Buying Process in Georgia

The real estate acquisition process in Georgia is widely recognized for its transparency, speed, and efficiency. Foreign physical and legal entities enjoy unrestricted rights to purchase, hold, and sell non-agricultural property on a freehold basis under the same terms as Georgian citizens.

Phase 1: Property Identification and Due Diligence

Before committing capital, a buyer must inspect the official property records maintained by the National Agency of Public Registry (NAPR). Every registered real estate parcel in Georgia possesses a unique cadastral code. An official NAPR registry extract provides real-time verification of:

• Legal ownership status.
• Precise boundaries and total surface area.
• Existing legal encumbrances, including bank mortgages, liens, tax obligations, or litigation pending against the asset.
• Rights of third parties (e.g., long-term lease agreements).

Phase 2: Contract Execution

Once due diligence is complete, the parties draft the legal agreement. The structure depends on the property type:

• Secondary Market: The buyer and seller sign a standard Sales and Purchase Agreement (SPA).
• Primary Market (Developer Projects): Buyers sign a Pre-sale Agreement (for under-construction projects) or a final SPA upon project completion. For off-plan acquisitions, the contract must explicitly state delivery standards (e.g., Black Frame, White Frame, or Green Frame), completion deadlines, and penalty clauses for developer delays.

Phase 3: Registration with the Public Service Hall (NAPR)

To effectuate legal ownership transfer, both parties—or their legal representatives acting via notarized and apostilled Power of Attorney (POA)—must submit the signed agreement at a Public Service Hall (Justice House) or a qualified notary office.

• The registrar verifies buyer and seller identities via passports.
• Registration fees vary based on processing speed, ranging from standard service (completed in 4 business days) to expedited same-day service.
• Upon approval, NAPR updates the state register and issues an updated digital ownership extract. In Georgia, paper deeds are obsolete; the online NAPR extract serves as the official legal proof of title.

Phase 4: Financial Settlement

Payments are typically routed via bank transfer following contract signing or registration, according to agreement terms. Transactions are conducted in Georgian Lari (GEL), though contracts frequently index pricing in US Dollars (USD) or Euros (EUR).

Key Tax Rules

• Value Added Tax (VAT): Commercial developers selling new-build residential units are subject to an 18% VAT rate. Under Georgian commercial law, this 18% VAT is always included in the developer's advertised sale price.
• Property Purchase Tax: Georgia imposes zero transfer tax or stamp duty on real estate purchases.

An international investor decides to acquire a finished apartment in Tbilisi for $160,000 USD. The buyer obtains the official NAPR extract using the property's cadastral code to confirm the absence of liens. The buyer and seller visit the Public Service Hall in Tbilisi, present their passports, and sign the Sales and Purchase Agreement before an authorized registrar. The buyer selects same-day expedited registration. Upon paying the processing fee, NAPR issues an updated digital extract reflecting the buyer as the sole titleholder. The buyer then transfers $160,000 USD equivalent in GEL from their bank account to the seller. Because the purchase value exceeds $150,000 USD, the owner is now eligible to apply for Georgian short-term residency.