LAW OF GEORGIA ON GRANTS

LAW OF GEORGIA

ON GRANTS

Chapter I - General Provisions

Article 1 – Scope of application

This Law defines general principles for providing, obtaining and using grants.

 Article 2 – Grant

1. Grants shall be targeted resources in a monetary form or in kind, provided free of charge by a grant provider (donor) to a grant recipient, which are used to implement specific humanitarian, educational, scientific and research, healthcare, defence and security, cultural, sports, ecological, agricultural or social projects, or to carry out programs of the state or of public importance.

1¹. A grant provided by the Legal Entity under Public Law called the Agency for Innovations and Technologies of Georgia to carry out activities related to innovation as determined by the Law of Georgia on Innovations shall be deemed to be a grant.

1². A grant awarded for entrepreneurial purposes by the non-profit (non-commercial) legal entity called Peace Fund for a Better Future in accordance with its statutory objectives shall also be deemed to be a grant.

1³. Technical assistance provided by a grant provider (donor) referred to in Article 3(1)(a) of this Law to a grant recipient referred to in Article 4 of the same Law in the form of sharing technology, specialised knowledge, skills, expertise and/or other types of assistance for the purposes referred to in paragraph 1 of this Article, shall also be deemed to be a grant.

2. Resources allocated for achieving entrepreneurial goals shall not be deemed to be a grant, except for resources provided to a legal entity who has been assigned the status of an agricultural cooperative in accordance with the Law of Georgia on Agricultural Cooperative, and resources allocated for political goals.

Law of Georgia No 819 of 12 July 2013 – website, 5.8.2013

Law of Georgia No 5502 of 22 June 2016 – website, 12.7.2016

Law of Georgia No 2987 of 31 May 2023 – website, 13.6.2023

Law of Georgia No 663 of 12 June 2025 – website, 12.6.2025

Article 3 – Grant provider

1. Grant providers (donors) may include:

a) an international charity, a humanitarian or any other public organisation (including the International Sports Association, Federation, Committee), or other international organisation, financial and loan institutions, as well as foreign governments or their representative offices, a foreign entrepreneurial (if a grant recipient is the State or the Government of Georgia) or a non-entrepreneurial (non-commercial) entity;

b) a non-entrepreneurial (non-commercial) legal entity of Georgia whose main statutory purpose is to accumulate property to promote charitable, social, cultural, educational, scientific and research or any other publicly beneficial activities;

c) a legal entity under public law designated by the Government of Georgia, whose purpose under its charter/statute is to award grants: to improve the level of teaching and learning in the sphere of education; to cover expenses related to learning; for scientific purposes; to facilitate the integration of citizens living in densely populated areas with national minorities and in mountainous regions; to finance youth and public projects; to facilitate employment; to ensure access to livelihoods for the social and economic integration of internally displaced persons and families affected by natural disasters and subject to displacement (ecomigrants); for the local integration of persons with international protection in Georgia, aliens seeking asylum in Georgia and stateless persons with a status in Georgia, as well as to provide reintegration assistance to migrants returning to Georgia; for the popularisation of reforms and innovations implemented in Georgia and their promotion in the international community; to assist the partner governments of Georgia in the area of education, healthcare, social security and sustainable development, as well as in dealing with the consequences of natural and man-made disasters; for the implementation of state support measures for agricultural cooperatives; to support public organisations.

d) a ministry of Georgia; the office of the State Minister of Georgia; the ministries of the Autonomous Republics of Abkhazia and Ajara.

e) a legal entity under public law created by a normative act of the Autonomous Republic of Abkhazia or Ajara and a legal entity under public law determined by the above Governments, whose purpose under its charter/statute is the implementation of youth projects or the facilitation of employment.

1¹. The head of a legal entity under public law as determined by the Government of Georgia shall be entitled, if necessary, to issue a normative act and/or an individual administrative act on issues related to the issuance of a grant for the support of a public organisation as provided for by paragraph 1(c) of this Article.

2. In the case provided for by paragraph 1(d) of this article, the respective ministry of Georgia shall submit a draft document for providing a grant, before the document has been executed, to the Government of Georgia, and a respective ministry of the Autonomous Republics of Abkhazia and Ajara to the Governments of the Autonomous Republic of Abkhazia or Ajara accordingly, for the preliminary assessment of the goal of providing a grant, the grant amount and the specific directions of the use of the grant, in cases and in accordance with the procedure established by the legal acts of the Government of Georgia, and the Governments of the Autonomous Republics of Abkhazia and Ajara.

