Property guide
Investing in Georgian Real Estate
Georgia offers a relatively straightforward property market for international buyers. Foreigners can generally own apartments and other non-agricultural real estate directly, while agricultural land is subject to separate restrictions. The important question is not only what yield is advertised, but what you will actually own, earn and be able to resell.
01 · At a glance
Foreign buyers can generally register qualifying non-agricultural real estate directly in their own name. For an individual renting residential property for residential purposes, a 5% income-tax rate can apply where the statutory conditions are met and expenses are not deducted. Standard ownership registration is currently available within 4 working days for 150 GEL, with faster paid options available.
02 · Can foreigners buy property in Georgia?
Yes. A foreign citizen can generally purchase and register an apartment, commercial space and other non-agricultural real estate in their own name. Agricultural land is different and is subject to significant ownership restrictions. If a property includes land, always confirm its registered category before agreeing to the purchase. You do not normally need to create a Georgian company simply to own a residential apartment.
03 · What to check before paying
Never judge a property only by the apartment, renovation or developer presentation. Before transferring money, check the current Public Registry extract and cadastral code; the legally registered owner; mortgages, seizures, restrictions and registered obligations; whether the actual property matches its registered area and description; and the seller's authority to complete the transaction. For a new development, also check land ownership, construction status, contract terms, handover conditions and how your ownership will be registered. For investment property, include management fees, utilities, expected maintenance, furnishing costs and the likely future buyer or tenant in your calculation.
04 · Taxes investors usually ask about
For an individual renting residential property for residential purposes, rental income can generally be taxed at 5% where the applicable statutory conditions are met and no expense deductions are claimed. When an individual sells a residential apartment or house, the taxable surplus is generally subject to a 5% rate. If the residential property has been owned for more than two years, the surplus is generally exempt from income tax. Annual property tax may also apply depending on the owner's circumstances, including family income, property and land. Tax residency and property ownership are separate questions: buying an apartment does not automatically make someone a Georgian tax resident.
05 · How the purchase works
First, verify ownership, restrictions, documents and the physical property. Second, agree a contract that clearly states the property, price, payment mechanics, deadlines and any conditions that must be completed before payment. Third, register the ownership transfer with the National Agency of Public Registry; standard registration is currently available within four working days, with faster paid options. Finally, keep the contract, payment evidence, Registry extract, inspection documents and important correspondence together as one complete file.
06 · Calculate net return, not advertised yield
A property advertised with an attractive yield can produce a very different real return. Start with annual rent and subtract rental tax, vacancy, property management, repairs and maintenance, building or service fees, furniture replacement and insurance where applicable. Then compare the result with your total invested cash, not only the apartment price. Total investment can include the purchase price, registration, legal work, renovation, furniture and financing costs.
07 · Think about the exit before you buy
Rental return is only one part of an investment. Ask who will buy the property from you later. A property with slightly lower rental yield but a larger pool of future buyers can sometimes be stronger than a highly specialised apartment showing a higher headline return. Look at layout, building quality, location, total ticket price and resale demand together.
08 · Property and residence
Property ownership and immigration status are separate. Under current Georgian rules, ownership of qualifying non-agricultural real estate above the statutory market-value threshold may provide a basis for a short-term residence permit. The property's qualifying value, ownership structure and current immigration requirements should be checked before relying on a purchase for residency purposes.
09 · Questions
Do foreigners receive normal registered ownership of an apartment? A foreign buyer can generally register qualifying non-agricultural real estate directly in their own name. Is there a special tax simply because the buyer is foreign? Property taxation depends on the transaction, income and taxpayer's circumstances rather than simply being foreign. Should you buy only for rental yield? No — compare net income, vacancy risk, building quality, future resale demand and the total capital required. A fresh Public Registry extract is one of the first documents to review, but it does not replace full legal and physical due diligence. Tax, property and residence rules can change, so verify the rules that apply to the specific transaction before completion.
For general information only. This guide is not a substitute for legal, tax or investment advice. Verify the facts for your particular transaction and consult a qualified professional when necessary.