How to transfer money for a property purchase in Georgia: safe settlement for the deal

1. Why settlement is done cash-free

A bank transfer leaves a trail: it proves the payment in a dispute, satisfies the bank's compliance checks and becomes evidence if the deal is challenged. Cash 'against a receipt' in a foreign jurisdiction is the weakest way to protect your money: the receipt still has to be proven, while the money is already with the seller.

For an instalment purchase, cashless payments are also tied to the contract schedule — protecting both sides.

2. The main transfer methods

A transfer to the seller's account — directly or via SWIFT. The simplest route: money moves from your account to the seller's account at TBC, Bank of Georgia or another Georgian bank. The account details must match the seller's passport and the public registry record.

A bank letter of credit. The buyer's bank blocks the funds and pays the seller only once the conditions are met — usually registration of the title transfer. It costs more than a direct transfer, but it is the standard protection for large deals.

• Direct transfer: fast and cheap, weaker protection — suits a vetted seller.
• Letter of credit: funds are released only after title registration.
• Payment after registration: a transfer within an agreed period after the registry entry — a compromise without a separate bank product.

3. What it costs and how long it takes

The cost is made up of your bank's fee, the Georgian bank's incoming-payment fee and, for SWIFT, possible intermediary-bank deductions. Conversion into dollars or lari happens at the bank's rate: on large amounts the rate spread matters and should be computed in advance.

Timing: a local Georgian transfer takes hours, an international SWIFT transfer usually one to five business days. Schedule the payment before the deal date, not on signing day.

4. Currency controls and the sending country's restrictions

The duty to comply with currency law lies with the sender — a resident of the country the money leaves. Residents of some countries (including Russia) face restrictions on transfers to foreign banks and requirements to document the deal; the rules change, so before transferring check the current norms with your bank and a tax advisor.

On the Georgian side there are usually no obstacles: foreign investment in real estate is legal and the deal is registered in the public registry. The payment reference must match the purchase contract.

5. A safe settlement scheme for the deal

The classic buyer protection: a deposit under a contract with refund grounds → document preparation and registration of the title transfer at the Public Service Hall → the main payment by letter of credit or transfer right after registration. Every step is fixed by a document you can show to the bank and in court.

• The deposit — only under a contract: amount, refund grounds and deadlines.
• Settlement — to the seller's details matching the registry record.
• Keep the contract, the registry extract and the payment documents together.

6. The documents your bank will ask for

For large transfers the bank almost always asks for justification: the purchase contract, sometimes a public-registry extract and proof of the source of funds. Prepare the package in advance — it shortens the compliance review and reduces the risk of the payment being held.

What the buyer representative does

GeoTrust agrees the settlement scheme with both parties and the banks, prepares the compliance document package, checks the details against the registry record and synchronises the payment with title registration. A remote purchase by power of attorney runs on the same scheme — without your presence.