On State Property

Law of Georgia

On State Property

Article 1. Scope of regulation of the Law🔗

1. This Law regulates relations related to the management, disposal and transfer for use of state property of Georgia.

2. (Repealed).

3. (Repealed).

4. (Repealed).

5. The effect of this Law shall not extend to:

a) (Repealed - 9 February 2023, No. 2564);

b) on the alienation or disposal in any other form, by this body or legal entity of public law, of usable parts and materials obtained as a result of reconstruction, repair, dismantling or liquidation of buildings and structures in state ownership transferred for use to a body of state authority of Georgia, a body of the Autonomous Republic of Abkhazia, a body of the Autonomous Republic of Ajara, or a municipality, or a legal entity of public law, for the purpose of fully or partially covering the costs of reconstruction, repair, dismantling or liquidation of the said buildings and structures. The alienation or disposal in any other form, by this body or legal entity of public law, of usable parts and materials obtained as a result of reconstruction, repair, dismantling or liquidation of buildings and structures transferred for use to a body of state authority of Georgia, a body of the Autonomous Republic of Abkhazia, a body of the Autonomous Republic of Ajara, or a municipality, or a legal entity of public law, for the purpose of fully or partially covering the costs of reconstruction, repair, dismantling or liquidation of the said buildings and structures shall be carried out in accordance with the procedure and conditions established by the Government of Georgia;

c) to cases provided for by the Law of Georgia "On Recognition of the Right of Ownership to Land Plots in the Possession (Use) of Natural Persons and Legal Entities of Private Law";

d) to cases provided for by the Law of Georgia "On Relations Arising in the Use of Residential Premises";

d¹) to relations provided for by the Law of Georgia "On the Rules for Systematic and Sporadic Registration of Rights to Land Plots and Improvement of Cadastral Data";<

e) to cases provided for by legal acts of the Government of Georgia "On Approval of the Rules for Free Transfer into Ownership by Municipal Executive Bodies to Legal Users of Non-Privatized Residential and Non-Residential (Isolated and Non-Isolated) Space to be Transferred to Legal Users" and "On Transfer into Ownership of Residential and Non-Residential Space in State Ownership Recorded on the Balance Sheet of the Ministry of Defence of Georgia";

f) to protected areas (except for protected landscape and multi-purpose use area provided for by subparagraph "bb.e" of paragraph 1 of Article 4 of this Law) and state forest (except for paragraph 6 of Article 3, Article 29¹ and paragraph 1¹ of Article 36 of this Law);

g) on goods purchased for natural persons within the framework of health protection and social assistance programmes, as well as on the distribution and transfer of single-use, rapidly consumable items, pharmaceutical and food products (except property subject to transfer into state ownership or transferred into state ownership);

h) on the sending and transfer of property to a state body of another country for the purpose of providing humanitarian assistance, as well as on the transfer of property in the form of a gift or award;

i) on the utilization, alienation and disposal in any other form of state property for military purposes held in state ownership (including property obtained as a result of the write-off and/or utilization of such property), which is carried out in accordance with the procedure and conditions established by a legal act of the Government of Georgia and/or an official authorized by the Government of Georgia;

j) on the transfer to natural persons and legal entities of private law of printed and electronic publications published with the support of the Ministry of Culture of Georgia and recorded on its balance sheet, for the purpose of popularizing Georgian culture;

k) on the disposal of blood components, which is carried out in accordance with the Resolution of the Government of Georgia on the rules and conditions for the disposal of blood components;

l) (removed - 29 May 2020, No. 5989);

m) on a temporary bank provided for by the Law of Georgia “On the Activities of Commercial Banks”, as well as on a share of a commercial bank in resolution regime, relations related to which are regulated in accordance with the procedure established by special legislation;

n) on the transfer to natural persons and legal entities of private law of products created by an educational institution in the process of educational activity for the purpose of selling these products.

6. In the cases provided for by this Law, the management and disposal of state property shall be carried out by a Legal Entity of Public Law within the system of the Ministry of Economy and Sustainable Development of Georgia (hereinafter − the Ministry) − the National Agency of State Property (hereinafter − the Property Agency).

6¹. The Property Agency shall also exercise other powers determined for it by the Government of Georgia, including facilitating the disposal of property of interested natural persons and legal entities of public and private law. When facilitating the disposal of property of interested natural and legal persons, the rules for the provision of services by the Property Agency, the types of services and the amount of the service fee shall be approved by the Government of Georgia.

7. The Ministry shall determine and direct the state policy related to the management and disposal of state property, except for the case provided for by paragraph 7¹ of this Article.

7¹. In order to ensure the requirements of independence and unbundling of the electricity transmission system operator and the natural gas transmission system operator provided for by the Law of Georgia “On Energy and Water Supply”, the Property Agency shall exercise the rights of a shareholder/partner in an enterprise in state ownership engaged in the production of and trade in electricity and natural gas independently of the Ministry, the Government of Georgia and other state agencies.

8. An individual administrative-legal act issued by the Property Agency may be appealed to the Ministry or to a common court of Georgia, except for a decision adopted within the scope of exercising the rights of a shareholder/partner of a state enterprise, which may be appealed to a common court of Georgia.

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012

Law of Georgia of 6 September 2013 No. 1037 – website, 23.09.2013

Law of Georgia of 29 November 2013 No. 1665 – website, 04.12.2013

Law of Georgia of 29 May 2014 No. 2475 – website, 04.06.2014

Law of Georgia of 11 December 2014 No. 2878 – website, 23.12.2014

Law of Georgia of 3 June 2016 No. 5156 – website, 17.06.2016

Law of Georgia of 7 December 2017 No. 1702 – website, 14.12.2017

Law of Georgia of 5 July 2018 No. 3053 – website, 11.07.2018

Law of Georgia of 11 December 2019 No. 5502 – website, 18.12.2019

Law of Georgia of 20 December 2019 No. 5671 – website, 31.12.2019

Law of Georgia of 22 May 2020 No. 5960 – website, 28.05.2020

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020

Law of Georgia of 15 July 2020 No. 6896 – website, 28.07.2020

Law of Georgia of 16 March 2021 No. 382 – website, 18.03.2021

Law of Georgia of 9 February 2023 No. 2564 – website, 27.02.2023

Law of Georgia of 30 November 2023 No. 3869 – website, 15.12.2023

Law of Georgia of 12 December 2024 No. 95 – website, 28.12.2024

Law of Georgia of 13 December 2024 No. 115 – website, 30.12.2024

Law of Georgia of 11 November 2025 No. 1023 – website, 14.11.2025

Law of Georgia of 17 December 2025 No. 1276 – website, 22.12.2025

Article 2. Definition of terms used in this Law🔗

The terms used in this Law, for the purposes of this Law, have the following meaning:

a) state property – movable and immovable things in state ownership, intangible property benefits;

b) disposal of state property − transfer of state property into municipal ownership, privatization, transfer with the right of management, exchange, transfer in the form of leasing, distribution and destruction in accordance with the procedure established by the legislation of Georgia;

c) privatization − acquisition by natural and legal persons or their associations of the right of ownership over state property in accordance with the procedure established by this Law, through the forms of electronic and/or public auction, direct sale, direct sale on the basis of competitive selection and gratuitous transfer into ownership, through a trading facility, a third party, as well as shares or stocks or stocks represented by certificates, directly or through an intermediary, by public or private offering, on a recognized stock exchange of a foreign country or in another form of offering consistent with the practice existing at the given time on international capital markets;

c¹) recognized stock exchange of a foreign country − a stock exchange included in the list of exchanges recognized by the National Bank of Georgia in accordance with paragraph 62 of Article 2 of the Law of Georgia "On Securities Market";

d) transfer of state property for use – transfer of state property with the right of use in accordance with the legislation of Georgia;

e) transferor of state property for use – property manager who, on behalf of the state, transfers state property for use;

f) transfer with the right of management – transfer of shares and stocks in state ownership (hereinafter – shares and stocks) with the right of management to a natural or legal person or another entity;

g) property that has passed into state ownership – property that has passed into state ownership under the criminal, civil or administrative proceedings of Georgia, property that has passed into state ownership (transferred in kind) in accordance with the Law of Georgia "On Enforcement Proceedings", property that has passed into state ownership (transferred) in accordance with the Tax Code of Georgia, property that has passed into state ownership (transferred) in accordance with the Customs Code of Georgia, as well as property that has passed into state ownership by inheritance or gift and is subject to privatization, unowned or heirless property that has passed into state ownership, goods not returned after a controlled purchase provided for by the Tax Code of Georgia;

[ g) property converted into state ownership – property converted into state ownership under the criminal, civil or administrative procedure of Georgia, property converted (transferred in kind) into state ownership in accordance with the Law of Georgia “On Enforcement Proceedings”, property converted (transferred) into state ownership in accordance with the Tax Code of Georgia, property converted (transferred) into state ownership in accordance with the Customs Code of Georgia, property converted (transferred) into state ownership in accordance with the Law of Georgia “On Weapons”, as well as property that has passed into state ownership by way of inheritance or gift and is subject to privatisation, ownerless or heirless property that has passed into state ownership, goods not returned after a control purchase provided for by the Tax Code of Georgia; (shall enter into force from 1 May 2026)]

h) distribution of movable property in state ownership − gratuitous transfer of movable property in state ownership in accordance with the procedure established by the legislation of Georgia;

i) destruction of movable property in state ownership − destruction of movable property in state ownership in accordance with the procedure established by the legislation of Georgia;

i¹) property transferred for disposal − movable property in state ownership which has been transferred for use to and/or is recorded on the balance sheet of a state body/legal entity of public law and which, after a decision on its disposal is taken, was transferred to the Property Agency for further disposal;

j) third party – a natural or legal person or an association of persons which ensures the facilitation of the privatisation of state property;

k) (removed - 11.11.2025, No. 1023);

l) shares and stocks – shares and stocks registered in the name of the state in the relevant registering body;

m) primary transfer for use – transfer for use of state property not transferred for use by the property manager, to a body of the state authority of Georgia, the Autonomous Republic of Abkhazia, the Autonomous Republic of Adjara and a municipality, to natural and legal persons;

n) (removed - 22.05.2020, No. 5960).

o) (removed - 29.05.2020, No. 5989);

p) agricultural land plot in state ownership not leased out – agricultural land plot in state ownership which had not been leased out as of 25 January 2005;

q) agricultural land plot in state ownership leased out – agricultural land plot in state ownership in respect of which a lease contract is in force;

r) (removed - 22.05.2020, No. 5960).

s) (removed);

t) immovable thing – immovable property in state ownership, agricultural land, forest and forest land, protected landscape, multi-purpose territory;

t¹) immovable property – a land plot of non-agricultural purpose in state ownership, with or without the buildings and structures located thereon (under construction, constructed or demolished), a unit of a building or structure (under construction, constructed or demolished), a linear structure, perennial plantings located on the land;

t²) agricultural purpose land – a land plot of the category of pasture, hayfield, arable land (including that occupied by perennial plantings) or homestead, which is used or may be used for agricultural purposes, with or without the buildings and structures located thereon;

u) unconditional and irrevocable bank guarantee – an unconditional and irrevocable bank guarantee to be submitted in the disposal of state property;

v) bid bond – the amount payable to the account indicated by the entity conducting the auction or another form of privatization, for the purpose of securing the performance of an obligation; the freezing of funds in the participant's bank account shall be equated to payment of the bid bond, which shall be transferred to the entity conducting the auction upon the participant's winning the auction or in the event of violation of the rules and conditions established by this Law;

w) (removed - 29.05.2020, No. 5989);

x) privatization receipt – the amount received as a result of the privatization/transfer with the right of management and exchange of state property, which is credited to the State Budget of Georgia, the republican budgets of the Autonomous Republics of Abkhazia and Adjara and/or the budgets of municipalities;

y) privatization fee – the amount payable by the acquirer of state property/recipient of the right of management, which consists of the privatization amount, as well as the amount payable to a third party and/or another entity (if any);

z) initial privatization amount − the minimum value of the property to be transferred for privatization/with the right of management upon the privatization of state property/transfer with the right of management, at which the price is increased during trading;

aa) (removed - 29.05.2020, No. 5989);

bb) service fee − the established amount for the services rendered by the Property Agency, including for facilitating the disposal of property of interested natural persons and legal entities of public and private law, which is credited in full to the account of the Property Agency;

cc) privatization amount − the amount consisting of the privatization receipt and the remuneration of the Property Agency (if any);

dd) initial fee for transfer into use − the minimum amount of the property to be transferred into use upon the transfer of state property with the right of use, at which the announcement is made for the transfer of state property with the right of use and at which the price is increased during trading;

ee) fee for transfer into use − the amount payable by the user for use upon the transfer of the property into use, which consists of the amount of transfer into use and the remuneration of the Property Agency (if any);

ff) remuneration of the Property Agency − part of the privatisation amount/consideration for transfer into use determined by the Government of Georgia, which, upon privatisation/transfer with the right of management/transfer into use carried out by the Property Agency, is credited to the account of the Property Agency; the part of the remuneration provided for by paragraph 2 of Article 49¹ of this Law, which is credited to the account of the Property Agency in the amount determined by the Government of Georgia; the amount determined by a resolution of the Government of Georgia for services rendered by the Property Agency;

gg) amount of transfer into use − the amount payable to the relevant budget upon transfer of property into use;

gg¹) property manager − a Ministry, the Property Agency or a body acting within the scope of powers delegated by them, a person enjoying state property (except a natural person and a legal entity of private law), which exercises the powers provided for by this Law in the manner and form determined by a resolution of the Government of Georgia.

Law of Georgia of 12 November 2010 No 3806-LHG III, No 66, 3 December 2010, Art. 414

Law of Georgia of 10 December 2010 No 3963-LHG III, No 74, 24 December 2010, Art. 444

Law of Georgia of 11 October 2011 No 5063 – website, 21 October 2011

Law of Georgia of 27 March 2012 No 5928 – website, 19 April 2012

Law of Georgia of 25 May 2012 No 6332 – website, 12 June 2012

Law of Georgia of 5 June 2012 No 6377 – website, 15 June 2012

Law of Georgia of 29 November 2013 No 1665 – website, 4 December 2013

Law of Georgia of 11 December 2014 No 2878 – website, 23 December 2014

Law of Georgia of 3 June 2016 No 5156 – website, 17 June 2016

Law of Georgia of 25 June 2019 No 4852 – website, 2 July 2019

Law of Georgia of 28 June 2019 No 4930 – website, 4 July 2019

Law of Georgia of 22 May 2020 No 5960 – website, 28 May 2020

Law of Georgia of 29 May 2020 No 5989 – website, 10 June 2020

Law of Georgia of 15 July 2020 No 6896 – website, 28 July 2020

Law of Georgia of 18 September 2020 No 7171 – website, 25 September 2020

Law of Georgia of 11 November 2025 No 1023 – website, 14 November 2025

Law of Georgia of 9 December 2025 No 1148 – website, 15 December 2025

Article 3. Acquirer of State Property🔗

1. The acquirer of state property (except for a plot of agricultural land in state ownership and cases of privatization of movable property in state ownership) may be a citizen of Georgia or of a foreign country, a legal entity of private law or an association of persons in whose property the share of participation of a state body or a municipality/municipalities is less than 25%, a non-entrepreneurial (non-commercial) legal entity founded by the state or another subject or founded jointly by the state and another subject, the National Bank of Georgia, the national regulatory body, the public broadcaster, and, when state property is sold directly by decision of the Government of Georgia, also the Apostolic Autocephalous Orthodox Church of Georgia.

