When it comes to buying an apartment in Batumi or Tbilisi, most foreigners ask the same question: “How can I secure financing?” There are several ways to do it, each with its own nuances. We’ve analyzed the actual terms offered by banks, developers, and legal requirements so you can choose the best path for investing in real estate in Georgia.
Financing Options for Foreigners
Citizens of other countries face no restrictions on property ownership in Georgia, but access to credit has its specifics. Unlike residents who can benefit from state programs, foreigners must choose between three main instruments: a classic mortgage from a local bank, an installment plan from a developer, or a loan from a foreign bank secured by existing property.
It’s important to understand that Georgian banks are more willing to work with non-residents who have a residence permit or documented stable income from Georgia. If your earnings are generated outside the country, the process becomes more complex but remains entirely feasible. Let’s break down each option in detail.
Mortgage Loans in Georgian Banks
Securing a mortgage in Batumi or Tbilisi as a non-resident is not a myth—it’s a practice we facilitate monthly for our clients. Key market players like Bank of Georgia and TBC Bank offer specialized products for foreigners, though terms differ from those for Georgian citizens.
Requirements for Foreign Borrowers
Banks request a standard document package: passport, income certificate for the last 6–12 months (translated and apostilled), bank statements, and proof of funds for the down payment. The most crucial element is the non-resident identification number, issued by the Georgian Revenue Service based on a preliminary purchase agreement.
Mortgage Terms for 2025:
- Down payment: 30–40%of property value
- Interest rate: 8–12%annually in USD/EUR
- Loan term: Up to 15 years(rarely up to 20)
- Maximum amount: Typically does not exceed $200,000for non-residents without a residence permit
(Source: Bank of Georgia Mortgage Terms, accessed December 2025)
The Approval Process: What Actually Happens
After submitting documents, the bank conducts a property appraisal (by an independent assessor) and checks the borrower for AML (Anti-Money Laundering) compliance. This process takes 3–5 weeks. If your income is in a currency other than USD or EUR, the bank may request additional proof of exchange rate stability.
Practical tip: Open a current account with a Georgian bank and deposit the down payment amount before applying. Based on our observations, this increases credit committee trust by 40–50%.
Developer Installment Plans: Flexibility vs. Risks
If a bank mortgage seems too complicated, a developer installment plan becomes a popular alternative for property investment in Georgia. This option is particularly relevant at early construction stages when developers need working capital.
How Installment Plans Work in Georgia
The standard scheme: you pay 20–30% down payment, with the balance divided into equal installments over 2–5 years. The interest rate is often 0%, making this financing method attractive in terms of total overpayment.
Comparison of Terms
| Feature | Bank Mortgage | Developer Installment |
| Down payment | 30–40% | 20–30% |
| Interest rate | 8–12% | 0–3% |
| Term | Up to 15 years | Up to 5 years |
| Property registration | Immediate | After full payment |
| Income verification | Strict | Minimal |
Hidden Risks
The main risk: the apartment is registered in your name only after full payment. Until then, it remains collateral with the developer. If the company goes bankrupt, you could lose your invested funds. Therefore, it’s critical to verify:
- Developer reputation(minimum 5 years in the market, 3+ completed projects)
- Escrow accounts—separate accounts for buyer funds
- Notarized contractis mandatory
Real case: In 2023, our client from Israel chose a 4-year, 0% installment plan from a developer for an $85,000 apartment. The down payment was 25% ($21,250) with monthly payments of $1,328. When the developer delayed completion by 8 months, the escrow account and notarized contract ensured the client didn’t lose a single dollar.
Legal Aspects of Financing
Any real estate purchase in Georgia requires understanding local legislation. Georgia is quite liberal toward foreigners, but nuances can become unpleasant surprises.
Registration and Taxation
When applying for a mortgage, you’ll need:
- Non-resident ID (obtained in 1 day at the Public Service Hall)
- Notarized purchase agreement (cost: 1%of transaction value)
- Public Registry registration (1 business day, 50 GEL)
Tax burden: Buyers pay only 1% property tax (if value is under GEL 350,000) and 0.05–0.2% annual property tax. There are no additional mortgage taxes for non-residents.
(Source: Georgian Ministry of Justice, Tax Code of Georgia, Article 33)
Key Restrictions
Foreigners cannot own agricultural land but can own any residential or commercial property. When buying an apartment, this restriction is irrelevant. However, purchasing a house with land requires establishing a Georgian LLC (Ltd), adding $500–800 in costs and 2–3 weeks to the timeline.
AML compliance: All transactions over $50,000 undergo mandatory money laundering checks. Be prepared to provide documents proving fund origin (previous property sale contracts, tax returns, employment letters).
Comparison: Pros and Cons
To decide which financing path suits you, let’s compare parameters not just by numbers but by real-world convenience.
Bank Mortgage: When to Choose
Pros:
- Immediate property ownership
- Long term means lower monthly payments
- Strong borrower protection (Consumer Credit Law)
Cons:
- High down payment requirement
- Strict documentation standards
- Significant interest rates
Ideal profile: You have stable USD/EUR income, can wait 1–2 months for approval, and plan long-term ownership (7+ years).
Developer Installment Plan: For Quick Decisions
Pros:
- Minimal documents (passport and down payment)
- Fast approval (often 1–3 days)
- Zero or minimal interest rate
Cons:
- High monthly payments due to short term
- Developer bankruptcy risk
- Limited buyer rights until full payment
Ideal profile: You have liquid funds for 30–40% down payment, high current income, and are comfortable with risk to save on interest.
Third Path: Hybrid Approach
Experienced investors often combine both tools. For example, they take a developer installment plan for 2 years with a minimal down payment while obtaining Georgian residence status, then apply for a bank mortgage secured by the existing property. This yields 2–3% lower rates and terms up to 20 years.
Practical Tips: How to Avoid Mistakes
- Start with legal consultation—$200 upfront saves $5,000 in mistakes
- Request 2–3 credit offers—bank terms vary by 1–2% even for identical profiles
- Check developers via Public Registry—pending lawsuits are a red flag
- Calculate total ownership costs—include taxes, utilities, insurance
- Reserve the property—many developers offer 30-day options without financial obligation
Common mistake: Buyers choose the option with the lowest down payment without considering monthly burden. Budget so payments don’t exceed 30% of net income—this rule works in any country.
Conclusion
Securing a mortgage for property in Georgia in 2025 is achievable with a systematic approach. For most foreigners, the optimal risk-reward balance is a 3–4 year installment plan from a verified developer. For those planning long-term ownership and rental income, a bank mortgage secured by existing property is preferable.
Success in foreign real estate isn’t about luck—it’s about thorough preparation and working with reliable partners. Focus on verifying all data, consulting independent lawyers, and maintaining financial discipline to minimize risks and optimize financing conditions.
