Buying an apartment in Georgia as a foreigner follows a precise logic: choosing the property, checking the documents, registering with the register and clarifying the financing. Here are the stages to prepare for, with the checks to be entrusted to independent professionals.
Defining your project before searching for a property
It all starts with the way of life. Tbilisi is the Georgian capital; Batumi is a port city on the Black Sea. These two starting points call for different projects: a regular urban presence, a pied-à-terre for your stays, or a home to assess for letting. Begin with the reasons that would genuinely bring you on site. Your use, your periods of presence and the management envisaged provide a common basis for comparing properties. In a city, the choice of a neighbourhood matters as much as the choice of the home. Note the shops, the access, the useful transport and the immediate surroundings. For a project on the Batumi coast, also study your schedule of stays and the services available during the periods that interest you. This preparatory work saves you from comparing properties that do not meet the same needs. It also makes your exchanges simpler with a seller, a lawyer or a bank, since your criteria are already set.
Checking what the purchase actually allows you to do
A foreigner may in principle acquire an apartment or a non-agricultural property, subject to the particular restrictions applicable to the property. This rule applies to a conventional urban home. It does not extend to agricultural land, the regime for which is restrictive for foreigners and provides for particular cases as well as a specific procedure. The presence of a building or the urban appearance of a plot is not enough to prove its non-agricultural status. So have the exact designation of the property confirmed with the register. For an apartment, this question rarely arises, but it becomes central as soon as a plot is associated with the sale. Also check precisely the lot, the identity of the seller and the nature of the right transferred. The rules change and must be confirmed by an independent local lawyer. This first confirmation avoids committing time and costs on a property whose legal status would not match your project.
Having the documents checked before deciding
The heart of the purchase is the document check. Request a recent extract from the public register with the registered rights, any mortgages and restrictions, as well as the cadastral identification. Have the title, the identity of the seller, the contractual commitments and the conditions of use examined by an independent professional. Note the documents still missing and the answers to be obtained. Keep an organised file, with each version received and its date, so that all those involved work on the same elements. For a property under construction, compare the description and plans with the contract, then have the schedule and conditions of delivery specified. Request the exact state of the home, the services planned, the equipment included and any works remaining at your expense. A visual presentation may show a final result without detailing what is actually included. Have the permits, guarantees, penalties, conditions of cancellation and consequences of a delay checked. This work prepares an informed decision rather than a signature made in haste.
Choosing between personal ownership and a local company
An apartment held directly and company shares require different analyses. Direct ownership rests on a written deed and the registration of your right with the public register. A Georgian LLC, for its part, may be considered to organise several partners or an activity, with its own articles of association, directors, accounts and obligations. Setting up a company is not a general obligation. The choice depends in particular on the property, the activity envisaged, the number of partners and the tax treatment. Compare the annual cost and flows of this company with personal ownership. Contributions, partner advances and distributions must be characterised on both sides of the border. Please note: 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. A local LLC also does not lift the restriction on agricultural land. Have each situation characterised by your tax adviser before settling on a structure.
Preparing the financing and the payment schedule
The financing is prepared in parallel with the choice of the property. You can compare personal funds, French financing accepted, and a Georgian banking option. Some banks, such as TBC, feature a property-financing section in their offering aimed at non-residents; this presence does not amount to a loan agreement. The bank must accept your profile and the property, then confirm the conditions in a personal proposal: income accepted, supporting documents, down payment, valuation of the property, currency, rate and term. For an off-plan purchase, a development may offer a payment schedule, sometimes with a substantial balance on delivery. Match this schedule against your available funds and the contractual milestones. Have the guarantees and the protection of the sums paid checked. An “interest-free” advertisement does not on its own describe the full cost. Do not commit a future balance to financing that has not yet been granted. A developer's payment plan never replaces a confirmed banking agreement. Also anticipate how your instalments will behave in the event of an unfavourable change in the exchange rate.
Taxation, residence and remote management
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, in itself, produce a visa or a change of tax residence. If residence is part of your project, check current eligibility with the competent agency, then the French consequences with your adviser. Georgia also provides for a specific regime for certain residential rental income received by individuals, subject to conditions. Do not extend it to a hotel operation, a short-term let or an LLC without written characterisation. The tax adviser must apply local law and then the France–Georgia convention. Lastly, if you are absent for part of the year, identify who will be able to access the home, oversee the maintenance and deal with incidents. Request a detailed contract, reports and a description of the costs. The rules change and must be confirmed by an independent lawyer or tax adviser.
The stages to prepare
- Define your use and the target city
- Check the title and the identity of the seller
- Have the documents examined by a local lawyer
- Confirm the right transferred with the public register
- Compare personal ownership and a local company
- Clarify financing and the payment schedule