1¹. The acquirer of movable property in state ownership may be any natural or legal person, association of persons, state body or municipality.

2. Privatization of a plot of agricultural land in state ownership to a citizen of Georgia or to a legal entity of private law registered in Georgia is possible, taking into account the requirements defined by the Organic Law of Georgia "On Ownership of Agricultural Land" and the Law of Georgia "On Determining the Purpose of Land and Sustainable Management of Agricultural Land", for consideration, and for the Apostolic Autocephalous Orthodox Church of Georgia and for those citizens of Georgia left homeless who lived or live in the occupied territories of Georgia – free of charge.

3. On the basis of a decision of the Government of Georgia, the procedure and conditions for the privatization, in the form of gratuitous transfer, of a plot of agricultural land in state ownership that has not been leased out, to those citizens of Georgia left homeless who lived or live in the occupied territories, shall be determined by a Resolution of the Government of Georgia. In order to adopt a decision by the Government of Georgia, the issue shall be prepared and submitted to the Government by the property manager.

4. (Removed).

5. The Property Agency, with the consent of the Government of Georgia, shall carry out the exchange of state property (except movable property) for property in the ownership of a natural person, a legal entity of private law, the National Bank of Georgia, the Apostolic Autocephalous Orthodox Church of Georgia. The procedure and conditions for the exchange of state property shall be established by Order of the Minister of Economy and Sustainable Development of Georgia. The exchange of an immovable thing in state ownership may be carried out in the cases provided for by a Resolution of the Government of Georgia.

6. In the case provided for by paragraph 1 of this Article, on the basis of a corresponding application of the Apostolic Autocephalous Orthodox Church of Georgia, upon the petition of the Ministry of Environmental Protection and Agriculture of Georgia, the areas of forest adjacent to Orthodox churches and monasteries existing before 2021 — in each case not more than 20 hectares — as well as the attached territories defined by the Forest Code of Georgia shall be transferred into the ownership of the Apostolic Autocephalous Orthodox Church of Georgia. At the same time, the area to be transferred shall be determined in such a way that its allocation does not violate the boundaries of the existing forest literas.

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 1 July 2011 No. 5014 – website, 14.07.2011

Law of Georgia of 25 May 2012 No. 6332 – website, 12.06.2012

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012

Law of Georgia of 6 September 2013 No. 1037 – website, 23.09.2013

Law of Georgia of 25 June 2019 No. 4852 – website, 02.07.2019

Law of Georgia of 22 May 2020 No. 5960 – website, 28.05.2020

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020

Law of Georgia of 15 July 2020 No. 6896 – website, 28.07.2020

Law of Georgia of 15 December 2021 No. 1104 – website, 24.12.2021

Law of Georgia of 30 December 2021 No. 1351 – website, 06.01.2022

Law of Georgia of 11 November 2025 No. 1023 – website, 14.11.2025

Law of Georgia of 11 November 2025 No. 1027 – website, 14.11.2025

Article🔗

3¹ . of an immovable thing in state ownership

upon privatisation

of the transaction

rules of execution

1. Upon the privatisation of an immovable thing in state ownership, a respective contract shall be concluded between the body carrying out the privatisation and the acquirer of the property, which shall be the basis for the registration of the ownership right in the public registry and for the creation of respective obligations (including, where such exist, the obligation to pay the privatisation fee).

2. Upon the privatisation of an immovable thing in state ownership in the form of an unconditional auction, the form of the respective contract shall be approved by the Ministry. The body carrying out the privatisation shall be entitled to issue confirmation of victory in the auction in written and/or electronic form.

3. Upon the privatisation of an immovable thing in state ownership in the form of an auction, the respective contract shall be concluded within 45 calendar days after the holding of the auction. Upon the privatisation of an immovable thing in state ownership by the Government of Georgia in the form of direct sale, the respective contract shall be concluded within 3 months after the adoption of the relevant act by the Government of Georgia. If the respective contract is not executed within the period provided for by this paragraph, the results of the auction/the act (decision) of the Government of Georgia shall lose force after the expiry of the period provided for by this same paragraph.

4. The buyer shall be obliged, within the period established by the body carrying out the privatisation, which shall not be less than 7 calendar days and more than 2 calendar years after the holding of the auction, to ensure the payment of the privatisation fee and to submit to the body carrying out the privatisation a document confirming the payment of the privatisation fee (the obligation to submit a document confirming the payment of the privatisation fee shall not apply to cases of transfer by the right of disposal/use carried out in the form of an electronic auction).

5. Within 30 calendar days after the submission of the document confirming the performance of the obligation, the entity managing state property shall issue confirmation of the full or partial performance of the obligation in written or electronic form, which shall be the basis for the registration in the public registry of the cancellation of the respective obligation or of the amendment of the obligation.

6. With the consent of the property manager, the acquirer of the property shall be entitled to encumber the acquired immovable thing with a mortgage for the purpose of performing the privatisation obligation(s).

7. Except for the case provided for by paragraph 6 of this article, with the consent of the property manager, the acquirer of the property shall be entitled to encumber the acquired immovable thing with a mortgage if the performance of the privatisation obligation(s), arising from the content of this obligation(s), does not require the making of an investment/incurring of an expense.

8. Where property disposed of by the State in accordance with the procedure provided for by paragraphs 6 and 7 of this Article is encumbered by a mortgage, upon the transfer of the mortgaged property into the ownership of the mortgagee as a result of the failure to satisfy, in respect of the mortgagee, the claim secured by the mortgage, or upon sale in accordance with the procedure established by the Law of Georgia “On Enforcement Proceedings” or by the Civil Code of Georgia (regardless of the form of such sale), the privatisation obligations owed by the acquirer of the property to the State and the rights and obligations arising from the respective contract shall transfer in full to the new and each subsequent owner, if, before the property was encumbered by the mortgage, the respective information reflecting the privatisation obligation(s) is registered in the public register in the record on the immovable thing.

9. The operation of paragraph 8 of this Article shall not extend to State property disposed of within the framework of a public-private partnership project provided for by the Law of Georgia “On Public-Private Partnership”.

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 27 March 2012 No. 5928 – website, 19.04.2012

Law of Georgia of 25 May 2012 No. 6332 – website, 12.06.2012

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012

Law of Georgia of 6 September 2013 No. 1037 – website, 23.09.2013

Law of Georgia of 29 November 2013 No. 1665 – website, 04.12.2013

Law of Georgia of 11 December 2014 No. 2878 – website, 23.12.2014

Law of Georgia of 4 May 2018 No. 2274 – website, 24.05.2018

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020

Law of Georgia of 11 November 2025 No. 1023 – website, 14.11.2025

Article 3². Exchange🔗

1. The rules provided for by paragraphs 5–8 of Article 31 and by Article 20 of this Law shall apply to the exchange of an immovable thing in State ownership.

2. In the exchange of an intangible property benefit in State ownership, the rules provided for by paragraph 5 of Article 31, by Article 20, by paragraphs 6–8 of Article 42 and by paragraphs 7–9 of Article 45² of this Law shall apply.

3. In the case of exchange, the respective contract shall be concluded within 3 months from the adoption of the relevant decision by the Government of Georgia. If the respective contract is not concluded within the period provided for by this paragraph, the decision of the Government of Georgia shall lose force after the expiry of the period provided for by this same paragraph.

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020

Article 3³. Sale of property disposed of by the State by way of compulsory enforcement🔗

Before the privatisation conditions of property disposed of by the State are fully performed, upon sale in accordance with the procedure established by the Law of Georgia “On Enforcement Proceedings” (regardless of the form of sale of this property), the privatisation obligation(s) assumed by the acquirer of the property towards the State shall transfer in full to the new owner and to each subsequent owner, as well as the rights and duties arising from the respective contract, if, before the sale of the said property in accordance with the procedure established by this Article, the relevant information reflecting the privatisation obligation(s) has been registered with the appropriate registering authority.

Law of Georgia of 11 November 2025 No. 1023 – website, 14.11.2025.

Article 4. State property not subject to privatization🔗

1. The following state property shall not be subject to privatization:

a) Subsoil;

b) Water resources;

[ b) Water resources, riverbed, as well as the bottom of a natural lake; (shall enter into force from 1 September 2026)]

c) Territorial waters;

d) Continental shelf;

e) State forest, except for the case provided for by paragraph 6 of Article 3 of this Law;

f) Airspace;

g) State reserve;

h) National park;

i) Natural monument;

j) Sanctuary;

j¹) (removed - 29.05.2020, No. 5989);

k) Cultural valuables, cultural heritage monument, land plot located within the archaeological protection zone, as well as buildings and structures of cultural and artistic designation and the land plot on which the said buildings and structures are located, without the relevant conditions and agreement with the Ministry of Culture of Georgia;

l) Religious and cult buildings (active and inactive), their ruins, as well as the land plots on which they are located;

m) State archives of historical and cultural significance;

n) State funds of film, photo and phono materials;

o) Archives and funds of ministries/agencies and scientific-research institutions of Georgia, document of the National Archival Fund (movable monument);

p) Museum collections and funds;

q) Monuments included in the World Heritage List and house-museums of national significance;

r) Property carrying out dispatching of the electricity sector;

s) Property in the use of legal entities of public law, in which public schools, higher educational and scientific institutions of Georgia function;

t) Berths of ports of special importance, hydrotechnical structures, lighthouses, beacons and water area;

u) Motor roads (in the absence of an alternative road);

v) Means of air traffic, management and control;

w) Runways of special importance;

x) Frequency spectrum;

y) Position of Georgia on the geostationary orbit;

z) State pantheons;

aa) Property transferred for placement, in accordance with the procedure established by the legislation of Georgia, to the Prosecutor's Office of Georgia, the Ministries of Defence and Internal Affairs of Georgia, the State Security Service of Georgia and the Special State Protection Service;

bb) The following types of agricultural land in state ownership:

bb.a) Pasture, except for pastures leased before 30 July 2005 and pastures which, by an act issued in accordance with the established procedure by the relevant state body or municipality, are attached to buildings and structures located on them that are in private ownership and/or in state ownership of natural and/or legal persons;

bb.b) Livestock driving routes;

bb.c) The first belt (strict regime zone) of the sanitary protection zone of water supply water objects;

bb.d) Land designated for historical, cultural, natural and cult-religious monuments;

bb.e) land of protected areas, except protected landscape and multi-purpose use area;

bb.f) agricultural land held in use in the form of usufruct by institutions financed from the budget and by legal entities of public law;

bb.g) land plots adjacent to the rivers of Georgia – Enguri, Rioni, Kvirila, Mtkvari, Khrami, Tergi, Ksani, Aragvi, Supsa, Bakhvistskali, Khobi (Khobistskali), Tekhuri, Tskhenistskali, Dzirula, Nenskra, Kintrishi, Jejora, Khanistskali, Gubazeuli, Paravani, Stori, Nakra, Kheleduli, Jonouli, Sakauri, Chakvistskali, Tsablarastsqali, Samquristsqali, Magana, Pirikita Alazani, Avaniskshevi, Dumala, Chelti, Chveshuri (Chashuri), Duruji, Chkhorotsku, Iori, Lebarde, Tsachkhuri, Bzholiskhevi, Chanistsqali, Merisi (Akavreti), Shavi Tskali, Uraveli, Khumpreri, Kvirilistsqali, Jutistsqali (Juti), Snosistsqali, Khdi (Khdistsqali), Amala, Chkheri, Kesia, Mnaisistsqali, Chorokhi and Adjara water – on which the construction of new renewable energy sources is envisaged and whose X and Y coordinates have been approved by Order of the Minister of Economy and Sustainable Development of Georgia.

2. The privatisation of the agricultural land defined by subparagraphs "bb.b"–"bb.d" and "bb.g" of the first paragraph of this Article shall be possible only by decision of the Government of Georgia. At the same time, the privatisation of the agricultural land defined by subparagraph "bb.c" of the first paragraph of this Article shall be permissible only subject to sanitary protection conditions.

3. The privatisation of the agricultural land provided for by subparagraphs "bb.b" and "bb.d" of the first paragraph of this Article shall also be permitted in respect of those citizens of Georgia left homeless who lived or live in the occupied territories.

4. (deleted – 29.05.2020, No. 5989);

5. (deleted).

6. The list of State property of special importance shall be approved by the Government of Georgia.

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 8 April 2011 No. 4519 – website, 15.04.2011

Law of Georgia of 24 June 2011 No. 4957 – website, 11.07.2011

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012

Law of Georgia of 6 September 2013 No. 1037 – website, 23.09.2013

Law of Georgia of 8 July 2015 No. 3965 – website, 15.07.2015

Law of Georgia of 7 December 2017 No. 1702 – website, 14.12.2017

Law of Georgia of 5 July 2018 No. 3053 – website, 11.07.2018

Law of Georgia of 20 July 2018 No. 3229 – website, 13.08.2018

Law of Georgia of 22 May 2020 No. 5960 – website, 28.05.2020

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020

Law of Georgia of 15 July 2020 No. 6896 – website, 28.07.2020

Law of Georgia of 16 March 2021 No. 382 – website, 18.03.2021

Law of Georgia of 30 June 2023 No. 3427 – website, 20.07.2023

Law of Georgia of 30 November 2023 No. 3869 – website, 15.12.2023.

Law of Georgia of 12 December 2024 No. 95 – website, 28.12.2024.

Article 5. Information on the privatization of state property by way of auction🔗

1. Information on the privatization of state property by way of auction shall be posted on the website of the electronic auction system (www.eauction.ge) or on the official website of the Property Agency (www.privatization.ge), which shall be considered official publication of the information. The announcement of the auction and the trading shall be carried out on the website www.eauction.ge. In order to ensure the publicity and accessibility of information, information on the privatization of state property by way of public auction shall also be published in a periodical that is distributed throughout the entire territory of Georgia.

1¹. The rule for posting the information defined by paragraph 1 of this article shall not apply to Georgian diplomatic missions and consular offices abroad, which shall post information on the privatization by way of auction of movable property transferred to them for use and/or recorded on their balance sheet in accordance with the regulation approved by the Minister of Economy and Sustainable Development of Georgia.

2. (Removed - 22.05.2020, No. 5960).

3. The time limit for publishing information on the privatization of state property by way of public auction shall be established by the body carrying out the privatization.

4. (Removed).

5. (Removed).

6. (Removed).

7. (Removed).

8. (Removed).

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 25 May 2012 No. 6332 – website, 12.06.2012.

Law of Georgia of 29 November 2013 No. 1665 – website, 04.12.2013.

Law of Georgia of 22 May 2020 No. 5960 – website, 28.05.2020.

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020.

Law of Georgia of 11 November 2025 No. 1023 – website, 14.11.2025.

Article 5¹. Unified automated management tools🔗

1. The Ministry and the Property Agency, for the purposes of proceedings and access to information, use software and unified automated management tools.

2. The Ministry and the Property Agency have the right to receive, issue or deliver any information and document, as well as individual administrative-legal acts related to the exercise of the powers conferred on them by this Law, by using unified automated management tools. An individual administrative-legal act issued/delivered in accordance with the procedure established by this paragraph shall comply with the requirements of the Law of Georgia “On Electronic Document and Electronic Trust Services”.

3. The Ministry and the Property Agency have the right to store and issue, in the form of an electronic copy, any document created by them or kept with them.

4. (Removed - 21.04.2017, No. 657).

