Lease and Use of State-Entity Property in Georgia

Lease and Use of State-Entity Property

Can property held for use be encumbered?

No — mortgage, pledge and other disposal transactions are prohibited; the public-private partnership project is an exception.

For what term is agricultural land granted?

For up to 49 years; subsoil infrastructure likewise up to 49 years and at most 3 hectares.

How does transfer without auction proceed?

With the Government's consent; the contract is concluded within 3 months of the disposition, or 45 calendar days of the auction.

Where does the transfer sum go?

In a central organ's case — to the state budget, otherwise — to the transferrer's budget.

4 min·22 Sep 2026

Forms of Transfer for Use and Restrictions

The transfer of state property for use operates under diverse regimes: property is transferred for a term or indefinitely, for payment or gratuitously, in the form of an auction or without one. The circle of recipients is broad — organs of state power of Georgia and of the autonomous republics, municipalities and public-law legal persons, as well as natural and private-law legal persons. The transfer for use of an immovable item in state ownership is registered in the public registry.

The central restriction of this chapter is as follows: the recipient is prohibited from encumbering the transferred property with a mortgage, pledging or encumbering it with a servitude, concluding any other transaction of disposal over the immovable, or issuing an individual administrative-legal act entailing a change of the property's owner — unless the law provides otherwise. This rule does not extend to property transferred within a public-private partnership project.