---
title: "Privatization of Agricultural Land"
url: "https://legal.ge/en/service/civil-law-en/agricultural-land-privatization-en"
field: "Civil Law"
description: "Privatization of Georgian agricultural land: 3-hectare parcels, 30-day deadlines, 10% guarantees and the tenant buy-out procedure. Legal.ge."
updated: "2026-10-14"
publisher: "legal.ge"
---

# Privatization of Agricultural Land

> Source: legal.ge, https://legal.ge/en/service/civil-law-en/agricultural-land-privatization-en

## Privatization of Agricultural Land — Forms and Implementing Bodies

Agricultural land held in state ownership is disposed of under a special regime. The law distinguishes the following forms of its privatization: auction; direct sale; direct sale on the basis of competitive selection; direct sale of a leased parcel; and free transfer into ownership.

The distribution of implementing bodies is equally clear: auction-form privatization of an unleased parcel is carried out by the property manager. Direct sale and direct sale on the basis of competitive selection of an unleased parcel are implemented on the basis of a decision of the Government of Georgia, while direct sale of a leased parcel is again carried out by the property manager. Direct sale is possible only in the cases provided for by a Government decree.

Border territories carry an additional safeguard: a special decision on the privatization of individual parcels located in the 500-metre border strip defined by the Law on the State Border is taken by the Government, considering state and public interests, with the preliminary consent of the Ministry of Internal Affairs. An obligatory rule of order is the determination of the parcel category — disposal without a determined category is impermissible. Agricultural land means a parcel of pasture, hayfield, arable or household-plot category that is used or can be used for that purpose.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/civil-law-en/agricultural-land-privatization-en

### Who may initiate the auction of unleased agricultural land?

A citizen of Georgia, a private-law legal entity registered in Georgia, the property manager and a third party. They apply to the property manager, and the surveying and measurement are carried out by the manager or the initiator.

### What size must the selected parcels be?

Where necessary, parcels are divided into optimal-size units of no less than 3 hectares; the restriction does not apply where the parcel is smaller than 3 hectares. The initiator also prepares detailed cadastral drawings and establishes the category and quality of the land.

### Within what period does the auction winner pay the fee?

Within 30 calendar days of the holding of the auction. Farm and auxiliary buildings and perennial plantings on the parcel are sold at the price of the land parcel itself.

### What guarantee does a competitive-selection participant need?

Before the interest-expression deadline expires, an unconditional and irrevocable bank guarantee must be submitted, or an amount equal to 10% of the proposed value placed on deposit; if the investment exceeds the value of the parcel — 10% of the volume of the investment. Upon breach of the conditions the amount is credited to the budget.

### How does a tenant purchase the leased land?

A registered lease contract is required. The application is reviewed within 10 working days, and the contract is concluded within 15 calendar days of confirmation of payment. The fee may be paid in instalments within 1 year, with the purchase contract concluded upon payment of 50%.