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.
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