Hi all,
Could anybody tell me how the tax works on overseas income from property?
Do you get taxed in the country where the property is, or where you reside? or both?
thanks, AndyHi Andy,
So, as an aussie you pay tax on your world wide income no matter what the source. In this case it is property. You get a credit for tax paid in the country where the income is earnt so you will not pay any more tax than if you earnt the income locally. That’s just the basic idea and does not consider structures.
D&L Property Projects Ltd
Positive Cashflow NZ Property Deals.Email to receive current deals & New Zealand Information Sheet.
[email protected]Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
An option if you have enough of an investments income is to relocate to a tax haven
Many do not ask for tax on offshore income, so essentially you can have tax free investment income
Then you can come back to Australia for up to 180 days out of the year, so really you have the best of both worlds
Obviously you would need enough income, but the great thing about this is that there are many tax haven countries that have a low cost of living , but still have a decent lifestyle and amenities, so you could save up more taking this option than just living here
Obviously there are many things involved but all up I think the advantages outweigh the work involved
I would check this option out soon as some tax haven countries have special citizenship programs if you can demonstrate enough income, but demand is going up for these…..
Real Estate Loans at 1%-2% p.a. Ask Me How
thanks for you input guys thats a great help,
andyMany do not ask for tax on offshore income, so essentially you can have tax free investment incomeTrue they are not interested what you do anywhere in the world or how much money you make and you will not need to even relocate to the tax haven – but you will still have to pay the local taxes where the income is earned or not? what do you reckon? eg I just can’t register and vanuatu IC with blind trust and bearer shares and buy property all around the world an pay no tax in the host country. or can i?
D&L Property Projects Ltd
Positive Cashflow NZ Property Deals.Email to receive current deals & New Zealand Information Sheet.
[email protected]Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
no you cant, not in NZ the UK or the USA anyway, unless you have losses in that country dependent on company/llc/trust strucure to offset against income but you pay no additional tax in a tax haven if that is your tax domicile
when the going gets weird the weird turn pro
What about the deductions? which country would i claim them in?
If for example you had an investment property in NZ you would file a NZ non resident tax return and include all income and expenses and then file an Australian tax return and again claim all income and expenses. The main difference between the two returns will be depreciation. NZ has a lot more generous depreciation regime than Australia. As already sated you get a credit on your aussie tax return for any tax paid in NZ.
ned kelly
You only get tax credits if the Aus government has a double tax agrement with the country you are dealing in.
CATA
Asset Protection Specialist
[email protected]hi andyperry16
sorry to say this but the post is to vague.
what country are you looking at investing in yes cata is right if it is in a country that has tax agreements with Australia.
depending on what you want to achieve you need to talk to an acount that works in international accounting and they are not cheap.
and
True they are not interested what you do anywhere in the world or how much money you make and you will not need to even relocate to the tax haven – but you will still have to pay the local taxes where the income is earned or not? what do you reckon? eg I just can’t register and vanuatu IC with blind trust and bearer shares and buy property all around the world an pay no tax in the host country. or can i?
depending on the structure and the way that has been set up yes you can and local taxes are structured locally depending on the country.
and winwinbusinessdeals may look at your 1-2% rates and either you email me or i’ll pm you and have a chathere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi GR,
so the local taxes still apply?
D&L Property Projects Ltd
Positive Cashflow NZ Property Deals.Email to receive current deals & New Zealand Information Sheet.
[email protected]Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
have sent win win a pm a few days ago – let you know if he replies
D&L Property Projects Ltd
Positive Cashflow NZ Property Deals.Email to receive current deals & New Zealand Information Sheet.
[email protected]Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
hi DLPP
depends the tax
vat yes
capital gains no if you make a loss.
rental no again if you make a loss.
land tax yes if applicable.
and exit tax no again if you make a loss.
depending on the country depends on the taxes local tax can be a state,county or municipality tax and depend what those tax rules are depend weather you pay then.
you set up your local structure to be run by your master structure and local taxes may not be required to be paid but it depends what country you are talking about.
the main stream Aust,NZ yes local taxes are paid and I would keep two structures owned by an external structure but this is very complex and would require expert assistance that a bulliten board is not the place to explain as far as to say normally the blue is correct but can and does changehere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]Hi Gross,
I will be buying in the UK this year, I believe that i can claim a credit on the tax already paid in the UK( Profit minus costs),
is this correct? would anybody be willing to give me some advice on setting up a structure?
any help would be great!!!!hi andyperry16
I think there will be a double tax credit with britain but the cheapest way is to ask the ato go in and see them I give opinions not advice as I find that you should pay for advice.
as for structure advice I would not give it and if I was you I would not accept it from a bulliten board.
it need to be setup by a structure professional and maybe cata can steer you in the right direction or coasty mike.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]I could help from Aus but the UK has different laws that I do not know. Any opinion that I post are from Australian laws.
CATA
Asset Protection Specialist
[email protected]Thanks all, every little bit helps!!
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