How to buy property in Georgia?
In Georgia property registration is done in House of Justice (Georgia Ministry of Justice). It is hard to find more reliable warrantor. Entire registration procedure is open and transparent.
- within 1 business day: $70.
- within 4 business days: $25.
Extract from the Land Title Registry is generally available in electronic format on the official web-site of the Georgian Land Title Registry (information about owner, arrests, alienations, encumbrances, mortgage litigation and debt disputes etc.)
More information can be found on the official website of House of Justice (Public Service Hall): http://psh.gov.ge/main/menus/3
- Conclusion of the real estate sale and purchase contract between Seller and Buyer. Contract formalization and registration can be done in House of Justice (Georgia Ministry of Justice).
- Buyer makes payment to the Seller's bank account, according to the concluded contract. Payment is made in any convenient way (by cash and more common - non-cash payment).
- Real estate object is registered on a Buyer in accordance with concluded contract and satisfied payment. The registration is formalized in House of Justice (Ministry of Justice of Georgia).
When buying real estate in Georgia, particularly the need for cash is not. Payment shall be made by any convenient way (cash or non-cash payment). More common way is non-cash payment.
Actual payment for real estate from the developers is performed by national currency (GEL). The payment coming on the account of the construction company is converted on the exchange rate established by the National Bank of Georgia on the day of payment.
On our web-site the prices are given in USD for added convenience.
Mortgage can not be granted for foreign citizens, but they can avail themselves of payment by installment, provided by construction companies-developers. Almost all construction companies-developers offer installments for a period of 5-36 months and an initial contribution of 20-50% in new buildings.
Information about new buildings is represented on our website in the sections of:
New buildings on developer prices: http://geokravec.com/en/new-building
Apartments in ranted new-buildings (sold by owners, and usually without installments): http://geokravec.com/en/handed-new-building
Foreign citizens have a possibility to open bank accounts in any Georgian bank without limitation; they only need passport and money. In some cases (in occasion of large sums) banks can request the income declaration.
- Import is allowed without limitation, but the sum above 30 thousands lari (or the equivalent in foreign exchange) should be declared. Declaration has to be saved (preferably) during the year.
- Export from Georgia is allowed on the sum analogous to imported (declared) sum on condition that no more than a year went by since the day of entrance to the country. Income declaration is needed in case of overrun.
- Income tax on the rent of non-commercial (residential) real estate is 5%.
- Income tax on the rent of commercial real estate is 20%.
- If the resale of non-commercial (residential) real estate is done during two years, the income tax makes 5% (the difference between selling and buying prices). After two years expiration tax payment ceases.
- If the resale of commercial real estate is done during two years, the income tax makes 20% (the difference between selling and buying prices). After two years expiration tax payment ceases.
In Georgia all the land parcels are separated on intended assignment: agricultural assignment and nonagricultural assignment. The quantity of agricultural assignment variants is greater than nonagricultural assignment variants. The cost of agricultural assignment is lower than of nonagricultural. Tax amount on land parcels is rather insignificant, equal both for natural and legal persons, depends on Georgia region and comes to $45-55/Hа in a year. Construction is allowed on any land parcels. The difference is only in a person who has a permission to purchase. Georgian citizens can choose any parcels (both agricultural and nonagricultural assignment). Foreign citizens can purchase nonagricultural parcels, but for the buying of agricultural parcels there are certain limitations.
There is a broad variety of options in the next sections:
Houses and cottages: http://geokravec.com/en/houses
Land parcels: http://geokravec.com/en/land
Perfect investment proposals: http://geokravec.com/en/investment
The purchase of constructible land parcel on the coast, acquisition of residential and commercial property and their construction are the most preferable options from investment point view. By the end of a construction, residential and commercial places are realized on 85-90%, practically, on the moment of construct completion almost all spaces are already sold. Named above factors indicate the high degree of real estate liquidity.
As the example of Batumi real estate market we give the average cost data. Location, storey, object condition and the proximity to the sea have a great influence on the cost of real estate objects.
Territorially Batumi can be divided on three lines (areas). House numeration starts from the sea. Odd numbers are usually on the left side of the road and even numbers - on the right.
- First line (area): from sea to Chavchavadze St.
- Second line (area): from Chavchavadze St. to Bagrationi St.
- Third line (area): after Bagrationi St.
- by the sea (is within 500 m from the sea): $500-1500/m2.
- far from the sea: $300-900/m2.
- at the beginning of a construction: $500-800/m2.
- at the end of a construction: $1200-2500/m2.
- at the beginning of a construction: $400-700/m2.
- at the end of a construction: $600-1200/m2.
- at the beginning of a construction: $1000-1500/m2.
- at the end of a construction: $1500-3000/m2.
- 1 Bedroom flat (30-50m2): $350-700/month.
- 2 Bedrooms flat (50-70m2): $400-800/month.
- 3 Bedrooms flat (70-100m2): $600-1000/month.
- Cost of commercial spaces renting: $10-30/m2 month.
- Electricity: $0,08-0,10/kWh
- Water: $1,10-1,12/person
- Gas: $0,25-0,30/m3
- Waste service: $1,05-1,10/person
- Payments to Public Housing and Utilities Unit for house services make 10-15$ in a month.
- Repair and finishing work cost: $130-250/m2.
- The cost of capital construction: $80-240/m2.
Foreign investors show more interest to Georgia real estate. Georgia Government is eager to maximally improve the investment climate in Georgia during the past few years, providing certain benefits to investors by constant ease of the tax burden. Owing to taken decisive steps, nowadays more favorable conditions are created for foreign investors, businesses and individuals comparably to the local population. Foreigners do not need to declare the income sources that are obligative for the Georgian citizens.
It is much easier to buy real estate in Georgia, than in many other countries. Local laws allow foreign citizens to buy freely any real estate in private ownership. Investments are fully protected by the current legislation, creating favorable conditions for foreign investments. The guarantee of the reliability and safety of invested means are the registration of real estate of investor's property. According to the Economic Freedom Index, Georgia holds the 5th place among 185 countries in the world. Certainly, it is really hard to find more comfortable conditions for real estate purchase in the resort area.