Hello all,
I would like to ask for some advise.
My boyfriend and I are migrating to Australia in January 2005. At the moment we are questioning whether to sell our house (in the Netherlands) or to keep it as an investment property (rent it out).Could somebody tell me which tax rules apply to a rental property outside Australia (and of which it’s loan is from an overseas bases entity)?
From the ATO I learned that when you have a loan from an overseas based entity, you will be required to withhold and remit tax. What does this mean?
Does this also mean that the interest of this loan is not tax deductible?Please advise, thank you
Hi Meetrixx
I don’t know the answer to your question, but a good account should. Julia from BANTACS http://www.bantacs.com.au used to post on this site, and seems to know a lot about foreign incomes etc. Suggest contacting her to see if she can help.
Good Luck
Cheers
MelThis is not necessarily an answer and I am not sure what the immigration disclosure rules would be for new migrants but i can definitley say that many older migrants from Southern Europe and the Middle East have properties in their homelands, many of which collect rent, and most are invisible to the ATO. The rent is used for holiday money or brought over in small cash sums. By and large there is nothing Ozzie authorities can do in most of these countries…….cheeky I know!!![buz2]
Hi Meetrix,
If you are moving to Australia permanently and considered to be an Australian resident for tax purposes, you are assessable on your worldwide income.
You would have to check with your accountant in the Netherlands but I’d imagine you would still have to do a tax return for your rental property over there also.
If you have to pay tax in the Netherlands, you will receive a tax credit on your Australian tax return.Regards,
Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au
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