GEORGIA (SAKARTVELO)

 Residency / Citizenship by Real Estate Purchase
Yes, residency is available. When purchasing real estate valued at 100,000 USD or more, a 1-year residency permit can be obtained, renewable annually. Permanent residency is possible after 5 years. Citizenship is available through long-term residence or by decision of the president, but it is not guaranteed.

Language
The official language is Georgian. Russian is common in Batumi and partially in Tbilisi. English is used in the tourism and business environments.

Visa Regime
For citizens of Russia, CIS countries, and most other countries, visa-free stay is allowed for up to 1 year. Real estate can be purchased, rented out, and used without restrictions or additional permits.

Standard of Living (2025)
Georgia offers a comfortable life with low expenses. Medicine, private education, and digital services are developing actively. The country consistently ranks high in global ease of doing business ratings. The cost of living is 2-3 times lower than in Europe and the UAE.

Economy. Currency

1. Currency — Georgian Lari (GEL): The exchange rate against the USD is stable in the range of 2.6–2.8 GEL/USD (2024–2025). It is moderately volatile. USD and EUR are widely used in real estate and rental transactions.
2. Inflation:
• 2023: 5.7%
• 2024: 3.4%
• 2025 Forecast: 3–4%. Prices are stable, especially in currency equivalent.
3. GDP Growth:
• 2023: +7.5–7.8%
• 2024: +9–9.4%
• 2025 Forecast: +5.5–6%. Georgia is one of the regional leaders in growth rates. Key drivers: tourism, IT, logistics, construction.
4. Tourism: 5–6 million tourists in 2024, forecast for 2025 — over 6 million. Supports rental demand in Batumi and Tbilisi.
5. Real Estate Market: One of the key investment sectors. Prices in USD have increased by 15–25% over the past 2 years. New builds, rental apartments, and projects with management companies are in demand.

Purchase, Ownership, Rental, and Sale of Real Estate in Georgia: Taxes and Fees

Freehold:
Foreigners can purchase any real estate (residential, commercial, land - except agricultural). Ownership rights are full, perpetual, and without restrictions.

VAT:

• 0% for residential real estate (both primary and secondary market transactions between individuals).
• 18% on commercial property from legal entities (rarely applied to private investors).

Rental Income Tax:

• 5% on gross income for non-residents and residents renting out residential property (when registered as a 'landlord') — without deducting expenses.
• 20% on net income (after deducting expenses) applies if the landlord is not registered or the rental is commercial (offices, etc.).
• Alternative: Entrepreneur status — 1% on turnover if turnover is less than 500,000 GEL.

Tax upon Purchase:
None. The owner only needs to pay a registration fee (~50–200 GEL, depending on urgency).

Annual Property Tax:

• None for non-residents if family income is below 40,000 GEL.
• For residents — 0.1–1% of the value (if the total family income exceeds 40,000 GEL).

Tax upon Sale:

• 0% if the ownership period exceeds 2 years.
• If sold within 2 years: for residential property — 5% on the profit (difference between sale price and purchase price), for commercial — up to 20% (depends on the situation).

Georgia. Summary

Georgia is one of the most open, simple, and investment-friendly real estate markets in the region.

There are no purchase taxes, there is a stable influx of tenants, and the entry threshold is one of the lowest in Europe.

The country is actively growing due to tourism, IT, and migration, and the real estate market is one of the main beneficiaries of these processes.

ROI:

• 7–10% for short-term rental in Batumi and Tbilisi.
• 4–6% for long-term rental or investment in non-touristic objects.

Risk Level: Medium.

• The currency is volatile but predictable.
• Main risks — the developer, overheating in certain districts, uneven quality of projects.

Taxes:

• Upon Purchase: none.
• On Ownership: none (for non-residents).
• On Rental: 5%.
• Upon Sale: 20% (if held for less than 2 years), 0% — after 2 years.

 

GLOBAL PROPERTY INVEST