market is also opened to foreigners, who have different expectations when purchasing a property, developers also offer fully finished apartments. When purchasing a fully finished property, the minimum price per square meter increases by $150, as a general rule, but the price can increase depending on the types of materials used.
Register with the Ministry of Finance and Economy in Georgia
Foreigners who want are interested in the procedure of company registration in Georgia
will need to provide detailed information on their investments carried out on the respective purchased property
. Our team of attorneys in Georgia
can assist with further information on the investment legislation applicable in this country.
They will need to give information on the business activity, the overall value of investments and also on the number of persons who will be employed in the
company. Businessmen interested in further information on other legal aspects related to the purchase of a property
are invited to address to our consultants in company formation in Georgia