Full legal support and mediation between an investor and the government of Georgia under the project: land area for building a hotel in Borjomi
Business in Georgia offers wide opportunities for foreign investors. This country provided perfect conditions for making business on a worldwide level: possibility of optimizing taxation, free access of goods to global markets, low cost of company maintenance, and high level of confidentiality of business. At the end of 2019, the government of Georgia decided to allow investors purchasing the state assets under extra lucrative terms. Within a mass-scale privatization there are 100 state objects of real estate sale, which arouse huge interest among developers.
An advantage of auction purchase is a simplified procedure of privatization. The state promises to maximum promote winners of auctions in execution of ownership rights.
The company Offshore Pro Group always monitors the results of the privatization auction and the updated objects. We provide assistance in selection of real estate under the defined criteria, as well as provide full legal support to participants of the auction on each stage: from collection of documents to execution of rights of ownership for real estate. If necessary, we may also organize a meeting with representatives of the Georgian government. By addressing us you save your time and money, as you do not have to deal with peculiarities of the Georgian legislation. We undertake solving all red-tape and legal procedures, which lets you better focus on business and manage your time more effectively.
Prices of our legal services and mediation start from 3 000 EUR.
Opening company in Georgia: why making business here is reasonable
The Georgian jurisdiction is attractive for foreign investors due to many reasons. Its preciousness was marked by many leading international organizations. Favorable investing climate of Georgia is verified by high position of the country in the rating Doing Business; the small Caucasian country enters the TOP-10 for two years in a row.
Positive aspects of the Georgian jurisdiction, which in proper organization of activity may greatly promote the effectiveness of business, are:
- clear and simple taxation– in the rating Paying Taxes 2020 Georgia takes the 14 place, which corresponds of a qualitative system of taxation that does not press upon business but allows it developing. Let us remind that since 2017 Georgia accepted as a basis the “Estonian model” of taxation, which essence is that companies registered in Georgia do not pay tax on income if the latter is further reinvested in business;
- decreased tax burden– if a company is opened in Georgia in a free industrial zone, it is exempted from all taxes provided that export activity is performed;
- beneficial terms of taxation for IT company– software developers or companies engaged in other IT activities may execute the certificate of “virtual person”, which exempts from payment of all mandatory taxes except tax on dividends (5%);
- applicable agreements on free trade – manufacturers with the certificate of origin “Made in Georgia” do not pay custom duties when exporting goods to countries of EU, EFTA, CIS, China, Hong Kong, Turkey, Great Britain, and Ukraine;
- favorable immigration laws – non-residents from more than 90 countries of the world can stay in the territory of Georgia for 1 year without a visa;
- low cost of company maintenance in Georgia – cheap work force (for the 3 quarter of 2019 the average salary in Georgia made 1 217 lari – approx. 390 USD), low cost of bank services, and cheap electricity (1 kW – approx. 6 cents);
- stable economic situation – the expected GDP growth in Georgia for 2019 at level of 4,5% (forecast: IMF, European Bank for Reconstruction and Development, National Bank of Georgia);
- absence of Georgia among countries-participants of CRS– Georgia does not exchange the financial information with tax departments of other countries, owing to which high level of confidentiality of business is provided.
Leaders among non-residents who open companies in Georgia are citizens of Iran, Turkey, Russia, Azerbaijan, Ukraine, and Armenia. This is stipulated by geographical proximity and absence of communication problems. Many Georgians fluently speak Russian; in regions adjacent to other countries people also speak Turkish, Azerbaijani, Armenian, and English languages.
Business in Georgia: description of the investment project – land area for a hotel in Borjomi
At the privatization auction in Georgia, the real estate that will be interesting for investors planning to develop their hotel business is for sale. We should remind that Georgia is the tourist country; in 2018 it was visited by more than 8,7 million foreigners; the forecast for 2019 – almost 9 million, but already until 2025 the Georgian government plans to accept at least 11 million people every year, and it is obvious that all of them need comfortable housing conditions. It should also be noted that Borjomi is very popular among people of the Eastern Europe resort town located in the ecologically clean zone.
Get to know Borjomi: town in brief
Almost every person in the Eastern Europe knows about Borjomi. This is the place where the most famous spring water in CIS and the Eastern Europe is distilled. Moreover, therapeutic properties of this water were known even in ancient times, which are proved by stone baths found in the territory of Borjomi.
