Analysis of Rules Related to Land Purchase by Foreigners in Georgia — Exceptions and Legal Workarounds
Purchasing land in Georgia is one of the topics that consistently raises questions among foreign investors. The regulations governing land transactions differ from the rules for buying apartments or residential units, which often leads to misunderstandings. In this article, we will explain what types of land foreigners can buy, what restrictions exist, what exceptions apply, and which legal workarounds actually work in practice. The material is based on current legislation and the experience of Sea Inside, whose specialists handle land transactions in all regions of the country on a daily basis. This overview also highlights the specifics of land purchase by foreigners in Georgia.
Why does the issue of land purchase by foreigners in Georgia even exist?
In 2017–2018, Georgia actively discussed the topic of regulating agricultural land. The country follows the principle that agricultural land is considered a strategic resource, and the state regulates its circulation. For this reason, foreign citizens cannot freely buy such land. However, it is important to understand: The restriction applies only to agricultural land. All other types of land plots are available for foreigners without limitations. These rules directly affect land purchase by foreigners in Georgia.
(Official source on agricultural land regulation:
Law of Georgia on Ownership Rights)
What types of land can foreigners buy in Georgia?
Foreign individuals and companies can freely purchase the following types of land. This is essential to understand for anyone considering land purchase by foreigners in Georgia.
1. Land for residential construction (Non-Agricultural Land)
These are plots within municipal boundaries designated for: individual housing, multi-apartment development, commercial buildings, hotels, townhouses, etc. Fully available to foreigners. The transaction is registered through the House of Justice in the usual manner.
(Official link:
Ministry of Justice of Georgia)
(Registry system:
National Agency of Public Registry (NAPR))
2. Commercial land plots
Land designated for: office buildings, retail and restaurants, auto services, warehouses, production facilities (excluding agriculture). Purchasing is allowed without restrictions.
3. Recreational land
Land designated for: hotels, glamping, camping zones, tourism infrastructure. This land is also considered non-agricultural and can be freely purchased by foreigners.
What land cannot be purchased by foreigners?
Agricultural land (Agricultural Land)
According to the Constitution of Georgia and the Law on Ownership, foreign citizens and companies owned by foreigners are not allowed to own agricultural land plots. This includes land designated as: farmland, pastures, vineyards, orchards, nut plantations, greenhouse areas, hayfields.
(Link to Constitution:
Constitution of Georgia)
Why exactly is agricultural land restricted? Because the state protects a strategic resource and aims to avoid situations where large land arrays are concentrated in foreign hands. This practice exists in many countries.
Exceptions: when foreigners are still allowed to buy agricultural land
Despite the restriction, the law includes a few clear exceptions that allow land acquisition. There are not many of them, but they do work.
1. A foreigner can buy land through a legal entity registered in Georgia
However, the company must not be classified as “foreign”. Meaning: more than 50% of shares must belong to Georgian citizens. If a foreigner owns less than 50%, the company is considered Georgian and can own agricultural land.
2. If the land plot receives a change of designation (from agricultural to non-agricultural)
This is a real, commonly used legal mechanism. For example: An investor wants to build a hotel or cottages, but the land is technically classified as agricultural. In such a case, one can submit a request to the municipality to change the land designation. If the plot is located in a development area — near roads, utilities, or settlements — the chances of approval are high.
(Official site for zoning and municipal planning:
Ministry of Economy and Sustainable Development)
According to Sea Inside, approximately 60–70% of designation-change requests in tourist regions (Adjara, Kakheti, Mtskheta, Gudauri) receive approval.
3. Agricultural land can be obtained through inheritance
If a foreigner inherits agricultural land (for example, from Georgian relatives), this is permitted. However, the land usage remains regulated — the owner cannot expand the holding or purchase additional agricultural plots.
4. Land can be placed into trust-like management structures
This is not a purchase, but a way of benefiting from agricultural land. A foreigner can: invest in an agricultural project, receive profit as a beneficiary, while legal ownership remains with a Georgian citizen or a Georgian company.
Such structures are common in wine regions (Kakheti), where investors finance production but do not own the land directly.
Legal workarounds: what actually works and what does not for land purchase by foreigners in Georgia
Georgia’s legislation is transparent, but it is important to distinguish between legally valid solutions and risky schemes.
