Buying real estate in Georgia through a legal entity

Brief structure — what this article covers 📋

• Why investors consider buying through a legal entity
• Main advantages and common drawbacks
• Choosing the right corporate structure
• Tax and accounting considerations (practical advice)
• Bank accounts, documents and registration process
• A simple checklist and next steps for investors

Why use a legal entity to buy property in Georgia? 🏢

Buying real estate through a company can make sense for investors who plan to hold multiple properties, operate rentals, involve partners, or present a formal business structure. It's not always necessary for a private buyer purchasing a single home, but it often helps with management, protection and financing for business-oriented investments.

Key benefits ✅

• Liability protection: the company can shield personal assets when structured properly.
• Easier profit distribution and payroll: paying staff, contractors or distributing dividends becomes more formalized.
• Clear governance for multiple partners: shareholder agreements reduce disputes.
• Access to financing and business banking services.

Note: benefits only materialize with correct legal and accounting setup.

Risks and trade-offs ⚠️

• Increased administrative tasks: bookkeeping, periodic reporting, possible audits.
• Not always a tax advantage: depending on activity and structure, the company may not be cheaper overall.
• Complexity in international structures: may require cross-border tax and legal advice.

Always consult a local lawyer and accountant before finalizing the structure.

Choosing a corporate structure — practical tips 🛠️

1. Define your objective: single resale, long-term rental, portfolio management or development.
2. Select a company type suitable for your scale and reporting needs.
3. Draft shareholder agreements: profit sharing, exit rules, management powers.
4. Consider a holding arrangement if you plan multiple assets or cross-border ownership — get tailored legal counsel.

Example: a company owning several short-term rentals can streamline operations and pay staff via payroll, but will need regular accounting to manage VAT and income reporting.

Tax and accounting considerations (no hard numbers) 🧾

Tax obligations depend on company type, business activity and revenue sources. Do not rely on hearsay; ask your accountant for scenario modelling: net profit after all taxes and expenses. Consider VAT rules, profit tax and any withholding or transfer pricing implications if you operate across borders.

Practical advice: request at least two tax scenarios from your accountant — conservative and optimistic — to see the real after-tax cash flow.

Banking, documentation and registration 🏦

Open a corporate bank account in Georgia. Prepare company documents, IDs of owners and evidence of source of funds. Georgian banks work with international clients but have strict KYC procedures. Be ready to provide clear origin of investment funds.

Registering ownership follows the standard property registration process, with the company acting as the purchaser. Make sure you provide certified company documents and powers of attorney if needed.

Due diligence checklist ✅

• Clarify investment horizon and exit plan
• Choose and form the company with legal and tax advice
• Conduct full due diligence on the property
• Open a corporate bank account and document funds
• Sign and notarize company documents required for registration
• Keep proper accounting and comply with local reporting

Practical scenarios and recommendations

• Joint investment: clearly document contributions and exit
• Quick resale: sometimes buying as an individual is simpler, but confirm tax impacts
• Long-term rental operations: company ownership often simplifies scale-up and management

Conclusion and next steps ✨

Purchasing property in Georgia through a legal entity can provide protection and operational benefits for investors, but success depends on proper setup, compliance and quality due diligence. If you need help choosing the right structure, checking a property or handling the transaction, contact BuyHome for a tailored consultation.

Start with a short call or request property options at https://buyhome.ge/en or begin searching at https://buyhome.ge/en/search. We will help you evaluate structures and find the right solution without pressure.