Living off dividends abroad

Discussion in 'Investment Strategy' started by Realist35, 9th Feb, 2020.

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  1. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Look at how you could remain a tax resident here
     
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  2. Realist35

    Realist35 Well-Known Member

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    Thanks Terry. Is living in Australia for more than 6mnths a year the only way to do it?
     
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Nope - reside is just one test.

    There is the domicile test too. So one strategy might be to buy a cheap property and maintain it as a permanent place of abode and not have a permanent place of abode overseas.. - You will need to get some advice every year to keep up to date with changes to case law.
     
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  4. Realist35

    Realist35 Well-Known Member

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    Thanks Terry.

    I'm not sure if that's the best idea in my case. I plan to retire early on dividends. Having a property in Australia will decrease my dividend income. Or am I missing something here?
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes it will certainly tie up equity and rent potentially. But you could reduce the effect by getting a very cheap property and borrowing against it to invest in shares if you wish. It could be a jointly owned property with other family members even. It might even be rented - a granny flat on a parents property etc.
     
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  6. FredBear

    FredBear Well-Known Member

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    If you are living in a Euro country (and the country will in the next few years join the EU), why not choose a Euro ETF that focuses on dividend paying stocks? This would remove the AUD vs EUR exchange rate exposure.
    Here's one based in Germany that I have my eye on:
    iShares STOXX Europe Select Dividend 30 UCITS ETF (DE) | EXSH
    Alternately if you want to keep money in Australia why not park it in Super?
     
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  7. Trainee

    Trainee Well-Known Member

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    Are there any cases where the taxpayer said they were a tax resident but the authorities insisted they werent?
     
  8. FredBear

    FredBear Well-Known Member

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    Given the changes to the main residence exemption for non-residents, I would expect that this will now be a focus area: expect it to be harder to be a tax resident if you happen to be selling a former PPOR...
     
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes many I would think.
     
  10. NSWelshman

    NSWelshman Member

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    skipping the taxation implications: Transferwise are good- used many times. also InstaRem seem to have even tighter spreads = more money in your pocket. Used them a few times
     
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