How can I avoid foreign stamp duty if I’m buying a house with my TR partner?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: How can I avoid foreign stamp duty if I’m buying a house with my TR partner?

Post by Otto Dargan »

Hi hbkfan,

Foreign citizens who want to buy or invest in residential property in Victoria (VIC), New South Wales (NSW) or Queensland (QLD) will need to pay a stamp duty levy and, in some states, a land tax surcharge. You can try our stamp duty calculator to find out how much extra you’ll pay in stamp duty when you buy the house together.

While purchasing a property in NSW, a 8% stamp duty surcharge and a 2% land tax surcharge currently applies. In addition to this, foreign investors are no longer entitled to the 12-month deferral on the payment of stamp duty for off the plan purchases of residential property. It applies on the below scenarios:
  • You’re a foreign citizen or temporary resident (including a 457 visa holder). Exception is 444 visa holders.
  • You’re buying residential property in the state of NSW. The surcharge doesn’t apply to commercial property.
  • You’re applying with a partner that doesn’t have Australian citizenship, PR or the special NZ visa, in which case they will have to pay stamp duty but only on their portion.
  • You signed the Contract of Sale after 21 June 2016, although this only for the stamp duty surcharge – a land tax surcharge also applies to purchases made from 1 January 2017.
Please refer to the NSW Office of State Revenue website for more information.

However, since you’re an Australian citizen, the duty will be applicable on your wife’s portion only. And it’ll be completely waived off if you’re buying the property in the name of the partner that is either an Australian citizen, temporary resident or 444 visa holder.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How can I avoid foreign stamp duty if I’m buying a house with my TR partner?

Post by Otto Dargan »

Yes hbkfan, you can transfer the title of a home to have a spouse on the property title usually with no stamp duty payable (most states), of course assuming she is a Permanent Resident (PR). Some minor admin fees approx $350 may be payable. If she is a PR at the time she is put on title then no foreign citizen stamp duty would be payable based on my understanding.
To be sure, it's best to check with your state government or conveyancer as they are experts in stamp duty legislation.

If you would like to know more, you can check out our website. We can also be reached on 1300 889 743 or you can fill in our free assessment form to see if you qualify for a home loan or not.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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