New regulations introduced on purchasing agricultural land by foreigners

The Georgian government elaborated new regulations concerning agricultural lands. The draft law has already been submitted to the Parliament. The experience of other countries was considered while drafting the law. There are special conditions to be observed if a foreigner intends to buy agricultural land in Georgia. First of all, the foreigner must obtain at least a 3 year residence permit in Georgia. The law puts limits on the size of the purchased land, and it should not be larger than 100 hectares. In the case of companies, they have to register in Georgia.

No land can be sold to a foreigner if it is located more than 5 km away from the Black Sea coastline.

The regulations resulted in speculation among certain NGOs, which highlighted that such regulations will create obstacles for the foreign business entities and the flow of investment into the country, causing negative impact on the economy.

As expert in economy Paata Koghuashvili says, agricultural lands should be utilized by Georgian farmers and the process should be highly supported by the state.

The parliament will vote on the draft in the nearest future.