Residency permit obtained from property acquisition: conditions, price and costs

 

A residency in Georgia attracts many property investors. The idea of moving to Georgia has become popular among people living in CIS countries. However, nowadays, many European and American citizens consider Georgia to be an attractive place to move to permanently. A residence permit in Georgia allows foreigners to have the same rights as the Georgians, simplifies border crossing process and other formalities. What are the types of residency possible and how an investor can obtain it – will be discussed in this article.

What does Georgian residency offer and who can obtain it

A residence permit is a legal document that allows a foreign citizen entering into various legal relationships on the territory of Georgia, have access to banking, medical, insurance and other services. Moreover, residency is the first step of becoming a Georgian citizen. The residence permit allows you to get a Georgian passport after ten years of living in the country. However, a residency permit has its restrictions – unlike citizens of the country, residents are unable to take part in political elections, referendums and votes. But these nuances are not that important for those who wish to open up their business in Georgia, purchase property for commercial or personal use. 

 

The Georgian Government developed a special legislative framework for a simplified obtaining of a residence permit. And only by following the law, one can receive permission to reside in the country. It relates to both temporary and permanent residence permits in Georgia. A temporary residence permit is issued only for the period of one year; however, any non-resident has the opportunity to renew it. After five years of living in the country with a temporary permit, the law allows you to get a permanent residence permit. It is available for:

 

• Employees, freelancers;

• Investors, entrepreneurs;

• Students of higher education and school;

• Family reunification candidates;

• Former citizens of Georgia;

• People without citizenship;

• Owners of property (other than land plots) worth more than 35,000 US dollars.

 

A residence permit is also issued to spouses, family members, and parents of those, who lived in Georgia no less than six years. However, this six-year period does not include periods of medical treatment, diplomatic service and study. If a non-resident is actively investing in the Georgian economy, he then has the right to apply for a residence permit. As a rule, the amount of such investments needs to start from $ 122,000 (300,000 of the national currency - lari). 

What are the types of residence permits in Georgia?

Getting a residency in Georgia is relatively easy. After a foreign citizen makes an investment or begins an economic activity, he then can apply for a residence permit at any authorised representative office: the territorial office of the Agency for the Development of Public Services or a branch of the Centre for Public Services. The application and all related documents can be in Georgian, English and/or Russian. 

 There are two kinds of permits:

 

• Permanent;

• Temporary

Permanent Residence Permit

 

Can be obtained by a foreigner whose spouse, father or mother are Georgian citizens that live in the country legally for at least six years. In this case, you will need a document confirming the official income of the applicant.

Based on temporary residence permits

 Can be obtained by a foreigner who lived in Georgia for at least six years on the basis of temporary permits. The length of stay is calculated based on the total period of validity of temporary residence permits and not on the actual stay in the country’s territories. The permits issued for study, medical treatment or to work in diplomatic missions are not to be considered for the permanent resident visa. 

Based on family ties

Parents, children and spouses of Georgian citizens have the right to get a permanent residence permit. The only requirement is to present a document confirming family ties. The nuance of such residence permit is that in the event of a divorce, it gets cancelled.

Special

This type of residence permit does not have a validity period and is issued to foreign citizens who became victims of human trafficking. It can be given with the initiative of a Georgian Government member, compatriots living abroad, or individuals whose deportation from the country could threaten their lives. 

Temporary Residence Permit

A temporary residence permit is issued to people who are planning to conduct business or work under an employment contract. An applicant travelling to Georgia for work must submit an employment contract for at least 6 months with a minimum wage of 1,000 GEL per month. The company employing him must have a turnover of at least 50,000 lari. Business people and entrepreneurs who registered a company in Georgia need to deposit at least USD 5,000 to the company’s account before applying for a temporary residence. Citizens of countries that have a visa-free regime with Georgia must have a D1 / D2 immigrant visa. The fees will vary depending on the period for issuing the permit. The application can also be submitted remotely by a proxy. 