Law of Georgia No 1166 of 25 March 2005 – LHG I, No 11, 29.3.2005, Art. 73

Law of Georgia No 3974 of 22 December 2006 – LHG I, No 48, 22.12.2006, Art. 341

Law of Georgia No 2959 of 20 April 2010 – LHG I, No 23, 4.5.2010, Art. 133

Law of Georgia No 5125 of 13 October 2011 – website, 27.10.2011

Law of Georgia No 6172 of 15 May 2012 – website, 29.5.2012

Law of Georgia No 4497 of 11 November 2015 – website, 24.11.2015

Law of Georgia No 4843 of 4 March 2016 – website, 14.3.2016

Law of Georgia No 103 of 16 December 2016 – website, 27.12.2016

Law of Georgia No 1287 of 20 September 2017 – website, 27.9.2017

Law of Georgia No 1393 of 30 November 2017 – website, 8.12.2017

Law of Georgia No 2085 of 23 March 2018 – website, 5.4.2018

Law of Georgia No 5469 of 11 December 2019 – website, 19.12.2019

Law of Georgia No 1483 of 12 April 2022 – website, 19.4.2022

Law of Georgia No 307 of 20 February 2025 – website, 21.2.2025

Law of Georgia No 663 of 12 June 2025 – website, 12.6.2025

Article 4 – Grant recipient

Grant recipients may include:

a) the State of Georgia in the form of a body (an organisation) authorised by the Prime Minister of Georgia;

b) the Government of Georgia in the form of a body (an organisation) authorised by the Government of Georgia;

c) the body or municipality of a public authority of Georgia or of an autonomous republic;

d) a resident or non-resident non-entrepreneurial (non-commercial) legal entity of Georgia, its representation, branches or departments;

e) a legal entity under public law;

f) a citizen of Georgia;

f¹) a person holding a neutral identity card or neutral travel document;

f²) a foreign citizen – for the purposes of a competition(s) for grants announced by the legal entity under public law called the Shota Rustaveli National Science Foundation of Georgia;

f³) a person legally residing in the Autonomous Republic of Abkhazia or the Tskhinvali Region (the former Autonomous Region of South Ossetia), registered in accordance with the procedure established by the legislation of Georgia, and who has been assigned a personal number;

g) an accredited institution of higher education;

h) an international organisation, an entrepreneurial or a non-profit (non-commercial) legal entity of another state;

i) a legal person holding a status of an agricultural cooperative as determined by the Law of Georgia on Agricultural Cooperative;

i¹) in the case of a grant issued for entrepreneurial purposes by the Agency for Innovations and Technologies of Georgia, a legal entity under public law registered in Georgia for the purposes of carrying out activities related to innovation, in accordance with the Law of Georgia on Innovations;

i²) in the case of a grant issued for entrepreneurial purposes by the Peace Fund for a Better Future, a non-profit (non-commercial) legal entity, in accordance with its statute;

j) (deleted – 21.07.2018, No 3293);

k) the business ombudsman of Georgia.

[k) (deleted – 17.12.2025, No 1281). (Shall become effective from 1 January 2026)]

