Georgia (the country, not the US state) emerged as one of the surprise property markets of the post-pandemic period. Tbilisi attracted a wave of remote workers, Russian expats seeking a relocation base, and yield-hunting investors who discovered something unusual: a country that allows foreigners to own land outright, has a flat 20% income tax, and offers apartment prices starting at $50,000-$80,000 in a capital city that functions in USD.
Phuket operates in a different league of tourist infrastructure and market depth, but Georgia’s numbers are compelling enough to warrant a direct comparison, particularly for investors with limited budgets or an interest in the Caucasus region’s longer-term development story.
Georgia’s Headline Advantages: Land Ownership and Entry Price
Entry prices in Tbilisi start at $50,000-$80,000 for a 1-bedroom in a mid-market new development. Batumi (Georgia’s Black Sea beach town) starts even lower, $30,000-$50,000 for a studio in the tourist zone. These are among the lowest entry prices for any functioning tourist property market globally.
Transaction costs are negligible: approximately 0.1% transfer fee versus Thailand’s 2-3%. Notary fees and legal costs bring total transaction costs to roughly 1-2%, among the lowest in the world.
Rental Yield: Georgia’s Numbers Can Beat Phuket: On Paper
The problem is seasonality. Batumi’s peak season is 4 months. The off-season yield drops to near-zero in many properties. Annual gross yield of 8-12% in summer often averages to 5-7% annualised, depending on winter occupancy strategy.
Tbilisi is more consistent, capital cities have year-round demand from business travel, expats, and cultural tourism. Tbilisi yields run 6-8% gross with less seasonal volatility.
Phuket’s yield of 7-10% is delivered across a longer high season (6-7 months) with a shorter shoulder period, and the market is supported by international tourists rather than primarily domestic/regional visitors.
Resale Liquidity: Where Phuket Has a Significant Edge
Georgia’s buyer pool is smaller and more regional. The international market for Georgian property remains limited, primarily Russian/CIS citizens, some Europeans attracted by the nomad community, and a small speculative investor base. Resale of a Tbilisi apartment may take 6-18 months to find the right buyer at fair market value.
For investors who may need to liquidate within 5-7 years, Phuket’s deeper buyer market is a material advantage.
Tax Comparison: Georgia Wins on Transactions, Phuket on Rental Income
Thailand:
- Property transfer: 2-3% split between developer/buyer
- Rental income: 15% flat for foreign owners
- Capital gains: embedded in transfer tax structure
On a hold-and-rent strategy, Phuket’s 15% rental income tax beats Georgia’s 20%. The transaction cost advantage at purchase goes to Georgia by a significant margin. For buyers who trade frequently, Georgia’s near-zero transaction tax is a major advantage; for long-term holds, the 5% difference in income tax matters more.
Tbilisi vs Bang Tao Investment Decision
The Phuket option delivers more predictable income and better exit liquidity. The Tbilisi option delivers full ownership rights including land, lower entry, and exposure to Georgia’s growing economy.
Pros and Cons
Georgia (Tbilisi/Batumi)
- ✓ Full foreign ownership including land, no restrictions
- ✓ Very low entry prices (from $30k-$50k)
- ✓ Near-zero transaction costs (~0.1%)
- ✓ 365-day visa-free for most nationalities, easy to visit
- ✗ Smaller, less liquid resale market
- ✗ Batumi has severe seasonality (4-month peak)
- ✗ Less mature tourist infrastructure vs Phuket
- ✗ Higher income tax (20% vs 15%)
Verdict
Phuket wins on tourist infrastructure, resale liquidity, and yield consistency. A well-chosen Phuket property in Bang Tao or Rawai will outperform an equivalent Tbilisi investment on income and exit certainty over a 10-year horizon, even accounting for Georgia’s land ownership advantage.
The two markets are not direct competitors for the same buyer, they serve different budgets and risk tolerances. A portfolio approach combining both makes sense for investors who want European/Caucasus diversification alongside a Southeast Asian anchor.
Frequently Asked Questions
Yes. Georgia allows foreigners to own land and real estate with no restrictions, no quota, and no minimum purchase price. This includes agricultural land in most regions. It's one of the most open property ownership regimes in the world.
Batumi produces high peak-season yields (8-12% gross) but suffers from severe seasonality, peak season is May-September. Annual yields average closer to 5-7% when factoring in off-season vacancy. The market has grown significantly since 2022 but is smaller and less liquid than Phuket.
Individuals pay 20% flat income tax on rental income in Georgia. Companies are taxed at 15%. This is higher than Thailand's 15% flat rate for foreign owners but still low by global standards.
Most nationalities can enter Georgia visa-free for up to 365 days per year, one of the world's most generous visa-free policies. There is no visa or residency requirement to own property, making it easy to purchase and manage property remotely.
Tbilisi offers more consistent year-round rental demand from business travel, expats, and cultural tourism. Batumi offers higher peak-season yield but with significant seasonal volatility. Tbilisi is generally preferred for hold-and-rent strategies; Batumi for investors targeting summer tourist income specifically.
Maksim Shchegolev
Founder, MORE Group
Founder of MORE Group. Four years in investment banking before moving to Phuket, where he has worked in the local property market since 2018. Oversees developer relationships and every engagement above $300K.
About MORE Group →Get a Focused Phuket Property Shortlist
Share budget, area and goal. We will reply with suitable live projects, not a generic catalogue.
