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

Discussion in 'The Buying & Selling Process' started by swin87, 25th May, 2020.

Join Australia's most dynamic and respected property investment community
  1. swin87

    swin87 Member

    Joined:
    1st May, 2020
    Posts:
    13
    Location:
    Melbourne
    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 :(
     
  2. Terry_w

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

    Joined:
    9th Jun, 2006
    Posts:
    30,841
    Location:
    Australia wide
  3. David R Sutantyo

    David R Sutantyo Active Member

    Joined:
    2nd Jan, 2020
    Posts:
    39
    Location:
    Sydney
    If she's not a permanent resident or citizen of Australia, then yes to all your questions. Probably best to consult your lawyer / solicitor.
     
    Terry_w likes this.
  4. swin87

    swin87 Member

    Joined:
    1st May, 2020
    Posts:
    13
    Location:
    Melbourne
  5. KateAshmor

    KateAshmor Victorian Conveyancing Lawyer Business Member

    Joined:
    25th Jun, 2015
    Posts:
    485
    Location:
    Melbourne
    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.

    :D
     
    swin87, Peter_Tersteeg and Terry_w like this.
  6. craigc

    craigc Well-Known Member

    Joined:
    25th Jun, 2016
    Posts:
    1,019
    Location:
    Melbourne
    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.
     
    swin87 likes this.