Victoria 2 Foreign Investment
When you buy or acquire property in Victoria, you may have to pay (also known as stamp duty).If you are a and you acquire, as well as land transfer duty you may have to pay foreign purchaser additional duty (additional duty) on the share of the property you acquired.If the property you acquired is exempt from land transfer duty, the additional duty does not apply. If the property you acquired is eligible for a land transfer duty concession, the additional duty is calculated on the before the concession is applied.Foreign corporations and foreign trusts may, in some circumstances, be eligible for an.
Example 2 - Foreign purchaser additional duty appliesKate, a foreign natural person, buys residential property off-the-plan for $500,000. She intends to live there as her principal place of residence (PPR). Kate is eligible for both the PPR concession and the off-the-plan concession.Additional duty is payable even though land transfer duty concessions apply.
Victoria 2 Foreign Investment
Kate is liable for the additional duty calculated on the $500,000 purchase price.Read our for more information. Foreign purchasersYou are a foreign purchaser if you are a foreign natural person, a foreign corporation or a trustee of a foreign trust.
Foreign natural personsYou are a foreign purchaser if you are not:. A citizen or permanent resident of Australia,. A New Zealand citizen with a.Foreign corporationsA foreign corporation includes corporations incorporated:. outside Australia,. in Australia if a foreign natural person, another foreign corporation, or a trustee of a foreign trust has a in those corporations.Foreign trustsA foreign trust is a trust where a foreign natural person, foreign corporation or trustee of another foreign trust, has a in the trust estate of that trust. Example 2: The transferee is a foreign purchaser because there is a foreign natural person, corporation or trust in the transferee’s corporate structureXYZ Pty Ltd purchases residential property in Victoria.
Victoria 2 Foreign Investment Rate
XYZ Pty Ltd is a corporation incorporated in Australia. XYZ Pty Ltd has two shareholders, A Pty Ltd, with 45 per cent, and B Pty Ltd, with 55 per cent.
B Pty Ltd has two shareholders, Danny and Elizabeth. Danny holds an Australian permanent visa and has 35 per cent of the shares in B Pty Ltd. Elizabeth is a foreign natural person who has 65 per cent of the shares in B Pty Ltd.Elizabeth has an interest in more than 50 per cent of the issued shares in B Pty Ltd and therefore has a controlling interest in B Pty Ltd. This means B Pty Ltd is a foreign corporation. B Pty Ltd holds more than 50 per cent of the issued shares, and therefore has a controlling interest, in XYZ Pty Ltd. This makes XYZ Pty Ltd a foreign corporation also, meaning XYZ Pty Ltd is liable for additional duty on purchases of residential property. Example 4: The transferee is a foreign purchaser because there is a foreign natural person, corporation or trust in the transferee’s trust structureABC Pty Ltd, as trustee of the ABC Unit Trust, buys residential property.
The ABC Unit Trust has two unit holders, Steve and Z Pty Ltd. Steve holds an Australian permanent visa and 40 per cent of the units in the unit trust, while Z Pty Ltd is a corporation incorporated in Australia, which holds 60 per cent of the units in the unit trust.The sole shareholder of Z Pty Ltd is Poli, a foreign natural person. As Poli has an interest in more than 50 per cent of the issued shares in Z Pty Ltd, she has a controlling interest in Z Pty Ltd, making Z Pty Ltd a foreign corporation. Z Pty Ltd holds an interest in more than 50 per cent of the capital of the trust estate of the ABC Unit Trust, Z Pty Ltd has a substantial interest in the unit trust. This makes the ABC Unit Trust a foreign trust, which means ABC Pty Ltd, on behalf of the ABC Unit Trust, liable for the additional duty on purchases of residential property.Exemption from additional dutyForeign corporations and foreign trusts may, in some circumstances, be eligible for an exemption from additional duty.