Citizenship in Georgia when buying real estate
Georgia as a country of permanent residence, education, self-development, doing business attracts more and more people from the post-Soviet republics and beyond. A steadily developing state that promotes European values and aims to join the EU allows its citizens to feel quite calm in the face of global political and financial instability. Therefore, citizenship of Georgia is a dream of many.
It is important to note that Georgia is one of the leaders among countries with an attractive tax system for investment. Here, taxes are low, benefits are provided for companies doing business in the IT sector, in the field of shipping. For firms with an annual turnover of up to $30,000, the income tax is only 1%. That is, not only to live comfortably and safely in Georgia but also to conduct business.
Affordable housing, mild maritime climate, and friendly residents are additional bonuses that await everyone who chooses Georgia for a major move.
Whatever the motives of migrants, in order to obtain Georgian citizenship, certain conditions will need to be met. The main ones are the possession of a residence permit, permanent residence in Georgia for 5-10 years, knowledge of the Constitution and history of the country, as well as knowledge of the Georgian language. Therefore, you need to start moving with a residence permit. And then gradually you can learn the language and the legal framework.
We offer you to find out how to get a residence permit in Georgia for foreigners in a short time.
What gives a residence permit in Georgia?
A residence permit in Georgia is a legal status that allows a foreigner not only to reside in the country without any time restrictions but also to enter into various legal relations with commercial and government agencies, and individuals on the same conditions as citizens. What gives a residence permit in Georgia to non-residents, we will tell you:
- you can live in Tbilisi or Batumi on absolutely legal grounds and without restrictions for the entire duration of the residence permit – you will not have to leave at the end of the visa-free period;
- you have the opportunity to use banking, government, educational, medical, and other services on equal terms with citizens;
- residence permit status simplifies tax relations, this is important for those who open a business in Georgia;
- you get the right after 10 years of residence on the terms of a residence permit (5 years for persons married to a citizen of Georgia) to apply for Georgian citizenship.
That is, any foreigner who has received the status of a residence permit enjoys all the rights and freedoms of a citizen, and also bears equal legal and social responsibility with them. The only difference between the rights of a foreigner with a residence permit and a citizen is the impossibility of participating in political elections and referendums. In fact, a residence permit in Georgia is a kind of intermediate stage before obtaining citizenship, which allows you to get to know the country, its inhabitants, traditions, history, and culture. And when we figured out what gives a residence permit in Georgia, let’s talk about how to apply for it.
Popular ways to get a residence permit in Georgia
Non-residents who want to move to the sunny land are provided with a temporary (short-term) or permanent residence permit in Georgia. A short-term residence permit is valid for a year and is either canceled or extended at the request of a non-resident. After 5 years of residence on a temporary permit, a foreigner can apply for permanent status. Annual renewal of a permanent residence permit is not required. It is indefinite.
The motives and grounds for a residence permit may be different. The most popular among them are education, work, as well as family reunification. Non-residents who previously had citizenship of Georgia, but lost it due to circumstances, can also obtain a residence permit. A popular way to settle in Georgia legally is to buy real estate. This opportunity, provided to non-residents, attracts a large number of residents of the post-Soviet space, residents of the EU, the Middle East, and the United States.
Important: Many foreigners apply for a residence permit in Georgia based on the purchase of the real estate. A residence permit is much more than just residence. This, as already mentioned above, is a large list of rights and freedoms that the applicant receives along with the status.
Residence permit in Georgia when buying apartments
So, a residence permit in Georgia when buying real estate is one of the most popular ways to legally reside in the country for a year. It is crucial to note that the size of the investment in real estate must exceed $100,000. While maintaining an apartment or other real estate object, you can extend the status of a temporary residence permit as much as you like until the moment you submit documents for obtaining a permanent residence permit.
Buying spacious apartments in Batum is beneficial for personal living. The ManCo company, which has been working in the real estate sector for 10 years, will help to purchase real estate. We help clients become homeowners in Georgia and then earn money by renting them out. Immediately after the purchase, you can apply for a residence permit status.
It should be noted that the cost of living in Georgia is lower than in European countries. Therefore, moving and buying your own home is a great option to change your life for the better (from a financial point of view). But even if a non-resident does not intend to live in Georgia permanently, it will not be amiss to obtain the status of a residence permit for additional legal guarantees. And housing can always be rented out because in large cities of Georgia there are many foreign representative offices, headquarters of international companies, and the demand for luxury apartments is consistently high here.
If speaking about the purchase price, it is worth noting that the total cost of the finished object is taken into account. It can be not only a quality renovation but also a parking space and other bonuses that the buyer receives along with the property. For instance, apartments in ORBI CITY in Batumi can be purchased not only with high-quality repairs but also with furniture. Completely ready-to-live-in apartments are also equipped with household appliances.
The property is assessed by a licensed professional. In the future, after a year or two, it is not necessary to re-evaluate the property every time. All data is stored in an electronic database and is provided automatically upon request of the competent authorities.
Important: When buying real estate for the specified amount, the residence permit status is granted not only to the owner but also to the family – husband or wife, minor (under 18) children.
In case you buy an object whose value exceeds $300 thousand, you can apply for a residence permit for investment – a permit for permanent residence is issued not for a year, but 5 years. That is, you do not have to update the status annually.
What are the advantages (except for a residence permit) when buying real estate in Georgia
A residence permit in Georgia when buying real estate is not the only advantage. Other advantages cannot be ignored:
- Real estate in Georgia is much cheaper than in Europe. Thus, the average price per square meter in new buildings in Tbilisi at the beginning of 2022 was $650-1500, depending on the area. In Batumi, they asked for $1000-1500 for a “square” in a new building, and $700 when buying an apartment in the secondary market. For example, the price per square meter for an apartment in ORBI CITY is $1400.
