Buy Real Estate In Georgia Remotely

Georgia offers a good legal framework for buying real estate remotely. The Georgian real estate market is booming, and many of the buyers are foreigners or immigrants from Georgia. Therefore, in order to buy real estate for investment or for living in Georgia, remote property registration is possible.

The System of Buying Real Estate in Georgia Remotely

The system of buying real estate in Georgia remotely consists of the following:

• The party(-ies) to the real estate sale and purchase agreement that are staying outside of Georgia or that are unable to be physically presented – shall issue a power of attorney in a proper way (discussed below);
• Appointed representative(s) of the party(-ies) to the real estate sale and purchase agreement shall further make respective notary procedures in Georgia once the PoA is obtained;
• Once the notarial acts are finalized – duly authorized representatives shall represent the buyer and or seller – at the National Agency of Public Registry of Georgia (NAPR);
• At NAPR, the representatives shall present a number of documents to register the sale of property. These documents mainly include PoAs, duly prepared identification documents of the party(-ies), and a sale-and-purchase agreement. The representatives shall also sign respective applications; however, each case is individual and may need additional documents/annexes.
• Registration can be done in any NAPR office in Georgia for any property located in Georgia (except temporarily occupied territories of Georgia). So, whether the person is in Batumi and wants to buy apartments in Tbilisi – application and documents can be provided in Batumi, and vice versa.
• Registration can be done the same day or within four working days (there are a couple of options, depending on the payment amount).
• It is noteworthy that proper due diligence procedures shall be conducted before buying property in Georgia to minimize respective legal or other risks related to purchasing property.

Ways of issuance of Power of Attorney to purchase real estate in Georgia

When the issuer is in Georgia

Suppose the issuer of PoA for the purchase of real estate in Georgia is physically in Georgia. In that case, s/he may issue PoA at any notary office without passing the original to the appointed representative. The notaries typically have translators working with them who will help prepare documents. In such cases, there is no need for additional actions other than giving notarial act details (even screenshots) to the representative.

Issuance of PoA when a person stays abroad has a residence permit or citizenship of Georgia.

If a person has a residence permit or citizenship in Georgia, they can issue power of attorney in Georgia remotely through a Georgian notary. Georgian notaries may use Skype or another type of technical communication program.

Issuance of PoA when the person stays abroad and does not have a residence permit or citizenship of Georgia

If a person issues a PoA outside of Georgia, it must go through a local notarization process. However, an Apostille or legalization procedure may be needed depending on the country of issuance.

• CIS or ex-CIS countries are usually parties to the Minsk Convention, which makes procedures easier. There is no need for apostille or legalization—documents from those countries are practical in Georgia once translated (without apostille or legalization)—examples: Ukraine, Russia, Azerbaijan, Armenia, etc.
• Countries where the Apostille Convention is effective (e.g., France, Germany, USA, Australia, etc.)—such PoA shall be apostilled and sent to Georgia only after apostillisation.
• In countries where the Apostille convention is ineffective (e.g., UAE, China, etc.), such PoA shall be legalized in the Georgian embassy and sent to Georgia only after legalization procedures outside of Georgia are completed.

PLEASE NOTE

A power of attorney to buy real estate in Georgia must have specific provisions to avoid problems with proper property registration; otherwise, the application may be declined/rejected.

There are not many Tbilisi apartments for sale compared to the demand on the market. However, our real estate agency with prime brokerage services has a huge clientele—both buyers and sellers of properties in Georgia. It doesn’t matter whether we are talking about Tbilisi real estate, Batumi real estate, Gudauri real estate, or Bakuriani real estate. We have you covered.

Why Invest In Georgia?

Georgia offers a diverse climate, low cost of living, attractive tax system, and infrastructure development. Its property market has seen increased capital appreciation and rental yields, making it an attractive investment.

Strong Rental Market

In 2022, the Georgian real estate market experienced a tumultuous year, with rent prices shooting to unprecedented levels. Sales prices grew modestly, but in some districts, they rose by as much as 35%. Tbilisi long-term lettings can yield 8% to 12% average rental yields, while well-managed short-term lettings can produce 20% or more. However, you might prefer to rent apartments in Tbilisi if you plan to visit the country for a short period of time.

Easy Entry

Foreigners’ purchase of non-agricultural real estate in Georgia is permitted on the same basis as that of domestic buyers. Property registrations are conducted by Public Service Halls (PSHs) throughout Georgia. Agricultural land, however, is restricted to foreigners due to zoning laws. Many areas of small towns and villages still need to be zoned agricultural, resulting in a problematic rezoning process.

Low Tax Regime

• Real estate transactions in Georgia do not require a stamp duty to be paid. However, registering a property typically ranges between $20 and $80.
• It is important to remember that property taxes in Georgia are determined by various factors, including the locality in which you purchase a home and household income.
• Owners who register as landlords in residential tenancies are subject to a 5% tax, and a 20% tax is imposed on commercial tenancies.

Improving Infrastructure

By the end of the decade, all highways will be completed in Georgia; households will have access to unrestricted water supplies; modern regional centers will replace municipal landfills; regions will be socially and economically developed; and municipalities will be strengthened. Georgia has a well-developed internet infrastructure. A fiber internet connection of 20Mbps to 100Mbps is available in Georgia, but if you need more than that, it may pose a problem.

How Can ReInvest Help You?

The Georgian real estate market can be very uncertain. Our real estate services will give you the right context, support, and objective advice to feel confident at every process stage. ReInvest provides tailored advice and assistance to help you make an informed decision about investing in Batumi, Tbilisi, and the rest of the Georgian real estate market. Our team of experts can help you identify the best investment opportunities, negotiate the best deals, and provide the support you need to ensure your investment is successful.

FAQs

• How can I buy commercial real estate in Georgia? 

Buying commercial real estate in Georgia typically involves finding a property, conducting due diligence, negotiating terms, and completing the purchase through a lawyer or real estate agent.

• Can I buy real estate in Georgia remotely?

Yes. You can engage real estate agents, lawyers, or agencies to facilitate the process on your behalf.

• What services does your agency offer to assist with property management post-purchase?

Our agency offers comprehensive property management services post-purchase, including tenant screening, rent collection, maintenance, and property marketing.

• What are the legal requirements for foreigners buying real estate in Georgia?

Legal requirements for foreigners buying real estate in Georgia include obtaining a tax ID number, registering the purchase with the Public Registry, and complying with relevant laws and regulations.

• What are the tax implications of international investors owning real estate in Georgia?

Tax implications for international investors owning real estate in Georgia may include property taxes, income taxes on rental income, and capital gains taxes upon sale.

• What types of properties are available for sale in Tbilisi and Batumi?

Available properties in Tbilisi and Batumi include apartments, houses, commercial spaces, and land parcels, catering to various preferences and budgets.

• Can your agency assist with renovation services for an acquired property?

Our agency can assist with renovation services for acquired properties, coordinating with reputable contractors and overseeing the renovation process to meet your specifications.