In short
Many lenders in the UK, Germany, Austria and Switzerland do not accept an apartment in Georgia as security, because registering and enforcing a charge abroad is costly and uncertain for them. Many buyers therefore borrow against their home, take an unsecured loan, borrow against investments or pay from savings. If you borrow in pounds or euros and buy in dollars, you also carry currency risk.
The three routesThis page describes routes and their effects. It is not financial or tax advice and does not recommend any loan.
Mortgages from Georgian banksThree routes
Each route secures the lender differently. That drives the rate, the term and your own risk.
Remortgaging your home
Unsecured personal loan
Securities-backed loan
The fourth route is cash: no interest, but money tied up. In the UK, Austria and Switzerland, lending and tax rules differ from those in Germany.
Cases
For buyers resident in Germany. The cases show effects, not recommendations. The UK, Austria and Switzerland have their own rules, covered on separate tax pages.
Tax effects under the Germany-Georgia double tax treaty and German income tax law. Your case may differ.
Interest on the apartment is a deductible expense. It lowers the Georgian income that raises your German tax rate under the progression clause.
Without a loan there is no interest. The rental income enters the progression calculation in full.
In Georgia, individuals pay 5% of gross residential rent, with no deduction of costs. The interest only affects your German rate.
If interest and costs exceed the rent, a loss on property outside the EU and EEA can only be used to a limited extent (section 2a of the Income Tax Act).
Without interest, financing creates no loss.
A large loan does not automatically make the German sums work better.
The loan is in euros, the apartment trades in dollars. If the dollar falls, its value in euros drops while the debt stays the same.
Currency risk affects the capital you put in, not a running debt.
A foreign-currency loan moves the risk rather than removing it. In Germany, consumer property loans in a foreign currency carry special protections (section 503 of the Civil Code).
Repayments continue if the apartment is empty or construction runs late.
The capital is unavailable for anything else, but there is nothing to repay.
Plan repayments you can meet without any rental income.
The treaty, the progression clause and selling, for German taxpayers.
Taxes in GermanyFrequently asked questions
Security, remortgaging, interest and tax, currency and comparing rates.
Many do not, because registering and enforcing a charge in Georgia is costly and uncertain for them. The options are a loan secured on your home-country property, an unsecured loan or a loan against investments.
Yes, if the lender agrees. The loan is then regulated mortgage lending, with an affordability assessment and pre-contract information. If you cannot repay, your home is at risk. In Germany such a loan is a consumer property loan under section 491(3) of the Civil Code.
For German residents, the treaty with Georgia exempts the rental income. The interest reduces that income and so the amount that raises the tax rate under the progression clause. It is not deducted from your other income. UK, Austrian and Swiss rules differ.
The debt stays fixed in your currency, while the apartment's value in that currency moves with the dollar and the Georgian market. If you sell in a weak phase, the proceeds may fall short of the outstanding loan.
We do not quote rates. Central banks publish average lending rates for new mortgages and consumer loans, in Germany in the Bundesbank's interest rate statistics. For actual offers, ask several lenders.
Last reviewed on 2 November 2026. Sources: German Civil Code (BGB), sections 491(3) and 503 (gesetze-im-internet.de), German Income Tax Act, sections 2a and 32b (gesetze-im-internet.de), Germany-Georgia double tax treaty of 1 June 2006, Articles 6 and 23 (German Federal Ministry of Finance), Deutsche Bundesbank (bundesbank.de): MFI interest rate statistics, Revenue Service of Georgia (rs.ge): tax on rental income. This guide is not legal or tax advice.
Read next
Mortgages in Georgia, German tax and currency risk.
Every project page shows the price, deposit and instalments.