The purchase of a real estate in the form of land in Georgia by foreigners is a promising and profitable investment for a number of reasons: the value of land in the country is growing steadily from year to year, for investments of $ 100,000 or more you can get a residence permit, agriculture and tourism are the most profitable spheres of the country’s economy. A land plot in Georgia does not require additional investments for maintenance in the form of payment for utilities or rent, which will allow you to take your time after purchase and wait for the best moment to build or implement other plans. The sale of land for foreigners in Georgia is not directly possible, but land can be leased.
Since 2018, it is no longer possible for foreigners to buy agricultural land in Georgia on a general basis. In this article, we will analyze in which cases a non-resident can still buy land in Georgia and explain in more detail the nuances of leasing land plots.
Purchase and lease of agricultural land in Georgia
According to the Law of Georgia “On Ownership of Agricultural Land”, an individual citizen of any country other than Georgia has no right to buy agricultural land but can lease it. In addition, foreigners who marry Georgian citizens do not receive the right to purchase and register land.
A non-resident of Georgia can obtain the right to own agricultural land if inherited. But in this case, requirements for cultivating the land are imposed on him, if this is not met, then the land will need to be sold within 3 years. If the land is not sold, then it will become the property of the state.
As for legal entities, agricultural land can be bought by a company founded by a foreigner, but the share of Georgian citizens-partners must be 51% or more.
If we are talking about large projects, such as hydroelectric power plants, a port, or resource-extracting enterprises, where the cost is several hundred million from foreign companies, then the decision to sell the land remains with the Georgian government.
How to rent agricultural land in Georgia
As we mentioned earlier, tourism and agriculture are the main spheres of the Georgian economy, in this regard, the issues of leasing land by foreigners for processing or for the construction of hotels are given close attention, both by the state and by the public. But despite this, the process of registration itself after obtaining permission is quite simple.
In total, there are 2 forms of land ownership in Georgia:
- Private property;
- The right of use, which includes the possibility of construction, usufruct and lease (up to 49 years).
Land owned by the state can be leased or purchased:
- On the auction;
- Redeem, receive for use directly;
- Through tenders, competitions.
To conclude a sale and purchase transaction, lease of real estate in Georgia, a non-resident must provide a passport and pay a fee when registering property rights in the National Public Register. The very procedure for registering a land plot from the moment of selection to the moment of registration can take from 6 months. It consists of:
- Cadastral registration;
- Appeals to the owner with a request for purchase / lease;
- Coordination and formation by the owner of the rights and procedures for the disposal of the land plot;
- Passing the procedures for the provision of land within the established norms through an auction or through a competitive selection;
- Conclusion and registration of the contract.
In Georgia, there are types of land plots that cannot be privatized:
- Water bodies and subsoil;
- Car roads;
- Religious buildings;
- Pastures, places for driving livestock.
If you want to buy real estate in Georgia or rent agricultural land, leave a request to receive a paid legal opinion and detailed advice on all issues of interest to you.