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Estate and inheritance matters stir strong emotions and family complexities. Sometimes objective complications make the process even harder. One common such situation is the estate of a person who did not reside in Israel, or a will that includes assets located in a foreign country. In this article we explain the legal “minefield” and how we help you navigate it efficiently.

Our Winning Advantage: In-House Foreign Law Opinions

When a person dies outside Israel’s borders, the probate process requires an expert opinion on the foreign law. Most Israeli firms must search for external experts, leading to delays and high costs.

Our firm offers a unique solution:

  • On-the-ground experts: instead of wasting precious time, we leverage our physical presence in our New York and Tbilisi branches.
  • Expedited proceedings: we provide expert foreign law opinions grounded in local expertise and first-hand courtroom experience abroad. Legal guidance is provided by Admitted Attorneys from within our global team.

The Legal Minefield: Real Property vs. Movables (Section 138)

This is a critical detail that changes the entire picture for heirs. Many mistakenly assume that foreign law applies to all assets across the board. The Israeli Inheritance Law draws a clear distinction:

  1. Cash and movables: bank funds, vehicles, shares, or personal effects are generally governed by the law of the deceased’s domicile abroad.
  2. Real estate in Israel: under Section 138 of the Inheritance Law, real property situated in Israel (apartments, land, commercial premises) is generally governed by Israeli law.

What this means for you: even if the foreign law of the country of origin disinherits or restricts you, your rights in Israeli real estate may be protected under local law. We analyse the composition of the estate to ensure you do not lose your share through unfamiliarity with the relevant statutory provisions.

Differences Between Legal Systems Around the World

To understand your prospects of realising the inheritance, the table below summarises the key differences:

FeatureIsrael (and Common Law)Europe / South America (Civil Law)
Freedom of testationNear-absolute — assets may be left to anyone.Limited — a portion of the estate is reserved for the family.
Forced heirsNone (except a right to maintenance from the estate).Exist — a “forced share” is reserved for children/spouse.
Source of authorityThe deceased’s wishes as expressed in the will.Statutory provisions that sometimes override the will.

Tax Strategy and International Document Authentication

Administering the estate of a foreign resident requires handling complex technical and financial aspects:

  1. International taxation: Israel has no inheritance tax, but in 2026 foreign taxes must be carefully considered. Proper planning helps reduce exposure to foreign levies (such as the US Estate Tax), in accordance with the tax laws of the relevant country.
  2. Document authentication (Apostille): foreign documents must undergo an international authentication procedure (Apostille). Our firm manages the entire bureaucratic chain on your behalf — consulates, foreign authorities, and everything in between.

Frequently Asked Questions — Estate of a Foreign Resident

Can a will written in a foreign language be probated in Israel?

Yes. You must attach a certified notarial translation to the will. We manage all translation and authentication requirements with the relevant authorities on behalf of our clients.

Are the deceased’s assets abroad subject to tax treaties?

Absolutely. We examine the relevant treaties to ensure that estate distribution does not create unnecessary tax exposure in Israel or in the country of origin.

Why Choose the Estates Department of Vaknin Yariv Law Office?

Managing an international estate requires expertise that combines family law with civil-commercial law. The family and property department is headed by Adv. Shlomit Asraf Schneider, who brings years of experience accompanying families through cross-border proceedings.

The firm was founded by Adv. Yariv Vaknin, who directs the firm’s international operations through our branches in New York and Tbilisi. We provide a strategic legal framework that accompanies you through every stage of the international estate process.

Please note: The content on this website is provided for informational purposes only and constitutes general information. It does not constitute legal advice and is not a substitute for binding legal counsel.

Inherited assets from a foreign resident? Need experts to protect your rights? Leave your details on the website or call Adv. Yariv Vaknin now for an initial consultation: 052-2288824 We are here to bridge the legal gaps and protect your financial future.

Losing a loved one is a painful and distressing event. Sometimes the only comfort is knowing that the deceased left us property or keepsakes reflecting their thoughts of us. Yet in Israel’s complex reality, heirs sometimes discover they have inherited more than money or assets. In many cases they find debts left behind by the deceased. In this article we explain what happens when the deceased had active debts and whether those debts pass to you.

Do Debts Pass with an Inheritance?

A person’s death does not extinguish their debts. In most cases heirs become aware of their existence only when they receive a warning letter from an attorney — or discover it through an enforcement order from the Execution Office.

