Commercial space: a registered category, not an advert label
Commercial space (კომერციული ფართი) is a building or unit whose registered function is non-residential (არასაცხოვრებელი) and whose category is trade or commercial, office or a similar business use, as recorded on the internal measurement drawing behind its registration.
The basis is Resolution No 315, adopted by the Government on 3 October 2024 and applied from 1 January 2025 (text on Matsne). Its Rules Art. 2(3)(ე) say a unit's function "may be residential or non-residential", and Art. 2(3)(ზ) lists the non-residential categories, among them "trade/commercial space" (სავაჭრო/კომერციული ფართი) and "office space" (საოფისე ფართი). The Instruction on the Public Registry, Order No 487, then prints the unit's purpose on the extract next to its area, floor, entrance and number (Art. 6(4)(დ)).
In English, "commercial property" often means anything bought for income, including a block of flats. Georgian practice is narrower and more literal: a unit is commercial because its registered purpose says so, not because it earns rent. A ground-floor flat let to a hairdresser is still residential on paper, and a basement or a parking space is non-residential without being commercial. The investment side is in our guide to buying commercial property.
The non-residential categories in Resolution No 315
Since 2025 every measurement drawing for a non-residential unit names a category from the list below, which ends with "others". Only two of them describe what most buyers mean by commercial space.
| Georgian wording | English | Commercial in the everyday sense? |
|---|---|---|
| საოფისე ფართი | Office space | Yes |
| სავაჭრო/კომერციული ფართი | Trade/commercial space | Yes |
| სასაწყობე ფართი | Warehouse | Business use, but its own category |
| საწარმოო ობიექტი | Production facility | Business use, but its own category |
| ავტოსადგომი | Parking | No |
| სარდაფი / ნახევარსარდაფი | Basement / semi-basement | No |
| სხვენი | Attic | No |
| ტექნიკური სართული | Technical floor | No |
| დამხმარე შენობა-ნაგებობა | Auxiliary building | No |
| რელიგიური/საკულტო შენობა-ნაგებობა | Religious building | No |
| სპეციალური დანიშნულების ნაგებობა | Special-purpose structure | No |
| სხვ. | Others | Depends on the use |
A seller who calls a basement "commercial" may be right about its potential and wrong about its registration; the drawing decides. Permit designs sort space similarly: Resolution No 255 makes a project show residential, office, commercial, parking, storage, common and auxiliary areas separately (Art. 13(1), text on Matsne).
Turning a flat into a shop, or a shop into a flat
The registry records a new purpose; planning law may demand a permit first.
| Rule | What it says | Basis |
|---|---|---|
| Registry entry | The 2019 text registered a change in a unit's purpose (დანიშნულება) on the owner's application; that paragraph was repealed in 2024, and we could not confirm the current route | Order No 487, Art. 16(2), repealed by Order No 993 of 26 March 2024 |
| Class III and IV buildings | Changing the use (occupancy) of a building is a type of reconstruction, which needs a permit | Res. 255, Art. 4(3)(ე) |
| Fire separations | Changing fire-resistant separations in Class III and IV is reconstruction too | Res. 255, Art. 4(3)(ვ) |
| Unauthorised construction | Includes work where "a function of a building or structure is altered" without legal grounds | Spatial Planning Code, Art. 3(ჰ18) |
| Zoning | A plot's functional zone changes only by amending the urban development plan | Spatial Planning Code, Art. 45(3) |
Gaps remain. We found no published list of documents the registry wants with a change-of-purpose application; Resolution No 255 names only Class III and IV, leaving Class II open; and we did not read the Tbilisi zone tables on shops or cafés in residential zones. Before paying for a unit you plan to convert, have a Georgian lawyer check the zone, the building class and the registry route. The Spatial Planning Code and our guide to unauthorised construction show the cost of skipping a step.
