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A Shift in the Link Between Property and Residency Georgia has long allowed foreign investors to obtain residence permits through qualifying real estate purchases. This system made property acquisition attractive not only as an investment but also as a pathway to legal residency. From March 2026, however, adjustments to this framework are set to take effect, signaling a recalibration of how property ownership connects to immigration status. Key Features of the Previous Framework Under the existing system, foreign nationals who purchased property above a certain valuation threshold could apply for an investor residence permit. This dual-purpose structure — combining asset ownership with residency benefits — attracted a wide range of buyers, from lifestyle investors to purely financial participants. What Is Changing in 2026 The new rules are expected to introduce revised valuation standards, stricter renewal conditions, stronger verification of actual residency, and safeguards against formalistic or nominal investments. The direction suggests a move toward ensuring that investment-linked residency reflects substantive economic or residential ties rather than minimal compliance. Implications for Investors Prospective investors will need to assess more than just the purchase price. They must consider long-term compliance, valuation risks, renewal eligibility, and the consistency between declared residency and actual presence. Automatic assumptions about residency security through property ownership are becoming less reliable. Potential Market Effects Regulatory adjustments may influence market behavior, particularly around properties priced near investment thresholds. Demand patterns could shift toward higher-quality or genuinely residential assets, potentially reshaping segments of the property market. In the longer term, a more structured framework may contribute to market stabilization. Conclusion: Investing Beyond Immigration Incentives The 2026 reform encourages investors to look beyond residency benefits and focus on underlying asset value and sustainability. Policies evolve, but sound investment principles remain constant. Those who approach Georgia’s property market with a comprehensive strategy — rather than solely for immigration leverage — are likely to navigate the next phase more successfully.

A New Phase in Georgia’s Entry Policy Georgia has long been known for its relatively flexible entry regime, allowing many nationalities to stay with minimal restrictions. However, beginning in 2026, changes to entry regulations are expected to reshape how foreign nationals enter and remain in the country. This is less about tightening borders and more about clarifying categories and aligning policy with actual residency patterns. Why the Change Now? In recent years, Georgia has experienced an increase in long-term foreign residents and cross-border mobility. As tourism, remote work, and business activities began to overlap, the distinction between short visits and de facto residence became less clear. The upcoming adjustments aim to bring greater consistency between legal status and real-world activity. What Is Likely to Change The reform is expected to emphasize: Clearer definitions of stay purpose More structured tracking of duration and re-entry Encouragement of appropriate visa categories for long-term stays Alignment between declared intent and actual activity The system will likely shift from informal flexibility toward structured classification. Will “Business as Usual” Still Work? Previously, some individuals relied on repeated visa-free entries to maintain extended stays. Under the revised framework, authorities may pay closer attention to whether individuals are genuinely visiting as tourists or effectively residing or working in the country. Ambiguity will become harder to sustain. Who Should Pay Attention Those most affected may include long-term repeat visitors, remote workers, and business operators without formal residency status. For these groups, preparing for the new framework before 2026 will be essential. Conclusion: A Move Toward Structure, Not Exclusion The upcoming entry rule changes should not be viewed as exclusionary. Rather, they represent Georgia’s transition toward a more transparent and structured migration policy. For those intending to build long-term ties with the country, aligning one’s legal status with actual activities will become increasingly important in the years ahead.

“The Account Works, but the Card Doesn’t” Many foreigners who open bank accounts in Georgia report that while account opening itself is relatively smooth, debit card usage can be unexpectedly restrictive. These issues are particularly common for non-resident account holders, who may face limitations not immediately explained at the time of account setup. Common Debit Card Issues for Non-Residents Non-residents frequently encounter problems such as declined online transactions, regional usage restrictions, sudden card suspensions, or repeated requests for additional verification. These are not system errors, but outcomes of banks’ compliance and risk-control policies. Why Non-Residents Face More Restrictions From a bank’s perspective, non-resident accounts involve higher uncertainty. Limited visibility into residency status, transaction purpose, and cross-border activity increases perceived risk.As a result, debit card usage is often tightly controlled from the outset. This creates a gap between expectations and actual usability. Practical Ways to Reduce Friction Non-residents can minimize inconvenience by checking usage settings in advance, avoiding unusually large or frequent transactions, preparing explanations for transaction purposes, and relying on more than one payment method. Treating the card as a secondary tool rather than a single all-purpose solution is especially important. Debit Cards Have Limits Georgian debit cards work well for everyday local spending.However, for international e-commerce, subscriptions, or frequent overseas use, limitations are more likely to appear. This is not unique to Georgia, but a common characteristic of non-resident banking worldwide. Conclusion: Usability Depends on Understanding the Rules Debit card issues in Georgia are rarely insurmountable — but they do require realistic expectations. For non-residents, understanding the constraints and planning usage accordingly is key.When treated as a situational tool rather than a universal solution, Georgian debit cards can still play a useful role in personal financial management.

