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Additional Transfer Duty Applicable for Foreign Acquirers of Residential Property

Additional Transfer Duty Applicable for Foreign Acquirers of Residential Property

Additional Transfer Duty Applicable for Foreign Purchaser of Residential Property

Additional foreign acquirer duty (AFAD) was imposed in Queensland on 1 October 2016 as part of the Duties Act 2001. This is an additional amount of transfer duty, landholder duty or corporate trustee duty for foreign purchasers of residential property.

A person is a foreign purchaser if they are:

  • An individual other than an Australian citizen or permanent resident;
  • A corporation incorporated outside Australia or a corporation where foreign persons have a controlling interest;
  • A trustee of a foreign trust – a trust where 50% or more of the trust interest are foreign interest.

This will impact a foreign purchaser in Queensland to be used as a place of residence. Therefore, this can include:

  • Homes and apartments;
  • Vacant land which a home or apartment will be built;
  • Land for residential development;
  • Buildings refurbished, renovated or extended for residential use.

Other residential land such as retirement villages and student accommodation are considered on a case-by-case basis and will not include land used for hotels and motels.

AFAD is imposed at 3% of the dutiable property value where the property is in a personal name or a private entity. This is added to the standard stamp duty amount to be paid at the settlement of the property.

Special rules are imposed for acquisitions in a public landholder. Given that these matters are often complex, we recommend that you seek legal advice for your specific circumstances.

We recommend that foreign people seek legal advice when purchasing dutiable property in Queensland. Feel free to contact us at property@hatzis.com.au or call 1300 HATZIS (1300 428 947) if you would like further clarification on AFAD regulations.

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