Authorities Study Leasing Deal Between Khazaradze Family and German Ambassador

04/08/2025 - 12:52

Germany's Ambassador to Georgia Peter Fischer; Photo: Deutsche Botschaft Tiflis/Facebook

The Revenue Service of Georgia said it was studying “possible violation of tax law” in a leasing deal between the family of Mamuka Khazaradze, jailed leader of the opposition Lelo/Strong Georgia coalition, and German Ambassador Peter Fischer.

The statement follows reports by pro-Georgian Dream media that the German Ambassador was leasing a residence from Khazaradze’s family, while it was “unknown” whether there was a leasing agreement and whether Khazaradze’s family was paying relevant taxes. Khazaradze’s lawyers confirmed the deal, but said there was an agreement “executed in compliance with all legal rules” and accused pro-GD media of spreading “distorted information.”

“Following the information disseminated in the public domain, an analysis of the issue revealed a possible violation of tax law, which is why the Revenue Service has already begun investigating the facts and will conduct tax control measures specified by law in order to fully study the information,” the Revenue Service said in its August 4 statement, citing “high public interest” in providing information about “possible tax evasion” in the leasing deal betwen Khazaradze family and the German diplomat.

Pro-government Rustavi 2 TV channel reported on August 1 that the German Ambassador’s “up to 300 square meter” residence on Kavlashvili Street in downtown Tbilisi belonged to Irina Khazaradze, the Lelo leader’s wife. The channel claimed it was unclear whether a formal lease agreement existed and whether the Khazaradze family was paying income tax on the arrangement.

Leaders of the ruling Georgian Dream party seized on the media reports, with GD Prime Minister Irakli Kobakhidze saying the ambassador “put himself in an uncomfortable position and, more, he put his state, his Foreign Ministry, in an uncomfortable position.”

“Let us see, wait for the information regarding the finances, how the expenses were covered, taxes were paid, and so on, all of this is very interesting,” Kobakhidze told reporters in Shovi, Racha, on August 3. “When you rent a residence from a leader of a certain political party and then you present yourself as a staunch supporter of this political party, it raises a lot more questions.”

The lawyers of Khazaradze’s family issued a statement on August 2, calling the “distorted information” spread by the pro-government channel “another propagandistic attack” both on Khazaradze’s family and the German state.

“There is a notarized agreement (N221439682 / 21.10.2022) about leasing the property in possession of the Khazaradze family to the German Ambassador, executed in compliance with all legal rules,” the lawyers said. “Any other, i.e., undocumented cooperation with the diplomatic representation of the German Federation is impossible!”

Khazaradze, who remains behind bars for refusing to appear before Tsulukiani’s parliamentary commission, issued a Facebook statement, saying that the rental contract was signed in full compliance with the law, involving real estate registered in the name of the German Ambassador and his spouse. He acknowledged that his team had recently identified a tax issue related to source-based taxation and noted that, “based on our application, appropriate registration was made with the Revenue Service and the budget was fully compensated, which completely resolved the issue.”

Ambassador Fischer, a vocal critic of the Georgian Dream government’s anti-democratic actions, has faced repeated attacks from the ruling party and its supporters, including public verbal insults. Other European diplomats, including the EU Ambassador, have likewise been targets of sustained accusations and attacks by the ruling party leadership, drawing condemnation from Brussels.

The news was updated on August 5, 12:00 p.m. to include the Facebook statement of Mamuka Khazaradze.

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