The Inheritance Law, 5725-1965 distinguishes between two key periods in the life of the estate:

The Period Before Distribution of the Estate

During this period the debts apply to the estate only — not to you personally. This means creditors collect the debt from the deceased’s assets. Even if the property does not cover all the debts, you are not required to make up the shortfall from your own pocket.

The Period After Distribution of the Estate

Once you have distributed the property, the legal position changes:

  • If you published a creditors’ notice: the law requires you to publish a notice calling on creditors to declare any debts. If you published the notice lawfully and settled the known debts, you are exempt from debts discovered afterwards.
  • If you did not publish a notice: in that case each heir bears liability for the debts in proportion to their share of the estate.
  • If you knew of a debt and did not publish a notice: here the liability is more severe. Each heir may be required to pay the debt up to the full value of the entire estate.

Creditors’ Rights vs. Heirs’ Rights

It is important to know that creditors’ right to repayment takes priority over your right to receive the property. Israeli law favours repayment of debts over distribution of the inheritance. We therefore recommend that anyone planning their will also address existing or future debts. Proper planning prevents a situation in which you “drop” surprise debts on heirs who are dear to you.

Frequently Asked Questions — Inheritance and Debts

Can banks sue heirs personally?

As long as the estate has not been distributed, the bank collects the debt only from the deceased’s funds and assets. We represent heirs against banks to ensure the bank does not infringe your personal rights.

What happens if the debt is greater than the value of all the assets in the estate?

In that situation we classify the estate as “insolvent.” The heirs simply receive nothing, but they are not required to pay the remainder from their own resources — provided they acted in accordance with the law.

Can I disclaim the inheritance to avoid the debts?

Yes. You are entitled to file a declaration of renunciation of the estate. In that case you waive your share and are no longer considered an heir. This act severs the connection between you and the deceased’s debts.

Why Choose the Estates Department of Vaknin Yariv Law Office?

Vaknin Yariv Law Office combines extensive knowledge in enforcement proceedings with expertise in inheritance law — a combination that is critical when dealing with estates that include debts. The department is headed by Adv. Shlomit Asraf Schneider, who brings rich experience in managing complex estates and protecting heirs from unlawful debt demands.

A meeting with Adv. Yariv Vaknin will give you a clear strategy for dealing with the deceased’s creditors. We accompany you with determination from our offices in Afula, Bnei Brak (B.S.R 4), New York, and Tbilisi.

Please note: The content on this website is provided for informational purposes only and constitutes general information. It does not constitute legal advice and is not a substitute for binding legal counsel.

Unexpectedly inherited debts? Need legal protection against creditors? Leave your details on the website or call Adv. Yariv Vaknin now for an initial consultation: 052-2288824 We are here to help you manage the estate with confidence and peace of mind.

In 2026, your professional reputation is your most valuable asset. A single damaging post on social media can cause enormous financial harm — and even destroy a business you spent years building. Israel’s Prohibition of Defamation Law protects professionals from publications that demean them. In this article we explain how to identify defamation and how we stop the damage.

When Does Criticism Cross Into Defamation?

Not every negative opinion violates the law. We distinguish between protected free speech and prohibited slander.

The law defines content as defamation against a professional when it:

  • Degrades the person: uses demeaning language that has no factual basis in the service they provided.
  • Creates hatred and contempt: turns the professional into a target of public ridicule.
  • Harms their livelihood: publishes falsehoods intended to make clients stop using their services.

The Social Media Trap

Technicians, restaurateurs, and doctors all interact with the public daily — and that creates friction. Many people today have a “light touch on the keyboard,” publishing personal feelings as established facts.

A client crosses the legal line when they move from legitimate criticism to personal defamation — for example, using words like “crook,” “fraud,” or “charlatan.” We analyse such publications to build a strong defence for your business.

The Role of Your Attorney in Managing the Professional Crisis

A defamation attorney acts first as a strategist. We guide you through exercising your rights in three action stages:

  1. Legal assessment: we examine whether the publisher acted with malice warranting compensation.
  2. Professional warning letter: a formal demand from our office typically leads to immediate removal of the publication.
  3. Litigation: we file civil compensation claims or criminal complaints on your behalf.

How to Choose a Defamation Attorney

Choose your attorney with the same care your clients use to choose you. Verify specific experience in litigation and courtroom representation, and confirm the firm knows how to act quickly in the digital arena.

Why Choose Vaknin Yariv Law Office to Protect Your Reputation?