(Official government legal archive:
MATSNE – Georgian Legislative Herald)
Legal and working solutions
1. Purchasing land with subsequent change of designation
The most popular and straightforward option. If agricultural land is located within an active development zone, authorities generally support such projects.
How the process works: Land category analysis (Zone Map). Architectural-development reference from the municipality. Preparation of project justification. Submission of designation-change request. After approval — purchase of the plot as non-agricultural land.
Timeline: 1–3 months. Sea Inside frequently handles such cases, especially in Adjara and coastal regions.
2. Registering an LLC with a Georgian majority partner (51/49)
A common option for joint ventures. If an investor works with a Georgian partner, they can create a company that will own the land.
(Link:
Company registration — NAPR)
Advantages: any agricultural land can be purchased, suitable for large-scale projects, ideal for wineries, eco-farms, organic agriculture.
Disadvantage: shared control is required.
3. Long-term land lease
Buying may be prohibited, but leasing is allowed. In Georgia, leases may be granted for 10, 20, 40 or even 49 years.
(Official leasing & state property portal:
National Agency of State Property)
Leasing allows you to: build structures, operate a business, legally use the land.
This is common in mountain regions (Gudauri, Bakuriani).
What does NOT work and is illegal
To avoid pitfalls, you need to know which offers on the market are not supported by the law.
❌ Buying land “through a nominee owner” — If land is registered to a Georgian “on paper”, but the real owner is a foreigner, this is considered a fictitious transaction. Risks include: loss of the land, transaction annulment, inability to prove ownership.
❌ Buying with verbal promises of “we’ll re-register it later” — This occurs when sellers promise to “fix the documents” or “change the designation”. If the process is not completed before the transaction, the foreigner simply won’t be able to register the land.
❌ Purchasing via foreign companies or foreign-registered entities — Such companies are also treated as foreign legal subjects and cannot own agricultural land.
Where do foreigners most often buy land in Georgia?
According to Sea Inside and market analytics, foreign buyers most often choose:
1. Adjara: Batumi, Gonio, Kvariati, Chakvi
Reasons: tourism growth, price increases, opportunities for hotels and villas. Most plots here are already non-agricultural.
2. Tbilisi and surrounding areas
Land for houses and townhouses is popular in: Tbilisi (all districts), Mtskheta, Tserovani, Saguramo, Lilo.
3. Kakheti (excluding agricultural holdings)
Demand for homes with scenic views. If the land is agricultural, investors usually apply for a designation change.
4. Gudauri, Bakuriani, Mestia
Land for guesthouses, hotels and chalets.
What documents does a foreigner need to buy land?
If the land is non-agricultural, the process is simple: Passport. Preliminary contract (optional but recommended). Notarial purchase agreement (with translation). Registration of ownership in the House of Justice (1–3 days).
(Official registration steps:
Real estate registration — NAPR)
State fees: 50–200 GEL depending on processing speed. Sea Inside usually manages the entire process — land status check, registry extract, legal verification, and document submission.
Case studies from Sea Inside
Case 1: Investor from Europe planned to buy land for a mini-hotel near the sea
The plot was agricultural. Zone analysis showed that the area is classified as a recreational development zone. We prepared the documentation and submitted a designation-change request. After six weeks, the status was changed. The investor legally purchased the land as non-agricultural.
Case 2: A family wanted land for a house near Green Cape
The land was non-agricultural but had a height restriction. Our team requested urban-planning parameters and obtained confirmation that the restriction applied only to hotels. The family purchased the land without limitations for residential construction.
Case 3: Investor wanted to open a winery
Purchasing agricultural land directly was not allowed. We proposed an alternative: a joint LLC with a Georgian majority partner (51/49). The company obtained the land and agricultural rights. The investor oversees operations and receives the majority of profits.
Key takeaways
Foreigners can freely purchase any non-agricultural land. Agricultural land is restricted, but exceptions exist. Working solutions include: changing land designation, forming a joint company, long-term leasing, trust-like management participation. Nominee schemes carry high legal risks. Before purchasing, check the land category — this is the first step Sea Inside specialists take. Understanding these steps is crucial for successful land purchase by foreigners in Georgia.
