Mistakes I Made Investing in Georgia

nomadcapitalist.com/internati...
We talk a lot about Georgia here on our channel, and I made a lot of investments here over the years. But it wasn't always that easy, and there was a learning curve where I've made mistakes and learned from them.
One of the first mistakes I made when I first started investing here is not going in faster, and investing more at the very beginning. I also learned the valuable lesson of working with the right local people here in Georgia.
It's a developing country and most of the western rules simply don't apply here so I had to learn a lot about their culture. For example now before I invest in real estate I make sure to check how are the neighbors, and can I expect any problems from their end.
So make sure to watch this video before you consider investing in Georgia and let me know in the comments below if you have any more questions regarding this lovely country.
-------
ABOUT NOMAD CAPITALIST
Andrew Henderson and the Nomad Capitalist team are the world's most sought-after experts on legal offshore tax strategies, investment immigration, and global citizenship. We work exclusively with seven- and eight-figure entrepreneurs and investors who want to "go where they're treated best".
Work with Andrew: nomadcapitalist.com/apply/
Andrew has started offshore companies, opened dozens of offshore bank accounts, obtained multiple second passports, and purchased real estate on four continents. He has spent the last 12 years studying and personally implementing the Nomad Capitalist lifestyle.
Our growing team of researchers, strategies, and implementers add to our ever-growing knowledge base of the best options available. In addition, we've spent years studying the behavior of hundreds of clients in order to help people get the results they want faster and with less effort.
About Andrew: nomadcapitalist.com/about/
Our Website: www.nomadcapitalist.com
Subscribe: kzbin.info_...
Buy Andrew's Book: amzn.to/2QKQqR0
DISCLAIMER: The information in this video should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Nomad Capitalist can and does not provide advice unless/until engaged by you.

[@thelegend3680]

I'm from Georgia and this video is so accurate haha. Georgia is always open for foreign investors and the culture has been changing a lot in terms of doing the business in a modern way and not in a way the Georgian people used to do back in the Soviet days or dark 90s... Well done and best of luck!

[@sbadrawi2011a]

If you purchase an apartment in Georgia in an apartment building (under construction), do you automatically become an owner of the proportional part of the land on which the building would exist! Does this issue need to be addressed in the prepurchase/purchase agreement?

[@sbadrawi2011a]

I have a technical question! Since foreigners are not allowed to own land in Georgia, when purchasing a residential property such as an apartment in an apartment building, do you then not also own a part of the land on which the apartment building exists?!

[@sambryner6466]

I would love more videos on property management on foreign real estate

[@brigitalarsen7335]

Sam Bryner Good idea, me too. Also starting from, for example, how does he find good people to hire to do the local research? And then find a RE agent, property manager, repair and renovation people.....a good lawyer even...

[@web2yt488]

Pay him.

[@venusreena2532]

@@brigitalarsen7335 ... Same way as anywhere.. A lot of time and work

[@killettos]

@@brigitalarsen7335p

[@sbadrawi2011a]

If you purchase an apartment in Georgia in an apartment building (under construction), do you automatically become an owner of the proportional part of the land on which the building would exist! Does this issue need to be addressed in the prepurchase/purchase agreement?

[@Odedf4]

Have purchased 9 properties in Tbilisi in 2020 below market price using 2 great agents (bought the dip, renovated). Banks were great with appraisal, mortgage and registering title. Have been living here for almost a year and loving it!

[@nomadcapitalist]

Glad to hear that!

[@Odedf4]

@@nomadcapitalist Thanks Andrew. Give me a heads up next time you're in Tbilisi, I'll introduce you to the RE agency that manages my properties. I am very pleased with them

[@elainej3392]

@Faran and Co. International Translations - Will you be making a video about your experience by chance? I'd like to know more about it!

[@elainej3392]

@@Odedf4 - Will you be making a video about your experience by chance? I'd like to know more about it!

[@johannesaigner8501]

What the hell do you love specifically? The street dogs, the many abandoned buildings, the traffic, the dirt or the unfriendliness of people?

[@kellysfca]

Love your objectives in various aspects! Thank you so much for your valuable information!!!

[@tccco9738]

I really likes watching this videos. It came across as very sincere and down to earth yet informative. Well done.