Our firm combines business understanding with deep expertise in defamation law. Adv. Miriam Kanaan Masalha heads the Labour Law and Defamation department, bringing extensive experience defending professionals against online “shaming.”

Adv. Yariv Vaknin leads the firm’s legal strategy for protecting client assets. We act on your behalf from our offices in Afula, Bnei Brak (B.S.R 4), New York, and Tbilisi.

Please note: The content on this website is provided for informational purposes only and constitutes general information. It does not constitute legal advice and is not a substitute for binding legal counsel.

Has your professional reputation been harmed? Is your good name at risk? Leave your details on the website or call Adv. Yariv Vaknin now for an initial consultation: 052-2288824 We are here to help you exercise your rights and protect your life’s work.

Almost any individual or business can find themselves facing damaging publications. Israel’s Prohibition of Defamation Law protects the fundamental values of human dignity and a person’s good name. Choosing an experienced defamation attorney helps you manage the crisis and advance the protection of your interests — so you can realise your commercial and personal potential against every demeaning publication.

Defamation requires two basic conditions: an identified publisher and content that meets the statutory definition. Such a publication can cause you serious financial harm or deep emotional injury.

What Is Defamation Under Israeli Law?

Every person holds a fundamental right to dignity and a good name. Demeaning and humiliating content infringes those rights. Israel’s Knesset therefore enacted the Prohibition of Defamation Law, 5725-1965, which defines what constitutes a prohibited publication.

Under Section 7A of the law, statutory damages without proof of actual harm amount to up to ILS 50,000 per publication. When we prove the publisher acted with malicious intent to harm you, damages can reach up to ILS 100,000 per publication.

The law classifies content as defamatory if it demeans a person on any of the following grounds:

  • Occupation and profession: the publisher attacks a person because of their work, trade, or private business.
  • Traits and behaviour: the publisher attributes degrading acts or conduct to the person.
  • Personal characteristics: the publisher attacks a person on grounds of race, origin, religion, sexual orientation, age, or disability.

Defamation in the Digital Age: From Print to Social Media

In the past, defamation was published primarily in newspapers or books. Today, the vast majority of cases we handle involve online publications. Social media enables publishers to spread harmful content rapidly and at high intensity.

Social-media posts against professionals sometimes cross the line of legitimate criticism. When a publisher seeks to demean and humiliate you from the outset, the law gives you a legal cause of action. We examine each case to determine whether the publisher expressed a permissible opinion or violated the law.

Whom Does a Defamation Lawyer Represent?

Our firm provides legal support to a wide range of victims. We use key tools such as filing civil compensation claims and criminal complaints. A criminal complaint is filed directly with the Magistrates’ Court — a proceeding that can lead to the publisher’s criminal conviction.

We Represent Self-Employed Professionals

The public sometimes levels public criticism at doctors, interior designers, real-estate agents, and service technicians. Freedom of expression permits substantive criticism, but it does not grant a “licence” for harmful personal attacks. Professionals are entitled to protect their professional name and stop publications designed to destroy their livelihood.

We Represent Media Figures and Public Personalities

Media figures operate at the heart of public controversy. A publication against a media personality aimed at humiliation or inciting hatred constitutes defamation. We accompany public figures through complex reputation-crisis management and protect their standing.

We Represent Businesses and Companies

Businesses depend on their reputation with customers. Potential clients decide whether to engage a service based on online information. When any party publishes demeaning content with the aim of causing financial harm to a business, we act to protect your interests. Our experience in intellectual property and commercial law is a significant asset in that process.

Frequently Asked Questions — Defamation

Can I receive compensation without proving actual harm?

Yes. The Prohibition of Defamation Law enables the court to award you monetary compensation even without proof of actual damage — up to ILS 50,000 per publication, and up to ILS 100,000 in cases of malicious intent. We examine the circumstances of your case to assess the prospects of a claim.

What is the difference between legitimate criticism and defamation?

Legitimate criticism focuses on facts and the service the business actually provided. Defamation focuses on personally demeaning the individual or business. A skilled attorney identifies the dividing line between free expression and prohibited harm.

Can I sue someone who shared (re-posted) a defamatory post?

Absolutely. The courts have held that a person who shares harmful content online can also be sued. We recommend consulting an attorney before taking legal action against those who share content.

How long do I have before a defamation claim is time-barred?

Technically, the limitation period for a civil claim is 7 years. However, we strongly advise acting as soon as possible — the longer you wait, the harder it becomes to document the publication and collect evidence, while the harm to your reputation continues to accumulate.

