Taxes and fees when buying and owning property in Georgia

Opportunity for foreigners to buy property in Georgia

Have you ever thought about buying property abroad? Georgia is a country where foreigners can do this, and it is not just a formality on paper. The very atmosphere here favours investment: culture, cuisine and, of course, the climate. The cherry on the cake is an amazing opportunity for foreigners legally and without unnecessary restrictions to buy property.

Why is it attracting so many investors from around the world? Let's dive into the details.

Openness of the market to foreigners

The first thing to note is that friendly legislative framework. According to the Law on Property of Georgia, investors from other countries are free to purchase property, whether it is a flat with a sea view in Batumi or a cosy house in the ancient part of Tbilisi. Exception is just farmland, but that doesn't appeal to everyone, does it?

Transparency and simplicity of transactions

The process of buying a flat or house in Georgia is so simple and transparent that many foreigners prefer this market to others. There is no need to jump through bureaucratic hoops, it is enough to have a standard package of documents in hand. The only thing you need to do is to translate them into the state language, and there are plenty of professional translators in the country to help.

Personal success stories

Take Mark from Germany, for example, who once visited Georgia and was captivated by the beauty of the local mountains and the hospitality of the people. After falling in love with the country, he bought a flat in Kutaisi a couple of months later. "I have never experienced so much ease in the process of buying a property," Mark marvels. Such experiences are not uncommon among foreigners who decide to invest in Georgian property.

Financial advantages

The absence of VAT and other taxes when buying a home is another plus. This fact allows you to save money and use it for other purposes, such as improving or decorating the interior.

Prospects for investors

Georgia is not only history and traditions, but also a country with a developing property market. Thanks to its position on the map, the country acts as a link between Europe and Asia. The possibility of investing in commercial property or rental business opens up horizons for additional income. Here, rentals are also growing in value, attracting the attention of various entrepreneurs and investors.

It is easy to ask important questions and understand the intricacies of the process, and you can count on the support of local experts who keep abreast of the latest legislative changes.

All of this makes buying property in Georgia not just a worthwhile investment, but an exciting new phase of life. If you have been thinking about investing, Georgia could be your personal key to financial success and stability.

No tax on the acquisition of housing

When it comes to buying property in Georgia, one of the most attractive factors for investors is to no taxes on the purchase of housing. Just imagine: no VAT or other unpleasant surprises that might make you reconsider your purchase budget. This is what makes the Georgian property market particularly competitive among other countries.

In the world of real estate, there is often confusion due to hidden fees and taxes that can significantly increase costs. In Georgia, the situation is quite different. All processes are governed by clear lawsand investors from other countries can be assured that there will be no unforeseen costs. More information on this can be found in of the Tax Code of Georgia.

The absence of additional taxes on the purchase of housing allows investors to use their funds more rationally. Savings can be invested in renovation or design. Isn't this a gift for those who seek to develop their investment portfolio?

Examples of favourable solutions

Let's use a real-life example: Jane from the UK had long dreamed of a flat by the sea. When she learnt that there was no tax on the purchase of housing in Georgia, she did not hesitate to invest in a flat in picturesque Batumi. Such decisions allow investors to not only preserve but also multiply their capital.

For foreign citizens this situation is another incentive to enter the Georgian property market. Simplicity and accessibility of proceduressupport of professionals and transparent conditions - all this creates ideal conditions for the first purchase of a home abroad.

Opportunities to facilitate the process

For those who are concerned about language barriers, there are interpreters available in Georgia, as well as a large number of specialists who are ready to help with any questions that may arise. This fact is not insignificant, as the absence of acquisition tax compensates for the costs associated with notary and translation services.

With the rate of growth of the property market in Georgia and the co-operating conditions for foreign investors, it is clear why so many people are choosing Georgia for their investments. If you are thinking about buying and looking to spend wisely, Georgia is your chance to take advantage of a reliable and favourable investment opportunity.

State duty for registration of ownership right

When we talk about buying a property, an equally important part of the process is becoming a registration of ownership. In Georgia, this procedure is maximally simplified and available to everyone, including foreign investors. Let's understand in detail how it happens and what rates are set.

Registration of ownership in Georgia is an example of how a 21st century bureaucracy should work. The main goal of the state is to make the process fast and convenient for all participants. State duty for registration of the right The fee varies depending on the urgency and is only GEL 50 if you are willing to wait 4 working days. If the situation is urgent, you can speed up the process to one day by paying GEL 200. You can find more details about this on the website.

Such an affordable registration price is another plus that attracts investors. For a relatively small amount of money, a full package of services is provided, including verification of documents and formalisation of rights for the buyer. The cost is really competitive when compared to similar services in other countries.