Law of Georgia No 3974 of 22 December 2006 – LHG I, No 48, 22.12.2006, Art. 341

Law of Georgia No 3566 of 21 July 2010 – LHG I, No 46, 4.8.2010, Art. 298

Law of Georgia No 4996 of 1 July 2011 – website, 15.7.2011

Law of Georgia No 6172 of 15 May 2012 – website, 29.5.2012

Law of Georgia No 819 of 12 July 2013 – website, 5.8.2013

Law of Georgia No 1047 of 6 September 2013 – website, 23.9.2013

Law of Georgia No 2642 of 1 August 2014 – website, 18.8.2013

Law of Georgia No 2615 of 28 May 2015 – website, 4.6.2015

Law of Georgia No 5502 of 22 June 2016 – website, 12.7.2016

Law of Georgia No 103 of 16 December 2016 – website, 27.12.2016

Law of Georgia No 1114 of 28 June 2017 – website, 10.7.2017

Law of Georgia No 1394 of 30 November – website, 8.12.2017

Law of Georgia No 2477 of 6 June 2018 – website, 21.6.2018

Law of Georgia No 3293 of 21 July 2018 – website, 9.8.2018

Law of Georgia No 4240 of 27 December 2018 – website, 29.12.2018

Law of Georgia No 4589 of 8 May 2019 – website, 8.5.2019

Law of Georgia No 6892 of 15 July 2020 – website, 28.7.2020

Law of Georgia No 2987 of 31 May 2023 – website, 13.6.2023

Law of Georgia No 1281 of 17 December – website, 18.12.2025

Chapter II - Common Principles For Issuing Grants

Article 5 – Legal basis for issuing grants

1. The legal basis for issuing a grant shall be a written agreement between the grant provider (donor) and the grant recipient (regardless of whether it is presented in one document or in several interrelated documents and regardless of its specific name), as well as a written decision of a foreign grant provider (donor), including an official written decision of an international sports organisation to allocate tangible and intangible assets (including money) for certain purposes to a Georgian sports federation. The said agreement should specify the purpose of issuing the grant, its amount, the specific direction for using it, the time limits for its use and any major requirements that a grant provider (donor) imposes on a grant recipient.

2. A grant shall be used only for the purposes specified in the agreement. The use of a grant for other purposes shall be allowed only with the consent of a grant provider (donor) and the Government of Georgia or an authorised entity/body thereof.

3. The realisation of the assets received as a grant shall be allowed only if such action has been provided for in advance in the grant agreement.

Law of Georgia No 496 of 16 April 2025 – website, 16.4.2025

Law of Georgia No 663 of 12 June 2025 – website, 12.6.2025

Article 5¹ – Procedure for issuing grants by a foreign grant provider (donor)

1. The issuing of grants by a grant provider (donor) as provided for by Article 3(1)(a) of this Law to a grant recipient as provided for by Article 4 of this Law shall require the consent of the Government of Georgia or an authorised entity/body thereof. Accepting grants issued without the said consent shall be prohibited. A grant shall also be deemed to have been issued without consent if the grant is used in violation of the requirements of Article 5(2) of this Law.

1¹. Procedures established by the Organic Law of Georgia Local Self-Government Code and/or a relevant normative act of the Government of Georgia shall apply to the issuance of a grant by a foreign grant provider (donor) to a budgetary organisation.

2. In order to obtain consent to issue a grant, a grant provider (donor) shall submit to the Government of Georgia or an authorised entity/body thereof a draft written agreement provided for by Article 5 of this Law. The Government of Georgia or an authorised entity/body thereof shall have the right to request from a grant provider (donor) that they submit additional documentation to make a decision on issuing a grant.

3. The procedure established by this article shall not apply to grants issued by an international sports association, federation or committee, to individual financial assistance issued for general education, higher education and scientific work outside Georgia, nor to grants issued within the framework of Research and Innovation Program Horizon Europe, EU Programme Erasmus+, nor grants issued by the German Academic Exchange Service DAAD, nor to grants issued within the framework of the Programme Creative Europe between Georgia and European Union.

4. The procedure established by this Article and the effect of Articles 6¹ and 6² ​of this Law shall also apply to funds transferred free of charge in cash or in kind, which are grants by nature, but are issued on the basis of a fraudulent or sham transaction, or a transaction which differs from those determined by Article 5(1) of this Law.

5. The Government of Georgia shall establish the procedures and conditions for an agreement on the issuance of a grant as provided for by this Article between a foreign grant provider (donor) and the Government of Georgia or an authorised entity/body thereof.

Law of Georgia No 496 of 16 April 2025 – website, 16.4.2025

Law of Georgia No 663 of 12 June 2025 – website, 12.6.2025

Article 6 – Violation of conditions of agreement and liability

1. Parties shall be liable for any violation of the terms and conditions of an agreement on the issuance of a grant in accordance with the applicable legislation.

2. In the event of disagreement, a dispute arising between residents or citizens of different countries shall be resolved by the court of the country chosen in advance by the parties. If such choice is not determined by the agreement, the dispute shall be resolved in accordance with the legislation of Georgia.

