Buying Property in Georgia

Georgia, mainly Tbilisi and Batumi, is of interest to many Israelis as a place to buy a holiday home, an investment property or a second base outside Israel. As with any purchase abroad, the property and the contract are governed by local law, not Israeli law, so habits familiar from Israeli transactions may not apply. This guide explains, from the Israeli side, what is worth checking before you commit and which stages to know in advance.

It is important to stress that Georgian law governs the transaction itself, so it should be reviewed by a local lawyer licensed to practice in Georgia. An Israeli lawyer assists with the Israeli side, coordinates with the local lawyer and prepares your documents, but is not a substitute for local legal advice.

First: a lawyer who acts for you

In projects marketed to Israelis, the developer or broker often offers "a lawyer we work with". That is not wrong in itself, but whoever represents you should act for you alone. Ask in advance the following:

• Who pays the lawyer, and what the legal service includes: checks, contract review, support at signing and registration.
• Which languages the lawyer works in and how progress will be reported.
• What additional costs to expect, such as taxes, fees and the like. Get a written, current breakdown before committing.

Checking the property before any payment

Before paying a deposit, ask the local lawyer to check the property's legal status. Common checks include:

1. Ownership and registration. Is the seller the registered owner, and does the local land registry match what was presented to you?
2. Encumbrances and third-party rights. Mortgages, attachments or rights of others registered on the property.
3. Permits and designation. Is the building authorized, and what is the designation of the property and land? Ask expressly whether any restrictions apply to foreign buyers for this type of property or land.
4. Debts. Debts to local authorities, building management fees and current bills.
5. The building. For shared buildings: arrangements with management companies, expected expenses and decisions already taken.

The aim is not to create pressure, but to make sure you know what you are buying before you commit.

Existing property or off-plan

Projects in Georgia are often marketed at planning or early construction stages. Anyone buying at that stage should ask questions similar to those asked when buying from a developer in Israel:

• Who owns the land, and is it pledged to a financing party?
• What happens to money already paid if the project is delayed or stops, what security exists, and whether the money is secured by a bank guarantee?
• What is the handover date, is there compensation or a mechanism for delay, and what is the binding specification?
• Who is responsible for registering the rights in the buyer's name, and when?

Usual stages of a transaction

The exact structure varies, but the process usually looks like this:

• Preliminary checks by a local lawyer, before any financial commitment.
• A binding agreement and a deposit. Understand in advance what happens if a party withdraws and what the conditions precedent are.
• Transfer and registration of ownership through the official procedure. The local lawyer will detail exact requirements and timing.
• Taxes and costs. Tax rates, fees and commissions change over time. Do not rely on general tables online or on what the seller says. Get a current written breakdown from the local lawyer or the competent authority.

Notarial power of attorney and apostille

You can also appoint a representative to sign for you. The usual route is a notarial power of attorney, and from the Israeli side the process generally looks like this:

1. The local lawyer approves the wording and the required powers.
2. You sign in Israel before a notary, who verifies your identity and signature.
3. The document receives an apostille, which allows an Israeli public document to be used in a country party to the Hague Convention. Confirm with the local lawyer that the requirement applies in your case.
4. A certified translation is sometimes required.

Define exactly what the representative may do, for which property and to what extent, and set an expiry date. A power of attorney that is too general is an unnecessary risk. More in the article Notarial Power of Attorney and Apostille and on the International Law page.

The Israeli side: reporting and tax

As an Israeli resident you may have duties in Israel, such as reporting assets and income from abroad, depending on Israeli law and your circumstances. Rental income, or a future gain on sale, may be taxable in both countries. Speak with an accountant or tax adviser who knows both systems before the purchase, not after.

Financing and moving the money

In large transactions, banks in Israel and abroad ask for explanations of the source of funds. Keep records of the source of the capital and of every transfer, and check with your bank in advance what is required.

Inheritance and planning ahead

Property in Georgia is also an asset for inheritance purposes, and proceedings may be needed in both countries. Plan this at the time of purchase. The Israeli background appears in How to Write a Will in Israel; for foreign property, also consult a local lawyer.

Common mistakes

• Paying a deposit before checking the property and registry.
• Relying on a lawyer or broker acting for the seller.
• Signing a contract in a language not fully understood, without translation.
• Signing an overly broad power of attorney.
• Ignoring the Israeli side: reporting, tax and inheritance planning.

Similar guides: Buying Property in Portugal and Buying Property in Greece.

In summary

A purchase in Georgia proceeds in an orderly way when it is accompanied by the right checks, representation by a local lawyer acting for the buyer, and orderly preparation of documents in Israel. You are welcome to contact us for support with the Israeli side, including notarial power of attorney, apostille and coordination with a local lawyer.

The information in this article is general, is not legal advice, and does not replace a review of Georgian law with a lawyer in that country.