Tax advisor - overseas investor

[FirstWorldProblems]

Is there a PIO recommended tax advisor who is able to offer guidance on how best to structure an Australian property purchase by a citizen living in the U.K. and their non-citizen spouse?  Plus the tax implications upon an eventual sale. 
 

thanks. 

[Marisawright]

It's not about citizenship, it's about residency.  If the purchaser is not normally resident in Australia, then they will have to get permission from the FIRB (for a fee)before they can purchase.  Then if approved, they'll pay a significant surcharge on the purchase price.  If they're planning to rent it out, then they will be treated as a foreign investor for tax purposes, too.  That means no tax-free threshold and a flat rate of tax.  Full capital gains payable if they sell.   If they're planning to ultimately move over to Australia and live in it, then they'll still have to pay full pro rata capital gains for the period they didn't live in it.  

@Alan Collett is the man most usually recommended. He's a migration agent but also a tax agent.

[DIG85]

6 hours ago, Marisawright said:

It's not about citizenship, it's about residency. 

An Australian citIzen does not require FIRB approval to acquire Australian residential property, even if they live abroad.

Edited December 23, 2021 by DIG85

[Marisawright]

7 hours ago, DIG85 said:

An Australian citIzen does not require FIRB approval to acquire Australian residential property, even if they live abroad.

Oops sorry, I stand corrected.   I know that you get treated as a foreign investor when it comes to the tax treatment, so I assumed it must apply to the whole thing.

[DIG85]

Even a permanent resident who lives abroad is allowed to acquire Australian RE without FIRB approval. The OP does not state whether the non-citizen is an Aus PR, but may be something to consider.

[Ken]

On 24/12/2021 at 07:38, DIG85 said:

Even a permanent resident who lives abroad is allowed to acquire Australian RE without FIRB approval. The OP does not state whether the non-citizen is an Aus PR, but may be something to consider.

Doesn't matter if the spouse has PR or not: "Spouses of Australian citizens, New Zealand citizens and holders of Australian permanent visas do not require foreign investment approval when purchasing residential real estate as joint tenants" firb.gov.au

Hence the answer to how to structure the property purchase is (almost certainly) as joint tenants as most of the other alternatives would require FIRB approval. However as Marisawright has pointed out the tax treatment is not about citizenship it's about residency. As a non-resident the tax rates on Australian property are quite onerous. 

[DIG85]

10 hours ago, Ken said:

Doesn't matter if the spouse has PR or not: "Spouses of Australian citizens, New Zealand citizens and holders of Australian permanent visas do not require foreign investment approval when purchasing residential real estate as joint tenants" firb.gov.au

That exemption does not apply if the property is an investment property. The OP states they are living in the UK, so prima facie the property will be an IP.

So the status of the non-citizen spouse is relevant here. If the spouse is not a PR and they want to purchase jointly, then FIRB approval will be required. 

Edited December 26, 2021 by DIG85