Georgia is a leader in the region and one of the most active countries in Europe that attracts investors to invest in real estate. Here are the legal tips from the adviser of Arkan Property, Nino Barachashvili to safely invest in Real Estate and quickly recoup your investment.
The Georgian real estate market has a lot of advantages, but in terms of investment attractiveness, there are 5 main factors, that benefit the market.
Favorable Investment Environment
The government of the country has established ideal conditions to attract foreign investment. The process of becoming the owner of real estate is streamlined for simplicity. Georgia ranks among the top five countries with the easiest apartment-purchasing process. Investors only need a passport, a sales contract, and proof of payment for state duties. The standard document registration process takes up to four days, while an expedited process can be completed within a day.
Conservative Taxation System
In many instances, there is no real estate tax for owning a home in Georgia.
Georgia’s tax code is designed to help minimize deductions and enhance the return and profitability of real estate investments. Foreign citizens in Georgia are free to use their real estate for commercial purposes without any restrictions or additional requirements.
Affordable Property Prices
Compared to Europe or Turkey, in Georgia, you can purchase a new apartment much cheaper.
It’s also important to note that new districts in Georgia are being developed rapidly, and areas that were once on the outskirts are quickly becoming fully integrated into the cities.
Residence Permit
Purchasing a property worth $100,000 or more is one of the criteria for obtaining a short-term residence permit in Georgia. This permit is typically granted for one year and can be renewed annually for up to 12 years. However, it’s important to note that buying agricultural land does not qualify for this type of permit.
Additionally, an investment residence permit is available for a period of 5 years. This permit can be issued not only to the foreign buyer but also to their family members. To qualify, the total value of the real estate must be at least $300,000. After holding the property for five years, the foreigner may apply for a permanent residence permit.
Profitable Investment Returns
Georgia attracts hundreds of thousands of tourists annually, and this influx quickly resumed after the pandemic. Currently, the most popular cities for purchasing property are Batumi and Tbilisi, where real estate offers excellent potential for investors. With rental demand increasing each year, these areas provide a solid return on investment.
Property prices in Georgia are rising by 15-20% annually, meaning you can sell your apartment at a higher price in the future. The country’s rapidly developing infrastructure continues to attract high-end clientele from across the region.
Before purchasing a property, it’s essential to know more details with the assistance of a lawyer.
Arkan Property can assist you in mitigating these risks.
