How Foreigners Can Buy Non-Agricultural Land in Georgia

Defining 'Non-Agricultural' Land

Georgian law categorizes land as either agricultural or non-agricultural. Foreign individuals may freely buy non-agricultural plots. Non-agricultural land is any plot not designated for farming. This covers land zoned for a private house, a multi-unit apartment building, a hotel, a warehouse, or a factory.

Before any purchase, verify the land's official status. Check its cadastral code on the Public Registry's online portal (napr.gov.ge). The registry extract will state the land's designated purpose. An incorrect status can block a transaction, so this check is essential.

The Legal Framework for Foreign Ownership

Georgia's Constitution grants foreign citizens and foreign-registered companies the same property rights as Georgian citizens for non-agricultural land. Buyers acquire full title, known as freehold ownership. This is not a long-term lease; the land itself is owned permanently.

Rules for agricultural land differ significantly. Since 2017, the law heavily restricts the sale of agricultural plots to foreigners. Exceptions exist for inheritance or specific investment projects through a Georgian legal entity, but direct purchase by a foreign individual is not permitted. Confirming non-agricultural status is therefore essential.

The Purchase and Registration Process

Conducting due diligence is the first step. Beyond confirming the land's status, you or your lawyer should check the registry for encumbrances like mortgages, liens, or legal disputes. Hiring a surveyor to physically verify the plot's boundaries against the official cadastral map is also prudent.

Next, you and the seller sign a purchase agreement. Notarization is not legally required, but using a notary is common practice for clarity. The contract should be bilingual, in Georgian and a language you understand, detailing the price, payment terms, and property details.

Register the title transfer at a Public Service Hall. Submit the signed agreement, your passport (or PoA), and pay the registration fee. Standard service takes four working days and costs approximately 60 GEL. Expedited options are available for one working day (around 170 GEL) or same-day service for a higher fee.

Using a Power of Attorney (PoA) for Remote Purchase

Purchasing land in Georgia is possible without being physically present. A Power of Attorney (PoA) authorizes a representative in Georgia to act on your behalf. This person can sign the purchase agreement, handle payments, and file registration documents.

For validity in Georgia, prepare the PoA in your home country, sign it before a local notary, and then legalize it with an Apostille (for Hague Convention signatory countries). Other countries require a more complex process of consular legalization. The PoA's text must grant specific powers for the property transaction.

Associated Costs and Taxes

Georgia does not impose a stamp duty or property transfer tax on land purchases. The only mandatory government fees are for title registration, which are low.

Annual property tax depends on your household's total income in Georgia. Households earning less than 40,000 GEL per year pay 0%. For incomes between 40,000 and 100,000 GEL, the rate is 0.05% to 0.2% of the land's assessed market value. Above 100,000 GEL, the rate ranges from 0.8% to 1%. The local municipality determines this assessed value.

Capital gains from selling land are taxed at 5% only if sold within two years of purchase. After holding the property for more than two years, no capital gains tax applies upon sale.