I. About This Article
Residency in Georgia by investment provides foreign investors with an opportunity to obtain a long-term legal basis for living in Georgia. Georgian legislation provides two principal grounds for obtaining an investment residence permit: making an investment in Georgia of at least the GEL equivalent of USD 300,000, or owning qualifying real estate in Georgia of the required value.
An investment residence permit in Georgia may be obtained on the basis of real estate where the foreign national owns immovable property in Georgia, other than agricultural land, with a market value exceeding the GEL equivalent of USD 300,000.
Where the permit is based on an investment, additional continuing obligations apply. During the validity of the permit, the foreign investor must annually demonstrate the statutory level of turnover generated from entrepreneurial activity carried out in Georgia.
One of the significant advantages of Georgia residency by investment is its duration. Where the statutory conditions are satisfied, an investment residence permit may be issued for five years. Compliance with the applicable requirements throughout that five-year period may subsequently create a basis for obtaining an indefinite residence permit.
The legal grounds for investment residence are established by the Law of Georgia on the Legal Status of Aliens and Stateless Persons, while the application and review procedure is regulated in detail by Government of Georgia Decree No. 520.
This article explains the requirements for residency in Georgia by investment, the differences between the investment and real estate routes, the documents required, which family members may qualify, the obligations arising after the permit is granted, and how an investor may subsequently qualify for indefinite residence.
II. What Is an Investment Residence Permit in Georgia?
An investment residence permit in Georgia is an independent category of residence permit based on a foreign national’s substantial economic or property connection with Georgia.
The law provides two alternative grounds for obtaining this permit.
The first is an investment in Georgia of at least the GEL equivalent of USD 300,000.
The second is ownership of qualifying immovable property in Georgia with a market value exceeding the GEL equivalent of USD 300,000. Agricultural land does not qualify for this purpose.
Accordingly, residency in Georgia by investment may be based either on a direct business investment or on ownership of high-value real estate.
These two routes create different continuing obligations. Where the residence permit is based on an investment, the annual turnover of the relevant business is particularly important. Where the permit is based on real estate, maintaining ownership of the qualifying property is the central continuing requirement.
The appropriate route should therefore be selected by reference to the foreign investor’s actual economic objectives and long-term plans in Georgia.
III. Two Routes to Georgia Residency by Investment
An investment residence permit in Georgia may be granted on two separate legal grounds.
Under the first route, the foreign national must make an investment in Georgia with a value of at least the GEL equivalent of USD 300,000.
Under the second route, the foreign national must own qualifying immovable property in Georgia with a market value exceeding the GEL equivalent of USD 300,000.
When choosing between these two routes, the foreign national’s actual economic objective should be considered.
If a foreign investor establishes or finances a business in Georgia and intends to engage actively in entrepreneurial activity, the investment route may be used. Under this route, the investment residence permit subsequently becomes connected with statutory annual turnover requirements.
If the foreign national owns real estate in Georgia of the required value, the permit may instead be obtained on the property basis. Under this route, the annual business turnover requirement does not apply. The central continuing requirement is maintaining ownership of qualifying property.
For this reason, before submitting an application for Georgia residency by investment, it is important to determine which legal basis best corresponds to the investor’s circumstances and future plans.
IV. What Qualifies as an Investment?
Where residency in Georgia by investment is sought on the basis of a business investment, the investment must fall within the concept established by Georgian investment legislation.
An investment is a proprietary or intellectual value or right that is invested and used for the purpose of obtaining possible profit from entrepreneurial activity carried out in Georgia.
An investment may take different forms.
The forms recognized by law include, among others:
- monetary funds;
- shares and equity interests;
- securities;
- movable property;
- immovable property;
- proprietary rights;
- intellectual values and rights.
An investment residence permit in Georgia based on a business investment therefore requires an investment that has actually been made and whose value can be properly documented.
An investor may be an individual or legal entity making an investment in Georgia. The concept of a foreign investor includes foreign nationals and other persons recognized by the relevant legislation.
For residence purposes, the decisive issue is whether the particular investment satisfies the requirements of Georgian investment law and has a value of at least the GEL equivalent of USD 300,000.
V. How Is the USD 300,000 Investment Proved?
An investment residence permit in Georgia based on an investment requires proper evidence that the investment has actually been made.
The foreign national must submit a document confirming an investment in Georgia of at least USD 300,000 or its GEL equivalent.
For this purpose, Georgian legislation requires an audit report issued by a certified auditor.
The audit report must confirm that the required amount has actually been invested in Georgia.
Accordingly, Georgia residency by investment is not granted merely on the basis of a future investment plan or an intention to invest.
By the time the application is submitted, the investment must already exist and must be properly documented.
