Frequently asked question

Still have question?

We're ready to help you to answer any questions please contact us

+995 577 694 801

+995 577 694 802

+995 577 694 803

+995 577 694 804

info@mextgentrading.ge

Georgian Real Estate Basics

Immovable property refers to assets that are permanently attached to the earth and cannot be moved from one place to another without altering their nature or causing damage. This includes land, buildings, and anything affixed to the earth, such as structures or fixtures intended to be permanent. The legal definitions provided by various statutes (such as the General Clauses Act, 1897, and the Registration Act, 1908) clarify that immovable property encompasses land, benefits arising from land, buildings, hereditary allowances, rights to ways, lights, and other things permanently attached to the earth. Notably, items like standing timber, growing crops, and grass are excluded from the definition of immovable property

Agricultural land is land devoted primarily to agriculture, including the systematic cultivation of crops and the rearing of livestock to produce food and other agricultural products. According to international definitions, agricultural land encompasses:

  • Arable land (cropland):Land used for crops that require annual replanting, as well as temporary fallow land and meadows.
  • Permanent cropland: Land with crops that do not require annual replanting, such as orchards and vineyards.
  • Permanent pastures: Natural or cultivated grasslands and shrublands used for grazing livestock for five or more years
The Law of Georgia "On Ownership of Agricultural Land" explicitly prohibits foreign individuals from purchasing agricultural land in the country. Even marrying a Georgian citizen does not grant the right to purchase or register agricultural land

Strong reasons make Georgia an attractive destination for real estate investment:

  • Strong Rental Yields and ROI: Tbilisi offers high rental yields compared to many European cities, making it attractive for both long-term and short-term rental investors. Airbnb data for 2025 shows that top-performing properties can achieve monthly revenues of $1,500+ with occupancy rates above 80%, while even median properties generate around $570 per month. This strong rental demand is driven by tourism, business travel, and a growing expat community.
  • Affordable Prices and Capital Growth: Property prices in Tbilisi remain relatively low by international standards, yet the market has shown consistent appreciation. In 2024, transaction values surged by 12%, with central districts seeing price increases of up to 15%. While the market has cooled from the explosive growth of previous years, moderate and stable price increases continue, providing potential for capital gains
  • Favorable Investment Environment: Georgia’s legal framework is investor-friendly: Foreigners can buy real estate (except agricultural land) with the same rights as locals. The process is straightforward, and property rights are secure. Taxes on property and rental income are low compared to most European countries
  • Residency by Investment: Purchasing property above a certain threshold can qualify foreign investors for Georgia’s residency-by-investment program, offering additional benefits such as ease of travel and long-term stability
  • Market Resilience and Economic Growth: Tbilisi’s real estate market has proven resilient, with steady demand and ongoing urban development. The city’s unique blend of cultural heritage and modern infrastructure continues to attract both local and international buyers. Even as growth moderates, the market remains active, particularly in premium developments and well-located districts
  • Booming Short-Term Rental Market: The short-term rental (Airbnb) market is robust, with low regulatory barriers and strong tourist demand. Strategic pricing and property management can maximize returns, especially during peak seasons

Yes, foreigners can buy most types of residential and commercial real estate in Georgia without restrictions, except for agricultural land.

To purchase property in Georgia, you will need a passport or other identification, along with the ownership documents of the property and the purchase agreement.

While it’s not mandatory, it is highly recommended to use the services of a local realtor or lawyer to ensure the legal purity of the transaction and compliance with all necessary procedures.

Money and Mortgages

Yes, foreigners can obtain mortgages for property purchases in Tbilisi, Georgia. Georgian banks provide mortgage loans to non-residents for both new developments (often through agreements with developers) and resale properties. Foreigners have the same rights as locals when applying for residential property loans, though the process generally requires an in-person visit to Tbilisi to open a bank account and finalize the mortgage agreement. Foreigners can get mortgages in Tbilisi, Georgia, with typical rates in 2025 ranging from 5–8% (EUR), 7–9% (USD), and 10–11% (GEL). Banks usually finance up to 70% of the property value for up to 10–20 years. The process requires proof of income and an in-person visit to Georgia

If you do not use a mortgage, you may still have flexible payment options-especially with developers-rather than needing to pay 100% upfront in a single payment

All property payments must be made in Georgian Lari (GEL). Prices are often quoted in USD or EUR, but conversion to GEL at the official rate is required at the time of payment. Direct payment in foreign currency is not permitted by Georgian law.

