How to buy real estate in Georgia with cryptocurrency?
While cryptocurrency rates fluctuate a lot, the value of real estate in Georgia is steadily increasing. Therefore, many owners of coins want to invest them in the purchase of real estate. Whether there is such an opportunity and how to do it – we will tell you in our material.
The cryptocurrency market in Georgia is not regulated by anyone (As of yet). All transactions are encrypted. The country has no laws regulating the circulation of coins and defining them as an official means of payment. Therefore, not all financial institutions and market participants welcome mutual settlements in cryptocurrencies. They prefer traditional (fiat) financial instruments, considering them more reliable. This was also the case for most Georgian real estate developers in the past. Coin owners had to look for a seller who would agree to such a deal among developer units.
Real estate buyers themselves had a lot of questions:
- Was it necessary to convert cryptocurrency into fiat money beforehand?
- At what stage of the transaction is it necessary to transfer coins to the seller?
- What are the legal guarantees that the purchase and sale will be successful and that the buyer’s rights are protected by law?
To answer them, let’s turn to the theory. The first thing to understand is that cryptocurrency in Georgia is a legal tool for barter exchange. As if you exchange an apartment for a house, so the buyer exchanges his coins for real estate, which he acquires as property in Georgia. That is why there is no tax on such a transaction in the country. Neither is there any tax on capital gains in cryptocurrency. This means that such a transaction is beneficial for both the buyer and the seller.
The crypto market in Georgia is at the initial stage of its development, but it is growing at a great pace. This is due to the demand for coins among both the local population and the expat community. On the one hand, the country is becoming attractive for digital crypto nomads, on the other hand – for investors who want to make profitable investments, because:
- Georgia has a good geographical location: it is close to Europe and Asia;
- Is a tourist country with a subtropical mild climate, many beaches and attractions;
- Is one of the safest countries in the world;
- Has a liberal legislation;
- Has a developed and stable real estate market;
- Is a country with a relatively low cost of living and real estate;
- Is populated by friendly and educated people;
- Has three international airports;
- Allows making investments with high profitability and low risks.
Steps to buy real estate in Georgia with cryptocurrency
Buying real estate with cryptocurrency in Georgia is almost no different from a transaction with traditional fiat money. The only additional step is exchanging coins on a cryptocurrency exchange or with a broker for fiat. And there’s one nuisance most real estate buyers want to avoid: a double transaction with double fees, where the fiat money first goes into a bank account and then has to be transferred to the developer. The coin owner first pays the exchange fee, then the transfer fee and thus loses some money. Therefore, crypto traders are eager to find real estate sellers who accept coins directly. Their number in Georgia is gradually growing. There are other solutions:
- Find a broker who will transfer fiat for cryptocurrency not to the buyer, but directly to the real estate developer;
- Find a company that will take care of all legal formalities and communications with the developer, so that the issue of cryptocurrency payment, on the one hand, does not cause concerns for the seller, and on the other hand, protects the rights of the buyer.
Otherwise, to become the owner of real estate in Georgia for cryptocurrency, the buyer needs to:
- Choose the real estate;
- Make a reservation;
- Sign a contract with the developer;
- Transfer the cryptocurrency in one of the ways described above: exchange it for fiat, transfer it directly to the seller or through a broker.
What kind of real estate can you buy in Georgia for cryptocurrency?
The owner of the coins can purchase:
- Investment real estate: a villa on the beach, a country house in the mountains or even a hotel;
- Residential real estate: an apartment in the center of Tbilisi or vice versa, in a dormitory area of a small city to move to the sunny and friendly country of winemaking or passive income from renting;
- Commercial real estate: office, sales room, premises, warehouse for business.
By the way, if you do not plan to stay in Georgia permanently – you can transfer the property to the management. The company will take all the hassle on itself, will keep an eye on your real estate and generate profit for its owner.
To summarize
Today it is quite easy to buy real estate with cryptocurrency in Georgia. The main obstacles can be the language barrier, legal aspects of the procedure, such as checking the property for encumbrances, the need to choose a reliable broker or exchange for a favorable exchange of coins for fiat money. These problems can be avoided if you seek help from experienced professionals.