In practice, this means that the investment structure and financial documentation should be organized from the outset so that the value of the investment can be identified and verified by the certified auditor.
VI. Investment Residence Permit Based on Real Estate
An investment residence permit in Georgia may also be obtained through ownership of high-value real estate.
For this route, the foreign national must own immovable property located in Georgia with a market value exceeding the GEL equivalent of USD 300,000.
Agricultural land is excluded from this route.
The purchase price stated in a sale and purchase agreement is not sufficient by itself. Georgia residency by investment through real estate requires the market value of the property to be confirmed through the prescribed valuation procedure.
The legal status of the property is equally important.
Ownership must be properly registered and the qualifying property must belong to the foreign national applying for the residence permit.
Where one of the purposes of purchasing real estate is to obtain an investment residence permit, it is advisable to review both the legal status and the expected market value of the property before completing the acquisition.
VII. How Is the Real Estate Valued?
A real estate-based investment residence permit in Georgia requires a valuation performed in accordance with the statutory rules.
The market value of the property must be determined by a certified appraiser of an entity accredited by Georgia’s unified national accreditation body, the Accreditation Center.
Accordingly, not every valuation report is sufficient for obtaining residency in Georgia by investment.
The valuation must establish that the property’s market value exceeds the GEL equivalent of USD 300,000.
Particular attention should also be paid to ensuring that the property identified in the valuation report is exactly the same property registered in the name of the foreign applicant.
The cadastral details, ownership information, and valuation documentation should therefore correspond fully with each other.
VIII. What Documents Are Required for an Investment Residence Permit?
An investment residence permit in Georgia is obtained by submitting the prescribed application and supporting documentation to the Public Service Development Agency.
The foreign national must submit:
- the prescribed application form;
- a copy of the travel document;
- a copy of the document confirming lawful stay in Georgia;
- documentation proving the relevant investment ground;
- the written recommendation required by law;
- a 3/4 colour photograph in electronic form;
- proof of payment of the applicable service fee.
Where Georgia residency by investment is sought through a direct investment, a certified auditor’s report confirming an investment of at least USD 300,000 is required.
Where the application is based on real estate, the foreign national must submit evidence of ownership of the qualifying property together with a certified valuation establishing its market value.
The supporting documentation must directly establish the specific legal ground on which the applicant seeks the investment residence permit.
IX. Who Must Provide the Recommendation?
A written recommendation is one of the special documentary requirements for an investment residence permit in Georgia.
Under the applicable rules, the foreign national must submit either:
- a written recommendation from a member of the Government of Georgia; or
- written recommendations from three Georgian citizens who have representative authority in an entrepreneurial entity operating in Georgia.
This recommendation is required in addition to the other documents applicable to the investment residence permit.
The issue should therefore be considered in advance when preparing the application.
The existence of the required investment or qualifying real estate is an essential basis for Georgia residency by investment, but a complete application also requires the other documents prescribed by law.
X. Which Family Members Can Obtain an Investment Residence Permit?
An investment residence permit in Georgia may also extend to certain family members of the principal investor.
For this category, qualifying family members include:
- the spouse;
- a minor child;
- a person receiving support or a person incapable of work who is fully dependent on the foreign national;
- a person fully dependent on the foreign national who has been legally recognized as lacking legal capacity under the law of the relevant country.
The family-member regime for Georgia residency by investment is therefore not limited only to a spouse and minor children.
In circumstances defined by law, certain other dependent persons may also qualify.
A family member applying on the basis of the principal investor’s status must submit the prescribed application, travel document, proof of lawful stay in Georgia, a copy of the principal investor’s investment residence permit, proof of the family relationship, a photograph, and proof of payment of the applicable service fee.
The family member is not required to make a separate USD 300,000 investment or acquire qualifying real estate where the application is based on the principal investor’s status.
XI. Does the 40-Day Rule Apply?
For several categories of Georgian residence permits, a foreign national must apply at least 40 calendar days before the expiry of the period of lawful stay in Georgia.
An investment residence permit in Georgia is expressly exempt from this 40-day requirement.
Accordingly, an applicant for residency in Georgia by investment is not required to have more than 40 days of lawful stay remaining at the time the application is submitted.
However, lawful stay in Georgia remains relevant.
The applicant must still submit the document required to demonstrate lawful stay in Georgia.
The investment residence permit is also expressly included among the categories exempt from the general restriction that prevents certain residence permits from being granted on the basis of a Category C ordinary visa.
This distinguishes the investment residence regime from a number of other Georgian residence permit categories.
XII. Foreign Documents, Apostille and Translation
A foreign national applying for an investment residence permit in Georgia may need to submit documents issued in another country.
