How to open a bank account in Georgia for a foreigner?

Banking structure of Georgia

In Georgia, the banking system operates on two levels: at the first level is the National Bank, and at the second level are commercial financial institutions. The National Bank plays a crucial role in managing monetary policy and ensures compliance with all banking standards.

On the second level, there are more than ten commercial banks. Notably, there are no state banks in the country; all credit institutions are privately owned. Among the most prominent players in the market areBank of Georgia,TBC,LibertyandCredo Bank.

Bank data privacy

Georgia guarantees full protection of personal data for those who hold bank accounts, as the country does not participate in the international automated information exchange system known asCommon Reporting Standard (CRS)This implies that banks do not transfer information about non-resident accounts to their countries.

However, according to information from the Organization for Economic Cooperation and Development (OECD), Georgia plans to introduce international standards for automatic exchange of financial information in 2023.

Opening a personal account

Opening a personal bank account is available to both Georgian citizens and foreign nationals. However, in recent years, banks have significantly tightened their requirements for foreigners, making the account opening process more complicated. Giorgi Tsaguria, managing partner of the companyLTA Georgia...emphasizes that for foreigners, opening an account in Georgian banks is quite feasible, but Russians often face frequent rejections, and in the case of success, their accounts will be opened in the national currency —lari.

Citizens of Belarus face similar difficulties, but they have a better chance of obtaining accounts in foreign currency, although even among them, refusals are possible. Having a residence permit significantly increases the chances of successfully opening an account.

Recommendations after a refusal

It is not advisable to despair after receiving a rejection, as it is worth considering opening an account with alternative banks or their branches to increase the likelihood of success. Information on investment, immigration and real estate opportunities can be found on a specialized channel in theTelegram.

Types of bank accounts

In Georgian banks, there is a variety of types of personal accounts:

• Current account - provides the user with the ability to make unlimited transfers anywhere in the world, perform currency transactions and pay bills. Usually, current accounts can support three major currencies:Georgian lari (GEL),US dollars (USD)andeuro (EUR).
• A deposit account is a savings account that allows its owners to earn interest on their saved funds. Interest can be paid either monthly or at the end of the deposit term.

Requirements for opening accounts

The requirements for opening bank accounts for residents and non-residents in Georgia may differ. For residents, the process of opening an account is quite simple, and some banks offer the option of remote account opening. Thus, the banking system in Georgia is aimed at both locals and foreign clients, providing a wide range of opportunities for financial transactions.

The path to tax residency in Georgia

This article will detail the process by which foreigners can become residents of Georgia. The first important step on this path is a visit to the bank.

Issuance of a power of attorney

However, if for any reason you are unable to visit the institution, there is an option to grant power of attorney to another person who can carry out all the necessary steps to open an account on your behalf. To do this, you need to notarize the power of attorney and provide a photocopy of your passport.It's important to noteNot all banks in Georgia are ready to provide such a service.

Acquisition of a local SIM card

To open an account in a Georgian bank you will need a local phone number, so it is recommended that you purchase a SIM card in advance. This requirement is due to the fact that this number will be used by the bank to contact you. In the future, you will be able to register your number to receive SMS through your bank's application.

Tax resident status

It should be noted that if you stay in Georgia for 183 days or more, it will make you a tax resident, which in turn will improve your chances of successfully opening a bank account.

Documents for application submission

When submitting an application, you should provide a package of documents confirming your sources of income, as well as a justification for the need to open an account in Georgia.

Conclusion

In concluding our review of the banking system in Georgia, I would like to highlight a few key points regarding both local and foreign clients. Georgia offers attractive conditions for conducting banking operations, ensuring complete confidentiality and flexible options for opening accounts. Despite the absence of state-owned banks and the private ownership of financial institutions, the system demonstrates a high degree of efficiency and reliability.

The process of opening an account for foreigners

The process of opening an account for foreigners, although it may seem complicated due to stricter requirements, is still accessible if you follow clear guidelines and are prepared to provide all the necessary documents. Georgian banks have become more diligent in checking the trustworthiness of their clients in recent years, but this should not be of great concern. With the right approach, knowledge of the process and thorough preparation of documents, the chances of success increase significantly.

The importance of legal sources of income

It is worth noting that the presence ofresidence permitOr simply long-term residence in the country plays an important role, allowing you to establish a trusting relationship with the bank. Remember that having legal sources of income and proof of your financial capabilities is a crucial aspect of the account opening process.

Advantages of the Georgian banking system

Georgia, maintaining its independence in the banking sector and offering favorable conditions for foreign investors, is undoubtedly becoming an attractive place to conduct financial transactions. Despite some difficulties at the beginning of the journey, with the right approach and perseverance, all difficulties can be overcome.

Result

Thus, by ensuring the confidentiality and security of transactions, the Georgian banking system offers unique opportunities for both locals and foreign citizens. I hope this overview has been helpful for everyone interested in the advantages and features of Georgia's banking system.