[@nomadcapitalist]

Thank you as always, Juliet.

[@margyiphillips4931]

Yay! 3rd in class! Morning Professor. Uh the music....Okay I am listening.

[@sonicsoftly]

Thanks, this was very helpful info for many emerging markets, not just Georgia. Regards, ~ Seb

[@expatriatechronicles6915]

Here in Bulgaria, there are plenty of beach properties for a lot less than $1000 per square meter.

[@jamesrogers9747]

Thanks, Andrew, for so many informative and mind-set changing videos. Tbilisi and Bogota are now at the top of my ex-pat choices. As you have consistently recommended, will be visiting both soon to make a better informed and more comfortable decision. Sadly, not quite in the league of clients you normally serve. Cheers.

[@Venuslovefactor]

Fabulous comments about the Georgian culture and investing in rental properties. I'm very interested in Tbilisi.

[@rebeccagutierrez1960]

Thanks for the information provided here, Andrew.

[@Diogenes515]

Thanks for this! I would be interested to hear your thoughts on property investment in Kuala Lumpur - starting perhaps from the question of whether it’s a good idea at all.

[@thomasmorrison3279]

Most important to me is stability of the local government. Second would be squatters' rights. Third would be how to make people pay rent on time (what penalties). Fourth would be tax on rental income.

[@ohkav]

you need a court order to have squatters evicted, without police will not do anything. it's actually the reason I'm not renting to locals(I am local myself) I'd rather have a few months vacant than deal with that head ache.

[@danhare1]

@@ohkav how long does a court order generally take to have police come and remove non paying tenets?

[@ohkav]

@@danhare1 court's are overloaded so it might take a while not day and weeks.

[@sbadrawi2011a]

I have a technical question! Since foreigners are not allowed to own land in Georgia, when purchasing a residential property such as an apartment in an apartment building, do you then not also own a part of the land on which the apartment building exists?!

[@TeaTougaard]

Very interesting video and different from many videos about Georgia, which is great!

[@kevinandmerrandaalbert2026]

Yay Tbilisi, this is our current home. Great fun city!

[@nomadcapitalist]

Glad to hear it!

[@neilstleon6251]

Excellent. Thanks Andrew 👍

[@nomadcapitalist]

Thanks, Neil.

[@yansijimenez9675]

I purchased a property under an LLC in Tibisli new development this pass April. The deveopler just happened to mention the vat tax if I ever sold the property. I quickly got the developer to upload a Vat factura where I recieved an 18,000 lari credit toward my business. I have 5 years to use the vat credit so my short term vacation rental if successful will use the entire credit thus getting back the entire vat amount I paid.

[@sofiasofia8726]

Hi, would you be so kind as to explain how exactly this VAT credit factura process/ law works? Thank you!

[@yansijimenez9675]

@@sofiasofia8726 It's a bit complicated I don't know how much I can tell you on here. The quick version is you need to buy the company inside an LLC and must buy from a developer because an old personal property will most likely be able to upload a VAT factura. Once the developer uploads that you can get the entire VAT amount returned to you in cash. You will have to pay VAT tax if you ever sell the property unless you sell to another business. You also have to be a registered VAT payer.

[@sofiasofia8726]

@@yansijimenez9675 I see, thank you. So this basically means that all b2b real estate sale and purchase transactions are exempt from VAT tax, with a proper paperwork done beforehand as well as VAT registration as pre-requisite. Did I understand this correctly?

[@saso-gi9sy]

potentially another valued channel on youtube.

[@levanlursmanashvili1025]

I went through all the comments and I see I am the only Goergian watching this. Keep up great content 👍

[@nomadcapitalist]

Thank you, Levan!

[@Alexander_Appel]

Hi Levan, do you still live in Georgia? I would like to talk with some georgian to dive in my researches about your country if you agree, of course.

[@levanlursmanashvili1025]

@@Alexander_Appel Hi Alexander! Yes I still live in Georgia you can reach me out for sure!

[@lvngitcouture]

@@levanlursmanashvili1025 Hello Levan ☺️, what is the current situation like in Georgia with Covid 🤦🏾💙

[@benkim2016]

What a smart businessman Andrew is!!

[@nomadcapitalist]

Thank you.

