Taxes When Buying Property in Georgia: What the Buyer Pays

Taxes and fees when buying property in Georgia — clear and practical 📌

Buying real estate in Georgia involves more than the purchase price. Buyers should be aware of typical taxes and closing costs, which vary depending on whether the property is new from a developer or on the secondary market, and on the terms of the contract.

Typical cost items for buyers ✅

• Notary and registration fees. Buyers often pay for notarising the sale contract and for state registration of ownership in the public registry.
• VAT on new developments. Purchasing from a developer may involve VAT — check whether it is included in the listed price or charged separately.
• Agency commission. Commission arrangements differ: sometimes the seller covers agent fees, sometimes the buyer pays part or all of them.
• Legal due diligence and document translation. Hiring a lawyer is recommended, especially for non-residents or remote purchases.
• Appraisal and inspection fees, often required for mortgage lenders or for buyer reassurance.
• Ongoing property taxes and condominium fees. After purchase, the owner is responsible for annual property tax and regular maintenance charges.

Key checks before signing the contract 🔎

1. Clarify who pays which fees and record this in the contract.
2. Check for outstanding debts for utilities and taxes attached to the property.
3. Request an extract from the public registry to ensure there are no encumbrances.
4. If buying from a developer, confirm whether VAT applies and whether penalties for delays exist.

Practical tips to manage costs 💡

• Negotiate the allocation of closing costs up front; some fees can be part of price negotiations.
• Invest in legal checks: the cost of due diligence often prevents larger future losses.
• Non-residents should verify specific tax rules and possible exemptions available to foreigners.
• Ask the seller for receipts of previous tax and utility payments.

Real-life examples — what to expect 🧾

• Buying a new apartment from a developer: expect VAT considerations, notarisation and registration fees, and possible administrative charges on handover.
• Buying on the secondary market: typically, only notary and registration fees apply, but you must confirm the seller’s payment history and any hidden encumbrances.

FAQ — short answers ❓

• Who pays the agency? Depends on the deal; confirm and put it in the contract.
• Can VAT be avoided? VAT depends on the seller’s tax status and the property type — it’s a legal matter to clarify with a tax advisor.
• Do I need translations? If you don’t speak Georgian, certified translations and notarisation are highly recommended.

Closing checklist

• Confirm ownership status and absence of encumbrances.
• Ensure the contract clearly allocates fees and taxes.
• Verify there are no outstanding debts for taxes or utilities.
• Use a lawyer and keep copies of all payment documents.

Final thoughts and reassurance 🤝

Buying property is a major decision and small additional payments are a normal part of the process. Treat them as an investment in legal clarity and peace of mind. With proper checks and clear contractual terms, surprises can be minimised.

If you’d like, BuyHome can prepare a closing cost estimate for a specific property, perform document checks, and advise on negotiations. Start your search at https://buyhome.ge/en/search and contact us — we’ll help you choose the right property and calculate expected expenses.