Buying Property in Georgia as a Foreigner: What to Check First
Georgia is one of the easiest countries in which a foreigner can buy property: there is no transfer duty, and registration can be finished in days. That speed is also the risk. Once the deposit is paid and the transfer is registered, most mistakes are already locked in, and the problems behind them, such as a missing construction permit, a mortgage on the title or an unpaid debt of the seller, are invisible from the listing.
What Foreigners Can and Cannot Buy
Foreign nationals hold the same property rights as Georgian citizens over apartments, houses, commercial units and non-agricultural building plots. Buying is open to foreigners on the same terms, which is exactly why the quality of the checks decides how it turns out.
Why Agricultural Land Is Off Limits
Georgian law treats agricultural land as a strategic national asset. The restriction sits in the Constitution and in the Law on the Ownership of Agricultural Land, and it is presented as a matter of food security and protecting the country's agricultural resources. It grew out of public concern about foreigners accumulating land in the countryside: a moratorium on sales to foreigners was introduced in June 2017, and the ban was written into the Constitution in September 2017.
The ban covers foreign individuals, and foreign-controlled companies are treated the same way. The exceptions are narrow, mainly inheritance and cases the Government approves, such as investment projects backed by a plan. Some guides describe holding farmland through a Georgian company. Whether that works depends on who actually controls the company, so it is not a route to assume.
The Alternative: Leasing Agricultural Land
The ban is on ownership, not on use. A foreigner can lease agricultural land on a long-term lease running for decades, which for farming, vineyards, greenhouses, agro-tourism or similar projects gives the practical use of the land without owning it. Many foreign investors take this route.
Because the rights come from the lease contract rather than from a title, the contract carries the weight. The term and renewal, what happens to buildings and improvements when the lease ends, the permitted use of the land, and the proper registration of the lease all need to be settled in writing before any money is paid.
Leasing does not remove the need for checks, it moves them. The landlord's title still has to be verified, including any mortgage, lien or dispute on the land, because a problem with the owner's rights becomes a problem with yours. And the plot's classification still needs to be confirmed, since a lease is only the right structure if the land really is agricultural.
Why Due Diligence Is Not Optional
A listing shows a price, photos and an area. It does not show whether the building was built with the right permits, whether the seller has a mortgage on the title, or whether a court dispute or enforcement case is attached to the owner. Those problems surface after the money has moved, when fixing them is slow, expensive and sometimes impossible.
| Type of property | What can be wrong | Where it shows up |
|---|---|---|
| New apartment or off-plan | Missing or incomplete construction permits, a building occupied without full permits, a developer that delays, cuts quality or becomes insolvent, and no title until handover | Developer and permit review, plus the contract |
| Resale apartment or house | A mortgage or lien on the title, ownership disputes, a seller with outstanding debts, or a seller who does not have full authority to sell | Public Registry extract and the debtor registry |
| Land plot | The plot turning out to be agricultural, which a foreigner cannot buy directly, or carrying encumbrances | Registry extract and the land's classification |
Registered ownership is what protects a buyer, so each of these needs to be checked against the registry and the underlying documents rather than taken from the seller or the agent. Verbal promises do not count either. Anything that matters has to be written into the contract.
How a Purchase Actually Moves
| Stage | What happens | What to have done by now |
|---|---|---|
| Preliminary agreement | Buyer and seller sign terms and the buyer pays a deposit, typically around 10% | Registry extract, debtor check and contract review, because the deposit is generally not refundable |
| Signing | The transfer is signed at the Public Service Hall or before a notary | Final contract terms on price, delivery, penalties and who pays which taxes |
| Registration | Ownership is registered in the Public Registry, usually within one to four business days, with an expedited option | Confirmation that the registered details match the agreement |
Buyers who cannot attend can sign through a notarised power of attorney. The scope of that document matters as much as who holds it, since the attorney can bind you within whatever it says.
The Checks to Make Before You Pay a Deposit
Pull a fresh Public Registry extract
It shows who the registered owner is and lists mortgages, liens, disputes and other encumbrances. Use a recent one, not the copy the seller supplies.
Search the seller in the debtor registry
If the seller has outstanding enforcement proceedings, the property can be exposed to seizure even after you have bought it.
Confirm the seller's authority to sell
Check that the person signing is the owner or holds a valid power of attorney, and that there are no co-owners whose agreement is missing.
Investigate the developer if the property is new
Look at past projects and whether they were delivered, their licences and construction permits, and their reputation. Some buildings are occupied without complete permits, which creates ownership problems later.
Read the contract properly
Delivery dates, penalty clauses, defect liability and the allocation of taxes are where disputes start. Verbal understandings carry no weight if they are not written in.
Check what you are actually getting
Advertised areas often include balconies and shared space. Measure the living area against the figure in the contract.
With a building that is not finished, you have no title until handover. Delays, quality changes and developer insolvency all fall on the buyer, and the two-year clock for capital gains relief starts at registration, not at signing or deposit. Buying off-plan is a decision about the developer as much as the apartment.
What Owning Actually Costs in Tax
| Item | How it works in 2026 | Worth confirming |
|---|---|---|
| Transfer or stamp duty | None | Only a modest registration fee applies |
| Annual property tax | Income-based: 0% for household income under 40,000 GEL, roughly 0.05% to 0.2% between 40,000 and 100,000 GEL, and roughly 0.8% to 1% of appraised value above that | Sources differ on whether worldwide income counts toward the bracket |
| Rental income | 5% of gross rent for registered residential lettings to individuals, with no expense deductions; 20% for commercial or unregistered lettings | Sources differ on whether deductions apply to the 20% case, and the 5% rate must be claimed through registration |
| Capital gains on sale | 0% if held for over two years from registration; 5% on the profit if sold within two years (residential) | Commercial property is taxed differently |
| VAT on rental | Registration required if rental turnover passes 100,000 GEL | Applies on the same threshold logic as other business income |
Legal Vista is a Georgian corporate law firm that has served expatriates since 2017. We carry out the property due diligence described above, including the registry and debtor checks, the review of permits and of the developer, and the contract review. We can also take care of the rest of the purchase: negotiating with the seller or developer, signing and registration, including remotely through a power of attorney if you cannot be in Georgia.
If you are considering a property, reach out to us before you pay a deposit: info@legal-vista.com, or WhatsApp +995 599 848 487.
Frequently Asked Questions
Why do I need due diligence if the Public Registry is public?
The registry extract shows the registered owner and any mortgages, liens or disputes on the title. It does not show the seller's debts in the enforcement registry, whether a new building has proper construction permits, how reliable a developer is, or what the contract really commits you to. Those are separate checks.
Can I buy without travelling to Georgia?
Yes, through a notarised power of attorney. Choose the attorney carefully and limit the document to exactly what you want them to do.
Is the deposit refundable?
Usually not, unless the preliminary agreement says otherwise. That is why the registry and contract checks come before paying it.
Can a foreigner buy land?
Non-agricultural land, yes. Agricultural land cannot be bought by a foreigner, but it can be leased on a long-term lease, so the classification of a plot has to be confirmed before anything is signed.
What tax do I pay if I sell soon after buying?
For residential property, 5% on the profit if the sale happens within two years of registration, and nothing after that. The clock runs from registration in the Public Registry.