How do I pay for real estate in Georgia?

Purchasing property in Georgia is a simple process for both citizens and foreign buyers. Thanks to a transparent legal system, democratic taxation and simplified registration processes, the purchase becomes accessible to everyone.

1. Bank transfer

Bank transfer is the most reliable and widespread method of payment.

The buyer transfers money from his bank account to the seller's bank account. Opening an account in Georgia is fast, the process usually takes a couple of working days. This payment option is suitable for large sums of money, and its main advantages are high level of security and the ability to make a transfer from almost any country through the SWIFT system. The disadvantages include additional fees charged by banks. 

2. Cash

In Georgia, cash remains a popular method of payment, including for property transactions.

The payment process in this case is simple: the buyer transfers the amount in cash directly to the seller. As a rule, the transaction is conducted in the Georgian national currency - lari. The main advantages of this payment option are: instant settlement, where there is no need to wait for a transfer through banking systems, and no additional transfer fees.

The disadvantages are the limit on cash payments. According to the laws of the country, the amount of a cash transaction cannot exceed GEL 20,000. If the value of the property is higher, the balance must be paid in another way. It is also important to consider the risks associated with transporting large amounts of cash through customs.

3. Instalments from the developer

Interest-free instalments from the developer is one of the main advantages of the Georgian property market. It applies to complexes under construction. It can be applied for by both residents of the country and foreigners. It is enough to have a foreign passport.

The instalment is issued until the end of construction.The most common variant is 2-3 years.If you buy property at the start of sales, this period can increase up to 5 years.

The initial instalment is 10-30% of the property value.Sometimes there are limited offers from developers with zero down payment. 

The remaining amount is paid in instalments over a period of time set by the developer.

Advantages of instalments: no need to apply for a loan from a bank, favourable terms and a convenient payment schedule agreed with the developer.

Disadvantages of instalments: registration of full ownership of the flat is possible only after full payment of the amount and risks associated with under-construction and unscrupulous developers.

4. Mortgages from Georgian banks

In Georgia, not only citizens of the country, but also non-residents can get a mortgage on property. In most cases, a minimum number of documents are required to apply for a mortgage: passport, income document and a statement of the property to be purchased.

The main condition for obtaining a mortgage is one - confirmation of stable income. For this purpose you need a statement from the bank. If a foreigner takes a loan from a bank where he already has an account, a statement is not required. At the individual request of the bank may need and other supporting documents (employment contract, agreement, etc.).

More than one source of income can be used to repay the loan (salary, income from renting out property, business income, etc.). All of them will be taken into account when forming the final decision of the bank on granting the loan.

In the mortgage can be taken no more than 70% of the total value of the property, that is, 30% go as a down payment.

Interest rates. In Georgia they are very flexible, the bank makes a decision and assigns the interest rate for each request on an individual basis. At the moment our clients are given mortgages at 7-10% per annum. Mortgages are provided by almost all major banks, such as Bank Of Georgia, TBC and others.

The advantages of the mortgage: the payment term up to 10 years, the ability to immediately use the housing without having to wait for the completion of construction.

Disadvantages of mortgages: the possibility to take a mortgage only for ready housing or new buildings that are at the stage of construction

5. Cryptocurrency payment

One of the most modern payment methods is the use of cryptocurrency. Most often payments are made in the cryptocurrency USDT. It is important to note that the crypto market in Georgia is just gaining popularity.

If the developer has a cryptocurrency wallet, the payment does not cause any difficulties: the buyer simply transfers money from his wallet to the seller's wallet. If the developer does not have a cryptocurrency wallet, the transaction may require the services of exchangers or reliable brokers.

The main advantage of payment is the ability to bypass banking systems. However, the disadvantages include the lack of well-defined legal norms and uniform regulations for such transactions in the country.

Combined payment method

Another possible option is a combined payment method. For example, the buyer and seller can agree that part of the amount will be paid in cash and the other part will be transferred to a bank account.

The choice of payment method for property in Georgia depends on your financial possibilities and the terms of the contract with the seller. It is recommended to consult with qualified lawyers or realtors before concluding the deal to minimise risks.