Attention all real estate investors! There’s been a recent update to the surcharge purchaser duty and surcharge land tax for foreign buyers in Australia that you need to know about. It has been determined that the surcharge provisions in New South Wales (NSW) are inconsistent with international tax treaties entered into by the Federal Government with New Zealand, Finland, Germany, and South Africa. These international tax treaties are related to taxation and other matters and have been given the force of federal law.
So, what does this mean for you as a real estate investor? Effective immediately, individuals who are citizens of these nations and purchasing residential-related property or land in their own capacity will no longer be required to pay surcharge purchaser duty or surcharge land tax. This is great news for those individuals who were previously subject to these additional taxes.
However, surcharge purchaser duty or surcharge land tax liability for non-individuals, such as corporations, trusts or partnerships, that arises because of an entity’s affiliation with these nations may also be affected by the international tax treaties. It’s important to work with a knowledgeable real estate agent or legal advisor to determine how these changes may impact your specific situation.
For those who have already paid surcharge purchaser duty or surcharge land tax on or after 1 July 2021, refunds may be available for purchasers/transferees, and landowners from the nations concerned. This is great news for those who may have been impacted by the surcharges and can now potentially receive a refund.
In conclusion, the recent update to the surcharge purchaser duty and surcharge land tax for foreign buyers in Australia means that citizens of New Zealand, Finland, Germany, and South Africa who are purchasing residential-related property or land in their own capacity will no longer be subject to these additional taxes. However, it’s important to seek professional advice to understand how these changes may impact your individual situation. As profesisonal property solution agency, we are here to help you navigate these changes and make informed decisions about your investments. So, if you’re considering buying property in Australia, get in touch with Realtisan today to discuss your options.
Reference;
Revenue NSW. (2023, February 22). Surcharge purchaser duty and surcharge land tax – international tax treaties. Revenue NSW. Retrieved February 22, 2023, from https://www.revenue.nsw.gov.au/news-media-releases/international-tax-treaties