Australia is a great country boasting fabulous beaches, great weather and a good lifestyle. So it comes as no surprise that real estate sparks the interest of high wealth investors who want a home away from home, or simply as a natural consequence of close social ties in Australia.
Foreign residents and residents on temporary visas in Australia are generally required by the Foreign Investment Review Board (FIRB) to obtain approvals to invest in Australian real property. Generally these are limited to certain new residential properties and approved commercial property projects.
For significant investments into Australian real estate, there can be more advanced structures appealing to sophisticated investors which we will not be discussing in this article. Instead, we have collated some of the most common forms of property ownership that appeal to most taxpayers below, and some of the main considerations in terms of
income tax on real estate income
capital gains tax on real estate
land tax
common asset protection considerations
This post is intended to provide a quick introduction to common ownership forms of real estate in Australia. It is not intended for corporate investment vehicles, managed investment trusts, real estate investment trusts and sophisticated commercial investors with more complex tax considerations.
Should you have any questions in relation to the above or in relation to more complex arrangements, please contact us.
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