Examples from life

Take Semyon from Russia, who recently bought a flat in Tbilisi. "The procedure was surprisingly simple and inexpensive," he says. "We processed all the documents in less than a week, and that's without any agonising paperwork." This personal experience illustrates how effective Georgian services for property owners are.

The documents required for registration are reduced to an absolute minimum: proof of purchase, proof of identity and translation into Georgian. This saves buyers from unnecessary hassle and contributes to a comfortable completion of the transaction.

Additional Amenities

The Georgian registration system also offers the possibility to online applicationsThis is especially convenient for foreign citizens or those who want to save time. This approach makes life easier for investors and contributes to the positive image of the Georgian property market.

For investors planning their strategies in the international market, it is important to know that registering property space in Georgia is not only easy, but also surprisingly cheap. This makes Georgia a particularly attractive investment destination, providing a quick start and minimal costs.

Notary services and translation of documents

Buying property abroad is always accompanied by a lot of paperwork, and Georgia is no exception. However, the processes here are so simplified and adapted for the convenience of investors that they cease to be an annoying obstacle.

Non-obligation of notary services

Unlike many other countries, Notary services are not mandatory in Georgia when executing property sale and purchase transactions between individuals. If you want to use them, because it is simply calmer, you can go to a notary. This will add confidence in the correctness of the registration, but is not a necessity. The cost of such services varies from 200 to 500 GEL, depending on the complexity and volume of work, and for You can find more information about the tariffs on the website of the Georgian Chamber of Notaries.

Translation of documents

If you are a foreign investor, a mandatory step will be to translation of all documents into Georgian. This requirement avoids misunderstandings and ensures that all parties to the transaction understand its terms. The cost depends on the prevailing market rates, but it is usually quite affordable and does not represent a large share of the total purchase price.

Real-life examples of the process

Imagine the situation: Mark from Austria found his dream flat in Kutaisi. He needed to translate a set of documents. Thanks to an extensive network of professional translators, this did not take long, and within a few days he started to enjoy the purchase.

Many real estate agencies in Georgia offer assistance with translation and notary services. This can be particularly useful if you want to minimise your time and ensure that all the paperwork is correct. Selecting a competent partnerHaving someone who can advise and support at every stage of the transaction is often the key to a successful experience.

In general, the Georgian system of registration and registration of property transactions demonstrates a high level of flexibility and adaptability. Investors have the freedom to choose whether to use professional assistance of notaries and interpreters or to solve all issues on their own. This approach allows each client to choose the option that best suits themThis confirms Georgia's reputation as a country with a favourable investment climate.

Real estate agency commission

When it comes to buying a property in Georgia, an important aspect becomes the estate agency commission. This nuance often attracts the attention of investors looking to optimise their costs and get the most out of a deal.

One of the main features of the Georgian market is the flexibility of agency commissions. Usually they range from 2% to 5% of the value of the propertydepending on the complexity of the transaction and the level of services provided. This rate is considered reasonable, especially considering the support that agencies provide to their clients.

Fees are often negotiable and can be adjusted slightly depending on the terms of the transaction. There are no rigid standards or mandatory minimum rates, so that it's all about negotiating skills. Many agencies are ready for a dialogue with buyers, which is beneficial for trust and long-term cooperation.

It should not be forgotten that estate agencies provide more than just intermediary services. They offer competent counselling, assistance in gathering and completing documentationThis is especially important for foreign investors who are not sure of their knowledge of the local market and legislation. This is especially important for foreign investors who are not confident in their knowledge of the local market and legislation.

Personal stories and examples

Victoria from Israel shares her experience: "When I first decided to invest in Georgian property, I felt lost in a sea of information. The agency not only found some great options for me, but also helped me negotiate a discount on the commission. Everything went smoothly and I was satisfied.

Useful tips

When choosing an agency, it is recommended to pay attention to its reputation, client reviews and licences. Consider different offers and do not hesitate to ask questions about additional services and possible discounts.

Real estate agency commission in Georgia is an important, but not the only factor that affects the success of a transaction. Specialists can greatly simplify the process, making it more transparent and comfortable for the buyer. Investing in professional services is a step towards a successful investment and long-term benefits.

Annual real estate (property) tax

When you own property in Georgia, it's important to understand how property works annual property tax. It is a compulsory payment for everyone who earns income within the country, and it is naturally of interest to investors.

Main tax rates

The rate depends on the assessed value of the property and your income in Georgia:

• 0% to 1% - is a range of rates. If your income does not exceed GEL 40,000 per year, no tax is charged. This flexibility allows you to adapt to the financial possibilities of the property owner.

Benefits and exemptions

Georgia offers a number of exemptions that are aimed at supporting certain categories of property owners. For example, the following are exempt from tax:

• Low-income people
• Medical tourism facilities
• Hotels and some businesses

These incentives help to make taxation fairer and motivate business development in certain sectors.