Article 6¹ – Monitoring of the issuance and receipt of grants without consent

1. The Legal Entity under Public Law called the Anti-Corruption Bureau (‘the Anti-Corruption Bureau’) shall monitor the issuance and receipt of grants without consent.

2. The Anti-Corruption Bureau shall, if necessary, establish the rules for monitoring the issuance and receipt of grants without consent as provided for by this Law.

3. For the purpose of monitoring the issuance and receipt of grants without consent the Anti-Corruption Bureau shall be authorised to:

a) request a financial report from an entity in the case of a reasonable belief that the entity has failed to comply with the obligations provided for by Article 5¹ of this Law;

b) interview a natural person in accordance with the procedure established by this Law;

c) interview a natural person before a magistrate judge in accordance with the procedure established by the Administrative Procedure Code of Georgia;

d) request from public institutions, natural persons, legal entities (including payment service providers), and other entities necessary information, including personal data of a special category, and information containing other personal data and secrets;

e) exercise other powers provided for by Law.

4. In the case of a reasonable belief of a violation of the requirements established by this Law, state bodies shall inform the Anti-Corruption Bureau thereof.

5. The Anti-Corruption Bureau shall request the information provided for by paragraph 3(d) of this article, which is not public information, on the basis of a court decision. For this purpose, the Anti-Corruption Bureau shall submit an application to the court in the case of a legal entity – according to the address of the registration of the legal entity, and in the case of a natural person – according to the place of residence of the natural person. The court shall make a decision within 48 hours of the submission of the said application. The application of the Anti-Corruption Bureau shall be substantiated. It shall indicate the grounds and purpose(s) of the request for information, and the period and volume of the information to be requested. If the application is granted, the court decision shall indicate the grounds and purpose(s) of the request for information, the period and volume of the information to be requested, and the term of validity of the said decision.

6. An entity that is requested to submit information as provided for by this Law by the Anti-Corruption Bureau shall be obliged to submit the information at its disposal.

7. The Anti-Corruption Bureau, when exercising its powers provided for by this Law, shall carry on administrative proceedings for not more than 3 months. The Head of the Anti-Corruption Bureau shall have the right, if necessary, to extend this period for not more than 3 months.

Law of Georgia No 496 of 16 April 2025 – website, 16.4.2025

Article 6² – Interviewing a natural person in relation to the receipt of a grant without consent

1. A natural person who may have information necessary for the Anti-Corruption Bureau to monitor the receipt of a grant without consent may be voluntarily questioned by the Anti-Corruption Bureau. It shall be prohibited to force a person to present evidence or provide information.

2. A person being questioned shall have the right to use the services of a lawyer at his/her own expense, and not to provide information against himself/herself and/or his/her close relative. The Anti-Corruption Bureau shall explain these rights to the person being questioned before the beginning of the interview. For the purposes of this paragraph, a close relative of a person being questioned shall be his/her parent, adoptive parent, child, foster child, grandfather, grandmother, grandchild, sister, brother, spouse.

3. Before the beginning of an interview of a person being questioned, his/her identity and other necessary information shall be established. That information shall be noted in the interview protocol.

4. The Anti-Corruption Bureau shall be obliged to explain to a person being questioned that his/her interview is voluntary. This explanation shall be noted in the interview protocol.

5. A person being questioned shall be obliged to provide the Anti-Corruption Bureau with correct information during the interview.

6. The Anti-Corruption Bureau shall be obliged to warn a person being questioned in writing about the expected liability for providing false information. This warning shall be noted in the interview protocol.

7. The Anti-Corruption Bureau shall be obliged to explain to a person being questioned that he/she may be summoned for interview before a magistrate judge.

8. During the interview of a person being questioned, the use of sound and/or image recording equipment shall be permitted. A person shall be notified in advance thereof.

9. A person may be questioned remotely, using electronic means.

Law of Georgia No 496 of 16 April 2025 – website, 16.4.2025

Article 6³ – Procedure for imposing liability for receiving a grant without consent

1. In connection with the commission of an administrative offence provided for by this Law, an authorised person of the Anti-Corruption Bureau shall draw up a protocol of an administrative offence. It shall immediately be sent for consideration to a district (city) court.