[@punstress]

Hmm, thinking about becoming a rock turner-over in Tbilisi.

[@antoniodemaria8855]

only 1 trip to Georgia and it left me wanting more... as soon as covid issues diminish i need to go and buy

[@batumiforeignlook436]

Nice video. From my point of view, the main reason of such mistakes - is the language barrier. Unfortunately, in Georgia not all real estate agents can speak English fluently. Therefore, I agree that it is always better to make your own research and find out some information from your own experience. For foreigners, here is an entire new world (from mentality perspective of view), so you’d better find out some info regarding the culture, traditions and a history of Georgia. Then it will be easier to understand the locals. Despite the mistakes mentioned above, we have to underline one thing - Georgia is developing country and soon the interest towards this country will increase even more.

[@sbadrawi2011a]

If you purchase an apartment in Georgia in an apartment building (under construction), do you automatically become an owner of the proportional part of the land on which the building would exist! Does this issue need to be addressed in the prepurchase/purchase agreement?

[@sbadrawi2011a]

I have a technical question! Since foreigners are not allowed to own land in Georgia, when purchasing a residential property such as an apartment in an apartment building, do you then not also own a part of the land on which the apartment building exists?!

[@ekaterinastepanova9616]

Nice video, thank you! It would be also very interesting to know, what is the difference between buying a property as a private individual vs registering a company and bying as a company. Not necessarily in Georgia, but generally :)

[@lerryperry]

Andrew, from a lifestyle perspective, how do you compare Tbilisi with Kuala Lumpur?

[@klwthe3rd]

I've dipped my toes in the banking sector in Georgia but since in looking for the benefit of permanent residency when buying property I'm focused on Montenegro. Great video though.

[@sanaghafoor84]

Can you guide me through your, process now you decided on Montenegro. I am really confused between Georgia and Montenegro. I want to buy a property and move there with my kids. Which place would be better for someone in this case. Schooling, lifestyle, activities, opening up a small health food Cafe

[@abeeiland5814]

I love this program. Great information

[@MoreChannelNoise]

Yes and the advertising he does is very subtle, lol

[@ryandanger9333]

"Collecting money from underneath a rock" lol

[@travelmentaryTV]

Best line :D

[@stellalu1600]

what does it really mean ? I didn't get it

[@ryandanger9333]

@@stellalu1600 Just meaning that the people are old fashioned.

[@ohkav]

not sure about this part, who he found as tenant's but 99% of Georgians are actually using banking to pay for utilities so same machines can be used to pay rent

[@heimatliebe116]

Very valuable advice!

[@studentchaoren9805]

Andrew this is another great topic and very interesting to hear your experience. I’m shocked about the VAT on the sale of real estate for “a business”... that’s insane... You asked for questions, so here is one: before the change in US tax law under President Trump, Americans were able to open an offshore company in place A, live offshore in place B, and take a salary from their company and if salary taken is under The Foreign Earned Income Exclusion limit it could essentially be tax free, right? But now the tax law changed and Americans have their offshore business monies taxed? Is that right ? How has it changed exactly and what to do about it?

[@nomadcapitalist]

Thanks, Chao. We may cover that in the future. In the meantime, we have a number of US tax articles on www.nomadcapitalist.com; just use the search bar.

[@studentchaoren9805]

Nomad Capitalist thanks!

[@StreetSmartMillionaire]

Great Channel. Any referrals on the two good agents you have found. I am going in April.

[@scottlad1987]

Hey Andrew, great video very interesting, I bought your book last week and I am thoroughly enjoying it, I thought it may be a bit dry but it's the opposite, very informative and tells a great story, maybe I will see you later in the year in Georgia haha.

[@sbadrawi2011a]

I have a technical question! Since foreigners are not allowed to own land in Georgia, when purchasing a residential property such as an apartment in an apartment building, do you then not also own a part of the land on which the apartment building exists?!

[@azoey87]

Hi, I would like to ask on behalf of one of company in Malaysia. How is the market growth in Georgia regarding in Engineering, Manufacturing and Scaffolding sector? Is it worth to invest from Asian market to Europe market?

[@jayw115]

Thank you for the insight! Having an personal lawyer is the best way to go, making it quick and easy

[@nomadcapitalist]

Thanks, Jay.