5. Data in a document issued or delivered by the Ministry or the Property Agency may be entered by mechanical means and/or electronic means.

6. The Ministry and the Property Agency, when certifying a copy issued in paper form of a document kept with them, confirm the identity of the copy with the original.

7. A document of the Ministry or the Property Agency may be issued in electronic form through the relevant links of the official website. Publication of an individual administrative-legal act of the Ministry on the official website of the Ministry (www.economy.gov.ge or www.moesd.gov.ge) shall be considered publication thereof, and publication of an individual administrative-legal act of the Property Agency on the official website of the Property Agency (www.nasp.gov.ge/www.privatization.ge) or on the website of the electronic auction system (www.eauction.ge) shall be considered publication thereof. The time limits related to a published individual administrative-legal act shall be counted from the moment the interested person becomes acquainted with it.

8. Information on the privatization/transfer into use/transfer with the right of management of state property, including the identification data of the acquirer of state property/the person receiving it into use/the person receiving it with the right of management, may be published on the official website of the Property Agency (www.nasp.gov.ge/www.privatization.ge) or on the website of the electronic auction system (www.eauction.ge).

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 28 February 2012 No. 5720 – website, 09.03.2012

Law of Georgia of 25 May 2012 No. 6332 – website, 12.06.2012

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012

Law of Georgia of 18 March 2016 No. 4910 - website, 28.03.2016

Law of Georgia of 21 April 2017 No. 657 - website, 10.05.2017

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020

Law of Georgia of 11 November 2025 No. 1023 – website, 14.11.2025

Article 6. Condition for participation in an auction🔗

1. The purpose of disposal of state property by way of auction/transfer with the right of use is to grant the right of ownership/use/management to the person participating in the auction who, in the course of the bidding, offers the entity disposing of the state property the highest privatisation price/price of transfer for use, and, if the auction is announced with conditions, to grant the right of ownership/use/management to the person participating in the auction who undertakes the obligation to satisfy the announced conditions and, in the course of the bidding, offers the entity disposing of the state property the highest privatisation price/price of transfer for use.

2. Disposal of state property may be carried out in the form of an electronic auction or a public auction. The rules and conditions for the disposal of state property by way of electronic and public auctions, as well as for the recording, storage and valuation of property transferred for disposal, shall be established by Order of the Minister of Economy and Sustainable Development of Georgia.

3. In order to be admitted to participation in an auction, an interested person shall submit an unconditional and irrevocable bank guarantee/BE. The amount of the bank guarantee/BE shall be determined in each specific case by the body carrying out privatisation/transferring with the right of management/transferring with the right of use.

3¹. When state property is disposed of/transferred for use in the form of an electronic auction, a person interested in being admitted to participation in the auction shall submit the unconditional and irrevocable bank guarantee/BE provided for by paragraph 3 of this Article through the unified settlement system of the website of the electronic auction system (www.eauction.ge).

4. When state property is disposed of by way of auction, the results of the auction shall lose force:

a) if the winner of the auction fails to pay the privatisation price in full within the period established by the property manager, where the condition of the auction was only the payment of the privatisation price;

b) if the relevant contract is not concluded within the period determined by this Law and/or established by the property manager;

c) if the winner of the auction fails to submit the unconditional and irrevocable bank guarantee within the established period;

d) if, in the case of privatisation of movable property by way of auction, the winner of the auction does not ensure the removal of this movable property within the additional period determined by the legislation of Georgia and/or established by the property manager.

4¹. (removed – 28.02.2012, No. 5720).

4². (removed – 28.02.2012, No. 5720).

5. In the cases provided for by paragraph 4 of this Article, the amount of the unconditional and irrevocable bank guarantee/BE submitted by the winner of the auction (less the amount payable to the Property Agency established by the Government of Georgia) shall be credited to the relevant budget.

6. Except for the case provided for by paragraph 5 of this Article, the results of the auction shall be annulled and the amount of the unconditional and irrevocable bank guarantee/BG (less the amount payable to the Property Agency as determined by the Government of Georgia) shall also be transferred to the relevant budget, if the auction participant has violated the rules and/or conditions of participation in the auction determined by normative acts.

6¹. In the event of violation of the rules and conditions established for the disposal of state property by way of auction, the amount of the penalty, the procedure and conditions for setting an additional term and for annulling the results of the auction shall be determined by Order of the Minister of Economy and Sustainable Development of Georgia.

7. If the property manager has postponed the holding of the auction or, before holding it, has annulled the decision taken on the disposal of state property by way of auction/on granting the right of use, the paid BG/unconditional and irrevocable bank guarantee submitted shall be returned to the auction participant.

8. If the state property put up for auction (except movable property) is not disposed of, this state property may be alienated at a repeat auction. At a repeat auction, the initial privatisation price of state property (except movable property) may be reduced by up to 50 per cent, and if the state property (except movable property) is not sold at this price either, the initial privatisation price may be reduced further. The procedure for reducing the privatisation fee of movable property in state ownership shall be determined by a Resolution of the Government of Georgia.

9. If the state property put up by way of auction is not disposed of, the entity managing the state property shall be entitled to take a decision on the disposal of the state property under the same conditions by way of an extended-term auction.

10. (Removed – 11.11.2025, No 1023).

11. (Removed – 11.11.2025, No 1023).

Law of Georgia of 10 December 2010 No 3963-LHG III, No 74, 24.12.2010, Art. 444

Law of Georgia of 1 July 2011 No 5014 – website, 14.07.2011.

Law of Georgia of 28 February 2012 No 5720 – website, 09.03.2012.

Law of Georgia of 27 March 2012 No 5928 – website, 19.04.2012.

Law of Georgia of 25 May 2012 No 6332 – website, 12.06.2012.

Law of Georgia of 5 June 2012 No 6377 – website, 15.06.2012.

Law of Georgia of 11 December 2014 No 2878 – website, 23.12.2014.

Law of Georgia of 29 May 2020 No 5989 – website, 10.06.2020.

Law of Georgia of 11 November 2025 No 1023 – website, 14.11.2025.

Article 6¹. Third party🔗

The conditions for initiating the privatization of an immovable thing in state ownership by a third party and the rule of remuneration shall be determined by Order of the Minister of Economy and Sustainable Development of Georgia.

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012

Law of Georgia of 20 March 2013 No. 352 – website, 28.03.2013

Law of Georgia of 11 December 2014 No. 2878 – website, 23.12.2014

Article 6². Special cases of determining the privatization amount🔗

When privatizing state property in the form of an auction announced with conditions, in accordance with the rule determined by Resolution of the Government of Georgia, the starting privatization amount of the state property may be determined at a price less than the market value of this state property, and in the case of agricultural land in state ownership that has not been leased out − at a price less than the value determined in accordance with paragraph 1 of Article 9 of this Law.

Law of Georgia of 29 November 2013 No. 1665 – website, 04.12.2013

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020

Article 6³. Transfer of state property into ownership free of charge🔗

1. By decision of the Government of Georgia, state property may be transferred into ownership free of charge to persons forcibly displaced from the occupied territories of Georgia − IDPs.

2. In order to adopt the decision referred to in paragraph 1 of this Article, the Government of Georgia shall have the issue prepared and submitted to it by the manager of the property.

3. Within 3 months from the adoption by the Government of Georgia of the act on the transfer of state property into ownership free of charge, the relevant contract shall be concluded between the Property Agency and the acquirer of the property. In the event that the relevant contract is not concluded within the period provided for by this paragraph, the act of the Government of Georgia shall lose force after the expiry of the period provided for by this same paragraph.

4. Movable property in state ownership may be distributed, including for social purposes, by decision of the Property Agency, on the basis of the consent of the Ministry, to a municipality, a legal entity of public law, a non-entrepreneurial (non-commercial) legal entity and/or an enterprise established with 50% or more than 50% share participation of the state, by transferring it into ownership free of charge.

Law of Georgia of 11 December 2014 No. 2878 – website, 23.12.2014

Decision of the Constitutional Court of Georgia of 3 July 2018 No. 1/1/811 – website, 11.07.2018

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020

Law of Georgia of 11 November 2025 No. 1023 – website, 14.11.2025

Article 6⁴. Direct sale of state property on the basis of competitive selection🔗

The decision on the direct sale of state property on the basis of competitive selection shall be taken by the Government of Georgia. The Government of Georgia has the right, in individual cases, to assign the authority to take this decision to the Minister of Economy and Sustainable Development of Georgia.

Law of Georgia of 18 March 2016 No. 4910 – website, 28.03.2016.

Article 6⁵. Limitation period for a claim in respect of a disputed matter related to a privatized immovable thing in state ownership🔗

The limitation period for a claim in respect of a disputed matter related to a privatized immovable thing in state ownership is 3 years.

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020.

Article 6⁶. Presumption of the accuracy of registered data🔗

When exercising the powers related to the management and disposal of state property, the property manager shall rely only on registered data in relation to a legal entity of private law, including data on the persons holding managerial and representative powers thereof.

Law of Georgia of 2 August 2021 No. 894 – website, 04.08.2021.

Article 7. Forms of privatisation of state-owned agricultural land and bodies carrying out privatisation🔗

1. The forms of privatisation of state-owned agricultural land are:

a) auction;

b) direct sale:

b.a) direct sale;

b.b) direct sale on the basis of competitive selection;

b.c) direct sale of agricultural land leased out;

c) transfer into ownership free of charge.

1¹. A private law legal entity registered in Georgia as defined by subparagraph „b“ of paragraph 2 of Article 4 of the Organic Law of Georgia "On Ownership of Agricultural Land" may acquire an agricultural land plot through the form of privatisation provided for by subparagraph „b.a“, „b.b“ or „b.c“ of paragraph 1 of this Article.

2. The privatisation, in the form of an auction, of a state-owned agricultural land plot that has not been leased out shall be carried out by the property manager.

3. The privatisation, in the form of direct sale and in the form of direct sale on the basis of competitive selection, of a state-owned agricultural land plot that has not been leased out shall be carried out on the basis of a decision of the Government of Georgia.

3¹. The privatisation, in the form of direct sale, of a state-owned agricultural land plot that has not been leased out may be carried out in the cases provided for by a Resolution of the Government of Georgia.

4. A special decision on the privatisation of individual state-owned agricultural land plots located in the 500-metre border strip defined by the Law of Georgia "On the State Border of Georgia" shall, taking into account state and public interests, be adopted by the Government of Georgia with the prior consent of the Ministry of Internal Affairs of Georgia.

5. The privatisation, in the form of direct sale, of a state-owned agricultural land plot that has been leased out shall be carried out by the property manager.

6. The property manager is entitled to conclude a contract with a third party that ensures the initiation of the privatisation of state-owned agricultural land and, where necessary, the preparation of cadastral planning/surveying drawings.

7. (removed – 11.12.2014, No. 2878).

8. (removed – 11.12.2014, No. 2878).

9. It shall be inadmissible to dispose of state-owned agricultural land without determining the category of the land plot.

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012

Law of Georgia of 6 September 2013 No. 1037 – website, 23.09.2013

Law of Georgia of 11 December 2014 No. 2878 – website, 23.12.2014

Law of Georgia of 3 June 2016 No. 5156 – website, 17.06.2016

Law of Georgia of 25 June 2019 No. 4852 – website, 02.07.2019

Law of Georgia of 11 November 2025 No. 1027 – website, 14 November 2025

Article 8. Initiation, planning/surveying and transfer in kind of the privatization, by way of auction, of state-owned, non-leased agricultural land plots🔗

1. A citizen of Georgia, a legal entity of private law registered in Georgia, the property manager and a third party shall have the right to initiate the privatization, by way of auction, of a state-owned, non-leased agricultural land plot.

2. Where a citizen of Georgia, a legal entity of private law registered in Georgia and a third party initiate the privatization, by way of auction, of a state-owned, non-leased agricultural land plot, they shall apply to the property manager.

3. The planning/surveying and transfer in kind of a state-owned, non-leased agricultural land plot shall be carried out by the property manager or the initiator of the matter.

4. Where, for the purpose of initiating privatization, a citizen of Georgia, a legal entity of private law registered in Georgia, as well as a third party wish to privatize, by way of auction, a state-owned, non-leased agricultural land plot, they shall be obliged to:

a) select a state-owned, non-leased agricultural land plot (plots) and, if necessary, divide it into plots of optimal size (not less than 3 hectares). This restriction shall not apply where the area of the plot is less than 3 hectares;

b) prepare a detailed cadastral planning/surveying drawing (drawings) of the selected state-owned, non-leased agricultural land plot (plots), as well as research information on its (their) category and quality;

c) submit to the body carrying out privatization an application on the expression of interest in the privatization, by way of auction, of the state-owned, non-leased agricultural land plot (plots).

Law of Georgia of 10 December 2010 No. 3963-LHG III, No 74, 24 December 2010, Art. 444

Law of Georgia of 5 June 2012 No. 6377 – website, 15 June 2012

Law of Georgia of 3 June 2016 No. 5156 – website, 17 June 2016

Article 9. Initial privatisation amount of a state-owned, non-leased agricultural land plot put up for auction and the rule for payment of the privatisation fee🔗

1. The initial privatisation amount of a state-owned, non-leased agricultural land plot put up for auction shall be determined by the Government of Georgia according to administrative-territorial units. If a state-owned economic and auxiliary structure (structures) and/or perennial plants are located on a state-owned, non-leased agricultural land plot, the state-owned, non-leased agricultural land plot put up for auction shall be sold for the price of the land plot, notwithstanding the economic and auxiliary structure (structures) and/or perennial plants located thereon.

2. The winner of the auction shall pay the privatisation fee for the state-owned, non-leased agricultural land plot within 30 calendar days after the auction is held.

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 28 February 2012 No. 5720 – website, 09.03.2012

Law of Georgia of 27 March 2012 No. 5928 – website, 19.04.2012

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012

Law of Georgia of 29 November 2013 No. 1665 - website, 04.12.2013

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020

Article 10. Privatisation of state-owned, non-leased agricultural land plots through direct sale and through direct sale on the basis of competitive selection🔗

1. The purpose of privatisation of state property through direct sale is to transfer the right of ownership to the buyer who will fully and in good faith fulfil the condition(s) established for the privatisation of state property through direct sale, and if the direct sale is carried out on the basis of competitive selection – the right of ownership shall be granted to the interested person (potential investor) who will fully and in good faith fulfil the condition(s) established for the privatisation of state property through direct sale on the basis of competitive selection.

2. Direct sale and direct sale on the basis of competitive selection of state-owned, non-leased agricultural land plots shall be carried out by a decision of the Government of Georgia, on the basis of the initiation and/or submission of the property manager.

2¹. The property manager is entitled, when preparing the matter for privatisation through direct sale of a state-owned, non-leased agricultural land plot on the basis of an order of the Government of Georgia, to require the applicant to submit the bank guarantee provided for by Article 20 of this Law.

2². Privatisation of state-owned, non-leased agricultural land plots through direct sale may be carried out in the cases provided for by a resolution of the Government of Georgia.

3. Direct sale on the basis of competitive selection of state-owned, non-leased agricultural land plots shall be carried out if:

a) there is a multiplicity of conditions for making the investment;

b) the conditions proposed by the interested persons are alternative.

4. The procedures defined by this Article for direct sale on the basis of competitive selection of state-owned, non-leased agricultural land plots shall commence upon the expression of interest by an interested person.

5. The proposals of interested persons shall be considered by the property manager, and in special cases – by the Government of Georgia, and it shall take a decision on carrying out the relevant measures for the purpose of direct sale on the basis of competitive selection.

