Have you already fallen in love with Georgia? It is easy to lose your head here: picturesque Tbilisi, subtropical Batumi, busy Kutaisi. Wherever you decide to buy a property in Georgia, there are unified rules and regulations throughout the country.
1. Stages of registration of real estate properties from developers and owners.
A resident of any country can purchase real estate in Georgia, except for agricultural land. For the executing purchase and sale transactions, only the passport of the buyer is needed. All purchase and sale transactions are recorded in the Public Register in the House of Justice. This process is simple, clear, extremely fast, with a minimum number of documents and a low registration fee. It takes no more than 2-3 hours in general.
The processes of buying real estate from a developer and from an owner do not differ. If you buy an apartment off-plan, two contracts are prepared – preliminary and basic. The preliminary contract for the sale implies the registration of the apartment to the buyer, as the future owner, until the parties fulfill the conditions. On the part of the buyer - until full payment, on the part of the seller - until the completion of the construction process and putting the house into operation.
Since 2017, blockchain technology has been introduced into the cadastral system of Georgia, thanks to which the contract can not be recorded by a notary. The authenticity of each document is confirmed by a barcode of international standard, it makes any illegal fraud with real estate documents impossible.
Bevor the executing purchase and sale transactions, the buyer can independently check all information about the selected property in the Public Register. To do this, you need to make an application with a copy of the passport to the House of Justice. The extract from the Register will indicate the owner of the property, as well as information about all existing encumbrances, burdens or alienations of the object - whether the apartment is under arrest or in a mortgage. You can get the extract within 1 working day or faster, depending on the amount you are willing to pay for it.
Clients often choose the service of transaction support, which is provided by accredited employees-lawyers of the company GEOLN.COM. Read more about the support of real estate transactions on the link - https://legaladvice.ge
Stages of purchase and sale transaction:
- Making a deposit for the object you like. As a rule, the amount does not exceed 10-20% of the property value.
- The conclusion of the purchase and sale contract. It is signed by the seller and the buyer in three copies-one remains with each of the parties of the transaction, the third is stored in the House of Justice. The contract is drawn up in the Georgian language, as well as in the corresponding foreign language if one of the parties is a citizen of another country.
- Cash settlement. The buyer can pay in cash or deposit funds the seller's current account. Bank branches are located directly in the House of Justice.
- Registration of property rights. It is carried out on the basis of the provided contract for the sale and the extract from the bank confirming receipt of money by the seller. The whole process of registration of property rights takes 1-4 days, depending on the amount of payment. The certificate of registration is stored in the House of Justice, the copy of ownership can be freely obtained on the website of the Register.
2. The cost of registration of real estate.
The amount of payment for the services of the Register depends on the timing of registration of property rights.
- Within 4 working days - 50 Gel (equivalent to $17).
- For 1 day – 150 Gel (equivalent to $50).
- Within 1 hour – 200 Gel (equivalent to $67).
3. A property tax.
In Georgia, there is no tax on the purchase of real estate, and on the ownership of the real estate.
Only the rental of real estate from individuals registered with the tax authorities as taxpayers are taxable.
4. Utilities and tariffs.
Payment of almost all utility bills is made according to the meter readings - electricity, gas, water. A fixed amount is set only for garbage collection.
The process of obtaining data on debt is automated as much as possible – data on consumed services are displayed in PAYBOX machines, which are literally on every corner in the city. With their help the payment is made. Also, payments can be made by bank transfer - via Internet banking, if you have an account in any Georgian bank.
Tariffs and monthly payments:
(*the price for electricity is according to the minimum tariff - up to 101 kWh)
- Electricity 1 kW / h costs 0.22 gel ($0.075).
- Water 1 cubic meter costs 0.52 gel ($0.175).
- Gas 1 cubic meter costs 0.57 gel ($0.19).
- Garbage for 1 person / month. payment is 1.30 gel ($0.44).
- Internet per month from 30 gel ($10).
5. Real estate insurance.
In Georgia, there is no requirement for compulsory insurance of real estate, this issue is left to the discretion of the buyer.
6. What is the tax when renting apartments.
The amount of this tax varies depending on the family income earned during the year preceding the current calendar year:
- For income up to 100,000 gel (equivalent to $34,000), the property tax is 0.05-0.02%.
- If the income exceeds 100 000 gel, the tax amount is 0.8-1%.
- If the family income does not exceed 40 000 gel (equivalent to $13 500) individuals are exempt from tax (except land).
7. Maintenance and management costs, service rates from different developers.
If the owner of the property permanently lives abroad, he can entrust the administration and management of his apartment to a special property management company. Sometimes developers provide services of own managing companies, sometimes delegate this function to the checked specialized foreign companies of global renown. You can also turn to private firms and individual entrepreneurs who take apartments in management.
Depending on the conditions, management companies charge 10-40% of revenue for their services.
8. The procedure of remote purchase of an apartment in Batumi.
If you are outside Georgia, you can buy an apartment by proxi. This requires an original notarized power of attorney for a person located in Georgia, and a copy of the principal's passport, also certified by a notary.
You will also need a contact phone number and e-mail address of the notary who issued the power of attorney. In the process of registration of the transaction, the staff of the Public Register will have to contact the notary for additional confirmation of the authenticity of the documents.
9. Conditions for obtaining a residence permit and citizenship when buying real estate.
Obtaining the right to permanent residence in Georgia on the basis of ownership of real estate is called an investment residence permit. On July 5, 2019, the new rules for obtaining a residence permit in Georgia came into effect, the changes also affected investment residence permits. According to the new legislation, the cost of real estate must be at least 300 000 gel, which is equivalent to $100 000.
The validity of the investment residence permit is 5 years. To extend its validity, you can apply to the Justice authorities no later than 40 working days before the end of the current validity of the residence permit.
10. Is it possible to buy real estate in Georgia in installments or on credit?
Persons who are not citizens of Georgia can buy real estate in installments. The rules for the provision of installments are established by developers and apply equally to citizens of Georgia and citizens of other states.
Almost all construction companies offer installments on an interest-free basis. Usually, installments are provided until the end of construction or until the house is put into operation. The size of the down payment varies from 20% to 50%, in agreement with the developer. The payment schedule is made individually with each buyer and is entered into the sale and purchase contract.
Foreigners as well as Georgian citizens can get a mortgage loan from Georgian banks. But in practice, such loans are issued very reluctantly. In order to obtain a bank loan for the purchase of real estate, a foreign citizen must provide a firm guarantee valid in Georgia-real estate, work or business in Georgia.
In addition, the bank will require to provide a guarantor for the loan, which must be a citizen of Georgia. Some large construction companies are willing to act as such a guarantor, thereby providing a foreigner with a loan to buy real estate in their house. Unlike 2-3 years of installments, such a loan is issued for a period of 5 years.
At the end of the review, we would like to draw your attention to the publication, which we prepared earlier, about the most frequent questions of investors about Georgia. We answered what Georgia is famous for, how safe, attractive for investment and dozens of other questions. Read more at the link - https://geoln.com/invest-in-georgia/why-is-it-profitable
Thank you for choosing GEOLN.COM,
the team of GEOLN.COM.