When international buyers are looking to secure property in Australia there are numerous fees and taxes that they will face.
Here is what you need to know before you make your purchase:
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Stamp Duty
The most significant fee you will pay when purchasing property in Australia is stamp duty, i.e. state government taxes.
This figure varies depending on the price of the property, your personal circumstances and the state in which the property is located. In some cases, it may be the equivalent of up to 5 per cent of the purchase price.
Three states - New South Wales, Victoria and Queensland - charge additional stamp duty for acquisitions by foreign buyers, ranging between 1 per cent and 5 per cent of the purchase price.
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FIRB Fees
Properties worth A$1 million or less attract an A$5000 fee, properties up to A$2 million attract a $A10,000 fee and properties up to A$3 million attract an A$20,000 fee. Above A$3 million, add A$10,000 per every additional million.
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Ongoing Fees
Your property will be subject to annual land tax (generally below 1% of the land value) and annual council rates (which pay for garbage pickup and other local services).
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Other Fees
Remember to factory in legal/conveyancing fees and loan establishment fees (if applicable).
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Tax
All United States citizens who own property in Australia must lodge an Australian Tax Return every year that takes into account any income earned through renting the property plus increases in the property's value. If you choose to rent your property, your property manager can look after this for you.
