Buying a flat in Georgia: a simple step-by-step guide

In recent years, Georgia has become increasingly in demand among those who want to buy property. Simple registration procedures, affordable prices and no restrictions for foreign citizens make this market so attractive. Below we will detail the stages of buying a flat, possible financial costs and legal aspects to consider.

Step 1: Determine the purpose of the purchase and choose a region  

Before looking for a home, it is important to decide what you are buying it for:  

• For your own residence.  
• For investment purposes, including renting it out.  

The most popular regions for buying property are:  

• Tbilisi - the capital, where the demand for housing is stable regardless of the season.  
• Batumi is a famous Black Sea resort with growing demand from tourists.  
• Gonio, Kvariati, Makhinjauri - actively developing suburbs on the sea coast with all necessary amenities.  

The purpose of the purchase will influence the selection criteria. Their list may include: layout, floor location, infrastructure, proximity to important points, availability of a management company, additional services within the object.  

You can study the offers both on developers' websites and on popular platforms for property sales. But be careful - there are fraudsters in the market, as well as companies and developers working with violations. We will talk in detail about the documents to be checked in the next paragraph.

Step 2: Finding a suitable property  

You can find a flat on your own through a flat search platform or by contacting a professional real estate agent. It is best to visit the property in person, and in case there is no such opportunity, ask for additional photos or video review.

When choosing, pay attention to the following points:  

• Location and transport accessibility. Check if there are shops, schools, bus stops and other infrastructure nearby.  
• Quality and condition of the property. If it is a secondary market, make sure that the building and communications are reliable.  
• Reputation of the developer. When buying a flat in a new building, study in advance the history of the company, reviews about it and its projects.

Step 3: Checking the legal cleanliness of the property

After choosing a suitable object, you need to make sure that it is legally clean. What should you pay attention to? Check that the property really belongs to the seller and there are no restrictions on it, such as arrest or mortgage.

If you are conducting the purchase yourself, be sure to research the reliability of the developer and request all necessary documents, including:  

• Building Permit.  
• Certificate of ownership of the land plot.  
• Contractual and technical documentation confirming the fulfilment of all stated obligations.

With the help of the cadastral number of a property on the website of the public register you can find out:  

• If it is a new building - whether the building has been commissioned.  
• If it is secondary housing - who is the owner, whether there are encumbrances or restrictions.  

When you make your final choice, you can either purchase the property immediately or book it. Booking is relevant only for new buildings. Usually it requires a deposit, the amount of which can be from $ 1000. Remember that in case of cancellation of the deal the deposit is not refundable, but it is taken into account in the total cost of the purchase.  

Step 4: Conclusion of the purchase agreement

The purchase agreement should be drawn up in a language that is understandable to both parties to the transaction, and necessarily in Georgian. At the stage of signing the document, carefully study its contents, including the terms of purchase, payment and ownership. 

Step 5: Choose a convenient way to pay for the property

The cost of housing in Georgia starts at $35,000.

Georgia offers a wide range of payment methods, and there is no requirement to prove income or source of funds.  

What methods are available to foreigners:  

1. SWIFT bank transfer to the seller's or developer's account.  

2. Cash payment.  

3. The possibility of instalments without interest when buying new buildings.  

4. Settlements using cryptocurrency.  

Important nuances:  

• All property settlements in Georgia are made in the local currency - lari. However, the cost is indicated in dollars, and recalculation is made at the official exchange rate on the date of the transaction.  
• Prices for purchase, rent and payments on loans or instalments are linked to the dollar exchange rate.

Step 6: Register the ownership right

To register the transaction apply to the House of Justice in Georgia. You will need:  

• Passports of both parties - buyer and seller.  
• Information about the property being purchased.  

Registration of ownership takes 1-4 days. If the participant of the transaction does not speak Georgian, an interpreter must be present at the procedure.  

Registration fee (the amount depends on the urgency):  

• For new buildings - from 308 GEL (approximately $113).  
• For secondary housing - from 157 GEL (approximately 58 $).  

Useful recommendations for a buyer: 

• Foreign citizens can freely purchase residential and commercial property, but agricultural land plots are prohibited.  
• If you rent out the flat, the tax will be only 5% of the income received.  
• Although opening a bank account in Georgia is not mandatory, it can greatly simplify financial transactions.  

Buying property in Georgia is a simple and straightforward process, but it requires knowledge of the specifics of the local market.