Register the purchaser’s title with the district Public Registry
Agency: National Agency of Public Registry
The sale purchase agreement is not required to be notarized, as of the amended Civil Code of March 2007, clause 183. The extract can be obtained by following ways:
- Online,
- Visit to the Registry and get it there, or
- In case of registering property via authorized entities (banks, notaries or real estate companies) extract can be received on the spot.
The new online registry of property was launched in 2007-2008. Online business registry was launched in 2010. Above-mentioned registers are unified under the Georgian National Agency of Public Registry – NAPR (www.napr.gov.ge), which is widely used. Registration fees may be paid at any commercial bank in Georgia. If registration is completed at the NAPR, the payment can be done with the bank representative, who is always presented at every NAPR office. Registration can be also conducted by an authorized user (all banks), notaries, real estate companies). In this case, registration fee is applied on the spot. Online payment of registration fee is also possible, when the application is filed online.
All properties in Tbilisi have been systematically transferred into the electronic database. All the system operations are fully computerized, including Old Bureau of Technical Inventory files that have been scanned. The NAPR may conduct registration process and issue an Ownership Certificate (extract) on the same day of submission of documents, in 1 business day and in 4 business days (ordinary registration procedure).
The documentation shall include:
- Sale and Purchase agreement
- Identification documents of the authorized presentative of the parties and if they are not directors of the relevant limited liability companies – their respective POAs or other documents on the basis of which these individuals are granted authority to act on behalf of the parties.
- Receipt confirming payment of Public Registry registration fee.
It is also possible to submit the transaction at one of the 500 authorized users. These can be banks, notaries or real estate companies. These entities can verify the transaction and submit the purchase and sale agreement to the National Agency of Public Registry. The employees dealing with these transactions received a training provided by the National Agency of Public Registry and a memorandum is signed between the National Agency of Public Registry and the entity. The most commonly used authorized users are banks.
The authorized entity receiving the application will verify the identity of the buyer and seller, or authorized party, as well as the ownership of the property. Once the information is submitted though a specific software, the National Agency of Public Registry employee will verify again the ownership and the existence of the individuals (in the Civil registry database that they can access electronically) and process the transfer. Another software is used at this stage.
Georgian legislation provides for the possibility of accelerated proceedings, therefore if the buyer wishes to register property transfer on the same day of submission of all necessary documents, the fee is respectively GEL 200. If registration is carried out on the day following the day of submission, the fee totals to GEL 150. GEL 50 is a fee paid for ordinary registration procedures, which take 4 business days following the submission of all required documents to the Public Registry. The payment is done at any commercial bank.
There is also an option available to apply for an extract electronically via the Georgian National Agency of Public Registry (NAPR) website with fees being as follows: 1 working day – 10 GEL and at the day of application – 40 GEL.
The 2% immovable property transfer tax has been abolished. A new Tax Code specifies “Income Tax” for physical persons and “Profit Tax” for legal entities in case of property sale, only if sale of property takes place within 2 years after its purchase and equals to 20% (for physical persons) and 15% (for legal entities) of the difference between purchase and sale price. These are capital gains taxes. If the sale of property takes place after 2 years since its purchase, physical persons are exempted from paying “Income Tax”.
Time and cost: 1 day, GEL 169.49
- Expedited procedure: Super fast procedure (1 calendar day) – GEL 200 (including VAT (18%));
- 1 business day (1-2 calendar days) – 150 GEL (including VAT (18%));
- Regular procedure (4 business days) is 50 GEL (including VAT (18%)).
There is also an option available to apply for an extract electronically via the Georgian National Agency of Public Registry (NAPR) website with fees being as follows: 1 working day – 10 GEL (including VAT (18%) and at the day of application – 40 GEL (including VAT (18%).)
