13/03/2024

Cryptocurrency Meets Real Estate: Navigating Rental Yield Opportunities in Georgia

Today’s investment landscape sees the merging of digital currencies and tangible assets, and Georgia is becoming a popular choice for investors. Recognized for its supportive stance towards cryptocurrencies, stunning scenery, and a real estate market that offers high rental returns, Georgia is gaining global recognition. Discover how the attractive rental yield Georgia offers makes it a prime location for crypto investors seeking to diversify into real estate.

Exploring the Lucrative Rental Yield in Georgia

For the cryptocurrency investor investigating reliable return avenues, Georgia’s real estate market boasts an average gross rental yield of 7.85% (Q1, 2024). This figure surpasses returns in many developed nations. Georgia was ranked 4th in terms of rental yield in Q1 2024, only after South Africa, Puerto Rico, and Ireland. This reflects Georgia’s favourable investment climate made possible by conducive regulatory and market conditions. Furthermore, these high rental returns can be advantageous to cryptocurrency investors looking do diversify their gains.

The capital, Tbilisi, and the compelling city of Batumi have desirable rental opportunities. For instance, a 2-bedroom apartment in Vake, Tbilisi, priced at €197,368, could yield a return of approximately 7.26%. While, in Old Town Batumi, a similar investment (€119,339) could yield around 5.08%.

Crypto-Friendly Legal Landscape of Georgia

Georgia’s progressive stance on cryptocurrency regulation positions it as a prime hub for crypto investments. With minimal restrictions in place, the country offers a seamless pathway for converting crypto assets into tangible investments like real estate. This forward-looking approach underscores Georgia’s commitment to digital finance. 

Adding to this favorable environment are Georgia’s tax policies. A 2019 decree from the Ministry of Finance clarifies that cryptocurrency is not regionally tied, exempting crypto trading income from capital gains taxes at 0%.

Although not recognized as legal tender, crypto is not barred by The National Bank of Georgia from being used as a form of barter exchange, providing flexibility to those wanting to transact with it in the country.

A Streamlined Property Buying Process

The real estate market in Georgia aligns well with its cryptocurrency policies. Few regulations and fast transaction processes allow for quick conversions. Georgia’s property transactions are efficient, testament to the country’s eagerness to welcome foreign investment. Unlike other countries which impose strict foreign ownership limitations, Georgia allows foreigners to have full freehold ownership under the same conditions as locals. The registration process is fast, often taking only a few hours.

In Conclusion

Georgia offers an interesting opportunity at the intersection of cryptocurrency and real estate. High rental returns, low entry costs, efficient transactions, and a supportive stance on cryptocurrency positions Georgia as a suitable prospect for those in the cryptocurrency field looking to diversify their portfolio. As the future of real estate investment evolves, Georgia appears to be at the forefront of this change.