6. For the purpose of direct sale on the basis of competitive selection, the property manager, and in special cases – the Government of Georgia, shall publish a decision on the terms of privatisation of a state-owned agricultural land plot not leased out in media of national and/or international importance and shall determine the period for expression of interest, which, as a rule, may not be less than 30 calendar days. If delay may cause damage to state and/or public interests, by decision of the Government of Georgia this period may be reasonably reduced, provided that publicity is ensured in another manner and potential investors are informed.

7. After expiry of the period for expression of interest, the property manager shall review the received applications and shall submit to the Government of Georgia (the Property Agency – through the Ministry) reasoned proposals on the direct sale of a state-owned agricultural land plot not leased out on the basis of competitive selection. The decision on the direct sale of a state-owned agricultural land plot not leased out shall be taken by the Government of Georgia.

8. In the case of direct sale on the basis of competitive selection, before expiry of the period for expression of interest, in order to ensure fulfilment of the privatisation terms of a state-owned agricultural land plot not leased out, the interested person shall be obliged to submit an unconditional and irrevocable bank guarantee or place funds in a corresponding deposit in the amount of 10% of the offered value of the state-owned agricultural land plot not leased out. If there is an investment obligation in the privatisation terms of the state-owned agricultural land plot not leased out, the submission of the bank guarantee referred to in this paragraph or the placement of funds in a corresponding deposit shall be carried out in order to ensure the assumption of the obligation under the privatisation terms of the state-owned agricultural land plot not leased out (conclusion of the corresponding contract). If the volume of the proposed investment exceeds the value of the state-owned agricultural land plot not leased out, the said unconditional and irrevocable bank guarantee or the funds to be placed in a deposit must correspond to 10% of the volume of the proposed investment. In the event of non-fulfilment of the privatisation terms, the said amount shall be transferred to the State Budget of Georgia. If there is an investment obligation, after the assumption of the obligation under the property's privatisation terms (conclusion of the corresponding contract), the unconditional and irrevocable bank guarantee referred to in this paragraph / the funds placed in a deposit shall be used for the purposes provided for by paragraph 1 of Article 20 of this Law.

9. The Government of Georgia is entitled, without the measures provided for by this Article, to take a decision on the direct sale, on the basis of competitive selection, of a plot of agricultural land in state ownership that has not been leased out.

10. When privatising, in the form of direct sale on the basis of a decision of the Government of Georgia, a plot of agricultural land in state ownership that has not been leased out, and in the form of direct sale on the basis of competitive selection on the basis of a decision of the Government of Georgia, the amount of the fee for the land plot and the procedure for its payment shall be determined by the relevant decision of the Government of Georgia.

11. The rule of direct sale on the basis of competitive selection of state property provided for by this Article shall not apply to immovable property in state ownership that has been transferred into use and/or is recorded on the balance sheet of a state body/Legal Entity of Public Law.

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24 December 2010, Art. 444

Law of Georgia of 1 July 2011 No. 5014 – website, 14 July 2011

Law of Georgia of 5 June 2012 No. 6377 – website, 15 June 2012

Law of Georgia of 6 September 2013 No. 1037 – website, 23 September 2013

Law of Georgia of 11 November 2025 No. 1027 – website, 14 November 2025

Article 11. Declaration of plots of agricultural land in state ownership that have not been leased out as the property of the Apostolic Autocephalous Orthodox Church of Georgia🔗

On the basis of Article 11 of the Constitutional Agreement between the State of Georgia and the Apostolic Autocephalous Orthodox Church of Georgia:

a) the plots of agricultural land in the use of the Apostolic Autocephalous Orthodox Church of Georgia shall be declared the property of the Church;

b) the Apostolic Autocephalous Orthodox Church of Georgia has the right, in agreement with the Ministry, to receive into ownership, without payment of any fee, plots of agricultural land in state ownership that have not been leased out.

Article 12. Conditions for privatization in the form of direct sale of a plot of agricultural land in state ownership that has been leased🔗

1. A plot of agricultural land in state ownership that has been leased shall be subject to privatization in the form of direct sale.

2. A necessary condition for privatization in the form of direct sale of a plot of agricultural land in state ownership that has been leased is a lease contract concluded between the state and the lessee and registered in the public registry.

3. Privatization in the form of direct sale of a plot of agricultural land in state ownership that has been leased shall be carried out on the basis of the lease contract, an extract from the public registry and a cadastral plan.

4. Privatization of part of a plot of agricultural land in state ownership that has been leased shall be inadmissible. If the area of agricultural land in state ownership that has been leased consists of several plots of land spatially/geographically independent from each other, the lessee shall have the right to buy out the desired plot(s) of agricultural land in state ownership that has (have) been leased. In the case of privatization of part of a plot (plots) of agricultural land in state ownership that has (have) been leased, the lease contract on the remaining plot(s) of land in state ownership that has (have) been leased shall be terminated and it (they) shall be sold in accordance with the procedure established by this Law for the privatization of a plot of agricultural land in state ownership that has not been leased.

5. If the lessee does not apply to the relevant body regarding privatization in the form of direct sale of a plot of agricultural land in state ownership that has been leased, then after expiry of the period established by paragraph 4 of Article 47 of this Law, the plot(s) of agricultural land in state ownership that has (have) been leased shall be sold in accordance with the procedure established by the same Law for the privatization of a plot of agricultural land in state ownership that has not been leased.

6. The property manager shall have the right to make amendments and/or additions to the lease contract for a plot of agricultural land in state ownership that has been leased in accordance with the procedure established by Georgian legislation, as well as to terminate and dissolve the lease contract; the property manager is also authorized to complete the procedure for leasing out a plot of agricultural land in state ownership. The municipality shall, within the scope of the authority delegated by the state body, exercise supervision over the payment of the lease rent provided for by the lease contract and the provision of information to the relevant structures.

7. The property manager shall be obliged, within 10 working days from the receipt of the lessee's application, to review the submitted documentation and, if it is correct, to send the lessee a notice on the payment of the relevant privatisation fee and, upon submission of a document confirming its payment, to conclude with the acquirer of state property, within 15 calendar days, a contract of sale of the agricultural land plot in state ownership that has been leased out and the economic and auxiliary building(s) and/or perennial plantings located thereon, for the registration of the ownership right in the public registry, and in the case of payment of the privatisation fee in instalments, to conclude a contract of sale which shall state the obligation to pay the remaining part of this fee.

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012

Law of Georgia of 15 July 2020 No. 6896 – website, 28.07.2020

Article 13. Privatisation proceeds of an agricultural land plot in state ownership that has been leased out and the rule for payment of the privatisation fee🔗

1. In the case of privatisation by way of direct sale, the privatisation proceeds of an agricultural land plot in state ownership that has been leased out shall be determined by the Government of Georgia according to administrative-territorial units. By a decision of the Government of Georgia, the privatisation fee of an agricultural land plot in state ownership that has been leased out may be reduced. If on an agricultural land plot in state ownership there is an economic and auxiliary building(s) in state ownership and/or perennial plantings, the land plot and the economic and auxiliary building(s) and/or perennial plantings located thereon shall be sold for the privatisation fee of the agricultural land plot in state ownership that has been leased out.

2. The lessee may pay the privatisation fee of an agricultural land plot in state ownership that has been leased out in full or in instalments within 1 year. In the case of payment of 50% of the fee, a contract of sale shall be concluded.

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012

Article 14. (Removed)🔗

Law of Georgia of 22 May 2020 No. 5960 – website, 28.05.2020

Article 15. (Removed)🔗

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 22 May 2020 No. 5960 – website, 28.05.2020

Article 16. (repealed)🔗

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012

Law of Georgia of 22 May 2020 No. 5960 – website, 28.05.2020

Article 17. (repealed)🔗

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012

Law of Georgia of 15 July 2020 No. 6896 – website, 28.07.2020

Law of Georgia of 22 May 2020 No. 5960 – website, 28.05.2020

Article 18. Forms of privatisation of immovable property in state ownership and bodies carrying out privatisation🔗

1. The forms of privatisation of immovable property in state ownership are:

a) auction;

b) direct sale:

b.a) direct sale;

b.b) direct sale on the basis of competitive selection;

c) transfer into ownership free of charge.

2. Privatisation of immovable property in state ownership in the form of an auction shall be carried out by the property manager.

3. Privatisation of immovable property in state ownership in the forms of direct sale, direct sale on the basis of competitive selection and transfer into ownership free of charge shall be carried out on the basis of a decision of the Government of Georgia, in accordance with the procedure established by paragraph 5 of Article 3, and Articles 63 and 10 of this Law, and in the form of direct sale, by the property manager, in accordance with the procedure established by Article 18¹ of this Law.

3¹. Privatisation of immovable property in state ownership in the form of direct sale may be carried out in the cases provided for by a Resolution of the Government of Georgia.

4. The property manager shall be entitled to conclude a contract with a third person which ensures the initiation of privatisation of immovable property in state ownership and, where necessary, the preparation of cadastral planning/survey drawings.

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012

Law of Georgia of 6 September 2013 No. 1037 – website, 23.09.2013

Law of Georgia of 11 December 2014 No. 2878 – website, 23.12.2014

Law of Georgia of 3 June 2016 No. 5156 – website, 17.06.2016

Law of Georgia of 11 November 2025 No. 1027 – website, 14.11.2025

Article 18¹. Privatization of immovable property in state ownership, leased out, by way of direct sale🔗

1. The property manager shall be entitled to carry out the privatization, by way of direct sale, of immovable property in state ownership leased out before 1 January 2007, to the respective lessee. The privatization amount of immovable property in state ownership, leased out, shall be five times its annual market rental price. The annual market rental price of immovable property shall be determined by a certified appraiser of an entity accredited by the Unified National Accreditation Body of Georgia – the Accreditation Centre.

2. A necessary condition for the privatization, by way of direct sale, of immovable property in state ownership, leased out, is a lease contract concluded between the state and the lessee and registered in the public registry.

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012

Article 19. Rule for determining and settling the privatization fee for immovable property in state ownership🔗

1. The rule for determining the privatization fee and the initial privatization amount for immovable property in state ownership shall be approved by the Government of Georgia. When determining the privatization fee or the initial privatization amount for immovable property in state ownership, paragraph 6 of this Article shall be taken into account.

2. Settlement for acquired immovable property in state ownership may be effected in a lump sum or in installments.

3. The winner of the auction shall pay the privatization fee for the immovable property in state ownership within the period established by the body carrying out privatization, which shall be not less than 7 and not more than 30 calendar days from the holding of the auction. If the auction is announced with conditions, the body carrying out privatization shall establish the period for payment of the privatization fee, which shall not exceed 2 years from the holding of the auction.

4. When privatizing immovable property in state ownership by way of direct sale, the buyer shall pay the privatization fee for the immovable property in state ownership after the conclusion of the contract, within the period established by the Government of Georgia.

5. (Removed – 28.02.2012, No. 5720).

6. In accordance with the rule established by the Government of Georgia for determining the normative price of a non-agricultural land plot, the normative price of a land plot in state ownership, taking into account the market value, shall be established by the representative body of the relevant municipality – the Sakrebulo.

7. The Government of Georgia may establish, on the recreational territories approved by the relevant legal act of the Government of Georgia "On Granting the Status of Recreational Territory to the Territories of Georgian Resorts, Resort Areas, Mountain-Skiing Centres and the Black Sea Coast and Approving Their Boundaries", a different rule for determining the normative price of a non-agricultural land plot and/or another body establishing the normative price.

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 24 June 2011 No. 4965 – website, 11.07.2011

Law of Georgia of 28 February 2012 No. 5720 – website, 09.03.2012

Law of Georgia of 27 March 2012 No. 5928 – website, 19.04.2012

Law of Georgia of 6 September 2013 No. 1037 – website, 23.09.2013

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020

Law of Georgia of 15 July 2020 No. 6896 – website, 28.07.2020

Article 20. Special Conditions for the Privatization of Immovable Property in State Ownership🔗

1. The buyer shall be obliged, in the event that there is an investment obligation as a privatization condition for immovable property in state ownership, when privatizing this immovable property in the form of direct sale/auction, on the basis of the relevant order of the Government of Georgia/auction results, before the conclusion of the relevant contract, to submit an unconditional and irrevocable bank guarantee in the amount of not less than 10 percent of the investment obligation, the term of which must exceed the term for the performance of the investment obligation by not less than 4 months. Reduction of the amount of the unconditional and irrevocable bank guarantee specified in this paragraph shall be permissible by decision of the Government of Georgia.

1¹. The buyer shall be obliged, when privatizing immovable property in state ownership under privatization conditions (except for the obligation to pay the privatization fee), in the absence of an investment obligation as a privatization condition, during the privatization of this immovable property in the form of direct sale/auction, on the basis of the relevant order of the Government of Georgia/auction results, before the conclusion of the relevant contract, to submit an unconditional and irrevocable bank guarantee, the amount and term of which shall be determined by decision of the Government of Georgia.

2. The unconditional and irrevocable bank guarantee/BE, during its validity, shall ensure the satisfaction of a claim for a penalty imposed as a result of the non-performance of obligations to be performed by the buyer.

3. The buyer shall be obliged, in the event of a reduction in the amount of the unconditional and irrevocable bank guarantee/BE, to replenish it to its full amount within 1 month.

4. In the event of termination of the contract by the entity managing state property as a result of the non-performance of obligations assumed by the buyer, the amount of the unconditional and irrevocable bank guarantee/BE shall be transferred in full to the relevant budget.

5. The obligation to submit the unconditional and irrevocable bank guarantee/BE provided for by this article shall not apply to those buyers to whom, in connection with the construction of power plants, in accordance with a memorandum concluded with the Government of Georgia, immovable property in state ownership must be transferred through privatization.

6. In the event of unilateral termination of the contract due to violation of the privatization conditions provided for by the relevant contract concluded for the purpose of privatization of state property, the privatized property shall return to state ownership, and the mortgage right(s) of a third person (persons) registered on this property shall be extinguished, if, before the encumbrance of the property with a mortgage, the relevant information reflecting the privatization obligation(s) is registered in the public register in the record on the immovable thing. At the same time, the state shall not compensate the acquirer of the property for the amounts paid and expenses incurred.

7. The operation of this Article shall not extend to state property disposed of within the framework of a public-private partnership project provided for by the Law of Georgia “On Public-Private Partnership”.

Law of Georgia of 1 July 2011 No. 5014 – website, 14.07.2011.

Law of Georgia of 6 September 2013 No. 1037 – website, 23.09.2013.

Law of Georgia of 29 November 2013 No. 1665 – website, 04.12.2013.

Law of Georgia of 11 December 2014 No. 2878 – website, 23.12.2014.

Law of Georgia of 4 May 2018 No. 2274 – website, 24.05.2018.

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020.

Law of Georgia of 11 November 2025 No. 1023 – website, 14.11.2025.

Article 21. (repealed)🔗

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Article 22. (repealed)🔗

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020.

Article 23. Management, disposal and transfer for use of immovable property in state ownership in the Autonomous Republic of Abkhazia and the Autonomous Republic of Adjara🔗

The disposal and transfer for use of immovable property in state ownership in the Autonomous Republic of Abkhazia and the Autonomous Republic of Adjara shall be carried out, in accordance with the procedure established by this Law, by the property manager. Immovable property in the ownership of the Autonomous Republic of Abkhazia and the Autonomous Republic of Adjara shall be disposed of by the respective bodies of the executive authority of the Autonomous Republic of Abkhazia and the Autonomous Republic of Adjara in accordance with the procedure established by the legislation of Georgia.

