Georgia as an emerging destination for Israeli investors

Georgia is increasingly appearing in the investment plans of Israelis — not as an exotic destination, but as a clear and pragmatic real estate market. Residential property in Tbilisi and the coastal city of Batumi is being considered not only for leisure or seasonal living, but also as an asset capable of generating stable income.

Interest in the country is growing even among those who previously had not considered overseas investments. Private investors, entrepreneurs, and families from Israel are paying attention to transparent rules, a simple tax system, and straightforward legal procedures. Against the backdrop of high prices and limited supply in Israel’s domestic real estate market, Georgia offers a rare combination of factors: a relatively low entry threshold, an open market, and the ability to generate returns without excessive bureaucracy.

This predictability and simplicity make Georgian real estate attractive not only to experienced investors, but also to those seeking a clear way to diversify capital outside Israel while maintaining control over risks.

Over the past years, Georgia has built a reputation as one of the most open and predictable economies in the region. In the World Bank’s Ease of Doing Business ranking, the country ranked 7th globally, outperforming many developed economies. For investors, this is not merely a formal indicator, but practical evidence that the rules function efficiently and without unnecessary barriers.

Registering a company in Georgia takes just one business day, and foreign citizens are allowed to own businesses and real estate on the same terms as local residents. For Israeli investors accustomed to complex regulation and high operating costs, this framework is particularly appealing.

The tax system deserves special attention. Georgia operates a so-called “Estonian model,” under which corporate profit tax is paid only when dividends are distributed. As long as profits remain within the business or are reinvested into development, no profit tax is applied. This creates favorable conditions for long-term investment and reinvestment strategies.

Purchasing real estate does not require citizenship or residency status. Transactions are notarized and registered through the National Agency of Public Registry. Under the standard procedure, registration takes up to four business days, while an expedited option allows ownership to be registered within one day. This level of transparency reduces risk and makes the market accessible even for first-time foreign investors.

Today, Tbilisi is not only Georgia’s cultural capital, but also one of the fastest-growing cities in the region. New residential developments, revitalized districts, and continuous investment in urban infrastructure make the city attractive both for living and for investment. Buyers can purchase apartments for rental income, invest in development projects, or preserve capital in a relatively stable asset. Current listings of new residential projects in Tbilisi are available on Korter.ge, one of the largest and most widely used real estate platforms in Georgia.

The average price per square meter in Tbilisi is around $1,200–1,500, while rental yields typically reach 8–10% annually. By comparison, similar returns in Israel’s real estate market are often significantly lower despite a much higher entry price.

What makes Tbilisi attractive for investors:

• a simple and fast property purchase process without permits or lengthy bureaucracy;
• a stable rental market supported by tourism, expatriates, and technology professionals relocating from abroad;
• well-developed urban infrastructure, including modern residential complexes with underground parking, gyms, and landscaped courtyards;
• a clear and investor-friendly tax system, including a fixed tax on rental income;
• growth in tourism and business activity, supporting demand for both short- and long-term rentals;
• increasing interest from international developers introducing modern construction and service standards;
• cultural openness and ease of adaptation thanks to an international environment, English-language services, and an active urban lifestyle.

For many foreign buyers, Tbilisi is not just an investment location, but part of a new lifestyle model — calmer, more flexible, and financially more rational than in highly saturated metropolitan markets.

Batumi is increasingly viewed as more than a seasonal resort. In recent years, the city has evolved into an investment-oriented destination, with its real estate market deliberately structured around investor demand. New construction continues to expand along the coastline, and the apartment format has become dominant within the overall housing supply.

The average price per square meter in Batumi is around $1,300–1,600, while short-term rental yields, according to market estimates, can reach 12–14% annually. The highest demand is for apartments sized 30–60 square meters in modern seaside residential complexes. Many projects are developed under an “all-in-one” concept, combining residential spaces with retail, fitness centers, cafes, and leisure areas.

The city successfully combines a resort atmosphere with growing business activity, allowing property owners to generate income not only during the peak summer season. This distinguishes Batumi from traditional resort destinations and makes it more resilient from an investment perspective.

Developer-led management models also play an important role. Many residential complexes offer turnkey solutions, including cleaning services, rental management, cooperation with booking platforms, and financial reporting. As a result, investors can receive income directly to their accounts without being involved in day-to-day operations.

At the same time, Batumi’s urban infrastructure continues to expand. Shopping centers, schools, and medical facilities are opening across different districts, while the presence of international hotel brands such as Marriott and Wyndham contributes to higher service standards and greater confidence among foreign buyers. As a result, Batumi is increasingly seen not only as a resort, but also as a comfortable city for long-term living and investment.

During the first three quarters of 2025, the country welcomed more than six million international visitors, surpassing figures from the same period last year. Tourism revenues are also increasing, confirming the sector’s sustained recovery and long-term momentum.

This growth is directly reflected in rental performance. Short-term rental apartments achieve average occupancy rates of 70–75% during the summer months and around 50% in winter, allowing property owners to maintain more stable income throughout the year rather than relying solely on peak season demand.

In Tbilisi, districts such as Vake, Saburtalo, and Sololaki remain the most sought-after locations, with average daily rental rates ranging between $50 and $90. In Batumi, seaside apartments — particularly those in serviced residential complexes — command $80–120 per night during the high season.

Georgia remains a market where private accommodation plays a central role in tourism. Apartment owners compete effectively with hotels by offering flexibility that many travelers now expect: fully equipped kitchens, dedicated workspaces, and views of the sea or historic city centers. The “apartment instead of hotel” model has become the preferred choice for visitors staying longer and combining travel with remote work.

Foreign nationals are allowed to purchase real estate in Georgia without restrictions and without the need to obtain residency or citizenship. The acquisition process is among the simplest in the region. Buyers select a property, sign a notarized purchase agreement, and register ownership with the National Agency of Public Registry.

Standard registration takes up to four business days, while an expedited option allows ownership to be registered within one business day. Upon completion, buyers receive an official Extract from the Public Register, which serves as full legal proof of ownership.

The only restriction for foreign buyers applies to agricultural land, which non-residents are not permitted to purchase. All other property types — including apartments, private homes, and commercial real estate — are available without limitation. Transactions may be completed in person or via power of attorney, and most developers and agencies offer full legal and administrative support.

Georgia’s tax framework remains one of the most investor-friendly in the region. Rental income is subject to a flat 5% tax with no additional levies. Owners registered as individual entrepreneurs under a special tax regime may qualify for a reduced rate of 1% of turnover.

Capital gains tax does not apply if a property has been held for more than two years. If sold earlier, a 20% tax is charged on the difference between the purchase and sale prices. This structure encourages longer holding periods and contributes to market stability.

Property tax levels are relatively low and depend on the owner’s total annual income. No property tax is charged if annual income does not exceed 40,000 GEL (approximately $14,500). For higher-income owners, rates range from 0.05% to 1% of cadastral value per year. Utility and maintenance costs in residential complexes are also moderate, typically averaging $0.5–1 per square meter per month.

Foreign owners may open accounts with Georgian banks, receive rental income, and manage funds remotely. The banking system fully supports online services and international transfers in US dollars and euros, making property ownership and income management straightforward for non-residents.

This article was written in cooperation with Korter.ge