Australia and the UK have very similar tax rules. If Australian or UK tax residents purchase a rental property in New Zealand, then they will be liable to pay income tax on any rental profit and to pay capital gains tax. If the rental property makes a loss, then that loss is not allowed to be offset against their other income, it is only carried forward and used to offset any future profit from the NZ rental properties. For these reasons, you don’t want your New Zealand rental property to be owned in your personal name. The best option is to own the rental property in a New Zealand trust so that the rental property is kept outside the Australian or UK tax rules.
10 Apr
2009
2009
Australian and UK Residents – Buying Investment Property
Filed under: Asset Planning, Investment Propertyshare the post:
Subscribe to our blog
most recent posts
-
Risk with houses built before 1945
January 28th 2012 -
Mortgage Rates: Let the Summer Craziness Begin
January 28th 2012 -
Growing your Property Portfolio
January 28th 2012 -
Waterview Connection | Implications for Property
December 4th 2011 -
Property Investing: Is Big Better?
November 20th 2011