Hotel Due Diligence in Georgia Before You Buy (2026)

Before buying a hotel, you check ownership, debts, permits and business registration. Some checks are made online in registries, others offline: in courts, at the municipality and on site. Check the deal format and taxes with a lawyer.

Can a foreigner own a hotel

A foreigner can own non-agricultural land and buildings without restrictions. There are restrictions for agricultural land.

What to check online

What to check	Where	Why
Extract with restrictions, mortgages and leases	Public registry NAPR (napr.gov.ge)	Find out what encumbers the property
Debtors and tax liens registry	Public registries	Find debts and liens
Extract from the entrepreneurs registry	Online, 13 GEL	Check the company's data
Tax status	rs.ge, by power of attorney	Check tax liabilities

What to check offline

What to check	Where	Why
Court disputes	Courts	Find disputes about the property and the seller
Enforcement proceedings	Enforcement Bureau	Find collections
Construction permit and act of commissioning	Batumi municipality	Make sure the building was built legally
Actual number of floors and area	On site	Compare them with the documents
Fire safety	On site	Check that requirements are met
Permits for neighbouring plots	Documents on neighbouring plots	Take nearby development plans into account

Share deal or asset deal

An asset deal is the purchase of the building, land, equipment and business. A share deal is the purchase of a company's shares.

In a share deal, the buyer receives the company's historical debts and tax risks together with the shares. That is why guarantees, warranties and escrow are needed.

In an asset deal, contracts, employees, the brand, the domain and accounts on online booking platforms (OTA) are re-registered.

Hotel duties under the Law on Tourism and licences

The Law on Tourism requires tour operators, travel agents, guides and providers of certain services to register. We did not find hotels in this list, confirm this with a lawyer.

Accommodation providers must report data to the National Tourism Administration. This applies at the start and end of activity and on changes (Article 11¹, check with a lawyer).

Star classification is voluntary.

A restaurant, a pool and a casino may need separate registration or a licence.

Chain brand

If the hotel operates under a chain brand, the brand owner's consent to use the brand is needed.

Taxes on registration

There is no property transfer tax and no stamp duty.

Bank and source of funds

Banks ask you to confirm the source of funds. Review takes up to 2 weeks.

Check with a lawyer

• VAT on the sale of a building and on the transfer of a business.
• Tax for a seller who is an individual.
• The choice between a share deal and an asset deal.