[@hopskipjumpfly]

You talked to three accountants to verify VAT/property situation... nice! It'd be super interesting if you could do a video on how you vet and choose accountants/lawyers. I'm sure you'd have met some really bad ones over the years that would make a great story :-)

[@ohkav]

if you don't trust no name people, there are big four represented in Georgia so just hire them.

[@sbadrawi2011a]

I have a technical question! Since foreigners are not allowed to own land in Georgia, when purchasing a residential property such as an apartment in an apartment building, do you then not also own a part of the land on which the apartment building exists?!

[@alexk720]

What are your thoughts on Batumi? Do you not see any potential there?

[@keeponsearchingearth1543]

I bought your book and am almost finished it. Great informative guide. I’m planning on going to Tbilisi in Aug 2020 to open a bank account and look at apartments to buy. Cheers from Canada

[@adrianagolisano7871]

Whats the name of his book?

[@ladok1865]

great video!

[@didierdenice7456]

Having dipped my toe in Georgia I can confirm personally many things said by Andrew through his videos. Also never believe those realtors on projected return on investment. From a 15% gross income what is left after you have paid everything (expenses, Airbnb, management, taxes etc.) is less than 6,5%! Not bad but nothink here to make you really wealthy. 1) It will take you at least 15 years to get your money worth. 2) No laverage possible through borrowing from a bank at 2% interest like you would do in the West ! You mostly have to buy cash ! Real Estate is known to be an illiquid investment contrary to stocks... Well guess what ? In countries like Georgia it can be VERY illiquid and it could take you several years to get your money out. Also listen how professionnals in WallStreet talk : "Bulls make money ; Bears make money ; Pigs (you and I, the average people) simply get slaughtered !" Anybody who buys at the very end of a long economic cycle is called "A sucker"! So keep all those things in mind before you commit any kind of hard earned money... Good luck to all !

[@nomadcapitalist]

I would disagree you would go from 15% to 6.5%, but you do make several good points.

[@didierdenice7456]

@@nomadcapitalist You made me check my manageur statement. USD 200k property. 26k paid by people who booked on Airbnb during the past year. . My net income in usd 12k. Do the math. Gross income 13 % Net income 6% roughly since I'm converting Georgian Lari to USD. Anything fishy somewhere ?

[@jordanwentzell5220]

@@didierdenice7456 Yield tends to be lower on higher priced property. I get over 10% net personally, but that's on ~$40k properties.

[@didierdenice7456]

@@jordanwentzell5220 I agree with you... but that's not exactly the point. I warn people about those numbers thrown in the air. What matters is not the gross income but what really comes into your pocket, the net income !

[@bradnomad1011]

@@nomadcapitalist The other issue is the value of the Lari, having dropped around 40% in value compared to the US dollar in the last 5 years, it's good for investing at the moment but if you bought there a few years ago you would currently take a hit on your projected conversion.

[@JefftheSabaDude]

Interesting that the Georgian language took over Makler from German for real estate agent or broker.

[@vsevolodpetrolhead8689]

In Russia and Ukraine we use this word too. May be some ex-USSR common term

[@patricksweeney5308]

@@vsevolodpetrolhead8689 The word Makler is originally German.

[@cantatanoir6850]

Could you please talk more about your bank deposits in Georgia?

[@tengiz2366]

I cannot find that book on Amazon. I plan to start business in Georgia. Could we discuss the subject?

[@vladislavfeldman6562]

How well do you now Georgians, Good luck, you will need it.

[@mohamedsaif4059]

Great video , I was recently contacted by a realtor from Batumi and he pitched this project in downtown Batumi where you buy hotel apartments run by a famous hotel chain and promised that Hotel company guarantees a minimum of 15% of property value to be paid annually in rent no matter what happens . Sounds too good to be true specially after I saw your video about investing in Batumi what do you think?

[@davecash1682]

awesome business promotion..

[@MOOR5]

Can we learn about investing in Mexico City?

[@Lucky13Twice]

I think I'm going to head there and check it out.

