Buying commercial property in Georgia as a foreigner
Foreigners can buy offices, shops and warehouses in Georgia on the same terms as citizens, and there is no transfer tax or stamp duty on the purchase. What changes compared with an apartment is everything after the purchase: who the tenants are, how rent is taxed, whether VAT applies, how long leases run and how the property is valued. Commercial property also has its own market, with its own figures for rents and vacancy, which look quite different from the residential market most guides describe.
This guide gives the latest available market figures for offices, shopping centres and warehouses, the tax points that matter for an individual owner, and the checks that differ from buying a flat.
The market in figures
| Segment | Rent | Vacancy or occupancy |
|---|---|---|
| Tbilisi offices, average | $23.4 per m² a month, +5.9% in 2024 | - |
| Tbilisi offices, Class A | $28 per m² | Vacancy 10% (52% in 2021) |
| Tbilisi offices, Class B | $15.1 per m² | Vacancy 17% |
| Tbilisi shopping centres | Rents +7.4% in 2024 | Vacancy 4.7% (14.8% in 2021) |
| Tbilisi warehouses | $3-5 per m² excluding VAT; Class A up to $7 | Occupancy about 77% |
| Batumi warehouses | $3-6 per m² | - |
The pattern is clear. Good modern offices in Tbilisi have filled up since 2021, while older Class B buildings still carry a sixth of their space empty. Shopping-centre space has tightened. Warehouses are concentrated in Tbilisi, which holds 68% of leasable warehouse space, and TBC Capital expected demand for storage to grow by about 9% between 2025 and 2028.
To be added by the team: the owner to add 2025-2026 figures for office and retail rents and yields when TBC Capital, Colliers Georgia or Galt & Taggart publish them, and street-retail rents in central Tbilisi and Batumi.
Valuing a let commercial property
Investors value commercial property mainly on its income. Take an illustrative Class B office of 100 m² in Tbilisi let at the 2024 Class B average of $15.1 per m²: the rent is about $1,510 a month, or $18,120 a year. At a price of $200,000 that is a gross yield of about 9.1%. Personal income tax at 20% brings it down to about 7.2% before service charges, repairs and any empty months. A higher price, a weaker tenant or a long lease at a low rent changes that picture quickly. Use the rent you are actually buying, not the market average, and allow for vacancy: one empty quarter in a year removes a quarter of the income.
The figures above are an example only; your own calculation should use the real lease and the real price.
Office, shop or warehouse: what each involves
| Type | Typical tenant | What to check |
|---|---|---|
| Office | Companies, often on multi-year leases | Building class, parking, lifts, fit-out, the strength of the tenant |
| Street shop | Retailers, cafés, services | Footfall, frontage, permitted use, ventilation for food |
| Unit in a shopping centre | Retail chains | The centre's management, service charges, lease terms set by the centre |
| Warehouse | Logistics and trade companies | Access for lorries, ceiling height, floor load, power supply |
How the rent is taxed
The 5% rate that makes residential letting attractive applies only to residential space let for living. Rent from an office, shop or warehouse earned by an individual falls under the general personal income tax rate of 20%. When the tenant is a business and the owner a non-resident individual, the tenant withholds tax at source. VAT is a separate question: a person in Georgia whose taxable turnover exceeds GEL 100,000 in any continuous twelve months must register for VAT at 18%, and commercial rents can reach that level quickly.
To be added by the team: the partner accountant to confirm how commercial rent of a non-resident individual is withheld and declared, whether such rent counts towards the VAT threshold for an individual, and when owning through a company is more efficient for commercial property.
Because of these points, commercial property is where owning through a company is most often worth considering; our comparison of buying through a company sets out the trade-offs.
Checks that differ from buying a flat
Buying commercial property, step by step
Decide the type and the tenant you want
An office with a company tenant, a shop with footfall, or a warehouse near the main roads: each has its own market.
Ask for the income evidence
Leases, rent received in the bank, service charges and any arrears.
