How does a gift of property work in Georgia?
A gift is a contract by which the donor transfers ownership of property to the donee without payment, with the donee's consent. For a flat or a house, the gift takes effect when the donee's ownership is registered in the Public Registry, just as a sale does. A promise to give property in the future binds the donor only if it is made in writing.
Foreign owners use gifts to pass a Georgian flat to a child, a spouse or another relative during their lifetime, sometimes as an alternative to leaving it by will. This explainer covers how a gift is made and registered, when it can be taken back, how it is taxed, and what it means for a residence permit.
How is a gift made and registered?
A contract that transfers ownership of real estate must be in writing, and ownership passes on registration. The Civil Code does not require a notary for a gift as such: the parties' signatures can be certified at the Public Registry, in practice at a Public Service Hall, where no further certification is needed if both sign in front of the authorised person. The registration fee depends on how fast you need it, from GEL 150 for the standard term to GEL 350 for the same day, and the registry also certifies the parties' signatures on a filed transaction for GEL 7. One law firm reports that a transaction signed through a power of attorney issued abroad must now be drawn up by a notary as a public deed.
To be added by the team: the partner lawyer to confirm the documents the registry requires for a gift and whether any category of gift must be notarised.
What the law does not allow
- Gifting away your livelihood. A gift is not allowed if it would deprive the donor, or people the donor must support, of their basic means of support.
- Gifts on behalf of a ward. A guardian cannot make a gift on behalf of the person under guardianship.
- Agricultural land to a foreigner. A foreigner may hold agricultural land received by inheritance, but the law does not list a gift as an exception, so a gift of agricultural land to a foreigner is not possible.
Conditions and burdens
A gift can be made conditional on something the donee must do, including something for the common good. The person the condition benefits can demand that it be performed, and if the donee does not perform it, the donor may withdraw from the gift. A typical example is a gift of a flat on condition that the donee lets the donor live in it for life; such a condition should be written precisely, with what happens if it is not respected.
Can a gift be taken back?
| Ground | Conditions | Time limit |
|---|---|---|
| Ingratitude | The donee grossly insulted, or showed extreme ingratitude towards, the donor or a close relative | 1 year from when the donor learns of it |
| Donor's hardship | The donor can no longer support themselves or their dependants, the thing still exists, and its return would not put the donee in hardship | None stated; not if the donor caused the hardship deliberately or through gross negligence |
| Unperformed condition | The donee does not perform a condition attached to the gift | Not stated in the article |
Gifts within the family
A gift received by one spouse during the marriage is that spouse's separate property, not joint matrimonial property; that is worth knowing both for a gift to a married child and for a gift between spouses. A child can receive a gift: parents represent their children and manage their property, and a contract by which a minor only acquires a benefit is valid. A gift is also counted later in some inheritance questions: gifts made within the 10 years before the donor's death can be added back when calculating the compulsory share of a child, parent or spouse.
Is a gift taxed?
| Recipient | Treatment |
|---|---|
| First-line relative: spouse, child, grandchild, parent | Exempt, no limit |
| Second-line: brother, sister, niece, nephew | Exempt, no limit |
| Third and fourth line: grandparents, uncles, aunts | Exempt up to GEL 150,000 a year |
| Anyone else | Exempt up to GEL 1,000 a year from a natural person; above that, income |
Before registering the donee's ownership, the registry must tell the recipient about any duty to declare and pay tax. Income not taxed at source is declared before 1 April of the following year, at the general 20% rate, and a third- or fourth-line relative who receives GEL 150,000 or more in a year may spread the payment over up to two calendar years.
To be added by the team: the partner accountant to confirm on which value a taxable gift of property is assessed and how a non-resident recipient declares it.
Selling a flat you received as a gift
The two-year rule applies to gifted homes as to any other: after two years of ownership, the gain on a sale is free of income tax. A donee who is the donor's first-line relative, such as a child or spouse, may add the donor's years of ownership; other donees count from their own registration. The taxable gain on a gifted property is the sale price minus its market price at the time of the gift, and a gain on a home sold within two years is taxed at 5%.