What the non-residential purpose changes for an owner
Tax and building rules read the purpose line, and some effects for private owners need an accountant's view.
| Topic | Residential unit | Commercial or other non-residential unit |
|---|---|---|
| Individual's rental income | 5% if let for living (Art. 81(2)) | 20% (Art. 81(1)) |
| Gain on sale | 5%, or exempt after two years of ownership (Arts. 81(3), 82(1)(f.a)) | The residential rules do not apply; the general rules do, with an exemption after more than two years only if the unit was not used in economic activity (Art. 82(1)(f.c), as Public Ruling No 143 explains); ask an accountant |
| VAT on a sale | Not covered by Art. 158(3) | Delivery of a non-residential building is always treated as economic activity for VAT (Art. 158(3)); how this applies to a private seller is not confirmed, so ask an accountant |
| Property tax for individuals | No difference by purpose; GEL 100,000 family-income exemption since 30 September 2026 | |
| Heat and power sub-meters | Not covered by this rule | Required in non-residential buildings above set consumption, for example stand-alone ventilation systems whose fans use more than 30,000 kWh a year (Res. 354, Art. 18(3)) |
| Temporary commissioning in Batumi | Not covered by this rule | Commercial facilities above Class II need a fire-safety compliance opinion (Code Art. 141.7(5)) |
Take the VAT row seriously. Under the Tax Code, selling a shop can be a VAT supply where selling a flat is not; whether that catches an individual selling one unit we could not confirm. Landlord withholding and turnover points are in our commercial property guide. The metering rule, from Resolution No 354 on energy efficiency (text on Matsne), covers non-residential building categories 3 to 9.
How commercial space reads on an extract, a drawing and ss.ge
- Registry extract: the purpose line (დანიშნულება) reads non-residential, and the category follows the measurement drawing: commercial, office, warehouse, parking or basement.
- Internal measurement drawing: a function field and a category field, both required by Res. 315 Art. 2(3).
- Permit and project: the area breakdown by function under Res. 255 Art. 13(1); this is where ground-floor shop units in a new block are marked commercial.
- ss.ge: one category, "კომერციული ფართი", with no office or shop sub-type on the listing we checked. Sellers add the detail in free text: office, shop or "უნივერსალური ფართი", multi-purpose space.
A Tbilisi listing checked on 28 October 2026 shows how loose adverts are. It gave "ფართი" and "საერთო ფართი" as 310 m², the condition "გარემონტებული" (renovated), the status "ძველი აშენებული" (old building), and GEL 2,441,000, or GEL 7,875 per m². It ticked flat amenities such as "ცენტ. გათბობა" (central heating) and "აივანი" (balcony). None of that shows the registered purpose.
Published data cover rents, not sale prices. Galt & Taggart's May 2026 reports put offices inside Tbilisi residential buildings at about 1.0 million m², 53% vacant, ongoing rent USD 13 per m², and high-street new leases at USD 37.6 per m² in 2025; see commercial property yields.
Worked example: checking the 310 m² unit before an offer
Our illustration, using only that listing and the rules above: a foreign buyer wants the 310 m² unit to let to a business.
- Extract first. Non-residential with a commercial or office category means advert and registry agree. Residential means a flat used for business, and changing the registered purpose is a separate registry step whose current rules we could not confirm.
- Building class. In Class III or IV a change of use is reconstruction needing a permit; a lawyer checks before any deposit.
- Rent. Let to a business, the unit is outside the 5% route; 20% is the starting point (Art. 81(1)).
- Exit. Residential sale relief would not help, and Art. 158(3) goes to an accountant before signing.
- Residence. Only agricultural land is excluded from the property route, so the unit, in the buyer's own name and valued by an accredited assessor at more than $150,000, can qualify; see residence permit by property.
Commercial, non-residential, mixed-use or hotel unit?
| Term | What it means in Georgia | How it relates to commercial space |
|---|---|---|
| Non-residential space (არასაცხოვრებელი) | The function opposite to residential on a drawing and extract | The wider class; commercial is one category inside it |
| Mixed-use building | A building holding both homes and business units | The building is mixed, but each unit still has one registered purpose |
| Hotel or aparthotel unit | A room that is a functional part of hotel infrastructure | Not a residential flat when sold, under Public Ruling No 143, though marketed like a flat |
| "Universal space" (უნივერსალური ფართი) | Listing jargon for space that suits several uses | Not a Res. 315 category; check the extract |
| Commercial property (investment) | Offices, shops and warehouses bought for income | An investment class, covered by our separate guides |
For the hotel row, our guide to aparthotel units in Batumi explains how such units are sold and run. The opposite pole, residential use, is covered under living area.
