Immigration and Property Buying – The New Property Acquisition Rules
Since 1st July 2016 last year, the federal government, with the New South Wales and Victoria state governments, have cracked down on foreign non-residents buying Australian property, who are not Australian citizens, permanent residents living in Australia or eligible New Zealand Citizens living in Australia. New tightened up Foreign Investment Review Board (FIRB) approval applications, processes and fee structures for foreign non-residents wishing to buy real estate in Australia are now in place. Foreign non-residents not complying with the new regime structure, are now served with mandatory forced sale notices, with also tax implications.
From an immigration agent’s prospective, a client could be coming to them, to obtain permanent residence in Australia, to avoid the hurdles and tax burdens of deemed as a foreign non-resident. The new foreign non-resident regime do not apply to Eligible New Zealand Citizens (ENZCs), who are deemed as permanent residents in Australia, for tax purposes and to avoid the foreign non-resident land taxes, who have been residing in Australia, for more than 200 days.
From an immigration agent’s prospective, a foreign non-resident wish to buy property in Australia, now can only buy from a developer (off the plan / new property) who has pre Foreign Investment Review Board (FIRB) approval to sell to foreign non-residents, or the foreign non-resident themselves must obtained Foreign Investment Review Board (FIRB) approval.
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