At Legal Sandbox Georgia, our engagement does not end at the point of acquisition; we view the purchase as merely the inception of the investment lifecycle. Our Post-Investment Support is a holistic asset management service designed to maximize operational efficiency and ensure legal compliance during the holding period. We oversee the entire renting process, from drafting robust lease agreements that protect against tenant default to managing relations with the Revenue Service. This includes ensuring strict adherence to the preferential tax regimes (such as the 5% rental income tax for residential properties) and monitoring annual tax filings to prevent accrual of penalties. We actively monitor asset growth, tracking capital appreciation against local market indices to inform strategic decision-making regarding rent reviews and lease renewals.
A defining technical component of this service is our bespoke "Portfolio Strategy," a financial and legal roadmap engineered to scale your holdings from a single unit to a multi-asset portfolio (1 → 5 → 10 units). Using advanced Excel modeling, we analyze cash flow reinvestment strategies and leverage ratios to facilitate sustainable expansion. As a portfolio grows, the legal complexity increases; we guide you through the necessary structural transitions, advising on when it becomes fiscally advantageous to shift from individual ownership to a corporate structure (LLC) or a specialized investment vehicle. This ensures that as your revenue streams multiply, your tax liability remains optimized and your exposure to VAT obligations (under the 100,000 GEL threshold for short-term rentals) is managed proactively.
Finally, we manage the critical transition of the investment into a sale (Exit Strategy). A poorly timed or unstructured exit can erode significant value through taxation. We conduct a pre-sale legal audit to clear any encumbrances and advise on the timing of the sale to capitalize on the Tax Code of Georgia’s exemptions, specifically the capital gains tax exemption applicable after two years of ownership. We orchestrate the entire divestment process, from negotiating the Sales Agreement to overseeing the secure repatriation of funds for foreign investors, ensuring the realized yield matches the projections set out in our initial financial models.
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