Freehold Ownership in Georgia

Concept Overview

Freehold ownership represents the strongest form of property right under Georgian civil law. It provides the owner with perpetual title, complete rights of disposition (sale, transfer, lease, mortgage, inheritance), and exclusive possession of the property. Registered electronically through the National Agency of Public Registry (NAPR) under the Ministry of Justice, property rights in Georgia are immutable and protected by constitutional guarantees.

Scope and Restrictions for Foreign Buyers

While Georgia offers one of the most open foreign investment climates globally, a critical distinction exists based on land classification:

• Non-Agricultural Property (Unrestricted): Foreign citizens and foreign-owned legal entities have unlimited rights to purchase and own urban residential apartments, commercial real estate, industrial sites, and non-agricultural land plots in freehold.
• Agricultural Land (Restricted): Under Article 19 of the Constitution of Georgia and the Organic Law on Agricultural Land Ownership, foreign individuals and foreign-controlled legal entities are strictly prohibited from owning agricultural land in freehold. Foreigners can only acquire rights to agricultural land via long-term lease (up to 49 years) or through specific corporate structures permitted under narrow statutory exceptions.

Property Registration Process

Georgia’s streamlined property registration system is recognized globally for its speed and transparency. To establish freehold title:

1. Contract Execution: A purchase agreement is executed in Georgian and English.

2. Public Registry Registration: The transaction is submitted at the Public Service Hall or through an accredited notary.

3. Title Issuance: NAPR issues an electronic Extract from the Rights Registry containing a unique QR code and document security code, serving as definitive proof of ownership.

Key Taxes and Costs

• Value Added Tax (VAT): Purchase of new-build real estate directly from developers incurs an 18% VAT, which by law is always included in the developer's advertised price.
• Property Tax: Georgia imposes no property tax on primary or secondary residential real estate for physical persons whose annual household income generated within Georgia is below 40,000 GEL. For higher income brackets, standard progressive rates range between 0.05% and 1% of market value.
• Registration Fees: NAPR registration fees are minimal, ranging from {{data:napr_registration_fee_min}} to {{data:napr_registration_fee_max}} GEL depending on the chosen processing timeline.

A foreign investor purchases a newly built apartment in Tbilisi from a developer for $160,000 USD. The developer's advertised price already includes the mandatory 18% Georgian VAT. The buyer presents their passport at the Public Service Hall, signs the purchase contract, and pays the fast-track registration fee of {{data:napr_same_day_fee}} GEL. Within 24 hours, NAPR issues an electronic extract confirming the buyer as the absolute freehold owner. Because the investment exceeds the $150,000 USD threshold, the owner uses this NAPR extract to apply for a Georgian residence permit.