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012.

Article 24. Procedure for the disposal of immovable property that has passed into state ownership🔗

The procedure for the disposal of immovable property that has passed into state ownership shall be determined by Chapters II and IV of this Law. Immovable property that has passed into state ownership may be transferred to the bodies defined by paragraph 1 of Article 12 of the Law of Georgia “On Operative-Investigative Activity” for the purpose of conducting operative-investigative measures.

Law of Georgia of 20 December 2011 No. 5549 – website, 28.12.2011.

Law of Georgia of 5 April 2013 No. 523 – website, 24.04.2013.

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020.

Article 25. (repealed)🔗

Law of Georgia of 2 March 2012 No. 5748 – website, 15.03.2012.

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020.

Article 26. Rule for the disposal of movable property transferred into state ownership🔗

1. The rule for the disposal of movable property transferred into state ownership shall be determined by Chapter VI of this Law, except for the case provided for by paragraph 2 of this Article.

2. If the value of goods seized free of charge as a result of the commission of an administrative offence provided for by the Code of Administrative Offences of Georgia or of a customs offence provided for by the Customs Code of Georgia, which are assigned to the category of perishable products, does not exceed the amount determined by Order of the Minister of Economy and Sustainable Development of Georgia, the decision on its distribution for social purposes or destruction shall be taken by the body or official authorized to seize the property immediately upon enforcement of the administrative penalty or customs sanction on the confiscation of the said goods.

Law of Georgia of 15 December 2010 No. 4060-LHG III, No. 74, 24.12.2010, Art. 454

Law of Georgia of 5 April 2013 No. 523 – website, 24.04.2013

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020

Law of Georgia of 11 November 2025 No. 1023 – website, 14.11.2025

Article 27. (removed)🔗

Law of Georgia of 12 November 2010 No. 3806-LHG III, No. 66, 03.12.2010, Art. 414

Law of Georgia of 20 December 2011 No. 5549 – website, 28.12.2011

Law of Georgia of 25 May 2012 No. 6332 – website, 12.06.2012

Law of Georgia of 5 April 2013 No. 523 – website, 24.04.2013

Law of Georgia of 28 June 2019 No. 4930 – website, 04.07.2019

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020

Law of Georgia of 15 July 2020 No. 6896 – website, 28.07.2020

Law of Georgia of 11 November 2025 No. 1023 – website, 14.11.2025

Article 28. (removed)🔗

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020

Article 29. Forms of disposal of movable property in state ownership and the bodies carrying out disposal🔗

1. The decision on the disposal of movable property in state ownership (hereinafter – movable property) shall be taken by the state body/legal entity of public law to which the movable property has been transferred for use and/or is recorded on its balance sheet. A legal entity of public law subject to state control shall have the right to take a decision on the disposal of movable property only with the consent of the body exercising state control. Thereafter, the relevant state body/legal entity of public law shall apply to the Property Agency for the purpose of further disposal of the movable property and shall transfer the movable property to it. The decision on the form of disposal of the movable property shall be taken by the Property Agency, except for the case provided for by paragraph 2 of Article 31¹ of this Law.

2. Paragraph 1 of this Article shall not apply to:

a) Georgian diplomatic missions and consular offices abroad, which dispose of movable property transferred to them for use and/or recorded on their balance sheets. Georgian diplomatic missions and consular offices abroad shall carry out the privatisation, in the form of an auction, of movable property transferred to them for use and/or recorded on their balance sheets in accordance with the regulation approved by the Minister of Economy and Sustainable Development of Georgia;

b) property received as a result of the write-off by a state body/legal entity of public law of fixed assets transferred to it for use and/or recorded on its balance sheet, which cannot be used for any purpose and which must be destroyed on the basis of a decision of the head of the state body/legal entity of public law. Property received as a result of the write-off by a state body/legal entity of public law of fixed assets transferred to it for use and/or recorded on its balance sheet, which cannot be used for any purpose, shall be destroyed in accordance with the regulation approved by a Resolution of the Government of Georgia.

3. If the movable property has not been transferred for use to and/or is not recorded on the balance sheet of another state body/legal entity of public law, the decision on its disposal shall be taken by the Property Agency.

3¹. A person may be transferred into ownership movable property in state ownership and/or recorded on the balance sheet of a state body/legal entity of public law that has been damaged by that person, in exchange for the receipt of property of a value not less than the balance-sheet value existing prior to the damage to that property. A state body/legal entity of public law shall be entitled, on the basis of the adoption of the relevant individual administrative act and the conclusion of a contract, to transfer the movable property into the ownership of the person and, in exchange, to receive and record on its balance sheet the relevant property.

4. (deleted – 29.05.2020, No. 5989);

5. (deleted – 11.11.2025, No. 1023).

6. The forms of disposal of movable property are:

a) privatization in the form of an auction (including an electronic auction);

b) privatization in the form of direct sale:

b.a) on the basis of a decision of the Government of Georgia, in accordance with the procedure established by Article 10 of this Law;

b.b) through a trading facility (including an online store);

c) privatization through a third party;

d) distribution;

e) destruction;

f) transfer in the form of leasing.

7. (removed – 29.05.2020, No. 5989);

Law of Georgia of 25 May 2012 No. 6332 – website, 12 June 2012.

Law of Georgia of 5 June 2012 No. 6377 – website, 15 June 2012.

Law of Georgia of 5 April 2013 No. 523 – website, 24 April 2013.

Law of Georgia of 6 September 2013 No. 1037 – website, 23 September 2013.

Law of Georgia of 11 December 2014 No. 2878 – website, 23 December 2014.

Law of Georgia of 29 May 2020 No. 5989 – website, 10 June 2020.

Law of Georgia of 11 November 2025 No. 1023 – website, 14 November 2025.

Article 29¹. Rule for the issuance of timber resources🔗

1. Timber resources obtained as a result of felling carried out on a land plot registered as state property (except for a land plot falling within the boundaries of a state forest, a protected landscape or a multi-purpose use area) and on a de-registered territory of a state forest in state ownership (including a territory left outside the boundaries of a state forest as a result of correction of the state forest boundary) and as a result of felling carried out by the state forest management body shall be stored by the same body or, on the said territory, by the Legal Entity of Public Law – the Ajara Forestry Agency, included in the system of the Division of Environmental Protection and Natural Resources of the subordinate institution of the Ministry of Agriculture of the Autonomous Republic of Ajara, and shall be accordingly issued by the state forest management body, and in the Autonomous Republic of Ajara – by the Legal Entity of Public Law – the Ajara Forestry Agency, in accordance with the forest use rules approved by a Resolution of the Government of Georgia.

2. A woody plant unlawfully obtained (by unlawful felling or otherwise) within the boundaries of a state forest, within the boundaries of a protected area, on a territory in state ownership or within the administrative boundaries of a municipality (except for a territory in private ownership) shall be transferred to the relevant forest management body in accordance with the procedure established by the Code of Administrative Offences of Georgia and/or the Criminal Procedure Code of Georgia, while a woody plant unlawfully obtained (by unlawful felling or otherwise) on a territory within the boundaries of a state forest located on the territory of the Autonomous Republic of Ajara shall be transferred to the Legal Entity of Public Law – the Ajara Forestry Agency, included in the system of the Division of Environmental Protection and Natural Resources of the subordinate institution of the Ministry of Agriculture of the Autonomous Republic of Ajara, which shall ensure the alienation of the woody plants transferred to them. The rule for the alienation of a seized woody plant shall be determined by the relevant subordinate normative act.

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24 December 2010, Art. 444

Law of Georgia of 11 March 2011 No. 4391 – website, 17 March 2011

Law of Georgia of 20 December 2011 No. 5555 – website, 28 December 2011

Law of Georgia of 29 June 2012 No. 6610 – website, 10 July 2012

Law of Georgia of 4 May 2017 No. 796 – website, 29 May 2017

Law of Georgia of 7 December 2017 No. 1702 – website, 14 December 2017

Law of Georgia of 22 May 2020 No. 5960 – website, 28 May 2020

Law of Georgia of 29 May 2020 No. 5989 – website, 10 June 2020

Law of Georgia of 15 December 2021 No. 1104 – website, 24 December 2021

Law of Georgia of 15 June 2023 No. 3161 – website, 5 July 2023

Article 29². Rule for the issuance of the driftwood timber resource existing on the banks of the internal waters of Georgia🔗

On the banks of the internal waters of Georgia existing on land plots registered in state ownership, which do not fall within the boundaries of the state forest contour, in a protected landscape or in a multi-purpose use territory, the rule for the storage and issuance of the existing driftwood timber resource shall be determined in accordance with the forest use rule approved by a Resolution of the Government of Georgia.

Law of Georgia of 4 May 2017 No. 796 – website, 29.05.2017.

Law of Georgia of 22 May 2020 No. 5960 – website, 28.05.2020.

Article 30. Transfer of a movable thing to the insurer upon the occurrence of an insured event🔗

1. Upon the occurrence of an insured event, in the case provided for by the insurance contract, a state body shall transfer into ownership to the insurer the movable thing in its use, in exchange for the insurer's compensation of the value of this thing or the transfer of an undamaged thing identical to the damaged thing, under the conditions provided for by the insurance contract.

2. The rule and conditions for the transfer of a movable thing to the insurer upon the occurrence of an insured event shall be determined by a Resolution of the Government of Georgia.

Article 31. Determination of the privatization fee for a movable thing, settlement and execution of a transaction on privatization🔗

1. The rule for determining the privatization fee and the initial privatization amount for a movable thing shall be approved by the Government of Georgia.

2. Upon privatization of a movable thing, settlement shall be carried out in accordance with Article 19 of this Law.

3. Upon privatization of a movable thing, a contract of sale shall be concluded between the body carrying out privatization and the buyer. Upon privatization of a movable thing in the form of an unconditional auction, the form of the contract of sale to be concluded shall be approved by the Ministry. The body carrying out privatization shall be entitled to issue confirmation of victory in the auction. Upon privatization of a movable thing by the Government of Georgia in the form of direct sale, the contract of sale shall be concluded within 3 months from the adoption by the Government of Georgia of the relevant order, and upon privatization of a movable thing in the form of an auction — within the period established by the property manager. The period for concluding the contract of sale established by the property manager shall not exceed 45 calendar days from the holding of the auction (except for the case of privatization of a movable thing transferred into state ownership). If the contract of sale is not concluded within the period provided for by this paragraph, the results of the auction/the order of the Government of Georgia shall lose force after the expiry of the same period.

4. The privatization proceeds received as a result of privatization of a movable thing shall be fully credited to the State Budget of Georgia in accordance with the procedure established by the legislation of Georgia. The privatization proceeds received as a result of privatization of a movable thing by the diplomatic representations and consular institutions of Georgia abroad, less the auction expenses, shall be credited to the State Budget of Georgia in accordance with the procedure established by the legislation of Georgia.

5. The property manager shall be entitled to conclude a contract with a third person which ensures the initiation of privatization of a movable thing in state ownership.

6. (Removed - 29.05.2020, No. 5989);

7. (Removed - 29.05.2020, No. 5989);

8. The rule for distribution of the amount received as a result of privatization of movable property by the Property Agency shall be determined by a Resolution of the Government of Georgia.

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 1 July 2011 No. 5014 – website, 14.07.2011

Law of Georgia of 27 March 2012 No. 5928 – website, 19.04.2012

Law of Georgia of 25 May 2012 No. 6332 – website, 12.06.2012

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012

Law of Georgia of 5 April 2013 No. 523 – website, 24.04.2013

Law of Georgia of 6 September 2013 No. 1037 – website, 23.09.2013

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020

Law of Georgia of 11 November 2025 No. 1023 – website, 14.11.2025

Article 31¹. Rule of disposal of movable property by the Property Agency🔗

1. The Property Agency may select the form of privatization of movable property based on the specifics and/or the value of this property.

2. Movable property may be distributed by the Property Agency, in agreement with the Ministry, in accordance with the rule established by paragraph 4 of Article 6³ of this Law.

3. If movable property cannot be used for any purpose, it shall be destroyed.

Law of Georgia of 25 May 2012 No. 6332 – website, 12.06.2012.

Law of Georgia of 5 April 2013 No. 523 – website, 24.04.2013.

Law of Georgia of 15 July 2020 No. 6896 – website, 28.07.2020.

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020.

Law of Georgia of 11 November 2025 No. 1023 – website, 14.11.2025.

Article 32. Objects to which the rules established by this Chapter do not apply🔗

The rules established by this Chapter shall not apply to:

a) the state housing fund (except for ownerless residential houses and apartments transferred and/or passing into state ownership as provided for by paragraph 4 of Article 1 of this Law);

b) buildings and structures provided for by the respective legal act of the Government of Georgia "On approval of the list of types of basic (non-distributable) property to be transferred by the State to municipalities";

c) (removed - 29.11.2013, No. 1665).

Law of Georgia of 6 September 2013 No. 1037 – website, 23.09.2013.

Law of Georgia of 29 November 2013 No. 1665 - website, 04.12.2013.

Law of Georgia of 15 July 2020 No. 6896 – website, 28.07.2020.

Article 3³. Forms and conditions of transfer of state property into use

1. State property shall be transferred into use for a term or indefinitely, for a fee or free of charge, in the form of an auction or without it.

2. State property may be transferred into use to the bodies of the state authority of Georgia, the Autonomous Republics of Abkhazia and Adjara, a municipality and legal entities of public law, as well as to natural persons and legal entities of private law.

3. The transfer into use of an immovable thing in state ownership shall be registered in the public registry by the respective body of the state, the Autonomous Republic of Abkhazia or Adjara, the municipality, the natural person, the legal entity of public law or private law to which this property was transferred into use.

4. It is prohibited for the recipient of state property into use to encumber with mortgage, to pledge, to encumber with servitude the state property transferred into use, to conclude any other dispositive transaction in respect of immovable property, or to issue an individual administrative-legal act which results in a change of the owner of the property, unless otherwise provided by this law.

5. The operation of paragraph 4 of this article shall not extend to state property transferred within the framework of a public-private partnership project provided for by the Law of Georgia "On Public-Private Partnership".

Law of Georgia of 29 November 2013 No. 1665 – website, 04.12.2013.

Law of Georgia of 4 May 2018 No. 2274 – website, 24.05.2018.

Law of Georgia of 15 July 2020 No. 6896 – website, 28.07.2020.

Article 34. Transfer of property and completed work to a state body/legal entity of public law🔗

A state body/legal entity of public law has the right, on behalf of the state, to receive into state ownership and enter on the balance sheet property transferred by a natural person or a legal entity of private law and/or to receive completed work.

Law of Georgia of 11 December 2014 No. 2878 – website, 23.12.2014.

Article 35. Rule for the transfer of property for use to a state body, a body of the Autonomous Republic of Abkhazia or Adjara, a municipality or a Legal Entity of Public Law (LEPL)🔗

1. A state body, a body of the Autonomous Republic of Abkhazia or Adjara, or a municipality shall apply to the property manager with an application regarding the initial transfer of state property for use. Within 2 weeks from such application, the property manager shall, in accordance with the established procedure, adopt a decision on granting consent to the issue raised in the application, which, in cases provided for by Georgian legislation, shall be the basis for registration with the appropriate registering body of the transfer of state property for use to the relevant body, or shall state a reasoned refusal to transfer the state property. If the property manager states a refusal to transfer the state property, the issue of transfer of the state property shall be considered in accordance with the procedure determined by a Resolution of the Government of Georgia.

