If you are classified as a foreign person and purchase residential property in NSW, you will have to pay an eight percent surcharge on the value of the property. This is in addition to any applicable stamp duty.
It is important to note that you are generally classified as a foreign person, unless:
- You are an Australian citizen, or
- You have lived in Australia for more than 200 days in the 12 months before the purchase date, and; you are either a New Zealand Citizen, who holds a subclass 444 visa, or a permanent resident of Australia.
When completing a property transaction all purchasers are required to complete a declaration on foreign person status. This foreign person surcharge may be a significant cost and should be considered prior to purchasing property. The surcharge can be estimated using the online calculator.
If you have any questions regarding property matters, please do not hesitate to contact Ranu Jas or myself on (02) 9908 9888.