Stamp duty question for a couple when one of them is a foreign national.

Hi all,

I reside in Victoria. My wife and I are planning to buy a house this year to live in. I will definitely be paying stamp duty as I have already bought an investment property in Perth.

My wife is not Australian, but we have applied for her partner visa. It will take some time to get the PR.

My questions are:

1) Will we have to pay additional stamp duty (for the 50% that is in her name) if the property is in both our names, since she is foreigner?

2) If we the above answer is a YES, then can I have the property just under my name but the loan under both names with the bank?

3) Once she gets her PR, can I transfer the property to her name? Or even add her along side with me?

Thank you for any insights or advice. This whole thing came up when we were discussing all this stuff with our friends over the weekend. Bit worried now that we might end up shelling out another $ 16,000

 

Look up 'foreign purchaser' under s3 Duties act
DUTIES ACT 2000 - SECT 3 Definitions

Is she a foreign person?

 

If she's not a permanent resident or citizen of Australia, then yes to all your questions. Probably best to consult your lawyer / solicitor.

 

Hmmm...so I found two sources where it says if you are in Victoria, then the extra stamp duty does not apply if one of the persons in a couple is an Australian citizen.

Sources:

Scroll down to: "Exemption if you buy with your spouse or partner"
Foreign purchasers of property | State Revenue Office

Scroll down to: "Victoria foreign purchase additional duty (FPAD)"
Foreign Citizen Stamp Duty | Does It Apply To Me?

 

Foreign nationals are exempt from stamp duty penalties and FIRB obligations if they are the partner/spouse of an Australian citizen or permanent resident. See these links:

Exemptions | Foreign Investment Review Board

Foreign purchasers of property | State Revenue Office

So, provided you are at least an Australian permanent resident, you will live in the property for at least 12 months after settlement, and you will own as joint tenants (= equal shares), then it’s fine for your partner to be a co-owner on the title. You’ll still be eligible for the stamp duty concession/discount.

 

Along with the other answers, also check more details on your IP purchased & FHB benefits - you may still qualify depending on all your circumstances.

That is not a yes / no, just look into it as not enough details above.