Work residence permit

The work residence permit is issued to foreign citizens who arrived in Georgia to conduct labour activities under an official contract with an employer. 

For Sole Traders

This type of residency is granted to individuals who have registered a business in Georgia. The company registration process is very simple: 

 

• takes around one day;

• costs about 35 dollars (100 lari);

• open a corporate account in any Georgian bank;

• obtain a taxpayer identification number (TIN).

 

There are a few crucial figures that are important for a company-investor. The annual turnover of the founded company must exceed 50,000 lari (equivalent to 17,000 US dollars). The monthly income from this entrepreneurial activity of the founder or founders must be at least five times the minimum wage of a citizen of Georgia. According to the current legislation, this residence permit is issued for the period of one year, but the period might change, as the Georgian Government may amend the by-laws. In any case, the term cannot exceed six years. 

 

Primary documents, required to obtain an entrepreneurial residence permit:

 

• An extract from the register of enterprises of legal entities;

• A certificate from the tax office that the company’s turnover is at least 50,000 lari per year;

• A bank statement stating that the director of the company holds at least 11,000 lari in his account;

• A notice stating the total number of foreign employees in the company.

 

The founders of the company can renew the residence permit each year if they meet all of the above conditions. After extending it for 6 years, the temporary investor can apply for a permanent residence permit.

Study Permit

The permit can be granted for students at schools and higher education institutes, which are under the patronage of the Ministry of Education of Georgia on the territory of another state. The period of such a residence permit is equivalent to the period of school study or university contract. In order to apply for it, a student will require a bank statement confirming the availability of funds for the student’s accommodation in Georgia for the period of study. 

Investment

This type of permit is issued to a foreign citizen who contributed to the Georgian economy for the amount of at least USD 300,000 or owns a property (except for agriculture lands) valued at an equivalent amount on the country’s territory. In this case, an investor receives a temporary residence permit for the period up to five years. The owner of an investment residence permit must provide information on income from commercial activities every year and prove that the annual turnover exceeds:

• 50,000 USD - in the 1st year;

• 100,000 USD - in the 2nd year;

• 120,000 USD - from the 3rd to the 5th year.

 

In the event of an investment residence permit being based on the ownership of a real estate, an individual retains ownership of the property that was the reason for issuing a residence permit.

With the purpose of family reunification

A residence permit is granted to a foreign citizen’s family members, who hold a permanent residence permit in Georgia. The validity period of such a residence permit is equivalent to the validity period of the permit of the family member who received it first. In order to obtain it, you need to submit a document confirming family relation, as well as a bank statement, the balance of which must be twice the cost of living, considering the term of the residence permit.

A residence permit for property acquisition

 

This type of residency can be issued to owners of property that is valued at least USD 100,000. Length of stay is one year. Similarly to the investment residence permit, the owner of such a permit retains ownership of the property for one year. After one year, the foreigner must submit a document confirming that he still owns the property and its minimum value exceeds USD 100,000.

Five steps to Georgian citizenship:

The residence permit application in Georgia is significantly easier than in developed countries such as the USA, Canada, Australia or New Zealand. The immigration process in these countries might take up to years, sometimes even decades. At the same time, you will have no guarantees of obtaining a permanent residency or citizenship. It is quite common to hear a story about someone trying to get a green card in the US for 15 years without success. Below are the steps that need to be undertaken on the path to permanent residence and citizenship in Georgia.

Step 1: Visiting Georgia

Visiting the country is optional. The Georgian legislation allows the submission of documents for a residence permit to be made remotely. However, it is recommended to spend a few days in the country before moving or investing in property there. 

Step 2: Choice of Residency

There are three ways of obtaining a residency, the choice of which depends on the financial capabilities of an investor and how quickly he wishes to be granted one. Below are the advantages and disadvantages of the three residence permit options.

 

 

Step 3: Investments

In order to make the investments of the required size, an individual can register a business and open a commercial bank account or by acquiring property.

