Since 21 June 2016, foreign buyers of NSW residential property have been levied with a 4% stamp duty surcharge. The surcharge is in addition to the duty payable on the purchase of residential property. The surcharge almost doubles the normal duty payable.
Foreign buyers are also no longer be entitled to the 12 month deferral for the payment of stamp duty for off-the-plan purchases.
Then from 1 January 2017, they will also incur a 0.75% land tax surcharge.
These new surcharges will not be payable by:
- Australian citizens irrespective of where they live; and
- permanent residents of Australia staying in Australia at least 200 days in the last 12 months.
However, foreign buyers do include companies, trusts and other entities in which a foreign person holds a substantial interest.