Hi All,
Is anyone in here got experience in above if so share some knowledge please.
MI
Is anyone in here got experience in above if so share some knowledge please.
MI
Residential development with Foreign Investor
- Thread starter MelbInvester
- Start date
There is nothing that prohibits this. However, tax law here may recognise that the developer is doing so for the purpose of a business and AUS tax law will operate. If its not setup correctly it could be messy and also involve withholding taxes too. (ie if interest if paid offshore). Without WHT the deduction may be lost. The foreign investor may have a dual tax concern which should also be considered.
The "business" will need to register and obtain an ABN. An appropriate structure that gives risk protection is also desired. Perhaps one where the construct and the ownership are not the same entity. You dont want to be liable for the joint debts if its all falls over either. The foreign investors role + your role and all other parties needs further info - Are they a financier or a equity partner. How are profits to be shared ? Will all profit be repatriated ? Or a further development ?
The basic issue is the proposal needs advice so its established properly and all counterparty needs addressed.
The "business" will need to register and obtain an ABN. An appropriate structure that gives risk protection is also desired. Perhaps one where the construct and the ownership are not the same entity. You dont want to be liable for the joint debts if its all falls over either. The foreign investors role + your role and all other parties needs further info - Are they a financier or a equity partner. How are profits to be shared ? Will all profit be repatriated ? Or a further development ?
The basic issue is the proposal needs advice so its established properly and all counterparty needs addressed.
Can you give us a bit of context?
HI Paul,
Thanks for your time and valuable information. Currently in research stage and basically i have a partner in foreign country and he is eager to invest money in this country.
So we don't know how and where to start?
Are they a financier or a equity partner? What is the different?
How are profits to be shared ? Not yet decided
Will all profit be repatriated ? I guess so
Or a further development ? Yes ( If everything works well for him)
Thanks,
MI
Thanks for your time and valuable information. Currently in research stage and basically i have a partner in foreign country and he is eager to invest money in this country.
So we don't know how and where to start?
Are they a financier or a equity partner? What is the different?
How are profits to be shared ? Not yet decided
Will all profit be repatriated ? I guess so
Or a further development ? Yes ( If everything works well for him)
Thanks,
MI
An interesting topic, I'd like to know more about this myself.
If the foreigner invests directly or even indirectly in Aussie residential/commercial/industrial property, they'll have to abide by the FIRB (foreign investment review board) restrictions.
If the foreigner invests directly or even indirectly in Aussie residential/commercial/industrial property, they'll have to abide by the FIRB (foreign investment review board) restrictions.
Interesting I hadn't considered that.
Then there is the grey area where you have to examine term foreigner. An Australian who is not a resident for tax purposes is still an Australian so I assume doesn't need to worry about FIRB?
Correct - Australian citizens are exempt as far as residential real estate goes. Some exceptions apply to commercial property, share ownership, or where companies/trusts hold assets for or on behalf of citizen-non-residents.
OP - How about giving some details of what you are actually planning/thinking. The SS knowledge bank might be able to give you some tips/pointers.
Blacky