Commercial space in Georgian, Russian, Hebrew and Arabic
| Language | Commercial space | Related forms |
|---|---|---|
| Georgian | კომერციული ფართი | Registry category: სავაჭრო/კომერციული ფართი; non-residential: არასაცხოვრებელი |
| English | commercial space | non-residential space |
| Russian | коммерческая площадь | коммерческое помещение; нежилое помещение |
| Hebrew | שטח מסחרי | נכס מסחרי; שטח שאינו למגורים |
| Arabic | مساحة تجارية | عقار تجاري؛ غير سكني |
A Georgian sale contract should describe the unit with the purpose and category from its extract and drawing, such as არასაცხოვრებელი and სავაჭრო/კომერციული ფართი, rather than the looser listing phrase კომერციული ფართი.
Warning signs in a commercial space offer
- The advert says commercial, the extract says residential. You would be buying a flat, and converting it is no formality.
- A basement, parking bay or technical floor sold as a shop. These are separate non-residential categories in Res. 315.
- A use "already changed" with no permit to show. Altering a function without legal grounds is unauthorised construction.
- Rent projections that assume the 5% rate. That rate is for residential space let for living.
- A price per m² compared with shop sales elsewhere in the city. Galt & Taggart publish no commercial sale prices, so such comparisons rest on asking prices only.
To be added by the team: scans for the team to add: a redacted extract of a shop unit showing the purpose line, a redacted drawing with the function and category fields marked, and a photo of a ground-floor commercial unit in a new block. Remove names, personal numbers and addresses.
Confirming a unit is registered as commercial
Order the extract
Read the purpose line for the unit.
Get the drawing
Function and category under Res. 315.
Ask about the building class
Class III or IV changes of use need a permit.
Check the zone
A lawyer reads the plan for that address.
Run the tax questions
Rent at 20%, VAT on resale with an accountant.
Match the contract
Purpose and category copied from the extract.
Frequently asked questions
What makes a unit commercial in Georgia?
Its registered function is non-residential and its category is trade/commercial, office or similar (Res. 315, Rules Art. 2(3)).
Is every non-residential unit commercial?
No. Parking, basements, attics, technical floors and warehouses are separate non-residential categories.
Where does the extract show the purpose?
On the line next to the area, floor, entrance and number (Order No 487, Art. 6(4)).
Can I register a flat as a shop?
The 2019 rule, Order No 487 Art. 16(2), was repealed in 2024 and we could not confirm the current route; a permit may come first, so ask a lawyer.
Does a change of use need a permit?
In Class III and IV buildings it is reconstruction under Res. 255, Art. 4(3)(ე). For Class II we could not confirm.
What tax does an individual pay on rent from a shop?
20% under Art. 81(1); the 5% rate is only for residential space let for living.
Is a hotel unit commercial space?
For the tax on its sale, a room that is part of hotel infrastructure is not a residential flat (Public Ruling No 143); its registered category may differ, so read the extract.
Can a commercial unit support a residence permit?
It can, when held in your own name and valued by an accredited assessor at more than $150,000.
Sources
- Government Resolution No 315 of 3 October 2024, Rules Art. 2(3)(ე) and (ზ), Matsne (accessed 28 October 2026)
- Instruction on the Public Registry, Order No 487, Art. 6(4) and former Art. 16(2), original text, with amending Order No 993 of 26 March 2024, Matsne (accessed 28 October 2026)
- Government Resolution No 255, Arts. 4(3) and 13(1), Matsne (accessed 28 October 2026)
- Spatial Planning, Architectural and Construction Activity Code of Georgia, Arts. 3, 45(3) and 141.7, Matsne (accessed 28 October 2026)
- Tax Code of Georgia, Arts. 81, 82 and 158, Matsne
- Public Ruling No 143 of the Minister of Finance of Georgia, 14 May 2026
- Government Resolution No 354 on energy efficiency of buildings, Art. 18, Matsne (accessed 28 October 2026)
- ss.ge, commercial space listing in Tbilisi, listing 37043112 (accessed 28 October 2026)
- Galt & Taggart, Tbilisi office and retail market reports, May 2026
Change log
- - Glossary entry published from Government Resolutions No 315, No 255 and No 354, the Instruction on the Public Registry, the Spatial Planning Code, the Tax Code of Georgia, Galt & Taggart and ss.ge.