Wealth management in Georgia: private banking, brokerage and protection

A young Georgian wealth management market

Wealth management in Georgia mostly consists of the private banking and brokerage services of the country's two main banks, focused on foreign-currency deposits and bonds. The financial market remains shallow, and independent asset managers and sophisticated discretionary mandates are rare. Services sit in the private banking units and brokerage subsidiaries of those two banks.

Georgian wealth management remains a small market and is concentrated in the private banking units and brokerage subsidiaries of the two main banks. Independent asset managers and sophisticated discretionary mandates remain rare there.

Dollar and lari deposits at the heart of portfolios

Much of affluent savings stays in term deposits, in dollars for stability or lari for yield. This preference reflects the country's monetary history and the limited depth of its capital market.

Local bonds and a thinly traded Tbilisi exchange

The Georgian Stock Exchange has few actively traded securities, and most of the local offer consists of bank, corporate or government bonds placed with investors. Limited liquidity often means holding them to maturity.

Access to international markets through bank brokers

Brokerage arms of the large banks let clients buy shares, bonds and funds listed in US and European markets. Securities are then held with international custodians, and clients should understand the custody chain.

Investor protection narrower than in Europe

Georgia has no investor compensation scheme comparable to the EU's, and the deposit guarantee is capped at 50,000 lari. Segregation of client securities and the soundness of the institution are therefore essential.

High net worth residency and tax residence

Georgia grants tax residency to high net worth or high income individuals who meet statutory criteria, even without 183 days of presence. This status does not release them from obligations in the country where they keep their home.

Taxation of investment income for non-residents

Bank deposit interest and dividends from Georgian companies are subject to specific withholding taxes, and their treatment depends on the recipient's residence and treaties. Independent tax advice is needed before any significant investment.

Private banking and custody fees

Price lists combine premium account fees, brokerage and custody charges on foreign securities. They remain moderate, but exchange spreads on conversions between lari, dollar and euro are often the largest cost for the client.

Source of wealth, CRS and reporting at home

Banks require detailed evidence of the source of wealth, especially for funds from countries exposed to sanctions. Assets are reported through CRS, and a French tax resident declares the accounts on form 3916.

Joining the private banking offer of a Georgian bank

At Bank of Georgia, private banking and investment management are aimed at clients with substantial assets, after a meeting and an investor profile questionnaire. Thresholds and services available to non-residents are set by the bank.

Wealth management in Georgia: how to choose a bank

Choosing a bank for wealth management in Georgia means clarifying what you expect: holding foreign-currency deposits, buying local bonds, reaching international markets or obtaining personalised advice. The market is young and concentrated at the two large banks, whose offers look alike. Differences often lie in service, fees and how non-residents are welcomed. Write your priorities down before contacting anyone. This keeps the comparison honest.

Ask the bank about its real offer: private banking departments, brokerage subsidiary, any management mandates and products open to your profile. Sophisticated discretionary mandates are rare in the country, and many clients limit themselves to term deposits and securities chosen with the help of a broker. Ask what is really offered before travelling. Verbal answers are easy to forget.

Then compare the protections that apply. Georgia has no investor compensation scheme comparable to the European Union's, and the deposit guarantee is capped at 50,000 lari per bank. Segregation of client securities and the soundness of the institution therefore become essential criteria. Ask how securities are held, especially when they sit with an international custodian. Keep the replies for your comparison table.

Preparing a private bank in Tbilisi file

The entry file is above all about the origin of wealth. Georgian banks require detailed evidence, especially when funds come from countries exposed to sanctions. Prepare documents proving each important source: salary, sale of a property, inheritance, sale of a business or accumulated savings, with the matching statements and, where needed, translations. Keep copies of all these papers, in both the original language and translation.

Plan for a meeting with an adviser and a questionnaire on your investor profile. It covers your experience, objectives, risk tolerance and investment horizon. Answer honestly, because these answers are used to judge the suitability of the products offered. Entry thresholds and services available to non-residents are set by each bank: ask for them in writing. Keep a record of your answers.

Finally, gather the tax documents: tax residence, identification number and any high net worth residency certificate. The bank needs them for its information exchange duties. A complete and consistent file shortens the discussion. Depending on the institution, timing varies, and no acceptance is guaranteed, especially for profiles linked to sensitive jurisdictions. Ask which documents the bank wants renewed, and when.

Common mistakes in private banking in Georgia

The first mistake is to confuse return and safety. Lari term deposits pay higher rates than dollar or euro deposits, but they expose you to currency risk if your future spending is elsewhere. Choose the currency according to the intended use of the funds, and do not concentrate all savings on a single product or a single bank. Spread your assets thoughtfully.

The second mistake is to overestimate the liquidity of local securities. The Georgian Stock Exchange has few actively traded securities, and bank, corporate or government bonds are often held to maturity. Before buying, check the term, the issuer and the possibility of reselling, and keep a reserve available for day-to-day needs. Keep a record of the terms of each security.

The third mistake is to neglect the impact of conversions. Exchange spreads between lari, dollar and euro are often the main cost, ahead of custody fees and brokerage. Ask for the rate applied to each conversion, compare it with the market, and avoid needless back-and-forth between currencies that gradually erodes the value of your wealth. Note every rate you are quoted for private banking in Georgia.

Following your investments in Georgia over time

Once the relationship is open, set a review rhythm with your adviser: at least once a year, and at every significant change in your situation. Check that the allocation still matches your profile, that the fees charged are in line and that the products held remain suitable. This simple discipline avoids leaving a portfolio built for another context to age.

On the tax side, deposit interest and dividends from Georgian companies are subject to specific withholding taxes, and their treatment depends on the recipient's residence and treaties. High net worth residency can open tax residence without 183 days of presence, without releasing you from the obligations of the country where you keep your home. Have these points validated by an independent adviser.

Finally, assets are reported under CRS, and a French tax resident declares them on form 3916 together with the income. Keep annual statements, trade confirmations and evidence of the origin of funds, because they serve your declarations and answer the bank's requests during periodic reviews. Keep them together in one folder. These records support later reviews, declarations and any request for supporting documents.