A Guide for Foreign Buyers

A Guide for Foreign Buyers

Investing in property in South Australia

In South Australia, foreign persons are permitted to buy off-the-plan, under construction or “new” properties.

Foreigner buyers are generally not allowed to purchase established or second hand properties in South Australia. This is regardless of whether it will be your home or as an investment property. You are only permitted to buy properties that are new or under construction or off the plan and it must be approved by the Foreign Investment Review Board (FIRB). To help you, we outline key information in this Guide.

How much is the Foreign Person Surcharge?

There is a 7% surcharge applicable to foreign persons or foreign trusts that acquire an interest in land in South Australia. The 7% is calculated on the value of the interest in residential land (e.g. an Apartment or Townhouse) and.is payable in addition to stamp duty.  For example:

If Peter, a foreign person, acquires residential land valued at $600 000, the total duty payable is as follows.

  • Stamp Duty   $26, 830
  • Surcharge (7% of $600 000)   $42, 000

      TOTAL PAYABLE$68, 830

For more information, please refer to the Revenue SA website.

Foreign Investment Review Board (FIRB)

Whilst not a tax, you should be aware that foreign persons are also required to pay upfront fees associated with Foreign Investment Approval.

Foreign persons generally need to apply and receive foreign investment approval before purchasing new dwellings. Applications to purchase new dwellings are usually approved without conditions.

A new dwelling is a dwelling that will be, is being, or has been built on residential land, has not been previously sold as a dwelling and has either:

  • Not been previously occupied; or
  • If the dwelling is part of a development, was sold by the developer of that development and has not previously been occupied for more than 12 months in total.

For more information, please refer to the FIRB website.

Foreign Investment Review Board (FIRB)

There are fees associated with a FIRB Application as indicated below but we do advise you to check the fee schedule on the FIRB website.

  • Action type: Acquiring an interest in residential land where the price of the acquisition is $1 million or less ($0 – $1,000,000);
  • Fee Payable: $5,700.

The FIRB fee would need to be paid in order for the FIRB Application to be lodged and processed.

For more information, please refer to the FIRB website.

Want to Buy Property in South Australia, speak to V Three Real Estate

No Comments

Post A Comment

Translate