📃 Transaction Costs in Georgia

Real Estate Transaction Costs in Georgia

The Transaction Costs indicator measures all costs incurred when buying or selling real estate – taxes, fees, notary costs, agent commissions – as a percentage of the purchase price. Georgia has exceptionally low transaction costs of approximately 1.5% of the purchase price.

Breakdown of Transaction Costs (Buyer)

Transfer tax / Registration fee:

• Standard registration at NAPR: GEL 100 (~USD 35) – flat fee
• Express registration (1 business day): GEL 200 (~USD 70)
• This is no "transfer tax" in the European sense – just a small administrative fee

Notary costs:

• In Georgia, purchase agreements can alternatively be notarized or completed electronically without a notary
• If a notary is used: approximately GEL 200–500 (~USD 70–175) – significantly cheaper than EU countries
• Many transactions, especially between private parties, require no notary

Real estate agent commission:

• Typically 3–5% of the purchase price, mostly borne by the seller
• In many deals (especially direct transactions) no agent is involved
• New developments: typically no agent commission for buyers

VAT on new developments:

• New apartment purchases from developers: 18% VAT applies – effectively included in the purchase price
• Secondary market (resale): No VAT

Capital Gains on Sale

• After 2 years holding: 0% capital gains tax on the profit
• Under 2 years: 5% CGT

Conclusion: Georgia's transaction costs are among the lowest globally. The absence of a real estate transfer tax, cheap registration, and optional notary system make transactions almost frictionless. This is particularly beneficial for active property investors and developers who make multiple transactions per year.

This article was created on April 14, 2026