Georgia presents numerous opportunities for foreign real estate investors.

Georgia presents numerous opportunities for foreign real estate investors.

In the past five years, foreign investment in real estate in Georgia has been on the rise, driven by the nation's liberal property laws, favourable tax regime, and streamlined administrative processes.

Property Ownership Rights for Foreigners

Foreign nationals enjoy the same rights as Georgian citizens when purchasing residential and commercial real estate. This includes apartments, houses, office spaces, and retail properties. There are no restrictions on foreign ownership of such properties .

However, foreign individuals are prohibited from owning agricultural land directly. This restriction was enshrined in the 2017 constitutional amendment, which limits ownership of agricultural land to the state, Georgian citizens, or entities owned by Georgian citizens . Foreigners can, however, lease agricultural land for up to 99 years or acquire it through a Georgian-registered company .

Buying Real Estate as a Foreigner

Georgia's real estate market has attracted significant foreign interest, particularly in urban centres like Tbilisi and Batumi. Tbilisi, the capital, serves as the country's economic hub, contributing over 50% of Georgia's GDP. The city's diversified economy and developed infrastructure continue to attract investment from regional and international businesses .

The property purchase process in Georgia is straightforward:

Finding Property: Foreigners can buy properties directly from owners, agents, or developers.

Due Diligence: It's advisable to perform due diligence to confirm property ownership and the absence of liens or other encumbrances.

Preliminary Agreement: Usually involves a deposit, often around 10% of the property price.

Sales Agreement: The final purchase agreement must be signed in Georgia.

Registration: The transaction must be registered with the National Agency of Public Registry (NAPR), which issues legal ownership documents. This process typically takes one business day for regular registration or one hour with expedited service .

Taxation and Residency Incentives

Georgia offers a competitive tax environment for property owners:

Property Tax: Annual property tax amounts to no more than 1% of the property's market value, often less.

Capital Gains Tax: There is a 0% capital gains tax if the property is sold after two years of ownership.

Rental Income Tax: Rental income is taxed at 5% for residential properties.

VAT: Value-added tax (VAT) is collected at a flat rate of 18%, but selling property is subject to VAT only if it's part of a business activity .

Additionally, purchasing property exceeding $100,000 USD allows the buyer and their direct family members to apply for a temporary residency permit, renewable annually .

Government Support for Foreign Investment

The Georgian government actively encourages foreign investment through various initiatives:

Legal Protections: The Law on Promotion and Guarantee of Investment Activity protects foreign investors from subsequent legislation that alters the conditions of their investments for a period of ten years .

Enterprise Georgia: This government agency acts as a "one-stop-shop" to support investors throughout the investment process, providing access to updated information and facilitating communication with government bodies

Free Industrial Zones: Companies operating in these zones are exempt from most taxes, including corporate income tax, VAT, and property tax, making them attractive for foreign investors .

Trends

In 2025, Georgia's real estate market is experiencing a period of stabilization following several years of rapid growth.

Here's an overview of the current trends:

Residential Property Prices

Tbilisi: In February 2025, the average price per square meter was $1,157, marking an increase of $90 from the previous year.

Batumi: The average price reached $1,179 per square meter in February 2025, up by $165 compared to February 2024.

Mtatsminda (Tbilisi district): Maintained the highest average price per square meter, exceeding $2,000.