Opening a bank account in Georgia: documents, choosing a bank, remotely, paying for an apartment

Opening a bank account in Georgia: why a buyer needs one

Opening a bank account in Georgia is not mandatory for an apartment buyer, but it is often convenient. It makes it easier to pay for the apartment on the day of the deal, receive rental income, pay utilities and taxes, and receive the buyer's money when you sell. An account does not require a residence permit, work visa, local employment contract or an address in Georgia. You need a passport, a clear source of funds and a carefully completed application form.

What you need to open an account

• a passport;
• the bank's application form, often in Georgian or English;
• details of your work and income;
• a statement from another bank for recent months, if the bank asks;
• source of funds documents for a large sum;
• a phone number and email for contact with the bank.

The bank does not ask for a residence permit or local address, but it will ask why you need the account. The answer "to buy an apartment and let it" makes sense to the bank if it is backed by documents: a preliminary agreement, a reservation or correspondence with the developer.

Which bank to choose

The largest banks in the country are TBC and Bank of Georgia. Requirements differ between banks, and a refusal at one does not mean a refusal at all of them. We tell you which bank usually suits clients from your country, but the decision is always the bank's own.

Why banks refuse

Most often because of the application form or the source of funds: blank fields, contradictory answers, income that does not match the statement. The bank assesses the client's risk, and for some categories the check is stricter, for example for people connected to sanctioned companies. Some banks charge a fee for reviewing an application, about 50 lari, and do not refund it on refusal. So we fill in the form with you and gather and check the documents in advance so that the figures match. If you are refused, the usual route is to wait a few weeks, fix the documents and apply again to the same or another bank.

Opening an account remotely

If you are not in Georgia, an account can sometimes be opened through a representative under a power of attorney. The power of attorney must be in Georgian or have a certified translation, expressly give the right to open an account, have a period of validity and be certified by a notary, and for many countries also be apostilled. Banks accept the paper original, not a scan. Some banks open accounts only in person, so we check the procedure in advance. Even with a personal visit the procedure usually takes an hour or two, and access to online banking is given immediately or within a few days. More about the power of attorney on the power of attorney transaction page.

The account and paying for the apartment

Once the account is open, the money can be transferred to it in advance, the bank's check passed without pressure, and the apartment paid for by an internal transfer on the day of the deal. That way the payment date does not depend on an international payment. For a large sum we check the daily transfer limit in advance: it can be lower than the price of the apartment and is raised on request. The payment scheme is still written into the agreement, and money from the account goes only to the owner named in the extract; more on the transferring money to buy property page.

Account currency and card

An account at a Georgian bank is usually multi-currency: you can hold lari, dollars and euros in it and convert between them within the bank. A card is issued with the account, convenient for paying around town, and utilities can be paid through the app. The bank's in-house rate is worth comparing with exchange offices on the day. If the price of the apartment is in dollars, keep the main sum in dollars and convert into lari only what you need for expenses.

The account after the purchase

After the deal the account is useful for utility payments, building maintenance, taxes and rental income. If you let the apartment, the tenant or management company transfers the money to your Georgian account. If you are registered as a landlord with the Revenue Service, the tax on letting housing for living in is 5 % of gross income, and it is easier to pay it from a local account. How taxes on rental income work is on the taxes on rental income in Georgia page.

How much help with opening an account costs

Help opening a bank account in Georgia, with preparing documents, completing the form and accompanying you to the bank, costs from 360 ₾. Arranging the power of attorney, apostille and translations for opening an account remotely from 390 ₾, a payment scheme and transfer support from 390 ₾, a lawyer consultation of up to an hour from 155 ₾. Bank fees and charges are paid under its own rules. The final cost is set after reviewing your situation and agreeing the scope of work.