Why Choose Vaknin Yariv Law Office for Defamation Cases?

Vaknin Yariv Law Office combines extensive experience in civil litigation and complex dispute resolution. The Labour Law and Defamation department is headed by Adv. Miriam Kanaan Masalha, who brings unique expertise in protecting our clients’ reputations.

A meeting with the firm’s team will give you professional guidance tailored precisely to your needs. We examine every avenue — including appeals and objections — and represent you throughout against media outlets, private individuals, and competing businesses. The firm operates from offices in Afula, Bnei Brak (B.S.R 4), New York, and Tbilisi.

Please note: The content on this website is provided for informational purposes only and constitutes general information. It does not constitute legal advice and is not a substitute for binding legal counsel.

Has someone damaged your good name? Have you received a legal threat? Leave your details on the website or call Adv. Yariv Vaknin now for an initial consultation: 052-2288824 We are here to protect your good name and your interests.

The real estate sector in Israel is broad and encompasses an enormous variety of regulations, laws, municipal by-laws, and tax provisions. For many investors — whether private individuals purchasing a buy-to-let apartment or developers and contractors — familiarity with the legal framework is not merely a “recommendation” but an essential working tool that can determine the fate of your return.

In this guide we review the key laws affecting real estate transactions in Israel and explain how thorough legal due diligence can prevent unnecessary risks.

1. The Foundation of Every Transaction: The Planning and Building Law

The first and most important law every investor needs to know is the Planning and Building Law. It determines what may and may not be done with a property, and directly affects the property’s attractiveness. Before committing to a transaction, check:

  • Building rights: are there unused rights? Can storeys be added or the property expanded in future?
  • Land designation: is the land designated for residential, commercial, or agricultural use? Changing a designation is a complex process that does not always succeed.
  • Future plans (local outline schemes): are changes planned for the property’s surroundings (roads, high-rise buildings) that could affect its value in the short and long term?

Investor tip: do not rely on appearances. A property that looks “built” can conceal serious building violations leading to criminal charges and heavy costs.

2. Contract Law: The Legal Foundation of Every Deal

Every real estate transaction is, first and foremost, a legal contract. Israeli contract law determines how a binding obligation is created, what constitutes a breach, and what remedies are available in the event of cancellation. The subject becomes more complex in real estate partnerships. Because real estate requires significant equity, many investors join forces. In those situations it is critical to enshrine in a written contract:

  • Decision-making mechanisms between partners.
  • What happens in the event of a dispute or one party wishing to sell (exit mechanism).
  • Protection of the investment if one partner becomes financially distressed.

3. A Critical Distinction: The General Sale Law vs. the Apartments Sale Law

Many people confuse these two laws, but the difference is dramatic:

  • Sale Law, 5728-1968: applies to general sale transactions (for example, between two private individuals selling a second-hand apartment).
  • Sale Law (Apartments), 5733-1973: a consumer protection statute designed to protect buyers of off-plan apartments from developers. It requires the developer to provide guarantees for the buyer’s funds (sale-law guarantee), defines delivery dates, late-delivery penalties, and warranty periods for defect repair.

As investors, it is important to know which law governs your transaction, because the legal protections differ entirely in each case.

4. Laws Affecting Your Ongoing Return

Beyond the purchase itself, there are laws that affect your ability to profit from the property on an ongoing basis:

  • Tenant Protection Law: relevant primarily for very old or commercial properties. A property occupied by a “protected tenant” typically sells at a significant discount to market value, and the tenant cannot be evicted or have their rent raised freely.
  • Fair Rental Law: an amendment to the Rental and Loan Law that defines what constitutes a habitable apartment, determines who pays brokerage fees (the landlord, if they commissioned the service), and limits the guarantees that can be demanded from a tenant.

In Summary: Advance Preparation Saves Losses

Investing in real estate without legal guidance and due diligence is a gamble. Regulations change, tax rules are updated, and municipal by-laws can surprise even experienced investors.

This article was written by the Real Estate and Property department of Vaknin Yariv Law Office. The firm, with branches in Afula, Bnei Brak (B.S.R), New York, and Georgia, specialises in legal guidance for investors, developers, and private buyers in complex real estate transactions.