Gifts and the residence permit
The property route to a residence permit requires ownership of real estate, other than agricultural land, valued above $150,000; the law does not say how the property must be acquired, so a flat received as a gift is not excluded. The other side matters too: a permit based on the donor's ownership ends when that ownership ends, so a donor who holds a property permit loses its basis on the day the gift is registered. See our page on the $150,000 threshold.
Gift, sale or will?
| Route | When ownership passes | Main point |
|---|---|---|
| Gift | On registration, during your lifetime | Can be revoked only on narrow grounds |
| Sale to a relative | On registration | The buyer pays a price, and tax may apply to your gain |
| Will | After death, through a notary | Can be changed at any time; your home law decides the heirs |
Our guide to making a will covers the third route.
How to give a flat, step by step
Order a fresh extract
Check that the flat is in your name and note any mortgage, which stays on the flat.
Check the tax position
Identify the donee's line of kinship and whether any tax will be due.
Draft the gift contract
In Georgian, with a translation if needed, including any condition.
Sign at the Public Service Hall or a notary
Both parties, or representatives with notarised powers of attorney.
Register and check
Order the new extract showing the donee as owner.
When the donor or donee lives abroad
Neither party has to come to Georgia. Each can sign through a representative with a notarised power of attorney, with an apostille or legalisation and a Georgian translation; a law firm reports that a deal signed on a power of attorney issued abroad must be drawn up by a Georgian notary. Allow time for the documents, and make sure the power of attorney names the flat by its cadastral code and expressly allows a gift. Our guides to the apostille and notarised translation explain both steps.
When a company gives property
A gift made by a company is treated differently. For a company registered for VAT, a free supply of goods for which it deducted input VAT counts as a supply for consideration, so VAT can arise on the gift. Only gifts of little value, up to GEL 50 a year per person, are excluded. If a company you own holds the flat, ask an accountant before transferring it to a family member.
Questions to settle before giving
- Is the donee a first-line relative, so that the gift is tax-free and the donor's years of ownership count later?
- Do you hold a residence permit based on this flat?
- Do you want to keep living in the flat, and how will that be written into the contract?
- Is there a mortgage, and has the bank agreed?
- Would a will serve your purpose better than a gift now?
Risks and exceptions
- Losing your residence permit. A donor's property permit ends with the ownership.
- Tax for distant relatives. Only close family members are fully exempt.
- An unwritten condition. Conditions should be in the contract.
- A mortgage on the flat. It passes with the flat to the donee.
- Agricultural land. It cannot be given to a foreigner.
Frequently asked questions
Do I need a notary to give a flat?
Not necessarily; signatures can be certified at a Public Service Hall when both parties sign there.
When does the donee become the owner?
When the donee's ownership is registered in the Public Registry.
Is a gift to my child taxed?
No, gifts to first- and second-line relatives are exempt.
Can I take a gift back?
Only on narrow grounds, such as gross ingratitude within one year or your own later hardship.
Can a foreigner receive a flat as a gift?
Yes, but not agricultural land.
Can the donee get a residence permit on the gifted flat?
Yes, if it is valued above $150,000; the law does not exclude gifts.
Is a flat gifted to my married son joint property?
No, a gift to one spouse during marriage is that spouse's separate property.
Can the donee sell the flat straight away?
Yes, but tax on the gain may apply unless the two-year rule is met.
Sources
- Civil Code of Georgia (Articles 63, 183, 311.1, 323, 524-530, 1161, 1296, 1378), Legislative Herald of Georgia (accessed 18 October 2026)
- Tax Code of Georgia (Articles 81, 82, 153), Legislative Herald of Georgia (accessed 18 October 2026)
- Immovable property registration: fees and terms, National Agency of Public Registry (accessed 18 October 2026)
- Law of Georgia on the Legal Status of Aliens and Stateless Persons (Articles 15, 21), Legislative Herald of Georgia (accessed 18 October 2026)
- Organic Law of Georgia on Agricultural Land Ownership (Article 4), Legislative Herald of Georgia (accessed 18 October 2026)
- Powers of attorney issued abroad and the Public Registry, Revera Legal (accessed 18 October 2026)
Change log
- - Explainer published from the Civil Code (Arts. 524-530), the Tax Code, the Aliens Law and the Organic Law on Agricultural Land.