A document prepared in a foreign language must be submitted together with a duly certified Georgian translation in accordance with the applicable rules.
A passport may be accepted without a Georgian translation where the foreign national’s personal data are stated in Latin transliteration.
As a general rule, documents issued in another country must be legalized or apostilled where required, unless an applicable international agreement provides otherwise.
At the time the application is submitted, the travel document should generally remain valid for at least 30 calendar days.
Foreign marriage certificates, birth certificates, or other documents proving family relationships may be particularly relevant where family members also apply for an investment residence permit.
XIII. How Long Is an Investment Residence Permit Valid?
An investment residence permit in Georgia may be issued for five years.
This significantly distinguishes it from the short-term residence permit based on qualifying real estate, which operates under a one-year regime.
The five-year term is particularly attractive to a foreign national with a long-term business or property connection to Georgia.
During the five-year period, however, the investor must maintain the legal basis for the investment residence permit and comply with the continuing obligations connected with that basis.
Where the permit was obtained on the basis of a business investment, this includes satisfying the annual turnover requirements.
Where the permit was granted on the basis of real estate, the investor must maintain ownership of the qualifying property or replace it with another qualifying property in accordance with the statutory procedure.
XIV. What Annual Turnover Must the Investor Demonstrate?
The annual turnover requirement is particularly important where Georgia residency by investment is based on the direct USD 300,000 investment route.
During the validity of the permit, the foreign investor must, before the end of each relevant year, submit information from the Revenue Service to the Agency concerning annual turnover generated from entrepreneurial activity carried out in Georgia.
The statutory minimum turnover is:
- during the first year – at least the GEL equivalent of USD 50,000;
- during the second year – at least the GEL equivalent of USD 100,000;
- during the third year – at least the GEL equivalent of USD 120,000;
- during the fourth year – at least the GEL equivalent of USD 120,000;
- during the fifth year – at least the GEL equivalent of USD 120,000.
An investment residence permit in Georgia based on a business investment therefore creates a continuing obligation.
Proving the initial USD 300,000 investment is not, by itself, sufficient to maintain the residence permit throughout the entire five-year period.
Compliance with the annual turnover thresholds and timely submission of the relevant information to the Agency are important conditions for maintaining the permit.
XV. What Happens if the Investor Cannot Prove the Required Turnover?
An investment residence permit in Georgia obtained on the basis of a business investment may be terminated if the foreign national fails to satisfy the statutory requirements.
One ground for termination is failure to submit the required annual turnover information to the Agency.
The permit may also be terminated if the information submitted does not establish the minimum turnover required by law.
After obtaining residency in Georgia by investment, the investor must therefore monitor not only the formal validity of the residence permit but also the annual turnover of the relevant business and the deadline for providing the required information.
When structuring the investment, it is advisable to assess before applying whether achieving the statutory turnover thresholds during the entire five-year period is commercially realistic.
XVI. What Happens if the Investment Property Is Sold?
Where an investment residence permit in Georgia was granted on the basis of property with a market value exceeding USD 300,000, the foreign national must maintain ownership of qualifying property.
Loss of ownership may result in termination of the investment residence permit.
However, Georgian legislation provides a mechanism allowing the property to be replaced.
The investment residence permit will not be terminated if, before ownership of the original property ends, the foreign national submits to the Agency an extract from the Public Registry confirming ownership of another property of the same or higher value.
The market value of the replacement property must also be determined by an authorized certified appraiser in accordance with the applicable rules.
The sequence of actions is critical.
The replacement property and the required evidence must be submitted to the Agency before ownership of the original property terminates.
A foreign investor planning to sell or otherwise dispose of qualifying real estate should therefore assess the residence consequences before completing the transaction.
XVII. Investment Residence Permit vs Short-Term Residence Permit Based on Property
Ownership of real estate in Georgia may provide a basis for either a short-term residence permit or an investment residence permit in Georgia.
The principal difference is the value of the property.
For a short-term residence permit, the qualifying property must have a market value exceeding the GEL equivalent of USD 150,000.
For Georgia residency by investment, the qualifying real estate must have a market value exceeding the GEL equivalent of USD 300,000.
The validity periods are also different.
A short-term residence permit may be issued and renewed for one year at a time.
An investment residence permit may be issued for five years.
The scope of eligible family members is also different. The short-term property-based regime covers the property owner’s spouse and children, while the statutory concept of family member for an investment residence permit is broader and may include certain dependent persons.
Accordingly, when acquiring high-value real estate in Georgia, the foreign national should assess in advance which residence regime best serves their long-term objectives.
XVIII. Can an Investor Obtain Indefinite Residence After Five Years?
Yes. An investment residence permit in Georgia may, subject to the statutory conditions, provide a basis for obtaining an indefinite residence permit.
