In Georgia, link the title to the operating project.

Direct purchase and registration

A foreigner may in principle acquire an apartment or a non-agricultural property, subject to the specific restrictions applicable to the property. Property acquisition rests on a written deed and the registration of the right at the Public Registry. Check the lot, the seller and the nature of the right transferred precisely. For a project under construction, have it confirmed what can be registered at each stage, and at what point you obtain the final title.

Sources: Matsne · Georgian law on investment, articles 2–3 and 12 · Matsne · Georgian Civil Code, article 183

Agricultural land: a separate restriction

The regime for agricultural land is restrictive for foreigners. It provides for specific cases, including certain inheritances, and a specific procedure for certain foreign-controlled companies on the basis of an investment plan and a government decision. A local LLC therefore does not automatically lift the restriction. Have the registry confirm the exact designated use of the plot; the urban appearance of a plot or the presence of a building is not enough to prove its non-agricultural status.

Sources: Matsne · Organic law on agricultural land, article 4 · NAPR · Titles, charges and designated use of land

Personal holding or LLC company

A Georgian LLC may be considered to organise several partners or an activity, with its own articles of association, directors, accounts and obligations. Compare the annual cost and the flows of this company with a personal holding. Contributions, partner advances and distributions must be characterised on both sides of the border. The existence of a company in Georgia does not, on its own, change the French tax residence of its partner nor the nature of all its income.

Sources: Matsne · Georgian law on entrepreneurs · DGFiP · Taxation of foreign-source income

Deposit and bank financing

You can compare personal funds, accepted French financing and the Georgian bank route. TBC has a property financing section in its offer for non-residents; this does not amount to loan approval. Have accepted income, supporting documents, deposit, property valuation, currency, rate and term confirmed in a personal proposal. Our cash-flow plan compares rental income and instalments in the same currency and tests an unfavourable currency movement.

Sources: TBC Bank · Services for non-residents · Ministry of the Economy · Understanding property loans

Developer payment and off-plan purchase

A development may offer a payment schedule, sometimes with a large balance due on completion. Our method is to reconcile this schedule with your available funds and the contractual milestones. Have the permits, guarantees, penalties, termination conditions and consequences of a delay checked. An ‘interest-free’ advertisement does not on its own describe the full cost or the protection of the sums paid. Do not commit to a future balance on the strength of refinancing that has not been granted.

Apartment or hotel unit: check the documents

Request a recent extract from the registry showing the rights, mortgages and restrictions, as well as the cadastral identification. In our analysis of a unit under management, we add the operating contract, the method of calculating income, the fees, the renovation fund, the conditions of personal use and the operator’s exit. A displayed hotel brand guarantees neither the payment of your income nor the buy-back of the property. You must identify the company that commits itself and read its exact obligations.

Source: NAPR · Titles, charges and designated use of land

Local taxation and French obligations

Georgia provides a specific regime for certain residential rental income received by individuals, subject to conditions. It must not be automatically extended to a hotel operation, to all short-term letting or to an LLC. Your tax adviser must characterise your contract and apply local law and then the France–Georgia tax treaty. The amount paid by the operator, a company’s profit and your dividends must be analysed separately.

Sources: Revenue Service · Residential rental by an individual · DGFiP · Consolidated France–Georgia tax treaty

Property purchase and residence permit

Being an owner, obtaining a residence permit and determining one’s tax residence are three distinct matters. Georgia provides for certain residence procedures linked to a property investment meeting precise conditions and supporting documents. A purchase does not produce a visa or an automatic change of tax residence. If residence is part of your project, check the current eligibility with the competent agency, then the French consequences with your adviser.

Source: Georgian Public Service Agency · Residence permits

Our support for Georgia

We clarify your budget and the use of the property, then compare developments, payment schedules and management models. We help you gather the questions on the title, the charges and the operation for an independent check. A local lawyer confirms the rights and commitments; your tax adviser examines the holding structure and income; the bank decides on the loan. The simulation keeps prudent assumptions on occupancy, currency and resale, with no guarantee of return.