Foreign property ownership in Georgia is one of the most relevant and dynamic legal fields, driven by the country's growing investment appeal. Georgia is distinguished by a liberal approach to foreign investments, characterized by simplified property registration procedures and ease of doing business. Foreign citizens have the right to purchase and own almost any type of real estate, be it a residential apartment, commercial space, or hotel complex, on the same footing as Georgian citizens. However, there is one critical and fundamental exception concerning agricultural land. This specific legislative feature and related regulations often cause misunderstandings among foreign investors. Therefore, qualified legal assistance is essential not only to execute the transaction but also to ensure that the investor does not find themselves in non-compliance with the law, which could lead to the loss of property or the invalidation of the deal.
What does the Foreign Property Ownership service cover?
Our service covers all legal aspects related to the acquisition of real estate by foreign citizens. This is not just about drafting a contract, but comprehensive support that includes:
- Status Verification: Primarily, we check the property status in the Public Registry to determine if it is designated as agricultural land, which is the main obstacle for purchase by a foreigner.
- Title Registration Support: Full accompaniment at the Public Service Hall, translation of documents, notarization, and management of the registration process.
- Remote Transaction Management: For foreign investors unable to visit Georgia, conducting the transaction based on a Power of Attorney while observing all legal norms.
- Residency Permit Issues: Consultation and preparation of documentation to obtain an investment or short-term residence permit through real estate acquisition.
- Tax Consultation: Explaining and optimizing property tax and rental income tax regimes for foreign owners.
Common Scenarios and Needs
In practice, foreign investors often face specific situations where lawyer intervention is inevitable. One of the most common scenarios is the desire to buy a "village house." Often, foreigners want to buy a house in the regions but discover that the yard is registered as agricultural land. In this case, the lawyer helps the seller change the land status (if legally permissible) before the transaction. A second common scenario is purchasing investment apartments to obtain a residence permit. Here, it is important to have the correct valuation of the property value by an auditor so that it meets the minimum threshold established by law. Also, there are frequent cases where a foreign investor buys commercial space and needs legal assistance in signing lease agreements and administering taxes.
Georgian Legislation and Regulations
The field is regulated by several key legislative acts. The Constitution of Georgia and the Civil Code recognize the right to property but impose restrictions. The most important regulation is the Organic Law on Ownership of Agricultural Land, which explicitly prohibits foreign citizens and foreign legal entities from owning agricultural land (with certain narrow exceptions). Also, the Law on the Legal Status of Aliens and Stateless Persons regulates the rules for issuing residence permits based on real estate. Property registration procedures are outlined in the Law on Public Registry. For foreign investors, the Tax Code is also relevant, defining taxation rules for non-residents on property located in Georgia.
Step-by-Step Process
The process of property acquisition by a foreigner begins with selecting the object and its legal audit (Due Diligence). At this stage, the lawyer checks the extract from the Public Registry to ensure the property is not agricultural and has no liens or mortgages. The next step is preparing the purchase agreement, which must be bilingual (Georgian and a language understandable to the buyer). If the buyer is not present in person, a Power of Attorney is executed. After signing, the documents are submitted to the Public Registry for registration. Payment is made via bank transfer or using special banking services (e.g., escrow account). The final stage is the confirmation of ownership registration with a new extract.
Why Legal.ge?
Legal.ge is a unique platform connecting foreign investors with experienced Georgian lawyers who deeply understand the specifics of international transactions. Our specialists will help you overcome language and bureaucratic barriers, ensure the full legal protection of your investment, and avoid risks related to land status. Trust the verified experts at Legal.ge to ensure your property in Georgia is secure and profitable.
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