2. After the initial transfer of state property for use, a state body, a body of the Autonomous Republic of Abkhazia or Adjara, or a municipality shall be entitled, on the basis of an individual administrative-legal act of the head of the relevant body, to transfer this property for use to another state body, a body of the Autonomous Republic of Abkhazia or Adjara, or a municipality, and an acceptance-transfer act shall be drawn up for this. A state body, a body of the Autonomous Republic of Abkhazia or Adjara, or a municipality shall have the right, in accordance with the procedure established by this Law, to transfer for use the property recorded on its balance sheet.

3. A state body, a body of the Autonomous Republic of Abkhazia or Adjara, or a municipality shall, in writing and with appropriate justification, apply to the state body, body of the Autonomous Republic of Abkhazia or Adjara, or municipality to which this property has been transferred in accordance with the procedure established by Georgian legislation, regarding the transfer of state property for use. The procedure for submitting the application, its consideration and the adoption of a decision shall be determined by a Resolution of the Government of Georgia.

4. The individual administrative-legal act provided for by paragraph 2 of this Article shall indicate the term for the transfer of state property for use (unless the transfer is for an indefinite period), as well as other conditions of transfer (if any).

5. In the case of transfer for use, by a state body, a body of the Autonomous Republic of Abkhazia or Adjara, or a municipality, of state property received for use to another state body, a body of the Autonomous Republic of Abkhazia or Adjara, or a municipality, the contract concluded between the property manager and this body (if any), on the basis of which the state property was transferred for use, shall be terminated.

6. If the owner of the property cannot be determined, a state body or the respective body of the Autonomous Republic of Abkhazia or Adjara shall apply to the property manager with an application regarding the transfer of the property into use. Within 30 calendar days from the submission of the application, the property manager shall adopt a decision on granting consent on the matter raised in the application, which shall be the basis for the state body or the respective body of the Autonomous Republic of Abkhazia or Adjara to apply to the National Agency of Public Registry for the registration of the property as state property and for the registration of its transfer into use to the same body, or shall give a reasoned refusal to transfer the property. If the property manager fails to adopt a decision within the established period, the state body or the respective body of the Autonomous Republic of Abkhazia or Adjara shall be entitled to apply to the National Agency of Public Registry with a request for the registration of the property as state property and for the registration of its transfer into use to the same body.

7. (Removed – 11.12.2014, No 2878).

8. The operation of paragraphs 1–6 of this article shall also extend to legal entities of public law, except for political unions of citizens, creative unions and the Georgian Apostolic Autocephalous Orthodox Church. A legal entity of public law subject to state control shall have the right to transfer the state property in its use only with the consent of the body exercising state control.

9. A legal entity of public law that does not have a body exercising state control may, with the consent of the Government of Georgia, be transferred property by the state, the respective body of the Autonomous Republic of Abkhazia or Adjara, a municipality or a legal entity of public law, in the forms of use provided for by the Civil Code of Georgia, for a term or indefinitely, for consideration or free of charge.

10. When state property is transferred into use on the basis of this article, the person granting the right of use shall remove the transferred state property from the balance sheet, and the person receiving the right of use shall enter the said property on the balance sheet.

Law of Georgia of 10 December 2010 No 3963-LHG III, No 74, 24.12.2010, Art. 444

Law of Georgia of 1 July 2011 No 5014 – website, 14.07.2011

Law of Georgia of 5 June 2012 No 6377 – website, 15.06.2012

Law of Georgia of 11 December 2014 No 2878 – website, 23.12.2014

Law of Georgia of 15 July 2020 No 6896 – website, 28.07.2020

Law of Georgia of 11 November 2025 No 1023 – website, 14.11.2025

Article 36. Rule for the transfer of state property for use to a natural person and a legal entity of private law🔗

1. State property shall be transferred to a natural person or a legal entity of private law for a fee, in the forms of use provided for by the Civil Code of Georgia, on the basis of an auction, with the consent of the property manager, by the state body, the body of the Autonomous Republic of Abkhazia or Adjara, the municipality or the Legal Entity of Public Law to which this property has been transferred for use or is recorded on the balance sheet. If the state property has not been transferred for use, it shall be transferred for use to a natural person or a legal entity of private law by the property manager in accordance with the established procedure.

1¹. The transfer of a state-owned agricultural land plot for use to natural persons and legal entities of private law may be for a term not exceeding 49 years, except for a case provided by law. The state forest management body, and in the Autonomous Republic of Adjara – the Legal Entity of Public Law included in the system of the Environmental Protection and Natural Resources Division of the sub-agency institution of the Ministry of Agriculture of the Autonomous Republic of Adjara – the Adjara Forestry Agency, shall grant state forest lands with the right of use for agricultural purposes and with the right of use for non-agricultural purposes in accordance with the legislation of Georgia.

1². A natural person and/or a legal entity of private law receiving state property for use for a fee shall, during the use of this property and until its return to the person that granted the property for use, pay the fee for the transfer of state property for use and ensure the maintenance and upkeep of the said property.

1³. A user of state property who does not have a document confirming the right to lawfully use this property and who uses the property for entrepreneurial activity (for commercial purposes) shall, upon the written demand of the property manager, pay to the State Budget of Georgia the fee for transfer for use, in accordance with market value (on the basis of an expert/audit opinion), for the entire period of use from the moment of registration of the state's ownership right in the Public Registry.

2. The transfer of state property to a natural person and a legal entity of private law for a fee or free of charge, without an auction, except for the establishment of a servitude right over an immovable thing and the cases defined by paragraph 2⁴ of this article, may be carried out only with the consent of the Government of Georgia.

2¹. The establishment of a servitude right over an immovable thing for a natural person and a legal entity of private law for a fee or free of charge, without an auction, shall be carried out on the basis of a decision of the property manager.

2². When transferring property into use to a natural person and a legal entity of private law for consideration or gratuitously, without an auction, on the basis of a decision of the Government of Georgia, the contract on the transfer of the property into use shall be concluded within 3 months from the adoption by the Government of Georgia of the relevant Decree, and when transferring property into use in the form of an auction — within 45 calendar days from the holding of the auction. In the event of failure to conclude the relevant contract within the period provided for by this paragraph, the Decree of the Government of Georgia/the results of the auction shall lose force after the expiry of the period provided for by the same paragraph.

2³. For the purpose of arranging the infrastructure necessary for the further processing of mineral resources extracted/to be extracted within the scope of a mineral extraction license or a subsoil use license, it is permissible to transfer state property to the holder of a mineral extraction license/subsoil use license for consideration, in the forms of use provided for by the Civil Code of Georgia, for a term not exceeding 49 years, in exchange for the use fee determined on the basis of the conclusion of an independent auditor (expert), without an auction, on condition that the state property transferred into use and the infrastructure arranged on it (processing plant, auxiliary buildings and structures, etc.) are used for the purpose of processing mineral resources extracted within the scope of the license. The term for transfer of land into use shall not exceed the term of validity of the use license. At the same time, revocation of the mineral extraction license/subsoil use license shall cause termination of the right to use state property determined by this Article.

2⁴. In the case provided for by paragraph 2³ of this Article, the decision on transfer of state property to the holder of a mineral extraction license with the consent of the property manager shall be taken by the state body, the body of the Autonomous Republic of Abkhazia or Adjara, or a Legal Entity of Public Law to which this property has been transferred into use or is recorded on the balance sheet. If the state property has not been transferred into use, the decision on transfer of state property into use to the holder of a mineral extraction license shall be taken by the property manager on the basis of a request of the license issuer. At the same time, the area of the land plot transferred into use shall be determined in each specific case, but its total area shall not exceed 3 hectares.

2⁵. Transfer of state property into use to the holder of a mineral extraction license/subsoil use license at a price lower than the use fee determined on the basis of the conclusion of an independent auditor (expert) may be carried out in accordance with paragraph 2 of this Article.

3. The property manager shall, in accordance with the established procedure, transfer the immovable property in state ownership whose privatisation is prohibited by this Law, in the forms of gratuitous construction, gratuitous usufruct and loan, without an auction, only to the state or to enterprises established through share participation by a Legal Entity of Public Law founded by the state, where 50% or more than 50% of the share (shares) is in the ownership of the state or of a Legal Entity of Public Law founded by the state.

Law of Georgia of 10 December 2010 No. 3963 - LHG III, No. 74, 24 December 2010, Art. 444

Law of Georgia of 11 March 2011 No. 4391 - website, 17 March 2011

Law of Georgia of 1 July 2011 No. 5014 - website, 14 July 2011

Law of Georgia of 5 June 2012 No. 6377 – website, 15 June 2012

Law of Georgia of 25 March 2013 No. 485 – website, 5 April 2013

Law of Georgia of 29 November 2013 No. 1665 - website, 4 December 2013

Law of Georgia of 11 December 2014 No. 2878 – website, 23 December 2014

Law of Georgia of 18 March 2016 No. 4910 - website, 28 March 2016

Law of Georgia of 4 May 2017 No. 796 - website, 29 May 2017

Law of Georgia of 7 December 2017 No. 1702 – website, 14 December 2017

Law of Georgia of 5 February 2020 No. 5705 – website, 10 February 2020

Law of Georgia of 22 May 2020 No. 5960 – website, 28 May 2020

Law of Georgia of 29 May 2020 No. 5989 – website, 10 June 2020

Law of Georgia of 15 July 2020 No. 6896 – website, 28 July 2020

Law of Georgia of 14 December 2021 No. 1085 – website, 17 December 2021

Article 37. (Removed)🔗

Law of Georgia of 10 December 2010 No. 3963 - LHG III, No. 74, 24 December 2010, Art. 444

Law of Georgia of 25 May 2012 No. 6332 – website, 12 June 2012

Law of Georgia of 29 November 2013 No. 1665 - website, 4 December 2013

Law of Georgia of 11 November 2025 No. 1023 – website, 14 November 2025

Article 38. Rule for determining and settling the fee for the transfer of state property for use🔗

1. The rule for determining the fee for the transfer of state property for use shall be approved by the Government of Georgia.

2. Upon the transfer of state property for use, settlement shall be effected in accordance with Article 19 of this Law.

3. Upon the transfer of state property for use for a fee by a Ministry, the Property Agency or another state body, the amount for the transfer for use shall be credited to the State Budget of Georgia, while upon the transfer of property in state ownership for use for a fee by a body of the Autonomous Republic of Abkhazia or Adjara, a municipality or a Legal Entity of Public Law, the amount for the transfer for use shall be credited to the budget of the transferor for use.

Law of Georgia of 1 July 2011 No. 5014 - website, 14 July 2011

Law of Georgia of 5 June 2012 No. 6377 – website, 15 June 2012

Law of Georgia of 6 September 2013 No. 1037 – website, 23 September 2013

Law of Georgia of 15 July 2020 No. 6896 – website, 28 July 2020

Article 39. State-owned intangible property asset🔗

1. State-owned intangible property assets include shares and stocks, as well as all claims and rights that may be transferred to other persons or are intended to create a material benefit for their holder and/or confer the right to demand something from other persons.

2. The property manager shall, on the basis of state property, in accordance with the Law of Georgia “On Entrepreneurs”, establish joint-stock companies and limited liability companies and/or non-entrepreneurial (non-commercial) legal entities.

3. In an enterprise in which the state owns more than 50% of the total number of votes, a supervisory board may be created by decision of the Government of Georgia, except for the cases provided for by paragraphs 3¹ and 3² of this article. In the supervisory board of the said enterprise, as well as in the supervisory board of an enterprise operating with 50% or less equity participation of the state, the state’s representative may be a public servant, if he/she has no conflict of interest with this enterprise. A member of the supervisory board of an enterprise who is at the same time a public servant shall perform the duties assigned to him/her without appropriate remuneration, and his/her activity in a public institution shall not be considered an incompatibility of interests.

3¹. In a state-owned enterprise engaged in the production and trade of electricity and natural gas, a supervisory board may be created by decision of the Property Agency. In relation to the supervisory board of this enterprise and its member, the requirements provided for by the Law of Georgia “On Energy and Water Supply” shall be observed. In the supervisory board of the said enterprise, the state’s representative may be a public servant, if he/she has no conflict of interest with this enterprise. A member of the supervisory board of an enterprise who is at the same time a public servant shall perform the duties assigned to him/her without appropriate remuneration, and his/her activity in a public institution shall not be considered an incompatibility of interests.

3². The creation of a supervisory board in an enterprise performing the functions of the state-owned electricity transmission system operator and the state-owned natural gas transmission system operator shall be mandatory. With respect to the supervisory board of this enterprise and its member, the requirements provided for by the Law of Georgia on Energy and Water Supply shall be observed. The representative of the state in the supervisory board of the said enterprise may be a public servant, if he/she has no conflict of interest with this enterprise. A member of the supervisory board of the enterprise who is at the same time a public servant shall perform the duties assigned to him/her without appropriate remuneration, and his/her activity shall not be considered as incompatibility of interests in a public institution. The majority of the members of the supervisory board of the state-owned electricity transmission system operator and the state-owned natural gas transmission system operator shall not be public servants.

4. The decision on the purchase/redemption of shares/stocks of an enterprise operating with the state's share participation, in accordance with the procedure established by the Law of Georgia on Entrepreneurs, shall be taken by the Government of Georgia.

5. The state-owned electricity transmission system operator and the state-owned natural gas transmission system operator shall be managed by the relevant department of the Ministry. The said department shall not determine/develop energy policy, including shall not develop/establish the relevant regulatory norms.

Law of Georgia No. 6377 of 5 June 2012 – website, 15.06.2012.

Law of Georgia No. 894 of 2 August 2021 – website, 04.08.2021.

Law of Georgia No. 115 of 13 December 2024 – website, 30.12.2024.

Law of Georgia No. 1116 of 26 November 2025 – website, 27.11.2025.

Article 40 (removed)🔗

Law of Georgia No. 6377 of 5 June 2012 – website, 15.06.2012.

Article 41. Forms of disposal of shares and stocks🔗

1. The forms of disposal of shares and stocks are:

a) privatization;

b) transfer with the right of management;

c) exchange.

2. The privatization of shares or stocks may be carried out on the basis of an auction, direct sale and competitive selection, in the forms of direct sale, as well as the privatization of shares or stocks or stocks represented by certificates − directly or through an intermediary, by public or private offering, on a recognized stock exchange of a foreign country or in any other form of offering consistent with the practice existing at the given time on international capital markets.

Law of Georgia No. 5063 of 11 October 2011 – website, 21.10.2011.

Law of Georgia No. 2878 of 11 December 2014 – website, 23.12.2014.

Law of Georgia No. 5989 of 29 May 2020 – website, 10.06.2020.

Article 42. Privatisation of Shares and Stocks🔗

1. Auctions of shares and stocks are of two types: conditional and unconditional.

2. Privatisation of shares and stocks by direct sale or by direct sale on the basis of competitive selection is carried out on the basis of a decision of the Government of Georgia, in accordance with the procedure established by Article 10 of this Law.

3. Privatisation of shares or stocks or of stocks represented by certificates, directly or through an intermediary, by public or private offering, on a recognised stock exchange of a foreign country or by any other form of offering consistent with the practice existing at the given time on international capital markets, is carried out on the basis of initiation by the property manager and his substantiated proposal, by decision of the Government of Georgia, in accordance with the procedure established by Article 45¹ of this Law.

