Buying property in Georgia - what should a Polish investor know?

The real estate market in Georgia, especially in picturesque Batumi on the Black Sea, is attracting more and more Polish investors. Attractive prices, liberal regulations and the growing tourist potential of the region make investing in Georgian real estate an interesting alternative to traditional locations. However, before making a decision, it is worth learning about the specifics of the local market and the differences in the legal system.

Legal system and real estate in Georgia

The Georgian legal system, although based on a continental model, contains a number of differences from Polish regulations. The key differences relate to:

  1. Property rights - In Georgia, there is a public real estate register (the equivalent of the Polish Land and Mortgage Register), but the registration procedures are much simpler and faster.
  2. Restrictions for foreigners - Importantly, foreigners can acquire real estate on a similar basis to Georgian citizens, with the exception of agricultural land.
  3. Purchase procedure - The property acquisition process is much less formalised than in Poland.

Step-by-step property purchase procedure

1. property selection and document verification

Carefully check the legal status of the property at the public register before signing any commitment. It is worth verifying:

  • Whether the seller is the actual owner
  • Whether the property is not encumbered by mortgages or other third party rights
  • Is there any tax arrears on the property

2 Preliminary agreement and deposit

In Georgia, it is common practice to sign a preliminary agreement and pay a deposit. This document should specify precisely the terms of the transaction, the deadline for the final contract and the consequences of withdrawal by either party.

3. final agreement and registration

The sale and purchase agreement may be concluded in the form of a notarial deed, but this is not mandatory. A key step is the registration of the ownership right in the public register, which can be done in person or by proxy.

Transaction costs

The following costs should be taken into account when purchasing a property in Georgia:

  • Registration fee - approx. 50-100 GEL (60-120 PLN)
  • Property tax - 1% per annum on the value of the property (in some cases)
  • Possible costs for translation of documents

Property management from Poland

Once a property is purchased, investors face the challenge of managing it remotely. The options available are:

  • Independent short-term rental via booking platforms
  • Cooperation with local management agency
  • Long-term rental to local tenants

What to look out for in particular?

  1. Developers - The market in Batumi is developing rapidly, attracting both reputable developers and less reliable players. Before buying from a developer, it is worth checking their history and completed projects.
  2. Technical condition of buildings - Particularly in the case of older properties, it is advisable to check the technical condition carefully, as building standards may differ from those in Europe.
  3. Location - Property prices in Batumi can vary significantly depending on the distance from the sea and the city centre.

Summary

Buying property in Georgia can be an attractive investment, but it requires adequate preparation and knowledge of the local legal conditions. Professional on-site legal support, especially from a lawyer familiar with both the Georgian and Polish legal systems, can significantly facilitate the entire process and minimise potential risks.