Israelis Move Capital Abroad: Georgia at the Center of a New Wave of Investment

Smart Invest
Sep 12, 2025
5 min read

Geopolitical instability and domestic crises are pushing Israelis to massively withdraw capital from the country. Georgia is becoming a special destination for the new investment flow, with its easy residence permit, affordable real estate, and fast-growing market. In 2024–2025, Israeli investments in foreign real estate grew at a record pace, and in some locations, by tens of times.

The scale of capital flight

According to Calcalist, capital outflows from Israel have increased by 62% since October 2023, as evidenced by the growth of transfers to foreign banks and investment vehicles.

In the first weeks after the launch of judicial reform, Israeli banks lost about 4 billion shekels in private deposits - this money went to offshore and foreign structures ( The Times of Israel ). In the fall of 2023, during the conflict in Gaza, the financial outflow accelerated: institutional funds withdrew about 151 billion shekels ($40 billion) ( Haaretz ).

Georgia: A 'Second Home' for Israeli Investors

Georgia has become a safe zone for Israeli investors due to a number of factors: proximity to Israel, ease of obtaining a residence permit, affordable prices, and high rental yields.

Following the events of 2023–2024, Georgia has finally established itself as one of the main magnets for Israeli private capital. A favorable tax regime, flexible migration policy, and relatively affordable real estate create unique conditions for relocation.

Georgia has become a safe zone for Israeli investors due to a number of factors: proximity to Israel, ease of obtaining a residence permit, affordable prices, and high rental yields.

According to the Georgian National Real Estate Association, the flow of applications from Israeli citizens to purchase real estate in Batumi has increased 10-fold since the end of 2023.

Lawyer Gia Poladishvili also confirms the increase in activity: Israelis are actively buying apartments in Batumi and Tbilisi, investing an average of $100,000 to $150,000 to secure a residence permit ( Commersant ).

Record growth in demand for real estate

In their latest review, analysts from the consulting company Galt & Taggart note that residential real estate sales in Batumi are 55% higher than in 2023, with more than 40% of transactions involving foreigners, with Israeli citizens leading the way (Galt & Taggart Batumi Residential Market Watch 2024).

Ease of obtaining a residence permit and tax advantages

Georgia offers one of the simplest mechanisms for obtaining a residence permit in the region. An investor who purchases real estate worth at least $100,000 can obtain a residence permit in a simplified manner within 30 days ( Public Service Hall Georgia ).

Tax consultants note that with proper structuring of income, the tax burden for individual entrepreneurs (IE) in Georgia can be as little as 1% of turnover, thanks to the status of small business (Tax Code of Georgia).

Growth in tourism and rental income

Record tourist flow increases the attractiveness of investments in aparthotels and resort real estate. According to the Georgian National Tourism Administration, more than 7 million foreign tourists visited the country in 2024 (Georgian National Tourism Administration), and Batumi and Tbilisi continue to show steady growth in bookings on Airbnb and Booking.com platforms .

Georgia is becoming a hub for the Israeli business diaspora

In addition to private investors, IT companies, consulting agencies and startups from Israel are actively moving to the country. As The Times of Israel notes, over the past two years, Tbilisi has become an important platform for the creation of new Israeli offices, R&D centers and consulting firms.

According to the head of the Georgian Real Estate Association, Vazha Mebagishvili, the cost of housing in the central areas of Tbilisi and Batumi has already reached $500-600 thousand, and the price per square meter fluctuates in the range of $2000-2700 ( Commersant ). This is a noticeable increase compared to pre-crisis indicators.

According to the Jerusalem Post, Israelis have begun actively purchasing not only apartments but also timeshares in Batumi, forming small local communities. According to the Georgian Interior Ministry, about 250,000 Israeli tourists will visit the country in 2024, many of whom are also considering buying housing.

Conclusion

The movement of Israeli capital abroad in 2024-2025 is becoming systemic. Georgia has become one of the key beneficiaries of this process. In the coming years, the flow of capital into overseas real estate may continue to grow, forming a new map of Israeli global investment.

How long will this expansion of Israeli capital last? The answer largely depends on whether the situation in Israel itself stabilizes. If the political crisis is resolved and security is strengthened, some of the funds that were taken out may return – at least, this is what the Israeli authorities hope. However, experience shows that the reverse inflow is slower than the outflow: during times of anxiety, investors have time to get accustomed to living abroad and feel the benefits of diversification. In addition, foreign assets have now become firmly established in the strategy of Israeli high net worth individuals and pension funds. We are probably witnessing the formation of a new norm: the Israeli middle class and business will be much more global in their capital allocation than before.

For Israel as a state, this is a challenge – efforts are needed to restore investor confidence, stabilize the economy and create conditions in which money flows in and out again. Otherwise, the process may accelerate: further waves of upheaval (political or military) will only strengthen the citizens’ determination to keep their “spare wallet” abroad.

Ultimately, the story of the capital flight demonstrates the deep interconnection between politics and economics. Israelis vote not only in elections, but also with their wallets – and in 2024–2025, this “vote” is directed at foreign real estate markets. Israelis have learned to build financial havens outside their homeland – and this experience will stay with them for a long time, becoming another sign of a new era of global turbulence.

The movement of Israeli capital abroad in 2024–2025 is becoming systemic. Georgia has become one of the key beneficiaries of this process: thanks to a simple tax system, accessible residence permit rules, a stable economy, and a steady increase in tourist flow.

Investments in hotel projects and apart-hotels in Batumi, Tbilisi and Gudauri deserve special attention. In 2024, Georgia received more than 7 million foreign tourists, and according to the National Tourism Agency, further growth is expected in 2025 amid the expansion of air traffic and visa-free regimes. The hotel sector demonstrates high occupancy during the resort season (up to 85-90%).

In the coming years, according to Galt & Taggart forecasts , investments in hotel and resort real estate in Georgia will remain one of the drivers of the entire construction sector.

Georgia is thus becoming not only a geographical but also a financial hub for Israeli investors diversifying their capital during a period of global turbulence.