4. The transfer of shares and stocks into ownership for the acquirer of the property is carried out on the basis of a decision of the Government of Georgia, in accordance with the procedure established by paragraph 5 of Article 3 of this Law.

5. In the privatisation of shares and stocks, the special conditions defined by Article 20 of this Law shall apply.

6. In the case of conditional transfer of shares and stocks into ownership, with the consent of the property manager, the acquirer of the property shall have the right, for the purpose of fulfilling the privatisation obligation, to encumber the acquired shares and stocks with a mortgage.

7. In the case of conditional transfer of shares and stocks into ownership, upon transfer into the ownership of the mortgagee of the property encumbered with a mortgage due to non-fulfilment of the claim secured by the mortgage, or upon realisation in accordance with the procedure established by the Law of Georgia "On Enforcement Proceedings" or the Civil Code of Georgia (regardless of the form of such realisation), the privatisation obligations owed by the acquirer of the property to the State and the rights and obligations arising from the respective contract shall transfer in full to the new and each subsequent owner, if, before the encumbrance of the property with a mortgage, the respective information reflecting the privatisation obligation(s) is registered in the record on shares and stocks in the respective registering body of claims and rights.

8. In the case of unilateral termination of the contract due to violation of the privatisation conditions provided for by the respective contract concluded for the purpose of privatisation of shares and stocks, the privatised property shall return to state ownership, and the mortgage right(s) of a third person (persons) registered on this property shall be extinguished, if, before the encumbrance of the property with a mortgage, the respective information reflecting the privatisation obligation(s) is registered in the record on shares and stocks in the public registry. At the same time, the State shall not compensate the acquirer of the property for the amounts paid and the expenses incurred.

9. The operation of paragraphs 5, 7 and 8 of this Article shall not extend to state property disposed of within the framework of a public-private partnership project provided for by the Law of Georgia "On Public-Private Partnership".

Law of Georgia of 11 October 2011 No. 5063 – website, 21.10.2011.

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012.

Law of Georgia of 6 September 2013 No. 1037 – website, 23.09.2013.

Law of Georgia of 11 December 2014 No. 2878 – website, 23.12.2014.

Law of Georgia of 4 May 2018 No. 2274 – website, 24.05.2018.

Article 43. Transfer with the right to manage shares and stocks🔗

1. Transfer with the right to manage shares and stocks shall be carried out in the form of an auction or, by decision of the Government of Georgia, in the form of direct transfer.

1¹. The Property Agency, for the purpose of transferring with the right to manage shares and stocks, within 45 days from the holding of the auction, and also within 3 months from the adoption by the Government of Georgia of a decision on the transfer with the right to manage shares and stocks in direct form, shall conclude a contract with the winner of the auction or with the managing person. In the event of failure to conclude the relevant contract within the period provided for by this paragraph, the results of the auction/the decision of the Government of Georgia shall lose force after the expiry of the period provided for by this same paragraph.

2. The powers of a partner (shareholder) of an enterprise operating with state share participation shall be exercised by the property manager, who shall take a decision on the making of a state property contribution, including shares and stocks, as well as a monetary contribution (contributions), in the capital of the enterprise operating with state share participation.

2¹. (Removed – 05.06.2012, No. 6377).

3. (Removed – 05.06.2012, No. 6377).

Law of Georgia of 1 July 2011 No. 5014 – website, 14.07.2011.

Law of Georgia of 27 March 2012 No. 5928 – website, 19.04.2012.

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012.

Law of Georgia of 6 September 2013 No. 1037 – website, 23.09.2013.

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020.

Article 44. Rule for determining individual forms of privatisation of stocks and shares in accordance with the legislation of Georgia and for transferring them to other entities with the right to manage them🔗

1. In accordance with the legislation of Georgia, individual forms of privatisation of stocks and shares and the rule for transferring them to other entities with the right to manage them shall be approved by the Minister of Economy and Sustainable Development of Georgia.

2. The managing person of stocks and shares in state ownership transferred with the right to manage shall, with the consent of the property manager, take a decision on the making of a state property contribution, including shares and stocks, as well as a monetary contribution (contributions), in the capital of the enterprise under its management.

Law of Georgia of 1 July 2011 No. 5014 – website, 14.07.2011.

Law of Georgia of 27 March 2012 No. 5928 – website, 19.04.2012.

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012.

Article 45. Determination of the privatization fee for shares and stocks, settlement and execution of a transaction on privatization🔗

1. The rule for determining the privatization fee and the initial privatization amount for shares and stocks shall be approved by the Government of Georgia.

2. Upon privatization of shares and stocks, settlement shall be effected in accordance with Article 19 of this Law.

3. Upon privatization of shares and stocks, a respective contract shall be concluded between the body carrying out privatization and the acquirer of the property. The manager of the property shall be entitled to issue confirmation of victory in the auction in written and/or electronic form. Upon privatization of shares and stocks, the ownership right shall be transferred to the acquirer of the property after its registration in the respective registering body. Together with the ownership right, the privatization obligation(s) shall be registered. Upon privatization of shares and stocks in the form of an auction, the respective contract shall be concluded within 45 calendar days after the auction is held, and upon privatization in the form of direct sale of shares and stocks by the Government of Georgia – within 3 months after the Government of Georgia adopts the respective ordinance. In the event of failure to conclude the respective contract within the period provided for by this paragraph, the results of the auction/the ordinance of the Government of Georgia shall lose force after the expiry of the period provided for by this same paragraph.

4. The manager of the respective property shall be entitled to conclude a contract with a third person, which ensures the initiation of privatization of shares and stocks.

5. The rule established by paragraphs 2–4 of this Article shall not apply to the case of privatization of shares or stocks or stocks represented by certificates, directly or through an intermediary, by public or private offering, on a recognized stock exchange of a foreign country or in another form of offering in accordance with the practice existing at the given time in international capital markets.

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 11 October 2011 No. 5063 – website, 21.10.2011

Law of Georgia of 27 March 2012 No. 5928 – website, 19.04.2012

Law of Georgia of 5 June 2012 No. 6377 – website, 15.06.2012

Law of Georgia of 6 September 2013 No. 1037 – website, 23.09.2013

Law of Georgia of 11 December 2014 No. 2878 – website, 23.12.2014

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020

Article 45¹. Rule for the privatization of shares or stocks or stocks represented by certificates, directly or through an intermediary, by public or private offering, on a recognized stock exchange of a foreign country or in another form of offering consistent with the practice existing at the given time on international capital markets🔗

1. The privatization of shares or stocks or stocks represented by certificates, directly or through an intermediary, by public or private offering, on a recognized stock exchange of a foreign country or in another form of offering consistent with the practice existing at the given time on international capital markets, shall be carried out by the property manager on the basis of its initiation and its reasoned proposal, by decision of the Government of Georgia.

2. The property manager shall determine the favourable time for the offering of shares or stocks or stocks represented by certificates, directly or through an intermediary, by public or private offering, on a recognized stock exchange of a foreign country or in another form consistent with the practice existing at the given time on international capital markets, and shall develop drafts of the relevant documents, as well as carry out other measures provided for by the legislation of Georgia.

3. The reasoned proposal of the property manager, which sets out the general conditions of privatization, including the form, term and other essential conditions of privatization, together with the drafts of documents developed by the Property Agency, shall be submitted to the Government of Georgia.

4. If the Government of Georgia approves the reasoned proposal of the property manager, it shall, by order, decide on the privatization of shares or stocks or stocks represented by certificates, directly or through an intermediary, by public or private offering, on a recognized stock exchange of a foreign country or in another form of offering consistent with the practice existing at the given time on international capital markets. The order of the Government of Georgia shall determine the conditions of privatization, including:

a) the quantitative or percentage indicator of the shares or stocks subject to privatization, or the maximum and/or minimum limit (limits) of this indicator;

b) the privatization price of the shares or stocks or stocks represented by certificates (in the case of a public offering — the initial privatization amount) and the procedure and conditions of settlement;

c) in accordance with the schedule determined in the reasoned proposal of the property manager, the main dates required for the completion of the privatization process, the term for concluding the relevant contracts, other conditions for acquiring the right of ownership of the shares or stocks or stocks represented by certificates, in accordance with which the property manager shall carry out the offering of the shares or stocks or stocks represented by certificates, directly or through an intermediary, by public or private offering, on a recognized stock exchange of a foreign country or in another form consistent with the practice existing at the given time on international capital markets, and the relevant actions related thereto.

5. On the basis of an Ordinance of the Government of Georgia, the property manager shall determine the specific terms of privatization, which shall be consistent with the decision of the Government of Georgia.

6. When the Government of Georgia adopts a decision on the privatization of shares represented by a certificate, an Ordinance of the Government of Georgia may establish any restriction or obligation related to voting rights or any other right in respect of the shares represented by the certificate (including the obligation to inform the company in advance on the matters determined by an Ordinance of the Government of Georgia).

7. In the event of privatization of shares or stocks or shares represented by certificates, directly or through an intermediary, by public or private offering, on a recognised stock exchange of a foreign country, or in any other form of offering consistent with the practice existing at the given time on international capital markets, the relevant contract/contracts shall be concluded by the body carrying out the privatization, the privatization fee shall be paid, and the ownership right to the acquired property shall be transferred to the buyer in the manner and within the time period established by an Ordinance of the Government of Georgia.

Law of Georgia No. 5063 of 11 October 2011 - website, 21.10.2011.

Law of Georgia No. 6377 of 5 June 2012 – website, 15.06.2012.

Law of Georgia No. 5989 of 29 May 2020 – website, 10.06.2020.

Article 45². Disposal of State-Owned Claims and Rights🔗

1. The forms of privatization of state-owned claims and rights are:

a) auction;

b) direct sale:

b.a) direct sale;

b.b) direct sale on the basis of competitive selection.

2. Privatization of state-owned claims and rights by direct sale or by direct sale on the basis of competitive selection shall be carried out on the basis of a decision of the Government of Georgia, in accordance with the procedure established by Article 10 of this Law. Transfer into ownership of state-owned claims and rights to the acquirer of the property shall also be carried out on the basis of a decision of the Government of Georgia, in accordance with the procedure established by paragraph 5 of Article 3 of this Law.

3. The procedure for determining the privatization fee and the initial privatization amount for state-owned claims and rights shall be approved by the Government of Georgia, while upon privatization of state-owned claims and rights, settlement shall be carried out in accordance with Article 19 of this Law.

4. Upon privatization of state-owned claims and rights in the form of an auction, the respective contract shall be concluded within 45 calendar days from the holding of the auction, while upon privatization by the Government of Georgia in the form of direct sale of state-owned claims and rights – within 3 months from the adoption by the Government of Georgia of the relevant order. If the respective contract is not concluded within the period provided for by this paragraph, the results of the auction/order of the Government of Georgia shall lose force after the expiry of the period provided for by the same paragraph.

5. Upon privatization of state-owned claims and rights, the special conditions defined by Article 20 of this Law shall apply.

6. Upon privatization of state-owned claims and rights in the form of an auction, the property manager shall be entitled to issue confirmation of victory in the auction in written and/or electronic form.

7. Upon transfer of state-owned claims and rights into ownership with conditions, with the consent of the property manager, the acquirer of the property shall have the right to encumber the acquired claims and rights with a mortgage for the purpose of fulfilling the privatization obligation.

8. Upon the transfer, on terms, into ownership of claims and rights existing in state ownership, upon the transfer into the ownership of the mortgagee of property encumbered by mortgage due to the non-performance of a claim secured by mortgage, or upon sale in accordance with the procedure established by the Law of Georgia on Enforcement Proceedings or the Civil Code of Georgia (regardless of the form of such sale), the privatisation obligations owed to the State by the acquirer of the property and the rights and obligations arising from the respective contract shall transfer in full to the new and each subsequent owner, if, before the property was encumbered by mortgage, the relevant information reflecting the privatisation obligation(s) was registered in the record on claims and rights in the relevant registering authority for claims and rights.

9. In the event of unilateral termination of the respective contract concluded for the purpose of privatising claims and rights existing in state ownership, due to a breach of the privatisation conditions provided for by that contract, the privatised property shall return to state ownership, and the mortgage right(s) of a third person (persons) registered over that property shall be extinguished, if, before the property was encumbered by mortgage, the relevant information reflecting the privatisation obligation(s) was registered in the record on claims and rights in the Public Registry. At the same time, the State shall not reimburse the acquirer of the property for the amounts paid and the expenses incurred.

10. The operation of paragraphs 5, 8 and 9 of this Article shall not extend to state property disposed of within the framework of a public-private partnership project provided for by the Law of Georgia on Public-Private Partnership.

Law of Georgia of 11 December 2014 No. 2878 – website, 23.12.2014.

Law of Georgia of 4 May 2018 No. 2274 – website, 24.05.2018.

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020.

Article 46. Measures to be taken in connection with the entry into force of this Law🔗

1. Within 2 months from the entry into force of this Law, the Ministry shall develop and approve:

a) the Regulation "On the rules for the privatisation of forest existing within the territorial boundaries of a settlement";

b) the standard form of the protocol confirming the acquisition of a forest land plot;

c) the rules for the disposal by third parties of agricultural land in state ownership;

d) the rules and conditions for the transfer into ownership of state property to natural and/or private law legal persons in exchange for the transfer into state ownership of property of equal value to the state property.

1¹. Before 1 January 2011, the Ministry shall develop and approve the rules and conditions for initiating, by third parties, the privatisation of agricultural land in state ownership.

2. Before 1 May 2011, the Ministry shall ensure the approval of the rules for conducting an electronic auction in the disposal of state property.

3. The Legal Entity of Public Law operating in the sphere of governance of the Ministry of Justice of Georgia – the National Agency of Public Registry shall, before 1 June 2011, ensure the identification of the lands of the state forest fund and the lands of the forests of former collective farms and soviet farms, the preparation of the relevant drawings and the submission to the Government of Georgia of a draft resolution on the establishment of the boundaries of the state forest fund.

3¹. Before 1 February 2011, the Government of Georgia shall ensure the determination of the initial price of an agricultural land plot according to administrative-territorial units.

4. Within 2 months from the entry into force of this Law, state bodies shall ensure the compliance of the relevant subordinate normative acts with this Law.

5. Before 1 September 2011, the Special State Protection Service shall carry out the registration in the public registry of the property transferred for placement.

6. (Removed – 11.12.2014, No. 2878).

7. Before the end of 2020, the Government of Georgia shall ensure the approval of the rules and conditions facilitating the registration of privatised immovable thing.

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 24 June 2011 No. 4957 – website, 11.07.2011

Law of Georgia of 20 March 2013 No. 352 – website, 28.03.2013

Law of Georgia of 11 December 2014 No. 2878 – website, 23.12.2014

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020

Article 47. Temporary rule for applying by application for the privatisation of state property, as well as for the privatisation, in the form of direct sale, of a leased plot of agricultural land in state ownership, and for applying by application for the completion of a procedure commenced regarding the leasing of a plot of agricultural land in state ownership🔗

1. Before the approval of the rules for conducting an electronic auction defined by paragraph 2 of Article 46 of this Law, the disposal of state property in the form of an auction shall be carried out by means of a public or electronic auction, information on which shall be posted on the internet page and/or website www.eauction.ge of the entity managing state property, which shall be considered official publication of information. In order to ensure the publicity and accessibility of information, information on the privatisation of state property in the form of a public auction shall also be published in the newspaper "24 Hours".

