Transferring money to buy property in Georgia: options, documents, timing, currency

Transferring money to buy property in Georgia: plan it before the deposit

Transferring money to buy property in Georgia is a separate stage of the deal, and it is worth planning as carefully as the document check. A large sum from another country can take several days, the sending and receiving banks ask for documents on the source of funds, and from some countries transfers go only through a limited number of banks. If all this comes to light on the day of the deal, the seller waits, and sometimes goes to another buyer.

Payment options

Most often people pay by transfer directly to the seller's account or through their own account at a Georgian bank; more on the opening a bank account in Georgia page.

Source of funds documents

The bank is entitled to ask where the money comes from. Usually they ask for an account statement for the last six to twelve months, an income certificate, or the agreement for the sale of other property or inheritance documents if the money comes from there. The larger the sum, the closer the check. It is better to gather the documents in advance, while you are still choosing the apartment: then the transfer will not be held up for several days at the worst possible moment. If the money comes from several sources, for example part from selling a flat at home and part from savings, we prepare documents for each.

Who to pay and when

• only to the account of the owner named in the extract, not to an intermediary;
• the payment reference states the agreement and the apartment address;
• the deposit after the preliminary agreement is signed;
• the main sum on the day of the deal or through a notary deposit;
• confirmation of every transfer is kept with the agreement;
• if a transfer is delayed, the seller and notary are told in advance.

What to do if the parties do not trust each other is covered on the safe payment page.

Timing and fees

An international transfer usually takes from one to several working days, but a bank check can stretch it to a week or more. Fees are charged by the sending bank, sometimes an intermediary bank and the receiving bank. So the agreement states in advance what counts as payment: receipt of the money in the seller's account or dispatch from yours, and how many days are allowed for it to arrive. It is better to discuss an amount with a margin for fees with the bank before sending. If less arrives in the seller's account on the day of the deal because a fee was deducted, the shortfall has to be made up, and it is better to know that in advance.

Currency

Apartment prices in Batumi are usually quoted in dollars. You can transfer in dollars, euros or lari, but if the transfer currency differs from the currency of the agreement, the bank converts the money at its own rate. On a large sum the difference in rate can be noticeable, so the payment currency and the conversion rule are written into the agreement, and the rate is checked with the bank the day before. If the price in the agreement is in dollars and you hold euros, it is sometimes better to buy dollars in advance at your own bank than to leave the conversion to the receiving bank.

Cash

We do not advise paying in cash: it leaves no bank trail, which is useful in a dispute, on a future sale and with the tax office. If you do bring cash, a large sum must be declared to customs on entering Georgia: under customs rules a declaration is required for amounts over 30 000 lari in any currency. In any case, a cash handover is documented with a receipt.

Transfers from countries with restrictions

Transfers from some countries and banks are subject to restrictions because of sanctions: some banks do not accept payments from sanctioned banks, and clients from a number of countries are checked for longer. This does not prevent you from buying, but the transfer route is worth choosing in advance. We tell you how our clients from your country usually pay, and the bank gives the final answer. How to buy remotely is on the buying property by power of attorney page.

How much transfer support costs

A payment scheme and support for the money transfer in the deal costs from 390 ₾. Arranging a notary deposit or payment after registration from 420 ₾, help opening a bank account in Georgia from 360 ₾, full legal support for the transaction from 2 220 ₾. Bank fees and the notary's fee are paid under their own rules. The final cost is set after reviewing the transaction and agreeing the scope of work.