- The value of the real estate is not negatively affected by global socio-political and economic processes. On the contrary, the number of those wishing to buy apartments at the project growing every month. So, investing in housing is always profitable. Even if your story in Georgia does not work out, you can sell the property for a good margin, buy, sell, or rent the real estate through the management company ManCo.
- Georgia easily issues a residence permit in Georgia when buying real estate. And the procedure for buying a home for non-residents is simplified as much as possible – property rights will be registered in one day. By the way, this state closes the top five countries with the simplest real estate registration processes (Doing Business 2020).
- Buying a property in one of the cities of Georgia does not take much time and does not require the payment of a large tax, as, for example, in Europe. The transaction is registered through the House of Justice. The registration fee is $80. The service is carried out on the principle of “one window”. Documents are issued to the parties in Georgian, Russian, or English at will. The purchase tax is 0%, while, for example, in Bulgaria, it is 2.5% of the property value.
- Further fiscal obligations of the investor are as follows – 5% of the annual income from the rental of the real estate, 1% of the appraised value of the apartments – the annual property tax. But even here everything is thought out so that the investor feels as comfortable as possible. They can reduce taxes if during the year the housing was subjected to major repairs, which is confirmed (estimate, checks).
- Another significant advantage of buying real estate in Georgia is the low cost of housing maintenance. Utilities here are among the most inexpensive in Europe. Apartments with an area of 85 square meters will cost $45-70 per month, depending on the city of residence. Utility bills in ORBI CITY cost apartment owners approximately $20. Another $ 2 per square meter will security, video surveillance, and cleaning of territories services cost.
- High yield. The annual profit on real estate objects is more than 5%. For example, for ORBI CITY apartments in Batumi, located on the 1st line, this figure is 8.9%. It is especially profitable to buy apartments at the stage of construction in progress since the price per square meter in this case is reduced by 20-30%.
- You can buy an apartment in one of the cities of Georgia remotely – through a trusted representative, that is, the personal presence of a non-resident in the country is not required. You can entrust ManCo to manage your business.
- You can buy apartments in Batumi as a personal residence or to rent them out. The yield from renting out ORBI CITY apartments in Batumi is 13.5% per year.
Important: You can pay for the purchase both in cash and by bank transfer. Competent authorities do not require confirmation of the source of funds. This is very important for people who do not have proof of the origin of the money (and this happens).
Registration of a residence permit in Georgia after the purchase of the real estate
Let’s consider how to get a residence permit in Georgia:
- Buying a home. Documents on the purchase of apartments, registration of the sale and purchase transaction at the House of Justice, and an assessment by an independent expert confirming the cost of housing. If the apartments are purchased at the construction stage, that is, in fact, there is no housing yet, but the funds have already been spent, registration of the right to real estate is required. The buyer signs the preliminary purchase intentions with the developer. The document is registered in the House of Justice. It indicates the period of commissioning of housing, the characteristics, and the parameters of the object. The preliminary contract includes the rights and responsibilities of the parties, namely, the obligation to execute a purchase and sale transaction after the facility is put into operation.
- To apply for a residence permit on the basis of real estate ownership, a non-resident must submit a passport, documents confirming the ownership of the apartment, and a receipt for payment of the state duty.
- The terms for obtaining a residence permit based on the purchase of housing are 4-5 working days. You can resort to an accelerated procedure, but instead of 50 GEL, in this case, you need to pay 200 GEL. But if time is more expensive, then it’s worth it.
- Registration at the place of residence (propiska). After obtaining a residence permit, a foreigner must register in the apartment in order to obtain an identity card. You have 30 days to resolve this issue. The procedure is quite simple – an application for registration is submitted to the House of Justice.
Do not forget, if it is necessary to extend the status of a residence permit based on real estate ownership in Georgia, the application is submitted 45 days before the end of the current period.
How to buy real estate and apply for a residence permit in Georgia: step-by-step instructions
- Go to the website of the largest developer in Batumi – ORBI CITY. Choose the best option for apartments available for purchase – a finished apartment or an apartment under construction (in this case, the purchase will cost less). Ask for a video to see the real estate offered for sale as part of a virtual tour with your own eyes. Video tour allows you to get acquainted with the details of architecture and the quality of surface finishes.
- Consult the ManCo regarding the deal. If necessary, order legal support to be sure that the apartment you have chosen is suitable for obtaining a residence permit status.
- Conclude a sales contract personally or remotely through a trusted person.
- Pay for the property in full or in part, use a loan or installment plan – discuss all the possibilities with the ManCo manager. A major developer has several partner banks that are willing to lend for the purchase of apartments in the ORBI CITY residential complexes. Credit programs are available not only for citizens but also for non-residents. All you need to apply is your passport. Loan approval will take one day.
- Register the property as a new owner in the House of Justice. This can be done for you by your authorized representative in Georgia.
- Apply for a residence permit to the Ministry of Justice of Georgia. Wait for a positive result.
- Enjoy not only new housing but also new opportunities that the residence permit status in Georgia opens up for you. And this is a high level of economic freedom, the best conditions for doing business in Europe, the benevolence of the local population, and liberal migration legislation.
Elite apartments in the ORBI CITY complex in Batumi are your profitable investment, as well as your chance to legally reside in Georgia. It is important to mention once again that Georgian real estate is a profitable investment. And given that ORBI CITY, in addition to directly square meters, offers a protected area and an extremely developed internal infrastructure, then there is no doubt that, if necessary, an apartment will be bought much more expensive than it was purchased from the developer.
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