Tax payment procedure

Payment of property tax is made before 15 November of each yearand the declaration is filed before 1 November. Foreigners are required to apply for a TIN - Taxpayer Identification Numberwhich is quite easy to do. Registration is possible via electronic services on RS.ge.

Useful tips

In order to successfully manage tax liabilities in Georgia, investors are advised:

1. Submit declarations in a timely mannerto avoid fines.
2. Explore available benefitsPaying particular attention to the status of your facility.

The annual property tax in Georgia is simple and transparent, making it understandable for foreign investors. Systematic approaches to property taxation create favourable conditions for business and personal use of propertyThis makes Georgia an attractive investment destination.

Land tax

It is important for investors considering the purchase of land in Georgia to understand the specifics of the land tax. It is an obligation that applies to all land owners and depends on the size and purpose of the land.

Main tax rates

Land tax in Georgia is calculated depending on several factors, including the location and use of the land:

• The base rate starts from GEL 0.24 per square metre. This amount may vary depending on the type of land use (commercial, residential, agricultural, etc.) and its location. Such methods allow for flexibility and fairness in taxation.

Regional coefficients

Land tax also has regional coefficients. The more developed and in demand a region is, the higher its coefficient. For example, land in a tourist region may be taxed slightly higher due to its economic attractiveness and income-generating opportunities.

Benefits and exemptions

Georgia proposes exemptions for certain categories and uses of land. Specifically:

• New farmland may be exempt from tax for up to five years.
• Mountainous areas are also often taxed at favourable rates.

These incentives encourage agricultural development and the utilisation of hard-to-reach land.

Goal setting and tax strategy

It is recommended that you plan your tax obligations properly:

1. Study regulatory documents and engage in land use planningto take advantage of all available benefits.
2. Consult regularly with local specialistsTo keep up to date with new changes in legislation that may affect tax rates.

Land tax in Georgia is a clear and adaptive mechanism designed to support both local entrepreneurs and international investors. Flexibility of rates and availability of incentives contribute to the efficient use of land resourcesmaking investing in Georgian land an elegant financial decision.

Property rental tax

For investors planning to rent out property in Georgia, it is important to understand the specifics rental tax. This part of the tax legislation can have a significant impact on rental income and is mandatory for all property owners, both resident and non-resident.

Tax rates

Rental tax in Georgia depends on the type of property being rented out:

• 5% - for residential rentals. This makes renting out accommodation very attractive, especially for those considering short-term rentals through platforms like Airbnb.
• 20% - for commercial leases. This rate applies to properties used for business, however, which is offset by the high income from these types of leases.

Declaration and payment procedure

Owners have various ways of organising the payment of taxes:

• Annual declaration must be submitted by 31 March of the following year.
• It's also possible to switch to quarterly advancesThis allows for better management of the tax burden.

Real-life examples

Let's look at the case of Maria from Poland, who rents out her flat in Batumi to tourists for the summer months. Thanks to the flat rate of 5%, she can clearly plan her income and easily manage her tax obligations.

There are some incentives and tax minimisation opportunities for tenants, such as registering as a micro-business to reduce the tax burden on small incomes.

Useful tips

1. Carefully examine lease terms and tax optimisation opportunities.
2. Consult with experts to tailor your rental strategy to changes in the legal framework.

Tax on rental property in Georgia is quite moderate and understandable, which makes the country attractive for investors focused on generating income from the rental business. Flexibility and transparency of the tax system contribute to the successful development of leasing as a strategic investment area.

Tax on sale of real estate (capital gains)

Selling a property is an important step for every investor, and understanding the capital gains tax in Georgia can have a significant impact on your strategy. This tax applies to profits from the sale of real estate and requires careful consideration.

Basic conditions of taxation

In Georgia, capital gains tax applies only to residents:

• 5% on profit from the sale of real estate. This means that tax is charged on the difference between the purchase and sale price of the property. Non-residents do not pay this tax, which favours Georgia for international investors.

A property owner may be exempted from paying tax if the property is owned for more than two years. This rule makes long-term investments even more attractive by avoiding tax liability upon sale.

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Examples from life

Consider David from France, who bought a property in Tbilisi and after three years found that its value had increased significantly. Because he had owned the property for more than two years, he was able to sell it without paying capital gains tax, resulting in significant savings.

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Planning strategies

To maximise tax efficiency, investors are advised to:

1. Holding the property for more than two yearsif possible, to take advantage of the benefit.
2. Keep detailed records of all expendituresrelated to real estate improvements, as they can be deducted in the calculation of capital gains tax.

Capital Gains Tax in Georgia is an important aspect for investors, which can be easily minimised with the right approach. Proper estate planning and retention on a long-term basis not only benefits you, but also contributes to the financial stability of investors.