Borjomi is the small town located in the namesake gorge between mountains. Approximately 14 000 people live here, all are engaged in the tourist sector and in the production of mineral water. There are no manufacturing companies in this region, and the territory is ecologically clean. Borjomi is surrounded by mountains with the green forest on all sides; the river Kura flows beneath and divides the town in two. Because of no places for building houses, the town was expanding along the river; therefore, it stretches 5 kilometers long despite being a small area.
Borjomi has a very convenient location, in the biggest National Park of Europe – Borjomi-Haragauli. Mountains surrounding the town protect it from cold and hot air flows; that is why climate here is favorable – not very cold winter, not very hot summer.
Beautiful nature, therapeutic water, and favorable climate attracted here the supreme officials of the Tsar-times Russia, and then from the Soviet Union and Georgia. Here was built the summer residency of the dynasty of Romanovs, where they liked to stay.
The main sights of Borjomi are:
- Royal palace of the Romanovs;
- Borjomi-Haragauli national park, one of the biggest parks in Europe that occupies around 7,6% of the territory of Georgia;
- house of Mirza-Riza-khan – monument of the Islamic architecture of the XIX century;
- rope way;
- Central park with the mineral spring;
- Local history museum.
The road connecting Borjomi with Bakuriani, the new ski resort being actively developed, runs through the town. The distance between towns is approximately 25 kilometers. Bakuriani is already hosting international competitions; it is also included in the list of towns-potential hosts of the Winter Olympic Games of 2030.
Business in Georgia: description of the land area in Borjomi
The government Georgia is selling a very attractive lot at the auction:
land area of 5 351 sq.m, located within the boundaries of Borjomi
This area is perfect for building a hotel complex because it is immediately in the forest, the national park of Borjomi.
Not far from the land area are several guest houses (which are common in Borjomi); the Central Park is 1 kilometer if walked directly. There are no shops or supermarkets in close proximity; these are located mostly in the downtown approximately 1 kilometer far.
Unimproved road leads to the land area. The nearest bridge that allows passing to the right bank of the river is just 1,5 kilometers, the nearest railroad station – 2,2 kilometers.
The distance from the land area to the main sights in town:
- ruins of the fortress Petre – 1,6 km;
- info center of the National park Borjomi-Haragauli – 2 km;
- Ethnographic Museum – 2 km;
- ruins of the castle Gogiya – 2,1 km;
- Central Park of Borjomi – 2,8 km;
- summer residency of the Romanovs – 3,3 km;
The land area presented at the auction is the continuation of the street Handzteli. The forest starts immediately at the border of the land area. There are no structures on the land area; it is surrounded by coniferous trees on all sides.
Location of the land area in the ecologically clean zone, practically in the forest, makes it perfect for building a hotel complex.
Basic terms for participation in the auction for sale of the land area in Borjomi (Georgia)
You may purchase the land area in Borjomi under beneficial terms for building a hotel by winning the auction, which is held under the following terms:
- starting price – 161 000 lari;
- bid increment – 2 000 lari;
- minimum amount of guarantee – 48 300 lari;
- minimum validity term of guarantee – 45 calendar days;
- final payment for the lot must be made by the winner of the auction within 30 calendar days, otherwise the results will be cancelled;
- buyer must sign a purchase and sale agreement within 45 calendar days (in the House of Justice), otherwise results of the auction will be cancelled.
Benefits of participation in the project:
Buying the non-agricultural land with total area of 5 351 sq.m. without structures in Borjomi
- the land area is within the urban boundaries, near the forest in the ecologically clean zone;
- international road Hashuri-Ahaltihe-Veil runs at the distance of 2,3 km; to the nearest railroad station is just 2,2 km;
- well-developed social infrastructure not far;
- low cost – 3000 lari per 100 sq.m. (approx. 1050 $) in the popular resort town;
- not far is the very promising ski resort Bakuriani (25 km);
How to guarantee purchase of real estate in Georgia during the auction
The company Offshore Pro Group provides full legal assistance to participants of the privatization auction; therefore, your chances to purchase real estate in Georgia increase manifold. Our specialists help to choose the object that would optimally suit client’s needs, prepare documents for participation in the auction and, if necessary, may organize a meeting with a representative of the Georgian government.
Feel free to contact us: firstname.lastname@example.org and we will provide you the optimum assistance during the auction. We also provide services on registration of company in Georgia, execution of resident permit in Georgia, buying real estate in Georgia, and other services related to making business in Georgia.
Tags: #Business in Georgia #Property