Weighing up a transaction? Need a contract reviewed? Our real estate team, led by Adv. Shlomit Asraf, is available for a comprehensive legal review to protect your investment. Contact us: 052-2288824

The Real Estate and Property department of our firm is headed by Adv. Shlomit Asraf Schneider, an expert in managing complex real estate transactions who guides developers and contractors through every stage of a project. The firm operates under the strategic leadership of its founder, Adv. Yariv Vaknin. We provide professional service in Afula, Bnei Brak (B.S.R 4 Towers), and internationally.

The Importance of Legal Guidance in Complex Projects

Real estate projects demand close, professional legal accompaniment. You must choose an attorney who knows the field thoroughly. Developers understand their own project excellently — yet the legal dimension should be left to the professionals. Our firm protects your interests at every stage.

We provide close legal representation and guidance. Our service is vital for all parties involved. The firm is well-versed in property law and the latest regulations, and we tailor our guidance to the specific type of your project. Professional service helps you maximise your return from the property.

When Should You Coordinate Legal Services?

The timing of legal involvement is critical to success. You can coordinate our service at various stages of the transaction. We draft detailed purchase and investment agreements on your behalf and engage from the earliest stages of negotiation. The firm conducts a thorough examination of title and rights in the property and checks for liens or encumbrances that could delay the project.

Who Are Our Close-Accompaniment Services For?

  • Investors: we examine the impact of the law on your return and help you build a comprehensive framework of considerations.
  • Developers and contractors: the firm handles special and complex legal matters, giving you peace of mind throughout the construction phase.
  • Property buyers: we ensure the safe purchase of residential and commercial properties.

The Difference Between Legal Representation and Close Accompaniment

Our firm’s legal service encompasses two core specialisations:

  1. Legal representation: we appear in court on your behalf. Adv. Yariv Vaknin and the litigation team represent you with determination.
  2. Legal accompaniment: we work behind the scenes in planning the transaction, drafting contracts and agreements that protect you.

Real estate transactions involve the transfer of very large sums of money. Your attorney ensures that fund transfers are executed in an orderly and lawful manner — and positions the project for sale and marketing afterwards.

The Economic Importance of Legal Advice in Real Estate

The law affects every aspect of the real estate sector. We represent you and safeguard your interests. The high sums involved demand maximum legal care. We understand the impact of the law on your financial outcome.

Investors naturally want to close proceedings quickly. Our firm ensures the transaction advances without delays — a swift close allows you to profit from the project sooner. High-quality legal accompaniment guarantees financial success.

Purchasing real estate is the most significant financial transaction you will make in your lifetime. Yet many buyers forgo a thorough legal title search and settle for a physical inspection alone — a mistake that can cost them dearly. In this article we explain why a legal due diligence review is essential and how we carry it out for you.

The purpose of the review is to prevent the late discovery of liens, mortgages, or debts attached to the property. When liens are registered against a property, you cannot register as the official owner in the Land Registry (Tabu). In serious cases, the seller may even be breaking the law by attempting to sell an encumbered property. We therefore strongly recommend clarifying all of these issues well before signing the purchase agreement.

The Danger of Taking Shortcuts in a Real Estate Transaction

The property purchase process can seem long and cumbersome — which leads many buyers to look for shortcuts to complete the deal quickly. Signing an expensive transaction without thorough legal due diligence is a dangerous gamble.

Such a shortcut can lead you into a legal dead end. Without a deep review, you are putting your money and your financial security at risk.

The Role of Your Attorney in a Title Search

The safe way to conduct a thorough due diligence review is to consult a specialist real estate attorney. Expertise in property law allows the attorney to take responsibility for all relevant checks:

  • Land Registry search (Tabu extract): we identify liens, mortgages, and restrictions on the property and examine whether cautionary notes (haarot azhara) exist in favour of third parties.
  • Outstanding municipal charges: we check whether there are arrears owed to the municipality or unpaid betterment levies (hetel hashvacha).
  • Building violation check: we examine whether additions or alterations were made to the property without a valid building permit. Early detection prevents heavy fines and future registration problems.
  • Detailed findings report: we submit an organised report to you detailing the precise legal status of the property.

Consulting an attorney is a sound financial investment. Although you must add the legal fee to your purchase costs, the investment pays for itself — identifying warning signs at an early stage saves you grief, time, and heavy legal expenses down the road.

Legal Due Diligence vs. Physical Inspection

A legal title review does not replace the physical inspection carried out by a structural engineer. The two reviews complement each other:

  1. Physical inspection: examines the structural condition of the building (leaks, cracks, infrastructure).
  2. Legal due diligence: examines the property’s “title deed,” legal ownership, and rights registered in the Land Registry.