Check title, use and permits
The extract, the registered purpose and any permits for the use.
Settle tax and VAT before signing
Whether you buy personally or through a company, and whether the price includes VAT.
Sign and register
The contract is signed and the purchase registered in the Public Registry, as for any property.
Take over the leases
Write to the tenants with the new owner's details and bank account.
Leases already in place
Under Article 572 of the Civil Code, when a let property is sold after the tenant has taken possession, the buyer takes the place of the landlord, and the rights and duties under the lease pass to the buyer. That can be an advantage, an income from day one, or a burden, a long lease at a low rent. Ask for every lease, its end date, rent reviews and the tenant's right to renew, and value the property on the lease you are actually buying, not on the market rent you hope for later.
Ground-floor shops in new buildings
Developers often sell the ground floor of a new residential building as commercial units. They can be good shops or cafés, but they combine the risks of an off-plan purchase with those of commercial property. Check that the unit is designated for commercial use in the project, that ventilation and drainage will allow the use you have in mind, especially for food, and how the building's owners' association will treat a business on its ground floor. A café that the residents oppose is a difficult tenant to keep.
Managing tenants from abroad
A commercial tenant expects invoices, quick answers and someone on the spot when something breaks. Owners who live abroad usually appoint a property manager or an accountant who issues invoices, follows payments, handles VAT if it applies and deals with repairs. Agree in writing what the manager may decide alone and what needs your approval, and have the rent paid into an account you control.
Commercial property and the residence permit
The property route to a residence permit excludes only agricultural land, so an office, shop or warehouse in your own name can support a permit if its market value exceeds $150,000 according to an accredited assessor. Owning it through a company would not count for you personally.
Risks and exceptions
- Assuming the 5% rate applies. It is for residential lettings only.
- Crossing the VAT threshold unnoticed. GEL 100,000 of turnover in twelve months triggers registration.
- Buying a weak lease. A long lease at a low rent binds the new owner.
- Ground-floor units in unfinished buildings. Off-plan risk plus commercial-use risk.
- Older Class B space. Vacancy there is higher than in modern buildings.
Frequently asked questions
Can a foreigner buy commercial property in Georgia?
Yes, on the same terms as a citizen; only agricultural land is restricted.
How is rent from a shop taxed?
For an individual, at the general 20% personal income tax rate, not the 5% residential rate.
Do I need to register for VAT?
When taxable turnover exceeds GEL 100,000 in any continuous twelve months, registration is compulsory.
What are office rents in Tbilisi?
About $23.4 per m² on average in 2024, $28 for Class A and $15.1 for Class B, according to TBC Capital.
Is there a transfer tax on commercial property?
No. A purchase pays no transfer duty or stamp duty in Georgia, only the registry fee and professional costs.
Should I buy a commercial property with a tenant or empty?
A sitting tenant gives income from day one; an empty unit lets you choose the tenant and the rent. Value each on what it really delivers.
What yield can I expect?
It depends on the price and the lease. As an illustration, a Class B office let at the 2024 average rent and bought for $200,000 yields about 9.1% gross before tax and costs.
Can a commercial property get me a residence permit?
Yes, if it is in your own name and valued above $150,000 by an accredited assessor.
Sources
- TBC Capital: Georgia's commercial real estate market sees rising demand, Investor.ge, 6 April 2025 (accessed 14 October 2026)
- TBC Capital: demand for warehousing capacity projected to grow by 9%, GBC, 12 February 2025 (accessed 14 October 2026)
- Tax Code of Georgia (Articles 81 and 134), Legislative Herald of Georgia (accessed 14 October 2026)
- Georgia: other taxes (VAT), PwC Worldwide Tax Summaries (accessed 14 October 2026)
- Civil Code of Georgia (Article 572), Legislative Herald of Georgia (accessed 14 October 2026)
Change log
- - Guide published from TBC Capital market data, the Tax Code, PwC and Civil Code Article 572.