Tax on inheritance and gift of real estate

When planning a long-term property investment in Georgia, it is important to consider inheritance and gift tax. This taxation can seriously affect financial decisions about asset management and legacy planning.

Inheritance and gift tax rates

Georgia offers a flexible taxation system in this area:

• 0% - for close relatives. This exemption makes intra-family property transfers as simple and beneficial as possible.
• 5% to 20% - for distant relatives and strangers. The percentage depends on the degree of kinship and the specific terms of the gift or inheritance.

One of the key features is the requirement to formalise any gift transactions between first line relatives. Although no tax is charged in this case, a notary officer must confirm the fact that the property has been transferred. This prevents possible legal problems in the future.

Examples from life

Let us consider a situation: Anna from Italy decided to give her flat in Batumi to her daughter as a gift. Thanks to the zero rate of gift tax for close relatives, the transaction went off without any financial losses. All that was required was to draw up the documents at a local notary's office.

Useful tips

1. Plan the transfer of property in advanceTo understand the procedure and possible tax liabilities.
2. Consult with lawyersIn order to avoid unforeseen costs during the processing phase and to enter the legal field without stress.

Inheritance and gift tax on real estate in Georgia is characterised by flexibility and accessibility for family transactions. This system makes the process of property transfer transparent and cost-effectiveproviding investors with confidence in the future and giving them opportunities for favourable and secure inheritance planning.

Tips for reducing the tax burden

Tax optimisation is a key aspect of effective property investment management. In Georgia, there are a variety of strategies that can help reduce your tax burden. Let's take a closer look at them.

Formalisation as a microbusiness

Georgia has created an environment to support small businesses, and real estate is no exception. If your income from rental properties does not exceed 30,000 GEL per yearyou can organise your activities as a micro-business and you can pay 0% tax. This simple solution significantly minimises costs.

Timely filing of declarations

Punctuality in filing tax returns is a prerequisite for avoiding penalties and wrongful assessments:

• The filing of an estate tax return must be done before 1 November.
• Payment of tax must be made before 15 November.

Don't forget that failure to meet your obligations in a timely manner can result in a tax assessment at the maximum rate, up to 1% of the cadastral value.

The "hold for 2 years" strategy

One of the most proven strategies is ownership of the property for more than two years. This avoids paying capital gains tax on a subsequent sale. Holding a property for the long term also has the added benefit of stable rental income.

Real examples and tips

Consider Alexei, who successfully applied a micro-business strategy to his flat in Tbilisi. Thanks to this decision, he avoided many tax expenses and was able to reinvest the proceeds into renovation and modernisation of the dwelling, which in turn led to an increase in rent.

Counselling and legal support

To ensure the effectiveness of all the above strategies, investors are advised:

1. Regularly consult with tax advisors and lawyers. They will help you stay up to date with the latest changes in the law.
2. Use online resourcesSuch as electronic filing services for easy management of processes.

Reducing the tax burden of Georgian property investments is possible through a combination of different strategies and legal support. The flexibility of Georgian legislation provides investors with a wide arsenal of opportunities for tax optimisationhelping to preserve and grow capital.

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🔗 Useful links

1. Georgian Tax Service
   Here you can find out the current tax rates, rental registration rules and landlord responsibilities - especially important for foreign investors.
2. Official Portal of the Georgian Chamber of Notaries
   You can find a list of notaries, their contacts and services, and book an appointment online.
3. Official e-services portal of the Georgian Tax Service
   Here investors can check the status of a property, tax obligations, register a lease agreement and access other government services online.

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Conclusion

Investing in property in Georgia opens up numerous prospects for investors. The country is an attractive investment destination due to its transparent legislative framework and favourable taxation conditions. As it became clear from the aspects discussed, the property market in Georgia is characterised by transparency and accessibility, which makes it ideal for foreign investors.

Advantages of the Georgian property market

The main advantages that encourage investment in Georgia are:

• No tax on the acquisition of housing and comparatively low government fees.
• Opportunities for tax minimisation, such as micro-business status or a long-term ownership strategy.
• Flexible taxation system for leasing and trading operations, ensuring competitiveness.

These factors, coupled with a growing economy and stable political situation, make Georgia not just a place to invest, but a lucrative opportunity for long-term income and capital growth.

The need for professional counselling

We strongly recommend you to pay attention to professional help and legal support. Consultations with tax and legal experts can help you take into account the specifics of local legislation and maximise the benefits of your investment. Using online resources to manage transactions and tax obligations can also be helpful.

If you would like to find out more or get further advice on Georgian property investment, we are here to provide you with the support you need. Leave a request on our website to receive a selection of properties.

Take advantage of this unique opportunity to realise your investment plans in Georgia and we will be happy to help you achieve your financial goals.