The Myth of Georgia as a Low-Tax Jurisdiction Georgia is often described as a low-tax country due to its simple corporate and personal tax systems. While this reputation is not entirely unfounded, it can obscure the importance of Value Added Tax (VAT), which plays a significant role in business operations. How VAT Works in Georgia VAT in Georgia is an indirect tax applied to certain transactions once a business exceeds a specified turnover threshold. It is levied on sales rather than profits, meaning tax obligations can arise even when a business is not yet profitable. This distinction is critical for anyone planning to operate in the Georgian market. Why VAT Often Comes as a Surprise Many entrepreneurs enter Georgia expecting minimal tax exposure and underestimate the impact of VAT. As a result, they may encounter situations where VAT liabilities arise regardless of operating margins, creating unexpected financial pressure. This gap between expectation and reality is what makes VAT a common issue for new entrants. Operational Impact of VAT Registration Registering for VAT changes how a business operates. Accounting becomes more structured, pricing strategies must be adjusted, and cash flow management becomes more complex. These effects are particularly noticeable in sectors such as tourism, real estate, and cross-border or digital services. Is Georgia Really a Low-Tax Country? Whether Georgia is truly low-tax depends on the business model. Companies focused on exports or non-VATable activities may benefit significantly, while businesses serving the domestic market must carefully account for VAT in their planning. The tax burden is not universal — it is situational. Conclusion: VAT Awareness Is Essential Georgia’s tax system offers genuine advantages, but only when understood correctly. VAT is not a minor detail; it is a core component that can shape profitability and operational structure. Rather than relying on general impressions, businesses should evaluate how VAT interacts with their specific activities before committing to the Georgian market.

Why “10% Interest” Catches Attention Georgia’s bank time deposits are often highlighted with interest rates around 10%, a striking figure in today’s low-interest global environment. However, focusing on the headline number alone can be misleading without understanding the conditions behind it. Is the Interest Rate Truly 10%? It is true that Georgian banks offer relatively high interest rates — but most of these rates apply to deposits denominated in Georgian Lari (GEL). Interest rates on USD- or EUR-denominated deposits are significantly lower.This means the advertised rate must always be considered together with the currency involved. The Overlooked Role of Currency Risk High interest rates come with currency exposure. Even if a GEL-denominated deposit earns 10% interest, depreciation of the local currency can offset or eliminate gains when measured in foreign currency or home currency terms. What appears attractive on paper can look very different after exchange rate movements are factored in. Why Are Lari Interest Rates So High? High interest rates are not unique to Georgia.In many emerging or smaller economies, rates are set higher to compensate for inflation, currency volatility, and economic risk. In this context, interest is best seen as risk compensation, not a free advantage. Practical Considerations for Investors Anyone considering Georgian time deposits should evaluate: Which currency the deposit is in The relative volatility of interest vs. exchange rates Investment time horizon How the deposit fits within overall asset allocation High interest does not automatically mean high returns — it usually signals higher uncertainty. Who This Type of Deposit May Suit Georgian high-interest deposits may suit investors who can tolerate currency fluctuations, use them as part of a diversified portfolio, and focus on medium- to long-term positioning. They are less suitable for those prioritizing capital stability above all else. Conclusion: Interpreting the 10% Figure Wisely Georgia’s time deposit rates are undeniably high by global standards.But the real question is not the size of the interest rate — it is how that rate interacts with currency movements and personal investment goals. Understanding the full picture behind the “10%” figure is essential for making informed and balanced financial decisions.

The Myth of “High Interest and No Tax” Georgian bank time deposits are often promoted with phrases like “high interest” and “tax-free.” While it is true that interest rates in Georgia can be relatively attractive, and local tax treatment appears simple, this perception can be misleading when viewed from a global tax perspective. Local Tax Treatment vs. Global Tax Reality Within Georgia, the taxation of bank interest is straightforward, which leads many to assume that interest income is effectively tax-free. However, this assessment only applies within Georgia itself and does not account for international reporting standards or foreign tax obligations. Why Tax Residency Matters Under CRS Under the Common Reporting Standard (CRS), the decisive factor is not where the bank account is held, but where the account holder is tax resident. Banks report account information to tax authorities based on declared tax residency, and this information is exchanged internationally. As a result, interest income may still be taxable in the account holder’s country of tax residence, regardless of local Georgian treatment. Why “Tax-Free” Is Often Misunderstood The misunderstanding surrounding Georgian deposits stems from several factors: Light or simple local taxation Outdated, pre-CRS information A focus on where tax is not collected rather than where it is owed In the CRS era, transparency has replaced secrecy, and proper reporting has become essential. Practical Considerations for Deposit Holders Anyone considering Georgian time deposits should ensure: Their tax residency status is clearly defined Interest income is assessed under applicable tax laws Account usage can be fully explained under CRS reporting With proper planning, Georgia’s attractive interest rates can be utilized without creating compliance issues. Conclusion: Beyond the “Tax-Free” Label Georgian bank deposits can be a useful tool for asset management, but only when approached with a correct understanding of tax obligations. In today’s global reporting environment, the key question is not whether income is taxed locally, but how it should be handled under the rules of one’s tax residency. Clarity and compliance, rather than assumptions, are what ultimately protect investors in the CRS era.