Banking

AML Compliance in Georgia

Anti-Money Laundering (AML) compliance in Georgia refers to the legal frameworks and institutional checks enforced by the Financial Monitoring Service (FMS) and National Bank of Georgia (NBG) to prevent financial crime. Commercial banks, real estate developers, and public notaries must verify buyer identities, conduct Know Your Customer (KYC) reviews, and substantiate the legitimate source of funds before facilitating real estate transactions or cross-border wire transfers.

Bank of Georgia

Bank of Georgia (BoG) is one of the two systemic financial institutions in Georgia, listed on the London Stock Exchange (LSE: BGEO). In real estate transactions, it serves as a primary provider of non-resident bank accounts, mortgage financing, developer construction loans, and escrow account services.

CRS Reporting in Georgia

CRS Reporting in Georgia refers to the automatic exchange of financial account information conducted by Georgian financial institutions under the OECD Common Reporting Standard framework. Implemented in 2024, Georgian banks report account balances, interest, and financial income of non-resident clients to the Revenue Service of Georgia, which automatically transmits this data to partner countries' tax authorities.

Currency Conversion in Georgia

Currency conversion in Georgia involves exchanging foreign currencies (such as USD, EUR, or GBP) for Georgian Lari (GEL) or converting between foreign currencies within the banking system. Although property is routinely advertised in USD, legal domestic settlements, tax calculations, and official records are governed by local currency regulations, National Bank of Georgia (NBG) benchmark rates, and commercial bank FX spreads.

Debt-to-Income (DTI) Ratio in Georgia

The Debt-to-Income (DTI) ratio in Georgia—often calculated as the Payment-to-Income (PTI) ratio—is a regulatory financial metric defined by the National Bank of Georgia (NBG). It measures an applicant's total monthly debt service obligations against their net verified monthly income, establishing strict limits on maximum loan approval amounts for resident and non-resident real estate buyers.

Escrow Alternatives in Georgia

Escrow alternatives in Georgia refer to legal and financial mechanisms used to secure property transactions where traditional escrow accounts are unavailable or underutilized. Because commercial banks in Georgia rarely offer standard real estate escrow services to foreign buyers, transaction risk is mitigated through notary deposit accounts, milestone-based developer installment plans, irrevocable bank guarantees, and preliminary sales contract registration with the National Agency of Public Registry (NAPR).

Georgian Lari (GEL)

The Georgian Lari (GEL, symbol ₾) is the official national currency of Georgia, issued by the National Bank of Georgia (NBG). Introduced in 1995, it is the sole legal tender for domestic commercial transactions, legal settlements, property taxes, and official registry fees within the territory of Georgia.

Loan-to-Value (LTV) Ratio in Georgia

The Loan-to-Value (LTV) ratio measures the proportion of a property's appraised market value that a commercial bank in Georgia is willing to finance through a mortgage loan. Regulated by the National Bank of Georgia (NBG), maximum allowable LTV caps vary based on the loan currency and the borrower's residency and income profile.

Mortgage for Non-Residents in Georgia

A mortgage for non-residents in Georgia is a real estate loan granted by commercial banks to foreign citizens or non-resident individuals to purchase local property. While foreign buyers can borrow without holding a Georgian residence permit or local tax status, banks apply stricter underwriting rules, lower Loan-to-Value (LTV) limits, and higher equity requirements compared to resident borrowers.

Mortgage in Georgia

A mortgage in Georgia is a legal real estate financing agreement secured against property registered with the National Agency of Public Registry (NAPR). Commercial banks issue property loans to domestic and foreign buyers. Non-resident borrowers face specific Loan-to-Value (LTV) limits set by the National Bank of Georgia (NBG) and must satisfy strict anti-money laundering (AML) and income verification requirements.

Mortgage Rates in Georgia

Mortgage rates in Georgia refer to the annual interest rates charged by commercial banks for real estate financing. Available in GEL (Georgian Lari), USD, and EUR, these rates vary depending on currency denomination, loan-to-value (LTV) ratios, borrower income, and residency status. Rates for foreign buyers typically carry higher risk margins and currency constraints enforced by the National Bank of Georgia.

Opening a Bank Account in Georgia

Opening a bank account in Georgia involves establishing a multi-currency personal or corporate account at a licensed Georgian commercial bank. Non-resident individuals and entities must complete Enhanced Due Diligence (EDD) and Know Your Customer (KYC) screening, submit proof of funds, and demonstrate a legitimate economic nexus to Georgia, such as real estate ownership or commercial activity.

SWIFT Transfer to Georgia

A SWIFT transfer to Georgia is an international cross-border wire transfer processed through the Society for Worldwide Interbank Financial Telecommunication network to transfer funds into a Georgian bank account. It is the principal method used by foreign investors to transfer capital for real estate transactions, requiring valid IBAN details, clear payment purpose references, and full AML/KYC compliance.

TBC Bank Georgia

TBC Bank is a leading financial institution in Georgia, listed on the London Stock Exchange (LSE: TBCG) and regulated by the National Bank of Georgia. It offers commercial, retail, and corporate banking services, serving as a primary provider of multi-currency accounts, escrow solutions, and mortgage financing for domestic and international real estate buyers.

USD vs. GEL Real Estate Pricing

USD vs GEL real estate pricing refers to the practice of quoting property values and contracts in United States Dollars while legally settling transactions in Georgian Lari. In Georgia, primary market sales are routinely advertised in USD, but local legislation requires domestic payments to be executed in GEL at the prevailing exchange rate, introducing foreign exchange risk for buyers, sellers, and developers.