Israeli Capital Moves Abroad: Georgia Becomes a Hotspot for New Investment Wave

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Geopolitical instability and domestic crises are pushing Israelis to move capital overseas. Georgia has emerged as a key destination for this new wave of investments—offering easy residency, affordable real estate, and a booming market. Between 2024 and 2025, Israeli investment in foreign real estate grew at a record pace, multiplying several times in some locations.

Capital Outflow on the Rise

According to Calcalist, capital outflows from Israel surged by 62% since October 2023, driven by increased transfers to foreign banks and offshore instruments.

In the early weeks of the judicial reform, Israeli banks lost around 4 billion shekels in private deposits—funds moved abroad (The Times of Israel). During the Gaza conflict in late 2023, the outflow accelerated, with institutional funds withdrawing over 151 billion shekels ($40 billion) (Haaretz).

Georgia: A “Second Home” for Israeli Investors

Georgia has become a safe haven for Israeli investors thanks to its proximity, accessible residency, affordable prices, and high rental yields.

Following the political events of 2023–2024, Georgia solidified its position as a prime destination for Israeli capital. A favorable tax regime, flexible immigration policies, and relatively low real estate prices create ideal conditions for relocation and investment.

According to the Georgian Real Estate Association, property purchase requests in Batumi from Israeli citizens surged tenfold since late 2023.

Attorney Gia Poladishvili confirms this trend: Israelis are actively buying apartments in Batumi and Tbilisi, typically investing $100,000–$150,000 to qualify for residency (Commersant).

Record Real Estate Demand Growth

Consultancy Galt & Taggart reports a 55% year-over-year increase in residential sales in Batumi, with foreigners—led by Israelis—accounting for over 40% of deals (Galt & Taggart Batumi Residential Market Watch 2024).

Residency Made Easy & Tax Incentives

Georgia offers one of the region’s easiest residency pathways. Investors purchasing real estate worth $100,000 or more can secure residency within 30 days (Public Service Hall Georgia).

Tax advisors highlight that with proper structuring, individual entrepreneurs can benefit from a 1% tax rate under Georgia’s small business status (Tax Code of Georgia).

Tourism Boom & Rental Yields

Record tourism flows are fueling demand for apart-hotels and resort real estate. In 2024, Georgia welcomed over 7 million foreign tourists (Georgian National Tourism Administration), with Airbnb and Booking.com reporting robust demand in Batumi and Tbilisi.

Georgia as a Hub for Israeli Business Diaspora

Alongside private investors, Israeli tech companies, consultancies, and startups are relocating to Georgia. According to The Times of Israel, Tbilisi has become a strategic hub for new Israeli offices and R&D centers over the past two years.

Real estate prices in central Tbilisi and Batumi now range from $2,000–2,700 per sq.m, with total property prices reaching up to $500,000–600,000 (Commersant).

Jerusalem Post notes that Israelis are increasingly purchasing timeshares in Batumi, forming localized communities. The Georgian Ministry of Internal Affairs expects 250,000 Israeli tourists in 2024, many of whom explore real estate purchases during their visits.

Conclusion

Israeli capital flight has become systemic in 2024–2025, with Georgia as a key beneficiary. Whether this expansion proves long-term depends on Israel’s political stabilization. Still, foreign assets have now become integral to the strategies of Israeli HNWIs and pension funds.

To reverse this trend, Israel must rebuild investor trust, stabilize the economy, and offer strong incentives to reinvest domestically. Without such measures, future crises could accelerate the capital outflow.

Hotel investments in Batumi, Tbilisi, and Gudauri are particularly promising. According to the Georgian National Tourism Administration, tourism numbers are expected to rise in 2025 thanks to new visa-free agreements and air routes. Hotel occupancy rates during the high season already reach 85–90%.

As Galt & Taggart forecasts, hospitality and resort property investments will remain key growth drivers in Georgia’s construction sector.

Ultimately, Georgia is becoming not just a geographic but also a financial hub for Israeli investors navigating global volatility.