Where the investment residence permit was granted on the basis of the direct investment route, the foreign national must demonstrate the required annual turnover throughout the five-year period.
The required turnover is:
- at least USD 50,000 equivalent in the first year;
- at least USD 100,000 equivalent in the second year;
- at least USD 120,000 equivalent in each of the third, fourth, and fifth years.
Where the investment residence permit was granted on the basis of real estate, eligibility for indefinite residence is connected with maintaining ownership of the qualifying property throughout the five-year period.
Replacement property may also be taken into account where the statutory requirements governing substitution have been satisfied.
The foreign national must apply to the Agency for indefinite residence before the expiry of the five-year investment residence permit.
If the holder of an investment residence permit in Georgia submits the indefinite residence application in time, the investment residence status remains valid until the relevant decision is made.
This makes Georgia residency by investment an important instrument for long-term immigration planning.
XIX. How Is the Application Submitted?
To obtain an investment residence permit in Georgia, the foreign national applies to the Public Service Development Agency.
The application may be submitted personally or through an authorized representative in accordance with the applicable rules.
Before filing, it is advisable to review fully:
- the specific investment basis;
- the value of the investment or property;
- the audit report or valuation report;
- registration of ownership;
- the required recommendation;
- the applicant’s legal basis for staying in Georgia;
- the validity of the travel document;
- authentication and translation of foreign documents;
- documents relating to family members, where they are applying together with the investor.
Preparing a complete application from the outset is important because the Agency may request additional information during the administrative proceedings and may verify whether the legal basis for the investment residence permit actually exists.
XX. How Long Does the Application Take?
An application for an investment residence permit in Georgia is subject to the general procedural regime applicable to residence permits.
As a general rule, after all required documents have been submitted, consideration of the application must not exceed 30 days.
During this period, the Agency examines both the formal validity of the documentation and the factual and legal circumstances on which Georgia residency by investment is based.
The Agency may request additional documentation or information and, within the limits established by law, may verify circumstances stated in the application.
For a successful application, the investment, ownership, valuation, and other supporting information should therefore correspond fully with each other.
XXI. When Can an Investment Residence Permit Be Refused?
Making an investment of USD 300,000 or owning qualifying real estate creates a special legal basis for an investment residence permit in Georgia, but the Agency also examines the general statutory grounds for refusing residence permits.
A refusal may arise from:
- failure to satisfy the specific requirements of the investment residence category;
- submission of incorrect or incomplete information;
- use of a false document or a document without legal validity;
- state or public security considerations;
- other circumstances established by law.
An application should therefore be assessed both from the economic perspective of the investment and from the immigration and documentary perspectives.
If an application for Georgia residency by investment is refused, a new application on the same legal basis may be submitted no earlier than one month after the refusal decision.
Before submitting a new application, the specific ground for refusal should be reviewed and the relevant deficiency corrected.
XXII. What Should an Investor Consider in Advance?
An investment residence permit in Georgia should ideally be planned before the investment is made or while the high-value property acquisition is being structured.
For the direct investment route, the investor should determine in advance whether the investment can be properly verified by a certified auditor and whether achieving the statutory annual turnover thresholds over the following five years is realistic.
For the real estate route, the following should be reviewed:
- the legal status of the property;
- its designated use;
- registration of ownership;
- its expected market value.
Where Georgia residency by investment is also planned for family members, documents proving family relationships should be prepared in advance, together with any required apostille, legalization, and Georgian translation.
For long-term planning, the requirements for indefinite residence should also be taken into consideration.
The initial five-year investment residence period is directly connected with the possibility of obtaining a subsequent long-term residence status.
Proper legal planning is particularly important where the investor’s economic objectives, real estate transaction, business activity in Georgia, and immigration status are interconnected.
XXIII. Legal Assistance with Georgia Residency by Investment
Residency in Georgia by investment involves several interconnected legal and factual issues: selecting the appropriate investment ground, proving the value of the investment or real estate, preparing an audit or valuation report, obtaining the required recommendation, reviewing the foreign national’s immigration status, and handling the administrative application.
Where the permit is based on a direct investment, the statutory annual turnover requirements and timely submission of information to the Agency must also be monitored after the permit is granted.
Where the investment residence permit in Georgia is based on real estate, ownership of qualifying property must be maintained, and any future sale or replacement of the property should be planned in advance.
TB Legal assists foreign investors with investment structuring, real estate matters, residence permit applications, and the related administrative procedures.
If you are planning to invest in Georgia, acquire qualifying high-value real estate, or obtain residency in Georgia by investment, the investment structure, supporting documentation, immigration status, continuing obligations, and long-term residence strategy should be reviewed before the application is submitted.