Combining both reviews enables you to receive all the facts in advance and base your decisions on complete information.

Frequently Asked Questions — Property Title Search

What is the difference between a Land Registry extract and a condominium registration?

The Land Registry extract (nsach tabu) shows the overall title position on the property — ownership and liens. Condominium registration details the division of shared areas and each unit owner’s specific property in the building. We check both to ensure a comprehensive review.

What is a cautionary note (haa’rat azhara) and why does it matter?

A cautionary note is a Land Registry entry warning that a third party holds a right in the property. For example, such a note appears when another buyer has already signed a sale agreement. Discovering the note before you sign prevents you from purchasing a property that is already encumbered.

What happens if we discover a building violation after the purchase?

Late discovery of violations can lead to heavy fines and registration problems. That is why we carry out all preliminary checks before the contract is signed — to spare you costly surprises.

Why Choose the Real Estate Department of Vaknin Yariv Law Office?

You can now centralise all title searches and contract management with a single law firm. The Real Estate and Property department is headed by Adv. Shlomit Asraf Schneider, who brings substantial expertise and experience in coordinating all types of preliminary due diligence.

A meeting with Adv. Yariv Vaknin will allow you to identify liens or restrictions before signing any memorandum or contract. We provide professional guidance to protect your rights from our offices in Afula, Bnei Brak (B.S.R 4), New York, and Tbilisi.

Please note: The content on this website is provided for informational purposes only and constitutes general information. It does not constitute legal advice and is not a substitute for binding legal counsel.

Planning to buy a property and want a thorough review? Leave your details on the website or call Adv. Yariv Vaknin now for an initial consultation: 052-2288824 We are here to guide you through an orderly and secure purchase process.

Real estate assets worldwide are considered among the most expensive assets an individual can own. As a result, virtually every country has its own real estate regulations, expressed primarily through property taxation. In this article we explain everything you need to know about real estate taxation in Georgia.

Real Estate in Georgia

Real property assets are assets that cannot be physically moved or transferred. This means that real estate can include land, but also an apartment in a residential building or a private house. For Israelis, Georgian real estate is relevant mainly in the context of investment.

Since real estate can be a highly profitable investment channel — given the large sums that circulate in the sector — many Israelis are drawn to it. Housing prices in Israel are considered especially high, and within the framework permitted by Israeli law, many citizens find the Georgian real estate market attractive, partly due to its favourable tax regime.

Property Tax in Georgia

Do not confuse property tax with purchase tax. Purchase tax — one type of real estate tax that exists in Israel — is a percentage of the apartment price that the buyer must pay at the time of acquisition. Property tax is a different type of tax that Georgia levies annually on real estate assets as a percentage of the asset’s value.

Property tax in Georgia is almost negligible. Even if the value of your property is high, the maximum you will pay is one percent of its value — and in many cases the rate will be lower, ranging down to around one-tenth of a percent.

Income Tax on Real Estate in Georgia

Most Israelis who purchase real estate in Georgia do so in order to generate income from the asset. They can do this by renting the property out for long-term leases, receiving a monthly payment from tenants. Alternatively, they can offer the property as a short-term rental for tourists wishing to stay in a residential apartment during their visit to Georgia. Georgian law sets a flat income-tax rate of 20% on income received by a foreign national from real estate assets.

Selling a Property Tax-Free

Georgian law allows the sale of real estate without paying tax in certain circumstances. If an apartment is sold at a loss — that is, at a price lower than its original purchase price — no tax is payable. In cases where a profit is generated on the sale, Georgian law provides that if the apartment is sold within two years of the purchase date, the owner will not be required to pay any tax on the gain.

Capital Gains Tax

If a foreign national who owns an apartment in Georgia sells it at a profit, they will be required to pay capital gains tax. The tax is calculated only on the gain — that is, on the difference between the original purchase price and the sale price. In Georgia, this tax rate is a flat 5% of the profit.

Settling Tax Matters with the Georgian Authorities

Dealing with taxation is no simple matter — especially when the taxation involves a foreign country like Georgia. Settling tax matters related to real estate is critically important, because errors before the authorities of a foreign state can lead to severe sanctions. It is therefore advisable to obtain professional assistance from specialists — such as an attorney who is expert in Georgian law and Georgian taxation. Professional guidance can also save you money through correct and lawful tax planning.