Offshore property investment
- Thread starter Simple q
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One advice I can give you is that your HK corporate secretary will not make your HK company HK tax resident, and the company and income is likely taxable in Australia. I would start with sorting out that issue before you get into more trouble with other offshore companies.
I've been researching it, accurate unfortunately, appreciate the input, I need to seek much better accounting
I guess the shady option if I want to stay in Aus and mitigate tax on real estate appreciation (excluding rental income from those AirBNB people) would be to purchase assets in non-CRS countries, with︀ low domestic cap gains using bank in an non-CRS country - Good until there's a︁ global tax database? coo-:!y
For stock purchases (through a CRS brokerage) I assume I would need︂ to gain a government ID, tax ID + bank account in a non-CRS country and︃ use that for the brokerage signup. Xzars posted a great thread that covers ID and︄ tax registration in proxy countries here. Again though it could all come unstuck with changes︅ in bank reporting
Alternatives are selling up in Aus and heading to New Zealand to︆ take advantage of their 4 year tax exemption on capital gains for a while, or︇ I could marry my UA gf, get a passport and get down to 18% at︈ least
HK biz it seems I'm screwed unless I want to head overseas 183 days︉ of the year or want to re-structure
This seems a far more elegant solution︍ than those above. According to the tax office: 'Generally, a subsidiary incorporated overseas will be︎ treated as a foreign resident under Australian tax law.' There's a few tests that need️ to be passed. Are you able to point me in the direction of someone with an understanding the finer points of the AU tax system Martin?
That's all I really want here, though I'm not sure our robust tax system affords the possibility
I guess the shady option if I want to stay in Aus and mitigate tax on real estate appreciation (excluding rental income from those AirBNB people) would be to purchase assets in non-CRS countries, with︀ low domestic cap gains using bank in an non-CRS country - Good until there's a︁ global tax database? coo-:!y
For stock purchases (through a CRS brokerage) I assume I would need︂ to gain a government ID, tax ID + bank account in a non-CRS country and︃ use that for the brokerage signup. Xzars posted a great thread that covers ID and︄ tax registration in proxy countries here. Again though it could all come unstuck with changes︅ in bank reporting
Alternatives are selling up in Aus and heading to New Zealand to︆ take advantage of their 4 year tax exemption on capital gains for a while, or︇ I could marry my UA gf, get a passport and get down to 18% at︈ least
HK biz it seems I'm screwed unless I want to head overseas 183 days︉ of the year or want to re-structure
This seems a far more elegant solution︍ than those above. According to the tax office: 'Generally, a subsidiary incorporated overseas will be︎ treated as a foreign resident under Australian tax law.' There's a few tests that need️ to be passed. Are you able to point me in the direction of someone with an understanding the finer points of the AU tax system Martin?
That's all I really want here, though I'm not sure our robust tax system affords the possibility
For AU I don't know any personally. A quick internet search however turns up the below company but I know nothing more about them sadly😕
https://www.wealthsafe.com.au/offshore/
P.S If in doubt always try the big 4 accounting firms.
https://www.wealthsafe.com.au/offshore/
P.S If in doubt always try the big 4 accounting firms.
For AU you may want to check with Healy Consultants, they have always been quite solid. They have international presence in multiple countries, so they may be in a position to give you a good advice. However, I am not sure if you can buy a properties in EU under offshore holding?
Better make sure Australia doesn't have departure taxes that will tax all your deferred income in a big bunch when you declare non-resident status for tax purposes.
I'd be inclined to just exaggerate your rental expenses out there and move in much expenses in there, then invest the money back into the︀ property withdraw it out as a loan. Use rental income to repay loan, so its︁ about a wash while you build wealth through appreciation.
I'd be inclined to just exaggerate your rental expenses out there and move in much expenses in there, then invest the money back into the︀ property withdraw it out as a loan. Use rental income to repay loan, so its︁ about a wash while you build wealth through appreciation.
The European market isn’t a great place to invest your money, especially in property business. Europe is already filled with investments that work through Airbnb. You would better have a look at the American market.
I really don’t understand these questions.
Find a country Australia has a tax treaty with which you want to invest in. Read the tax treaty, or have an accountant explain it to you.
Buy real estate, either using a local company or your own name - accountants will be able to tel you which is the better option.
The rental income will most likely be taxed locally anyway and NOT in Australia, but it may increase the taxes you pay on your Australian income. Use local tax discounts and reinvesting to reduce taxes to be paid.
If you invest in your own name, there should︀ be no exit tax since the income has already been taxed.
Disclaimer: I have no︁ idea about the Australian tax code, but that’s how it usually works.
And @fshore is of course right that large purchases usually must be written off over a period of︂ several years. But all of that is very simple for an accountant.
Find a country Australia has a tax treaty with which you want to invest in. Read the tax treaty, or have an accountant explain it to you.
Buy real estate, either using a local company or your own name - accountants will be able to tel you which is the better option.
The rental income will most likely be taxed locally anyway and NOT in Australia, but it may increase the taxes you pay on your Australian income. Use local tax discounts and reinvesting to reduce taxes to be paid.
If you invest in your own name, there should︀ be no exit tax since the income has already been taxed.
Disclaimer: I have no︁ idea about the Australian tax code, but that’s how it usually works.
And @fshore is of course right that large purchases usually must be written off over a period of︂ several years. But all of that is very simple for an accountant.
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