The acquisition of immovable property by aliens in Georgia divides into two different regimes: non-agricultural property is acquired under the general rule, while on agricultural land the law establishes a system of strict restrictions. On this page we explain the frame of the Organic Law of Georgia on Ownership of Agricultural Land — who may own agricultural land, under which exceptions, and with what transitional rules — and show what this means for a practical transaction.
The Scope and Grounds of the Law
The organic law applies to agricultural land existing on the territory of Georgia and regulates relations connected with the ownership of a plot of such land. The legal grounds of ownership are listed in the law itself: the Constitution of Georgia, international treaties, this law and other legal acts of Georgia. This definition matters so that the preparation of a transaction works within the correct normative frame — every transaction in agricultural land passes through the filter of this law; the designation of a plot is determined from an extract, and it is there that the question arises which regime applies to your case.
Who May Own Agricultural Land
The law writes the circle of owners clearly: agricultural land may be owned by the state, the autonomous republic, the municipality; in a defined case — by a legal entity of public law; by a citizen of Georgia; and by a private-law legal entity registered in Georgia whose dominant partner is among the listed subjects. The law also permits an organized formation that is not a legal entity to own agricultural land — if such subjects constitute the majority of its members and simultaneously have the practical possibility of decisive influence over decisions connected with that land. For the alien the law leaves a single path: agricultural land may be in the alien's ownership if the alien received it by inheritance. A legal entity registered in Georgia whose dominant partner is an alien and/or a legal entity registered abroad — or whose dominant partner cannot be determined — acquires agricultural land only on the basis of an investment plan, by decision of the Government of Georgia.
The Chain of Dominant Partners
The law also regulates the chain of partners: the ownership of a legal entity registered in Georgia over an agricultural plot is determined according to the dominant partner of the partner legal entity — and this rule extends to every subsequent partner legal entity. Concealing foreign control at some step of the chain therefore yields nothing: the identity of the final dominant partner decides whether the restriction applies to the entity. The statutory exception operates for financial institutions and international financial institutions — within their permitted activity, including the case of acquisition of the collateral by the creditor.