In our Telegram channel, we've already discussed potential consequences for the real estate market and businesses (you can read the summaries
here). Let's highlight two significant effects:
transaction processing will become more expensive and time-consuming.Notarial services are priced by notaries based on the transaction amount. Additionally, consider the services of a translator. All this is in addition to the state fee required for transaction registration. For instance, when buying an apartment for 265,000 GEL (or $100,000), you'll have to spend an average of about 950 GEL, including:
- 692.5 GEL — notary's fee (result of the operation: 362.5 + (265,000 - 100,000) × 0.2%). VAT is also added to the amount if the notary is a VAT payer.
- 100 GEL — translator's services (for a three-page contract and translation into Russian and English).
- 157 GEL — state fee (for registering the transaction within 4 days).
The registration period for the transaction in the Public Registry itself hasn't changed — you can still choose the standard 4 days or process the transaction on the day of submission by paying an increased fee. However, the process of drafting a notarial contract, its translation by a certified translator (if the representative under a foreign power of attorney doesn't speak Georgian), and the transaction itself will take time. Additionally, consider the limited notarial and translation resources — notaries with certified translators mainly work in Tbilisi; there are few in Batumi.
Remember, all the requirements mentioned above apply when two conditions are met simultaneously: the transaction requires state registration, and the interests of one of the parties to the transaction are represented by a person under a power of attorney issued in a foreign country. It is possible that these requirements for the notarial form will subsequently be extended to corporate decisions requiring registration in the Public Registry — company registration, appointment of a director, amendments to the charter. We are awaiting clarifications from the regulators.