If you or someone you know have plans to move overseas, it is better to sell your property sooner than later to avoid paying an expensive tax bill in the long run.

In NSW, a foreign investor must pay a surcharge land tax, which is currently calculated at 2% of the taxable value of their residential land. A foreign investor is an individual who is not an Australian citizen or not ordinarily resident in Australia.

In a standard contract for sale of land, surcharge land tax is not adjustable which means it must be paid in full by the vendor before or at settlement. Capital gains tax (CGT) consequences for foreign investors must also be considered. If you move overseas and rent out your family home, and then decide to sell your Australian home while still overseas, you may not be entitled to any CGT discount or exemption on the proceeds of sale.

Contact Omega Legal on 0402 990 108 or email info@omegalegal.com.au for information on selling your property today.