2. (removed).

3. For the completion of a procedure commenced before the entry into force of this Law regarding the leasing of a plot of agricultural land in state ownership, a person shall apply by application to the Ministry, its relevant territorial body, or the relevant body of the executive authority of the Autonomous Republic of Abkhazia or Adjara acting within the scope of authority delegated by the Ministry, not later than 31 December 2010. After the expiry of this period, the land plot (plots) in state ownership shall be sold in accordance with the procedure established for the privatisation of a non-leased plot of agricultural land in state ownership.

4. For the privatisation, in the form of direct sale, of a plot of agricultural land in state ownership and an economic or auxiliary building (buildings) and/or perennial plantings thereon, the lessee shall apply by application to the Ministry, its relevant territorial body, or the relevant body of the executive authority of the Autonomous Republic of Abkhazia or Adjara acting within the scope of authority delegated by the Ministry, not later than 1 May 2011.

5. Relations connected with the disposal of state property that commenced before the entry into force of this Law shall be governed by the rule existing before the entry into force of this Law.

6. Until 1 December 2010, this Law shall not apply to the cases provided for by subparagraph "f" of paragraph 3 of Article 10 of the Law of Georgia "On State Procurement".

Law of Georgia of 10 December 2010 No. 3963-LHG III, No. 74, 24.12.2010, Art. 444

Law of Georgia of 11 November 2025 No. 1023 – website, 14.11.2025

Article 47¹. Transfer into the Ownership of the Borrower of a Movable Thing Transferred under a Loan-for-Use Contract🔗

1. The Ministry is entitled to consider the issue of acquisition of the right of ownership by borrowers over movable things transferred for use on the basis of loan-for-use contracts concluded by legal entities of public law before 3 November 2009, if the legal entities of public law apply to the Ministry before 1 October 2011.

2. The operation of paragraph 1 of this article shall not extend to weapons and musical instruments.

Law of Georgia of 1 July 2011 No. 5014 – website, 14.07.2011.

Article 47². Termination of Gratuitous Usufruct Contracts and Transfer of Property for Use🔗

State-owned property transferred to legal entities of public law on the basis of gratuitous usufruct contracts shall be considered as transferred in the form provided for by paragraph 1 of Article 35 of this Law.

Law of Georgia of 1 July 2011 No. 5014 – website, 14.07.2011.

Article 47³. Termination of Loan-for-Use Contracts and Transfer of Movable Property for Use🔗

1. State-owned movable property transferred to state bodies and legal entities of public law on the basis of loan-for-use contracts shall be considered as transferred in the form provided for by Article 35 of this Law, and the respective loan-for-use contracts shall be terminated.

2. The operation of this article shall not extend to loan-for-use contracts concluded with the Apostolic Autocephalous Orthodox Church of Georgia.

Law of Georgia of 28 February 2012 No. 5720 – website, 09.03.2012.

Article 47⁴. Rule for Confirmation of the Right of Ownership over Property Privatised before 1 January 2011 by Way of Lease-Purchase, Competition, Auction or Another Form🔗

When privatising property before 1 January 2011 by way of lease-purchase, competition, auction or another form, if the time limit for confirmation of the right of ownership fell after 1 January 2011, the body carrying out the privatisation shall issue confirmation of the fulfilment of the obligation to pay the privatisation fee, which is the basis for registration of the right of ownership in the respective registering body. Upon registration of the right of ownership, the buyer shall also be obliged to register the obligations to be performed and confirmed.

Law of Georgia of 27 March 2012 No. 5928 – website, 19.04.2012.

Article 47⁵. Measures to be implemented for the purpose of facilitating the registration of privatized immovable things🔗

1. If the area of a privatized building/structure/part of a building/structure exceeds the area indicated in the document confirming the right of ownership, the Property Agency shall give consent to the registration of the right of ownership of the interested person over the excess (increased) area of the building/structure/part of the building/structure, in accordance with the procedure determined by the Resolution of the Government of Georgia and in the case of payment of a fee.

2. If the development area of a privatized land plot exceeds the area indicated in the document confirming the right of ownership by more than 10 percent, the Property Agency shall give consent to the registration of the right of ownership of the interested person over the excess (increased) area, in accordance with the procedure determined by the Resolution of the Government of Georgia and in the case of payment of a fee.

Law of Georgia of 29 May 2020 No. 5989 – website, 10.06.2020.

Article 48. Remission of a payable penalty imposed/to be imposed for failure to fulfil the condition of disposal/transfer into use of state property🔗

1. The acquirer of state property, the person receiving it with the right of management/right of use, shall be remitted the payable penalty imposed/to be imposed before 1 January 2014 for failure to fulfil the obligation to submit to the property manager information on the fulfilment of the obligations undertaken by a record/contract.

2. The usufructuary of state property shall be remitted the payable penalty imposed/to be imposed before 1 January 2014 for failure to fulfil the obligation under a valid/terminated usufruct contract to insure the transferred property and/or to pay utility charges.

Law of Georgia of 29 November 2013 No. 1665 – website, 04.12.2013.

Article 48¹. Remission of the unpaid penalty imposed/to be imposed for failure to fulfil the condition of disposal/transfer into use of state property and release from contractual obligations/deferral of contractual obligations🔗

1. A person receiving state property under the right of usufruct shall be remitted the unpaid penalty imposed/to be imposed before 1 January 2016 for failure to fulfil the obligation to submit to the property manager information on the fulfilment of the obligations undertaken under the respective protocol/contract.

2. A person receiving an agricultural land plot in state ownership under the right of use shall be remitted the unpaid penalty imposed/to be imposed before 1 January 2014 for failure to fulfil the obligation to pay the use fee undertaken under the contract on the transfer of state property under the right of use, and shall be released from the obligation to pay the unpaid use fee arisen before the same date, where the respective application on the request for such remission/release is submitted to the Property Agency before 1 March 2018.

3. The cases provided for by paragraph 2 of this article shall not be subject to the obligation of an administrative body to issue an individual administrative-legal act on the basis of an application defined by the General Administrative Code of Georgia.

4. A purchaser of agricultural machinery in state ownership at a price of less than 100 GEL shall be released from contractual obligations and shall be remitted the unpaid penalty imposed/to be imposed before 1 January 2016 for failure to fulfil contractual obligations.

5. A purchaser of agricultural machinery in state ownership (except for the cases provided for by paragraph 4 of this article) shall be released from contractual obligations, shall be remitted the unpaid penalty imposed/to be imposed before 1 January 2016 for failure to fulfil contractual obligations (including the obligation to pay the privatisation fee), and the fulfilment of the obligation to pay the privatisation fee shall be deferred until 1 January 2017. In the case of privatisation of agricultural machinery in state ownership in the form of lease-purchase, the purchaser of state property shall be released from the obligation to pay the lease rent arisen before 1 January 2014 and shall be remitted the unpaid penalty imposed/to be imposed before 1 January 2016 for failure to fulfil the obligation to pay the lease rent.

Law of Georgia of 18 March 2016 No. 4910 - website, 28.03.2016.

Article 49. Amendment of the privatisation conditions of state property, exemption from sanctions imposed/to be imposed for failure to fulfil the privatisation conditions🔗

With respect to the buyers of that state property who, not later than 1 July 2010, applied to the Ministry for exemption from the sanctions imposed for failure to fulfil other obligations assumed under a record/contract and/or for the amendment/revision of obligations, the Ministry is entitled, for the purpose of promoting the investment environment, relying on the principles of protection of public and private interests, in the event of substantiated necessity, with the consent of the Government of Georgia, to adopt a decision on the amendment/revision of the conditions of a record/contract concluded during the privatisation of state property privatised by auction or in the previously existing form of privatisation, or of the conditions of a purchase agreement concluded during the privatisation of state property privatised in the form of direct sale (except for the privatisation conditions established by the President of Georgia), and/or on exemption from a sanction imposed for failure to fulfil any obligation. If the matter concerns the amendment/revision of the privatisation conditions established by the President of Georgia, the Ministry shall consider the application of the buyer of the state property and, with a corresponding proposal (draft legal act), shall send the matter to the Government of Georgia, which is entitled, for the purpose of promoting the investment environment, relying on the principles of protection of public and private interests, in the event of substantiated necessity, to submit to the President of Georgia a proposal on the amendment/revision of the privatisation conditions established by the President of Georgia for state property privatised in the form of direct sale. The decision on the amendment/revision of the privatisation conditions of state property established by the President of Georgia shall be adopted by the President of Georgia.

Article 49¹. Amendment/Annulment of the terms of privatisation/transfer into ownership/transfer with the right of management/transfer into use of state property and/or forgiveness of unpaid penalty imposed/to be imposed under a contract🔗

1. In those contractual relations in which a party is the Property Agency and/or the Ministry, a party to the contract is entitled, by a substantiated request, to apply to the property manager for the amendment/annulment of the terms of privatisation/transfer into ownership/transfer with the right of management/transfer into use of state property and/or forgiveness of unpaid penalty imposed/to be imposed under the contract. The property manager shall consider the submitted application and, taking into account public and private interests, shall submit to the Government of Georgia, for a decision to be taken, a proposal on the amendment/annulment of the terms of privatisation/transfer into ownership/transfer with the right of management/transfer into use of state property and/or forgiveness of unpaid penalty imposed/to be imposed under the contract.

2. In the case provided for by paragraph 1 of this Article, on the basis of the property manager's application, by a decision of the Government of Georgia, the acquirer of the state property/the person receiving the right of management/the person receiving the right of use may be required, in exchange for the amendment/annulment of the terms of privatisation/transfer into ownership/transfer with the right of management/transfer into use of state property, to pay appropriate compensation, the amount of which shall be determined by the Government of Georgia. This compensation shall be transferred to the State Budget of Georgia, except for the compensation of the Property Agency, which shall be credited to the account of the Property Agency in the amount determined by the Government of Georgia.

3. In the case of privatisation/transfer into use of state property by way of auction after 31 December 2012, this Article shall not apply to a change in the amount and payment term of the privatisation fee/fee for transfer into use, as well as to the forgiveness of a penalty imposed/to be imposed for failure to fulfil the obligation to pay the privatisation fee/fee for transfer into use.

3¹. In the case of amendment/annulment of the terms of privatisation/transfer into ownership/transfer with the right of management/transfer into use of state property, the respective contract shall be concluded within 3 months from the adoption by the Government of Georgia of the respective order. If the respective contract is not concluded within the period provided for by this paragraph, the order of the Government of Georgia shall lose force after the expiry of the period provided for by this same paragraph.

4. Those citizens of Georgia who, on the basis of IDP status, were transferred state property into ownership through privatisation in the form of direct sale shall be released from monetary obligations arising before 1 July 2014 under the contract of sale of that state property, including from the obligation to pay a penalty imposed/to be imposed.

Law of Georgia of 27 March 2012 No. 5928 – website, 19.04.2012.

Law of Georgia No. 6377 of 5 June 2012 – website, 15.06.2012.

Law of Georgia No. 1665 of 29 November 2013 - website, 04.12.2013.

Law of Georgia No. 2878 of 11 December 2014 – website, 23.12.2014.

Law of Georgia No. 4910 of 18 March 2016 - website, 28.03.2016.

Law of Georgia No. 5989 of 29 May 2020 – website, 10.06.2020.

Law of Georgia No. 606 of 9 June 2021 – website, 14.06.2021.

Article 49². Exemption from payment of the fee imposed/to be imposed for the unlawful use of state property🔗

Natural and legal persons shall be exempted from the obligation to pay the fee for the transfer of state property into use, payable for the period of use before 17 September 2012, for the unlawful use of state property for entrepreneurial activity (for commercial purposes) in accordance with paragraph 1³ of Article 36 of this Law. If the registration of the state's ownership right in the public registry was carried out after 17 September 2012, natural and legal persons shall be exempted from the obligation to pay the fee for the unlawful use of state property for entrepreneurial activity (for commercial purposes) in accordance with paragraph 1³ of Article 36 of this Law for the period existing before the moment of registration of the state's ownership right in the public registry.

Law of Georgia No. 2878 of 11 December 2014 – website, 23.12.2014.

Article 49³. Measures to be taken in respect of a party (counterparty) to a contractual relationship in connection with a state of emergency, an epidemic or pandemic particularly dangerous to public health🔗

1. If the performance of a condition for the privatisation/transfer into ownership/transfer with the right of management/transfer into use of state property is impossible or complicated during a state of emergency, an epidemic or pandemic particularly dangerous to public health, the Government of Georgia shall, in accordance with Article 398 of the Civil Code of Georgia, on the basis of an application by that party (person) to the property manager with a reasoned request, adopt a decision, upon the submission of the property manager, on the measures to be taken in respect of the respective party to the contractual relationship and/or on making amendments to the contract (except for a reduction of the privatisation fee).

2. The restriction established by paragraph 3 of Article 49¹ of this Law shall not apply in the case provided for by paragraph 1 of this Article.

3. The Government of Georgia shall be entitled to determine individual cases where decisions on the matters provided for by paragraph 1 of this Article are adopted by the property manager.

Law of Georgia No. 6757 of 13 July 2020 – website, 20.07.2020.

Law of Georgia No. 606 of 9 June 2021 – website, 14.06.2021.

Article 49⁴. Temporary rule for exemption from the unpaid/to-be-imposed penalty accrued for violation of the privatization condition/condition of transfer into use of state property within the administrative boundaries of the municipality of the city of Tbilisi and/or for amendment of this condition🔗

1. On the basis of acceptance into operation of an object provided for by Article 141³ of the Code of Spatial Planning, Architectural and Construction Activities of Georgia or by Article 103³ of the Code of Product Safety and Free Movement, the acquirer of state property/person receiving it under the right of use shall be exempted from payment of the unpaid/to-be-imposed penalty accrued for violation of the privatization condition/condition of transfer into use of state property caused by exceeding the term for acceptance of this object into operation.

2. The decision on amendment of the privatization condition/condition of transfer into use of state property caused by exceeding the term for acceptance into operation of an object provided for by Article 141³ of the Code of Spatial Planning, Architectural and Construction Activities of Georgia or by Article 103³ of the Code of Product Safety and Free Movement shall be taken by the Government of Georgia in accordance with the procedure established by Article 49¹ of this Law. In the said case, the restriction established by paragraph 3 of Article 49¹ of this Law shall not apply.

Law of Georgia of 12 July 2021 No. 724 – website, 14.07.2021.

Article 50. Normative acts declared invalid🔗

Upon entry into force of this Law, the following shall be declared invalid:

a) Law of Georgia of 8 July 2005 "On Privatization of Agricultural Land in State Ownership" (Legislative Herald of Georgia, No. 42, 29.07.2005, Art. 303);

b) Law of Georgia of 30 May 1997 "On Privatization of State Property, Privatization of Property of a Local Self-Governing Unit and Transfer under the Right of Use" (Parliamentary Bulletin, No. 29-30, 9.07.1997, p. 15);

c) Law of Georgia of 25 December 2009 "On Disposal of Property Transferred into State Ownership" (Legislative Herald of Georgia, No. 50, 31.12.2009, Art. 392);

d) Law of Georgia of 3 November 2009 "On Transfer of Property in State Ownership into Use" (Legislative Herald of Georgia, No. 35, 19.11.2009, Art. 245).

Article 51. Entry into force of the Law🔗

This Law shall enter into force upon publication.

President of Georgia M. Saakashvili

Tbilisi,

21 July 2010.

No. 3512–rs