You can transfer funds to Georgia using several reliable methods:

  • International Bank Transfer (SWIFT/Wire): Most banks allow you to send money from your home country directly to a Georgian bank account. This is the most common method for large property purchases. SWIFT transfers are secure and widely accepted by Georgian banks.
  • Money Transfer Services: Companies like Wise, Western Union, and Unimoni let you send money online or in person. Wise is popular for its low fees and transparency, and it can deliver funds to a Georgian bank account within minutes to a couple of days, depending on the amount and method.
  • Cash Pickup: Services like Western Union allow recipients in Georgia to collect cash at local agent locations, but this is less common for large property purchases due to transaction limits and security concerns.
Potential Problems When Sending Funds to Georgia:
  • Banking Delays: SWIFT transfers can take 3–5 business days, especially if intermediary banks are involved, which may slow the process.
  • Transfer Limits: Some banks and money transfer services impose limits on how much you can send per transaction or per day. Check these in advance, especially for large property purchases.
  • Exchange Rate Fluctuations: Property must be paid in Georgian Lari (GEL), even if the price is quoted in USD or EUR. The exchange rate used on the day of transfer can affect the final amount received.
  • Proof of Funds: For large transactions, both your sending bank and the receiving Georgian bank may request documentation to comply with anti-money laundering (AML) regulations. Be prepared to show the source of your funds and the purpose of the transfer.
  • Service Fees: Banks and transfer services may charge fees, and some may offer less favorable exchange rates. Compare providers to minimize costs.
  • Remittance Restrictions: While Georgia has no significant restrictions on receiving foreign funds, your home country may have rules or require approval for large overseas transfers. Always check with your local bank or regulator.
  • Technical Issues: Errors in recipient details (such as IBAN or SWIFT code) can cause delays or returned payments.

You do not have to use an estate agent, but it is highly advisable for most buyers, especially foreigners. Expect agent fees of 3–5% of the sale price, usually paid by the seller, though buyers may pay a fee for special services or exclusive access to properties.

Legal Process and Considerations

To close a property purchase in Tbilisi, you must provide a signed sale agreement, identification, TIN, title deed, cadastral map extract, proof of payment, and any relevant construction documents. The transaction is finalized and legally recognized after registration with the National Agency of Public Registry.

All property purchase contracts in Tbilisi must be in Georgian. Bilingual contracts are common, but the Georgian version is legally binding. Certified translation and an interpreter are required if you do not speak Georgian.

Buying finished property in Tbilisi involves immediate transfer of ownership with lower risk, while buying off-plan property requires a pre-purchase agreement, delayed ownership transfer, installment payments, and carries higher risk due to dependence on the developer’s performance.

You can legally and securely buy property in Tbilisi, Georgia, from abroad by appointing a representative with a notarized power of attorney. The transaction, including payment and registration, can be handled entirely remotely.

Property and Capital Gain Taxes

At the time of purchasing residential property in Tbilisi, Georgia, no stamp duty, transfer tax, or purchase tax is levied on the buyer. The only mandatory cost at the time of purchase is the property registration fee, which ranges from 50 to 200 GEL (approximately $20–$80), depending on the speed of processing you choose.

If you sell residential property in Tbilisi, Georgia, the primary tax you may face is capital gains (income) tax, and the rate depends on how long you have owned the property:

  • If you sell within two years of purchase: You must pay a 5% tax on the capital gain, which is the difference between your buying and selling price. For example, if you bought for $120,000 and sold for $150,000 within two years, you pay 5% on the $30,000 gain (i.e., $1,500).
  • If you sell after two years of ownership: No tax is levied on the capital gain from the sale of residential property if you have owned it for more than two years before selling
  • VAT: VAT is not applicable to private individuals selling their own residential property, unless property trading is your business
  • Declaration and Payment: You must declare the income and pay any due tax by April 1st of the year following the sale.

If your household income is below 40,000 GEL, you owe no annual property tax on residential property. If above, you pay 0.05%–1% of the market value, with the exact rate and process set by local authorities. File your declaration by October 1 each year and pay via bank transfer after filing.

If you rent out residential property in Tbilisi, expect to pay a flat 5% tax on gross rental income (with registration), and potentially annual property tax if your household income is above 40,000 GEL. VAT applies only if your rental income is very high.

MiscellaneousQuestions

Yes, real estate (property) insurance is widely available in Tbilisi, Georgia. Multiple local and international insurers offer comprehensive property insurance products for homeowners, landlords, tenants, and businesses.

In Tbilisi, "black frame," "white frame," and "green frame" refer to the stages of completion of an apartment or property at the time of sale. These terms are crucial for buyers to understand, as each stage involves a different level of finishing, cost, and readiness for occupancy. Black frame is a bare-bones, unfinished shell. White frame is partially finished, with essential systems but no cosmetic work. Green frame is nearly turnkey, needing only furniture and appliances to be fully livable

Foreigners can obtain a temporary residence permit in Georgia by purchasing non-agricultural real estate (such as an apartment or commercial property) in Tbilisi with a market value of at least $100,000 USD (or equivalent in Georgian Lari). This permit is valid for one year and can be renewed annually as long as you continue to meet the requirements.