Step 4: Application for Residency

After investing funds, the applicant needs to collect all the necessary documents (more information on this matter below) and apply for a residence permit at the territorial office of the Agency for the Development of Public Services or a branch of the Public Services Center.

Step 5: Sending an application for citizenship

After living in Georgia for 5 years, an investor can apply for a permanent residence permit or country’s citizenship. Dual citizenship is not allowed in Georgia; hence, a foreigner will have to renounce the citizenship of his country. Obtaining citizenship is not mandatory, and a foreigner can still run his business, study or work in Georgia for an indefinite period on the basis of a permanent permit.

The procedure for obtaining a residence permit from investing into the real estate

Property investors can apply for a residence permit in Georgia right after the purchase of the real estate. 

Pre-registration of right to real estate

This procedure is required if an investor is acquiring real estate during the construction phase and wishes to ensure his rights for the acquired property. In order to do this, the buyer concludes a preliminary sales contract and registers it in the House of Justice. It will state the following:

• completion date of the object;

• parameters of the acquired property;

• property condition: finishing, plumbing, furniture, etc.

 

Most importantly – in the pre-registration agreement needs to include the obligation of the parties to conclude the main contract after the commissioning of the object is prescribed.

Documents required for obtaining Residency in Georgia

To register property right, a foreign investor will need the following:

• passport;

• purchase agreement or other document confirming the ownership of the property;

• state duty payment receipt.

 

A power of attorney may also be required if a foreigner purchased his property remotely and the transaction was concluded through a trusted person.

Timeframes of registration and the cost of obtaining a residence permit in Georgia

The speed of property rights registration in the Real Estate Register depends on the size of the state fee that an investor is willing to pay:

 

• 50 lari - four working days;

• 150 lari - the next day after filing the application;

• 200 lari - on the same day.

 

After obtaining both temporary and permanent residence permit, an individual has to register at the place of residence in Georgia in order to receive a binadroba - an identity card with an ID number. To do this, an application to the House of Justice needs to be sent within 30 days from the moment of the first visit to the country.

Advantages of acquiring real estate and obtaining a residence permit in Georgia

The acquisition of property in Georgia is attractive not just because of a soft climate, tasty cuisine and beautiful sights. Georgian real estate market remains one of the fastest-growing and stable in the post-Soviet region even during the crisis. Apart from being granted a residency, property acquisition is attractive due to the following aspects:

 

1. Fast return on investment. Apartment and commercial property located in the centre of a large city such as Tbilisi can bring up to 15% of net income annually from renting or up to 40% when selling after 5 or 6 years after the acquisition. The average rental return is 6-8 years.

2. Low prices. Georgia remains one of a few resort countries where you can still buy property from USD 1200 per square meter. Real estate by the sea in Georgia costs from 700-800 USD per square meter if we are talking about Batumi. In other smaller cities and resort areas, housing prices start at USD 300 per square meter. 

3. Comfortable business climate. The Georgian Government strives to create the most comfortable conditions for international investors by making residency obtaining procedures as easy as possible. It also carries out reforms aimed at liberalising the economy and reducing bureaucratic procedures for the business.

4. Security of investments. Individuals who are investing in property do not need to worry about the security of their assets. A preliminary sales contract can be concluded even at the construction stage, which guarantees the buyer the rights to the property and protects him from unscrupulous developers. 

5. Low tax rates. There is no property tax for individuals in Georgia. You only need to pay tax if the amount of income from purchased property, for instance, when renting it out, exceeds 40,000 lari. 

 

Another advantage of investing in Georgian real estate is simplicity. The procedure for drawing up a contract and registering ownership of square meters can be carried out within one day. Whereas, to purchase a property, you do not even need to visit the country. The main aspect is to find a reliable intermediary who will take care of the formalities and guarantee the integrity of the transaction. 

 

Developer Company Redco offers property at developer’s prices in Tbilisi, Batumi and other Georgian cities with an option of a remote conclusion of a deal. You can find out more on the official website of the developer - www.redco.ge.