Lease relations are regulated in Chapter Five of the Civil Code of Georgia, specifically in Articles 581-606.

A lease, similar to a rental, constitutes the temporary use of immovable property in exchange for a certain payment (lease rent).

Unlike rental, leasing property is done for commercial purposes, to generate income. (For example: leasing commercial space for an office or a food establishment.)

A lease may also involve land plots, inventory, motor vehicles, and other movable and/or immovable items.

Immovable property rented out under a rental agreement is used for personal purposes, without generating income (e.g., renting an apartment for residential use); however, in both cases, compensation is required.

The parties themselves determine the amount and form of the lease rent. By agreement, payment may be made in cash or in kind.

The parties to a lease are the lessor—the owner of the property—and the lessee, the person who leases the property from the lessor. Both parties may be either natural or legal persons. This is relevant only in terms of taxation and the taxation of lease rent.

Legally, the same rights and obligations apply to all lease relations.

The Civil Code of Georgia also defines the concept of sublease, which means the lessee leases the leased property to another party, i.e., subleasing.

It should be noted that the lessee does not have the right to sublease the property without the lessor's consent.

Regarding the creation of the lease right, if the lease term exceeds one year and one of the parties is a private law legal entity, registration in the Public Registry is mandatory for the creation of the lease right.

To register a lease agreement, both parties must appear before the Public Registry operator and sign the pre-prepared document, or the lease agreement may be certified by a notary and one of the parties submits the signed and certified agreement to the Public Registry.

We present a sample lease agreement, which outlines the main aspects, rights, and obligations that are frequently encountered in practice in lease relations.

Naturally, the articles and/or clauses of this agreement may be amended by the parties' agreement.