2. If there are circumstances that may impede the execution of a penalty as provided for by law for the commission of an administrative offence, the Anti-Corruption Bureau shall be authorised, apart from drawing up the protocol of an administrative offence, to seize the property of an offender (including bank accounts) in proportion to the penalty for the commission of the said administrative offence. The seizure shall enter into force immediately and shall be submitted to a district (city) court for confirmation together with the protocol of an administrative offence.

3. A district (city) court shall consider the issue of whether to confirm a protocol of an administrative offence as provided for by paragraph 1 of this article, and shall make a decision on the said issue within 15 days after the receipt of the case materials. The decision of a district (city) court may be appealed once to an appellate court within 10 days after its issue. The appellate court shall make a decision not later than 15 days after the filing of the appeal. That decision shall be final and shall not be appealed.

4. During a pre-election period, a district (city) court shall consider the issue of whether to confirm a protocol of an administrative offence as provided for by paragraph 1 of this article, and shall make a decision on the said issue within 5 calendar days after the submission of the case materials. The decision of the district (city) court may be appealed once to an appellate court within 72 hours after its issue. The appellate court shall deliver its decision within 5 calendar day after the filing of the appeal. The decision of the appellate court shall be final and shall not be appealed. The appellate court shall be obliged to deliver a reasoned decision and provide the case materials to a party no later than 12 p.m. of the day following the day of the decision.

5. A district (city) court shall consider the issue of whether to impose a seizure in connection with the commission of an administrative offence as provided for by paragraph 2 of this article and shall make a decision on the said issue within 48 hours after the submission of the case materials. The decision of the district (city) court may be appealed once to an appellate court within 48 hours after its issue. Appealing against the seizure shall not suspend its validity. The appellate court shall make a decision not later than 48 hours after the filing of the appeal. That decision shall be final and shall not be appealed. The appellate court shall be obliged to deliver a reasoned decision and provide the case materials to a party no later than 12 p.m. of the day following the day of the decision.

Law of Georgia No 496 of 16 April 2025 – website, 16.4.2025

Article 6⁴ – Liability related to receiving a grant without consent

1. The receipt of a grant without consent by a grant recipient shall result in the imposition of a fine of double the amount of the grant in question.

2. Providing false information by a natural person during an interview by the Anti-Corruption Bureau or during an interview of a natural person before a magistrate judge upon the request of the Anti-Corruption Bureau shall result in the imposition of a fine of 2,000 GEL.

3. The repeated commission of an act provided for by paragraphs 1 or 2 of this article shall result in the imposition on a relevant person of a fine of double the amount of the fine provided for by the relevant paragraph of this article.

4. An offender may be held liable for an offence provided for by this article for a period of 6 years from the date of the commission of the relevant act.

Law of Georgia No 496 of 16 April 2025 – website, 16.4.2025

Chapter III - Taxation of Grants

Article 7 – General procedure for the taxation of grants

The procedure for the taxation of grants shall be determined by the applicable legislation of Georgia.

Article 8 – (Deleted)

Law of Georgia No 5419 of 10 June 2016 – website, 17.6.2016

Chapter IV - Transitional and Final Provisions

Law of Georgia No 5419 of 10 June 2016 – website, 17.6.2016

Article 9 – Transitional provision

Amounts issued by the Legal Entity under Public Law within the system of the Ministry of Economics and Sustainable Development called Enterprise Georgia to an entrepreneurial entity within the framework of micro and small entrepreneurship of the programme Enterprise Georgia approved by the ordinance of the Government of Georgia No 365 of 30 May 2014 on the Approval of the State Programme Enterprise Georgia shall be deemed to be grants.

Law of Georgia No 5419 of 10 June 2016 – website, 17.6.2016

Law of Georgia No 189 of 22 December 2016 – web-site, 29.12.2016

Law of Georgia No 849 of 17 May 2017 – website, 2.6.2017

 Article 10 – Retroactive effect

Article 9 of this Law shall apply to legal relationships arising from 1 January 2015.

Law of Georgia No 5419 of 10 June 2016 – website, 17.6.2016

Article 11 – Entry into force of this Law

This Law shall enter into force upon its promulgation.

Law of Georgia No 5419 of 10 June 2016 – website, 17.6.2016

Eduard Shevardnadze

President of Georgia

Tbilisi,

28 June 1996

No 331-II