Georgia’s Government has
prepared a draft law that outlines new rules for land registration for
foreigners.
The draft law on
Agriculture Land Ownership was arranged by the Minister of Justice following
consultations with industry insiders, including international experts.
The Government believed
the new rules were balanced where on one hand protected Georgia’s national
interests and at the same time defended the rights of foreign investors.
The new draft law on
Agriculture Land Ownership outlined:
·
Foreign company
registered outside of Georgia and private foreign person(s);
·
Foreign company and
private foreign person(s) will not be able to purchase agricultural land across
five kilometres of the country’s official border and at border zones defined by
the Government, even it was registered or established in Georgia;
·
The private foreign
person and foreign company established in Georgia in accordance with local law
will be able to purchase agricultural land but there will be some restrictions.
In particular, both the private foreign person and foreign company must have
five-years of working experience in the agriculture sector on Georgian
territory; or in the case of a private foreign person, he/she must have
permanent residence permission or investment permission;
·
The private foreign
person and foreign company established in Georgia will be able to purchase
agricultural lands with a minimum of five hectares and maximum of 100 hectares;
·
In the case of a serious
investment proposal from a private foreign person or foreign company, the
Georgian Government will have the right to support them and following their
case to allow them to purchase the agricultural land;
·
A private foreign person
who was previously a Georgian citizen and had agricultural land passed down to
him/her by their ancestor will be able to receive the land in his/her ownership;
·
In case of mixed
marriages when a wife or a husband is a foreigner they will have the right to
have ownership of land. In the case of divorce, the foreign citizen will be
obliged to sell the land that was held in co-ownership of the couple and the
Georgian spouse will be have the first chance to purchase land.
Meanwhile, in June 2013,
Parliament passed a temporary legal ban restricting non-Georgian citizens from
purchasing or inheriting agricultural land until December 2014.
The temporary suspension
of selling agriculture land to foreigners was removed in June this year
following a verdict of the Constitution Court of Georgia that
requested the withdrawal of the provision to suspend sale of agriculture land
to foreign nationals.
The moratorium generated
fierce opposition from foreign citizens as well as opposition parties who said
the decision would halt Foreign Direct Investments (FDIs) in Georgia.
The Government imposed
the moratorium to avoid the real threat of irrational privatisation of land,
which may have had a negative consequence on the country’s economic security,
environmental protection and state security. It may also have significantly
damage the rural population, officials believed at the time.
Source; Agenda.ge |