Should you register a business entity to own real estate in Georgia?

Quick outline — what you'll learn 📋

• What it means to own property through a business entity in Georgia
• Benefits for investors and landlords
• Main drawbacks and risks (taxes, reporting, property transfer)
• When individual ownership is preferable
• A practical checklist to decide
• How BuyHome helps with analysis and setup

Introduction

Deciding whether to buy Georgian real estate personally or via a business entity depends on your goals: short-term rentals, a long-term portfolio, resale, or personal use. This guide gives balanced, practical points to help you make an informed decision.

What does ownership through a business mean? 🤔

It means registering a legal entity (for example, an individual entrepreneur or a company) and holding property in the company’s name. This choice affects taxation, liability, banking, and estate planning.

Benefits of owning through a business ✅

• Risk management: corporate structures can separate business liabilities from personal assets in many cases.
• Tax planning: different tax regimens might be available depending on activity (rental, sale, services).
• Easier portfolio management: multiple properties can be managed more cleanly within one corporate structure.
• Professional presentation: companies may be preferred for short-term rental operations or hospitality business.
• Easier to onboard partners or investors by allocating shares.

Drawbacks and risks ⚠️

• Administrative burden: bookkeeping, regular reports, and legal formalities.
• Additional costs: accounting services, registration fees, bank charges.
• Transfer implications: moving property from a private person to a company can trigger taxes or fees — legal advice is essential.
• Distribution of profits: paying out from a company may involve further tax considerations depending on your tax residency.
• Financing conditions differ: mortgages and lending terms may vary for companies versus individuals.

When a business structure makes sense

• If you plan to hold several properties or scale a rental business.
• If the property will be used commercially (rentals, serviced apartments, hotel-like operations).
• If you plan to invite co-investors and divide ownership shares.
• If you regularly receive income and want formalised accounting and contracts.

When personal ownership is better

• A single apartment intended for personal use.
• If you want to avoid extra administration and keep ownership simple.
• If tax and banking implications favour individual ownership in your situation.

Practical checklist before deciding 📝

1. Clarify the purchase goal: personal use, long-term rental, short-term rental, or resale.
2. Assess the scale: one property vs a portfolio.
3. Consult a Georgian lawyer and accountant about taxes and legal requirements.
4. Investigate tax consequences of transferring ownership.
5. Compare operating costs for a company versus private ownership.
6. Consider your home country tax residency and any treaties.
7. Decide on property management: self-managed or professional service.

Examples

• An investor with multiple apartments in Batumi often prefers a company for clearer bookkeeping and partner relations.
• A private buyer of a single vacation flat usually remains an individual owner to avoid extra filings.

How BuyHome can help 🧭

We research the market, shortlist properties, verify legal title, and recommend trusted local lawyers and accountants. For business-structure questions we arrange expert consultations and prepare a cost-benefit analysis.

If you'd like tailored advice, start with a short consultation — we'll help you choose the ownership format and find the right property. Visit our site: https://buyhome.ge/en