Gift and inheritance of an apartment in Georgia: agreement, acceptance period, notary, registration, taxes

Gift and inheritance of an apartment in Georgia: how to transfer ownership

Gift and inheritance of an apartment in Georgia, like a sale, end with an entry in the Public Registry: a person becomes the new owner when ownership is registered. But the documents, deadlines and tax consequences are different. A gift is made by agreement between living people, while an inheritance passes after the owner's death by law or by will, and the heir has to accept it in time. Below we look at both routes and at what most often gets in foreigners' way: documents from another country, a power of attorney and taxes on a later sale.

Gift: the agreement and registration

A gift agreement for an apartment is made in writing and registered at the Public Registry. It can be signed at the Public Service Hall or before a notary. If the donor is abroad and acts under a power of attorney issued there, the deal is registered only in notarial form; this rule has applied since 20 October 2023. In the agreement we state the apartment details from the registry, who gives and who receives, and whether there is a mortgage or a lease. Before signing we take a fresh extract: if the apartment is mortgaged, it cannot be given away without the bank's consent. The registry fee is the same as for a sale; more on the Public Registry registration page.

Tax on a gift

An apartment received as a gift from a family member is not subject to income tax. If the donor is not a family member, the gifted apartment counts as income of the person who received it, and income tax of 20 % is paid on it. Who counts as family for this exemption is defined by the Tax Code, and we check this with a tax adviser before signing, not after. The tax is calculated on the value of the apartment, so for a gift to someone outside the family it can be significant. The donor pays no tax for the gift itself.

Inheritance: the 6-month period and the notary

• the inheritance opens on the day of the owner's death;
• it must be accepted within 6 months: by applying to a notary or by actually taking possession;
• the notary checks the documents and the circle of heirs;
• under the law or the will, the notary issues a certificate of inheritance;
• ownership is registered at the Public Registry under the certificate.

If the period is missed, it can be restored through the court for a good reason or with the consent of the other heirs. If you cannot come, a representative under a power of attorney handles the application to the notary and the registration; more on the power of attorney transaction page. How to prepare for the notary visit is on the notary in Batumi page.

If the inheritance opened abroad

Often the owner of an apartment in Batumi lived and died in another country, and the heirs received their documents there. Georgian law applies to real estate in Georgia. Foreign documents, the death, birth or marriage certificate, the will or the certificate of inheritance, must have an apostille or consular legalisation and a notarised translation into Georgian. Whether the registry will accept a foreign certificate of inheritance or a Georgian one from a notary will be needed depends on the documents, and we check this before filing. If the estate includes agricultural land and the heir is a foreigner, special rules apply, and we go through them with a lawyer.

Taxes on inheritance and a later sale

An inheritance from close relatives is not taxed. If the heir is a distant relative or not a relative, the property received may be subject to income tax, and we check the amount and threshold with a tax adviser. A separate question arises on sale: a home you have owned for more than 2 years is sold without tax, and earlier you pay 5 % of the price difference. How to count the period of ownership and the acquisition price after a gift or inheritance we also check with an adviser before you agree to a price. How a sale works is in the sell property section.

A gift instead of a sale: why not

Sometimes a seller suggests recording the deal as a gift to avoid tax on the sale. We do not do this and do not advise it. If money is paid for the apartment, it is a sale, and a gift agreement does not change that. Such a deal can be challenged, and the tax charged with a penalty. The buyer takes the greatest risk: there is no price in the agreement, and proving payment is difficult. If there is tax on the sale, we calculate it honestly and build it into the price; more on the taxes when buying an apartment page.

How much a transfer costs

Drafting a gift agreement with translation and filing for registration costs from 570 ₾. Support with registering inherited property from 1 080 ₾, excluding the notary's fee. Arranging the power of attorney, apostille and translations from 390 ₾, filing documents and registration support at the registry from 240 ₾, a real estate lawyer consultation of up to an hour from 155 ₾. Taxes, registry fees and notary fees are paid separately. The final cost is set after reviewing the situation and agreeing the scope of work.