Georgia, a beautiful country located at the crossroads of Europe and Asia, has recently attracted a significant number of Arab businessmen. The country offers irresistible opportunities for investors and those who prefer owning holiday homes in foreign countries. Here are some of the advantages:
- Friendly Legal Framework:
Georgia has a foreigner-friendly legal framework that allows non-residents to easily buy, sell, and own properties. The laws governing property ownership are transparent, well-organized, and provide a safe environment for foreign investors.
- Affordable Property Prices:
Compared to many other countries, property prices in Georgia are relatively low. This affordability makes it an attractive option for foreigners looking to invest in real estate, either for personal use or for rental income.
- Tax Benefits:
The country imposes a relatively fixed income tax rate that does not exceed 20%, and there is no capital gains tax on properties sold after 5 years of ownership.
- Pathway to Residency or Citizenship:
Property ownership in Georgia can lead to residency or even citizenship. The Georgian government has introduced several visa and residency programs, such as the Residency Permit Program, which provides residency to property owners who meet certain investment criteria.
- Economic Growth:
Georgia has experienced significant economic growth in recent years, including in the real estate sector. The capital, Tbilisi, and popular tourist destinations like Batumi have seen an increase in property values and rental demand, providing opportunities for high investment returns.
- Tourism Opportunities:
Georgia’s unique culture, historical heritage, and natural beauty make it a popular tourist destination. As a property owner in this country, you can benefit from the growing tourism market by renting your properties to visitors, helping to generate a steady foreign currency income.
- Strategic Location:
Georgia’s strategic geographical location between Europe and Asia serves as a gateway for business between the East and West. This location attracts many investors and companies looking for investment and expansion opportunities in the region.
Types of Properties in Georgia
The law in Georgia allows foreigners to own and trade various types of properties. These include residential properties such as houses, apartments, villas, mansions, and small rooms in shared residential buildings. The process of buying a residential property in Georgia is generally straightforward for both Georgian citizens and foreign nationals.
Commercial properties of all types can also be owned by foreigners without any restrictions or conditions related to duration, area, or method. This category includes administrative offices, shops, small kiosks, spaces in shopping malls, warehouses, private garages, and more.
Agricultural land can be owned by foreigners, but this is subject to a set of restrictions and conditions. The land area should not exceed 100 hectares and should not be less than 5 hectares. Foreigners interested in buying agricultural land in Georgia must go through the same registration process as Georgian citizens.
Property Ownership Law in Georgia
In Georgia’s property ownership law for foreigners, there are certain strategic and sensitive lands that foreigners are prohibited from owning. These include border lands, lands near border crossings, and areas related to national security. However, there are exceptions for certain cases regulated by special laws and regulations.
Conditions for Property Ownership in Georgia
The conditions for property ownership in Georgia stipulated by the state laws for foreigners include that the number of properties owned for residential purposes should not exceed 2. The area of the house or land designated for construction and development should not exceed 4,000 square meters.
Checking the Property When Buying
One of the most important steps for a foreigner thinking of owning property in Georgia is to verify the accuracy and comprehensiveness of the information related to the property. This process is called the due diligence of the property, and it allows the foreigner to know if there are any contradictions related to the documents or even the building itself.
Fees on Buying Property in Georgia
It’s good to know that there are no stamp fees or equivalents when buying in Georgia’s property ownership law. Instead, nominal fees are paid in the public service hall to register the property in the buyer’s name. These fees usually range from $50 to $20 if you can wait for four days, and up to a maximum of between $80 and $200 if you need same-day service.
Investing in Georgia
While our discussion revolves around property ownership in Georgia for foreigners, if you plan to invest in this country, there are many opportunities available. Georgia offers several Special Economic Zones (SEZs) aimed at attracting foreign investment and promoting economic growth. These zones provide suitable spaces of various properties, numerous tax advantages, simplified administrative procedures, and infrastructure support. Foreigners can own properties within these special economic zones, which are strategically located in major cities like Tbilisi, Kutaisi, and Poti.