[@jurieventer3417]

Hi andrew watching every video thank you very much for all the info wanted to ask about fixed deposit investments in georgia. Found a bank tht will give 10% interest in a previous video u mentioned the banks are easy to use would u recommend it still? Kind regards jurie

[@MrMuhannadh]

In srilanka publicly quoted company called commercial credit finance company

[@discerningacumen]

In a nutshell, Tbilisi properties are too expensive, considering its build quality, financial situation of the city, the danger of Russian invasion in future. It is too overrated these days.

[@Heywood.Jablome]

❤ Georgia

[@aaronluikart1780]

I’m from just north of Columbus! Love your channel! Any tips for investing in Ukraine? We are in the automotive industry and there is a high demand for American vehicles there. We have some family friend connections there that are helping us but any advice would be appreciated.

[@nomadcapitalist]

Thanks, Aaron. We are starting to do a lot of work in Ukraine now and may cover it on the channel in the future.

[@jmbpaz]

@@nomadcapitalist yeah??? How’s that going ???

[@sofiasofia8726]

Please share the name of your makler, the best one in the country! Need one ))

[@gutsandgrittv5076]

If you’re asthmatic, forget Tbilisi.

[@dinchla1]

Do you have an opinion on property in lviv Ukraine I know it's not a capital city but I would be interested to here your opinion many thanks

[@jmbpaz]

Soon to be though

[@erraldstyler]

Funny, the german word for a real estate agent is also "Makler"

[@glassbuddha]

Winery Investment is one of the most difficult above all. Stay away.

[@noraal9746]

Can you help with searching for home in Tbilisi

[@MrSensitiveNipples]

I was thinking about purchasing a property in Georgia, listing it on Airbnb and hiring a local to manage the property. Does anyone see any holes in this plan?

[@didierdenice7456]

Yes ! I can see at least two out of my head... If you want people to take you seriously you may want to change your user name 🤣

[@MrSensitiveNipples]

@@didierdenice7456 Other than that, what is the other issue with this idea?

[@didierdenice7456]

@@MrSensitiveNipples See my other comment under this video ✌️

[@MrSensitiveNipples]

@@didierdenice7456 Thanks!

[@nomadcapitalist]

Execution is everything.

[@ronfrancis10]

What if your not a 6 and 7 figure entrepreneur? Can nomad capitalist still help?

[@lifeengine4635]

He actually advertised 7-8 figure.... So I've a k ways assumed 6 figure earners were out

[@binkysteaver9880]

You were fortunate to have purchase agricultural land before they banned the selling of agricultural land to foreigners.

[@idwtgymn]

Neighbors having a legally binding right to deny building permits is anything but libertarian.

[@chillywit]

Are there any Americans seriously considering Georgia after the events of transpiring in Ukraine?

[@jonburd7330]

Wanna buy a coffee shop in Tbilisi? haha I'm running out of cash in this COVID market

[@ahsanrasool5901]

Hey Am also interested to invest there Any help or guide? Contact?

[@mosesisgenian3142]

Hello, please advice for Horizon company who is building TRYP hotel in Batumi and they are guaranteeing 8% return annually from their management, could you advice me if this is legit and worth investing?

[@nomadcapitalist]

Watch this: kzbin.info/www/bejne/p4S1qWWhrrhgn7c

[@davidnebadze5891]

what means guaranteed? do they pay you 8% and they rent themself?

[@teeque5320]

6:38 "my scarf costs more than her" ouch! 😂

[@danhare1]

What are the 'eviction' laws' .. that has become an issue in the USA...

[@davidnebadze5891]

:)))) there are non, you are out

[@ansarshabazz]

I'd like to move to ga and purchase a property can you help me

[@SananSanani]

I am from Dubai and I am investing in Tbilisi too. Love what you're about. Let's connect and collaborate over some coffee sometime soon. Be well, Sanan

[@111Econ]

You’re not from Dubai as you’re not an Emirati. You may live in Dubai but you’re never from Dubai.

[@111Econ]

Alex Sanders I’ve been around long enough to know the fakers from the makers. It is my business to know.

[@SananSanani]

​@@111Econ Lol jeez did my comment really turn into a thread... What I mean is that I've come from dubai as I've lived, studied, and invested there since 1998.

[@SananSanani]

Alex Sanders 😆 Yes you’re right. They used to give passports easier before the 1970s. Some of my friends became local this way from their grand fathers.

