Australia and the UK have very similar tax rules. If an Australian or UK tax resident purchases a rental property in NZ, 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 NZ rental property to be owned in your personal names. The best option is to own the rental property in a NZ 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:
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