---
title: "Investor-State Disputes"
url: "https://legal.ge/en/service/international-law-en/investor-state-disputes-en"
field: "International Law"
description: "Investor-state disputes: guarantees, expropriation, compensation standards. Specialists on Legal.ge."
reviewed: "2026-02-15"
updated: "2026-10-19"
publisher: "legal.ge"
---

# Investor-State Disputes

> Source: legal.ge, https://legal.ge/en/service/international-law-en/investor-state-disputes-en

## Legal Foundations of Investor-State Disputes

A dispute between an investor and the state arises when a state action or decision affects the investor's rights — expropriation of property, the terms of compensation, repatriation of profits, or restrictions on activity. The substantive foundation of such disputes is embedded in the law on investment activity: it defines what counts as an investment, who is an investor, which rights and guarantees the investor receives, and under which conditions deprivation of property is permissible. Establishing a violation of precisely these norms reveals the state's obligation and creates the basis for a compensation claim.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/international-law-en/investor-state-disputes-en

### What are the investor's key guarantees?

National treatment, the right of repatriation after payment of taxes, and the inviolability of the investment.

### Can profit be taken abroad?

Yes — with conversion at the market rate and unlimited repatriation; restriction is possible only by court decision on statutory grounds.

### Where is a deprivation decision appealed?

In a Georgian court, unless the parties' agreement or an international treaty provides another forum.

### What does compensation include?

The real market value at the moment of deprivation and the loss suffered until payment.