[@111Econ]

Sanan Sanani many years ago an old Indian man sat down, put his hard hat down exhausted from the heat. I asked him how he was, he paused, replied and said ‘I am retiring after 45 years in the UAE’. He did retire later that year and had little choice but to go back to India, Dubai was his home where he brought up a family. It was a sad case to witness and he was not alone. Everyone are just on transit, friends/ families come and go. Settling down is not a reality for 99% of the expats due to residency restrictions. Anyway, I think in the coming decade they may introduce something because I doubt they can attract and retrain top skilled workers if they stay the current course. No country can have sustained brain drain without losing competitive edge especially now the economy is maturing. I could be wrong.

[@111Econ]

The Georgia guy

[@glonoxglobalist3859]

Bro you make it sound like all Ex Pats are bad to deal with...I have figured out what ALL outside investors don't have any clue of...and like your Other Ex Pat introductions I Protect the interest of my Offshore Clients and Place them in at the VERY best price. Not sure how your referencing Ex Pats this way. Just Saying.

[@midnightsky2895]

I'd like to know where those dogs are located, because I don't want to live near them. 😆

[@Luardi74]

Hi! Have you looked into Ukraine? They have very low base and economy may develop very fast very soon with new president and parliament.

[@captainvanaroo1729]

It can go to crap there 100 times faster.

[@Peter-ko2vw]

@@captainvanaroo1729 Are you sure?

[@jmbpaz]

Remind me not to ask you for advice

[@EMRchaptersonline]

Collecting money under the rock is not bad .........as long as it is paid on time ....try living in africa

[@1111oxford]

My scarf costs more than her.........Wow

[@chadjones4255]

"Libertarianism in action" would be where you actually own your own property and have rights associated with ownership. ;)

[@Dampferfrosch]

well .... my question: Do you have siblings - a sister maybe ???

[@divinicus]

Barking dog is annoying

[@peterchirico2153]

Probably in a tin can ! Ha

[@nikolasma1]

modern day colonizer

[@dimitriymirovsky]

Lol. Georgia is a shitty country to invest. But still great video tho. Sub's on the spot.

[@petrusdijkzeul6698]

For what reason ?

[@davidnebadze5891]

any reason why?

[@tronzi19]

U sure? :))

[@manyltef9811]

Georgia??? seriously!!!

[@manyltef9811]

@Dot Red it's even worse!!!

[@hamishfullerton7309]

Lol haha 😂😅ha ha, despite its shot comings Georgia can be good fun and great value, but I have good friend living there with his Georgian wife and this makes easier to enjoy and would also make it easier to invest. There are opportunities I reckon, however by yourself with no Georgian it could be fun

[@Ggg44ttt]

Clown??

[@ljubisapejin6931]

Don’t get me wrong Andrew but why you are doing to this kind of countries ? Since you said you have properties in Montenegro and Serbia and since I am coming from this ex Yugoslavia , why you are going to those countries . I had business there 20 years and I know system very well and I just sold all my business and moved out like tens of thousand of people . Why going to this kind of places where system is not transparent, when law on papers are one and reality completely different , when things can be one way but they can be another way which all depends on current government employee, hiw powerful he is and which parties he is member ? Not to mention that you are seeing as cash machine to rip off. We are also seen as atm machines which we are still officially citizen of that country .

[@tbilisiandbeyondinvestment4787]

Are you saying that you think Andrew is wrong to profit from investments in developing economies? Why? Is there something about the approach you'd like to see changed? Longer-term investments perhaps?

[@Lokichangchang1]

Hey @nomadcapitalist this is interesting 😮 would you say money is safe in Georgian banks, since they don’t insure deposits?

[@nomadcapitalist]

Deposits are insured to 15,000 GEL.

[@Lokichangchang1]

@@nomadcapitalist that’s nothing

[@Lokichangchang1]

@@nomadcapitalist dear nomad, would you recommend Serbia? 🇷🇸 is it better to invest in Serbia as opposed to Georgia? 🇬🇪 and do u think we can escape the incoming totalitarian govt control in the west by moving to Serbia or Georgia? Sorry for all the questions, I just don’t know who else to ask