Why Should You Invest in a Property in Georgia? In the last few years, Georgia has completely opened and been recognized as an attractive market for international business and tourism by a number of international indices and rankings. The most popular and developed cities of the country are Tbilisi (capital) and Batumi (resort). These cities draw in a lot of investors from the Caucasus Region, Russia, Europe and even the US.
- Increasing Tourism
There is a tourism boom. Mainly, it comes from Russia and the CIS, but also from Middle East and European countries. Since 2012, the total number of visitors has grown from 2.4 to 8 million. This significant number represents about 23% growth every year. The main reasons are the low cost of living and the neutral climate.
- Affordable Property
The benchmark of Georgian Property Market represents that the average selling and rent price of residential flats in central districts is lower than in other CIS countries and even European ones.
In Old Tbilisi and City Center, the price starts from $1000 and as low as $450 in Batumi for one sq.m. In other words, you may find an apartment starting from under $30,000.
- Foreign Buyers Are Welcome
Everyone is able to buy property on a full freehold basis under the same terms as a domestic Georgian buyer. The property registration is quick and can be done in a couple of hours. Most importantly, if a foreign buyer invests at least 300,000 GEL in Real Estate, he can obtain Permanent Residence in Georgia.
Moreover, citizens of 94 countries may enter and stay in the country without a Visa 1 full year.
- Big Rental Yields
In the local market the actual situation can be described as “High demand and Low supply”. Therefore, by investing in the right property in the right place, you can obtain up to 20% in Gross Rental Annual Yields. Most importantly, the average time taken to recover funds is 4-6 years, which is one of the best scores in the world’s Real Estate Market.
Taxation is simple, low, efficient and fair, and Georgia has only 6 flat taxes. All of them are national.
A “Must Know” is that Property Tax is up to 1% and Personal Income Tax for interest, dividend and royalty is 5%.
Since the 2000’s Georgia undertook a number of reforms aimed to improve the business environment and its economy through a successful democratic regime. To sum up, the political stability in this country may be considered as one of the most important factors not only for the positive development, but also for international investors.