FAQS on Georgian Property Market

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buy property in Georgia

  Though I have written several blogs on Real Estate Market in Georgia, trying to cover the topic throughout, but apparently I still get some question on Georgian Property Market. Therefore, I decided, to put all the question in one pot here. Hope you will find It useful. 

Can foreign investors get a loan from the bank for purchases?

  Yes, foreigners can get loans from Georgian Banks for their real estate investments even if they do not have Georgian source of Income. To get a loan in Georgia as non-resident, you need to prove your income from foreign source. You need to provide bank statement for past months from Foreign Bank and Job Agreements or any other prof of Income.  

What is the deposit in percentage required for bank loans in Georgia?

   Bank evaluates each case independently, therefore there is no General guidelines for this procedure, unfortunately. As per my experience, downpayment for the loan is at least 40%.

How much is interest rates for loans in Goergia?

  I would not say Georgian Interest rate is law, It’s pretty high if you compare to EU countries for example.  The best rat for the loan in the United State Dollar is 5% and in Goergian Lari interest rate is around 10%

Are banks more likely to lend to Georgian company than a foreigner individual?

If we are talking about the mortgage then as an Individual. Since, for Georgian LLC you will have to prove your income for the company. Also, banks will ask you about past year performance in relation to your Georgian Legal Entity.

Is setting up a company to invest in real estate a better idea?

Well this question is pretty General and hard to answer correctly without further clarifications. What is your goals at the end? Taxationwise, opening a company to invest in real estate is not as good idea, since as long as you start a company you got some taxation obligations straight away. For Residence Permit, it is easier to get TR with real estate Investment, you simply invest certain amount and get residency. As for work permit, there is more performance requirements. You need to carefully revise your plans and goals, since answer on this question depands on that.

People pay rent in GEL therefore rental returns depend on the GEL currency

Well, yes. In Georgia only allowed currency for payment/money exchange is GEL. However, It is also common to fix your rental returns in USD and receive equivalent in GEL for that date. So your rental income will not be highly affected by currency fluctuations. 

When you buy a property and send the payment to the sellers bank account, who registers the property in buyers name?

The property registration procedure is as follows:

  • Registering pre-purchase agreement in the city hall of Georgia.
  • Transferring the property Purchase Value to the Landlord’s bank account or pay by cash, as per agreement.
  • Registering a purchase agreement in the city hall.

For registering agreement in the public service hall of Georgia both parties should be present. In case you are not able to come to Georgia for a given period of time, you can issue POA and your representative will be able to sign for you. We can help you throughout the whole procedure, by the way.

Can I buy a land in Georgia as a foreigner?

Shortest answer to this question is that you can buy a land only for commercial purposes. If you just want to buy a house to settle down and live there, it is not allowed. Buying Agricultural land is prohibited for foreigners. At the same time, the law gives us broad definition of agricultural land.  To interpret the law in easiest way, we can say that every land is agricultural which is not for business activities. 

What if Is there some agricultural land that I like for your business?

In that case you can convert the agricultural land to commercial by proving your commercial intends about the land. You can only buy a land for your company not as an individual.  Remember, law restricts to use company related assets for personal matters. For more and detailed information refer to below vidoe of mine: 

I am looking for Properties in Tbilisi, do you have any?

We do analyze over 200 listing per Week. Contact Sellers, visit Properties and than narrow down the list to maximum 10 Properties for our clients based on their requirements. We do post our findings for Tbilisi and Batumi as well as we do create customized listings for interested clients.  If you want to get best of our version, contact us, we will send you simple questionary as well as our service scope. After that we will create free package for you. Our main focus while creating these listings is as higher ROI on investment as possible. Our first priority is satisfied clients. We would never advice our client property where we would not invest ourselves. Honest approach is the most important. We hope for long-term partnership. We aim to advice best of our knowledge.

Can I get a mortgage loan in Georgia as a foreigner?

yes, you can get a mortgage loan in Georgia as a foreigner.

How easy it is to get a mortgage loan in Georgian banks as a non-resident?

It is as easy as for Georgians. All you need is a passport for that.

What are the terms of the loan in Georgia?

We have helped our clients to get loans in Georgia. Citizens of any country have the option to obtain a mortgage for up to 5 years, just provide a passport, the procedure takes place during the day. Mortgages in dollars per year between 5,5 % and 30 % down payment



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