Investing and Relocating to Batumi: A Guide to Taxes, Business, Property, and Financing in Georgia

Batumi, Georgia’s fast-rising Black Sea resort city, is becoming a major magnet for foreign investors, expats, and entrepreneurs. What makes Batumi stand out is not only its seaside lifestyle and growing tourism economy, but also Georgia’s low-tax environment, business-friendly policies, and easy property ownership rules for foreigners.

Whether you're considering buying real estate, starting a business, or even relocating, this guide will walk you through the essentials: taxes, business setup, property rules, investment margins, and financing.

1. Georgia’s Tax System: Simple, Low, Transparent

🇬🇪 Personal Taxes:

• Flat 20% income tax on local salary.

• 0% tax on foreign income if you're not employed by a Georgian company (perfect for freelancers and digital nomads).

• No capital gains tax if you sell a property after owning it for more than 2 years.

🏢 Corporate Taxes:

• 15% corporate income tax (only when profits are distributed — reinvested profits are tax-free).

• 5% dividend tax.

• Micro-business regime: Only 1%–3% tax on turnover for small operations (such as property rental or consulting).

2. Buying and Selling Property in Georgia: Tax-Free Profits (If You Time It Right)

Georgia has made real estate investment extremely attractive, especially in Batumi, with no restrictions on foreign ownership and a tax structure that rewards long-term investors.

🏠 Private Property Example:

Scenario:

• You buy a Batumi apartment for $80,000 in 2023.

• You renovate and rent it out for 2 years.

• In 2025, you sell it for $110,000.

Result:

• You made a $30,000 profit.

• Since you held the property for more than 2 years, the capital gains tax is 0% — no taxes due on the profit.

If you had sold the property within 2 years, the profit could be taxed at 20% (standard income tax rate).

🏢 Commercial Property Example:

Scenario:

• You buy a retail space in a new tower for $150,000 in Batumi.

• After 18 months, you sell it for $190,000.

Result:

• Your profit is $40,000.

• Since the sale occurred before 2 years, this is considered commercial activity, and the profit is taxed as income:

  • If sold as an individual: up to 20% tax on the profit.

  • If sold through a company: 15% corporate tax, but only if the profit is distributed as dividends.

➡️ Tip: If you plan to “flip” commercial property within 2 years, it’s often better to do so via a registered company, to take advantage of tax deferral on undistributed profits.

3. Can Foreigners Get Mortgages or Bank Loans in Georgia?

Yes — foreigners can apply for real estate loans in Georgia, though the conditions depend on the bank and applicant profile. Here’s what you should know:

🏦 Loan Terms for Foreigners:

• Loan-to-value (LTV): Up to 50–70% of the property value.

• Interest rates: Typically 7%–11% annually for USD or EUR loans; slightly lower for loans in GEL.

• Term: Up to 10–15 years.

• Down payment required: Minimum 30–50% (can be less if you have Georgian income or residency).

✅ Requirements:

• Passport and proof of income.

• Sometimes proof of legal stay or residence in Georgia.

• Some banks offer developer-backed loans with better terms for off-plan or new-build projects.

🧾 Popular banks offering loans to foreigners:

• TBC Bank

• Bank of Georgia

• Liberty Bank

➡️ Tip: If you're not a Georgian resident, you might get better rates by working with a local lawyer or mortgage broker who understands the local system and can prepare your file.

4. Buying Commercial Property in Batumi: A Growing Market

Batumi has a thriving market for commercial properties, especially in the hospitality, retail, gaming, and wellness sectors.

🏢 Property Types:

• Street-level shops and cafes.

• Spaces for spas, restaurants, coworking, casinos, or clinics in towers like Beach Tower or Alliance Palace.

• Hotel rooms operated by international brands (Hilton, Wyndham, Marriott).

📜 Legal & Tax Overview:

• 0% property purchase tax.

• Fast registration (1 day).

• Property tax: 0.1%–1% annually if rented or used commercially.

• Rental income tax: As low as 1% of turnover if you register as a small business.

5. Doing Business in Georgia:
Fast, Transparent, Foreign-Friendly

Georgia is ranked among the top 10 countries globally for ease of doing business. Foreigners can register a company in 1–2 days, either in person or online, with:

• 100% foreign ownership allowed.

• No minimum capital requirement.

• Transparent reporting and low bureaucracy.

• Full access to local banks, payment systems, and even crypto exchanges.

You can operate a real estate company, consulting firm, property management agency, rental business, or even set up a hotel or restaurant — as a foreign investor without local partners.

6. Residency Options: How to Live Legally in Georgia

Foreign investors and homeowners can easily obtain residency in Georgia.

🛂 Ways to get Georgian residency:

1. Real estate investment of $100,000 or more (temporary residence for 1 year, renewable).

2. Company ownership with active business operations.

3. Employment, or freelance income from abroad (Digital Nomad-friendly).

Residency allows you to:

• Open local bank accounts.

• Apply for local loans.

• Register a company.

• Stay long-term without needing a visa.

Final Thoughts

Batumi and Georgia offer a unique mix of investment opportunity, tax efficiency, and a high quality of life by the sea. Whether you're buying an apartment, opening a hotel, or just looking for a safe place to grow your capital, Georgia provides:

✅ 0% tax on property profits after 2 years
✅ Easy property ownership for foreigners
✅ Simple business registration and low taxes
✅ Access to local mortgages
✅ Residency pathways through investment

If you're serious about investing or relocating, Batumi is one of the most welcoming and rewarding destinations in the region.