All about real estate in Georgia for non-residents, how and where it is better to buy a house in Georgia, and what taxes exist on real estate in Georgia

1 . The main advantages of buying real estate in Georgia

2 . Choosing real estate in Georgia

3 . Taxes on real estate and land in Georgia for non-residents

The main advantages of buying real estate in Georgia

The main advantages when buying real estate in Georgia are:

• low cost per square meter;
• prospects for market development;
• possibility non-residents of Georgia receive income from renting real estate;
• the possibility of obtaining a residence permit and citizenship of Georgia.

The possibility of obtaining a residence permit is a determining factor for foreign citizens, since most European countries do not provide such an opportunity.

In addition, the Georgian authorities allow non-residents of the country to earn money by renting out real estate. Plus, rapidly developing cities and gradually rising prices per square meter give a chance to resell real estate much more expensive.

However, it is not worth making hasty and thoughtless decisions based only on the cheapness of a square meter. It is necessary to study various aspects that will affect the future value of real estate in Georgia.

Choosing real estate in Georgia

Each buyer has their own goals when purchasing real estate in Georgia. For some, this is a way to make money on rent or resale, for others, it is an opportunity to obtain a residence permit of Georgia, and subsequently become a citizen of the country. Someone buys real estate for commercial organizations.

Real estate in Batumi

The main tourist center of the country will provide income to real estate owners renting out housing. Over the past 10 years, Batumi has been significantly transformed, overgrown with high-rise hotels and has become one of the most attractive cities in Georgia for the purchase of housing.

Proximity to the coast, especially in the area of the New Boulevard, will mean a high price per square meter, but also a high rental cost of future housing.

The cost on the outskirts of the city or suburbs is 4 times less, but since Batumi is a relatively small city, it will not take long to get to the coast line. Therefore, tourists are ready rent and apartments, located in Chaobi,Ureki, Gonio or Kakhaberi.

But, if tourists fill Batumi in the summer season and can be content with apartments on the outskirts of the city, then the rest of the year only premium-class rooms are in demand. Those who want to visit the casino choose accommodation closer to the center.

Real estate in Tbilisi

The most populated city Georgia, this Tbilisi. The demand for rental housing is high here at any time of the year, regardless of the season. Not only tourists rent apartments, but also visiting workers, students or residents of the city themselves.

They are more often looking for apartments in the Old Town area, Saburtalo and Vera. If you plan to rent commercial real estate, choose the last two districts.

Most partreal estate in the center of Tbilisi, unlike Batumi, it requires major repairs. New buildings are located on the outskirts of the city, so it is worth carefully studying the market and the location of the purchased real estate in Georgia.

The presence of the metro makes it much easier to move around Tbilisi, and many are ready to consider the option of high-quality housing for a small price on the outskirts than in the very center, but without amenities.

The cost of real estate in Tbilisi is less than in Batumi, but remains in the range of $ 600-2000 per square meter.

Taxes on real estate and land in Georgia for non-residents

Georgia is famous for its low tax rates, so buying a property here, you will definitely not lose.

• By rental of residential premises, the owner will pay a tax of 5% of the rental amount, or 20% of the difference between income and expense. When renting out commercial real estate, the tax will be 20% on the difference between income and expenses.
• Property tax is not paid if the annual family income is less than 40 thousand lari. If more than 40 thousand, but less than 100 thousand, then it varies from 0.05% to 0.2%, and with an income of more than 100 thousand lari per year, the property tax will be from 0.8% to 1%.
• The property tax depends on the location of the property. The rate is 0.2% in Tbilisi and Batumi, and 0.08% in Kazbegi. Check the local tax rate before the purchase of real estate.
• When owning a land plot, a tax is also charged. It depends on the size of the plot and its location. The minimum tax rate is 0.24 lari per sq.m
• . For land on which an apartment building is located, or occupied by buildings not for economic activity, you do not need to pay tax.
• In case of natural disasters, in which the property has suffered more than 50%, the owner is also exempt from paying tax for it.

Property taxes in Georgia are assessed annually. To do this, everyone, including non-residents of the country, must fill out and submit declarations to the Tax Service of Georgia. You need to do this before November 1, and pay until November 15 of the year following the reporting one.