Do I Get a Foreigner Stamp Duty Charge on Expat Loans in Australia

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The question of whether foreigner stamp duty charges apply to you as an Australian expat is an important one, and home or investment buyers who are searching for the right property for the right value will be wondering this very same question. 

If you’ve heard of phrases such as “standard stamp duty” or “additional duty rate”, or “additional stamp duty” and want to know what they all mean, it’s important to get the right facts.

The good thing is that all the facts on the question “do I get a foreigner stamp duty charge on expat loans in Australia?” can all be discovered in this article! Check out the information below.

Do I get a foreigner stamp duty charge on expat loans in Australia?

The answer is that in some cases, you do not get a foreigner stamp duty charge on expat loans if you are an Australian citizen working overseas. However, in certain circumstances you might get a partial foreigner stamp duty charge on expat loans in Australia.

In which circumstances do I get a foreigner stamp duty charge on expat loans in Australia?

Although Australian citizens working abroad as an expat don’t get a foreigner stamp duty, if you are going to purchase property with a spouse who is not an Australian citizen, stamp duty charges may partially apply.

Do I Get a Foreigner Stamp Duty Charge on Expat Loans in Australia

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What is the cost of the stamp duty charge?

The cost of the stamp duty charge in Australia is approximately 7% of the value of your property, but this can vary from state to state. Here is a quick working example of how much you can expect to pay.

  • The purchase price of your property is $500,000
  • Stamp duty charges are approximately 7%

In the Northern Territory is there a foreign buyer's stamp duty surcharge?

One positive piece of news is that, at the moment, no foreign buyers stamp duty surcharge applies to foreign buyers in the Northern Territory.

Do I get a foreigner stamp duty charge on expat loans in Australia in Tasmania?

If you want to purchase a property as an expat with a spouse who is not an Australian citizen, you will get a foreigner stamp duty charge on the property known as the foreign investor duty surcharge. 

If you’re not an Australian citizen, or are a temporary resident without a 444 visa, you will also have to pay a foreigner stamp duty charge in Tasmania.

The charge is equal to 8% of the property value for the portion of the residential property purchased by a foreign person, plus a 1.5% charge of the property value corresponding to the primary production property.

In terms of primary production property, this is classed as land that might be developed, or land that the buyer can use towards primary production.

Do I Get a Foreigner Stamp Duty Charge on Expat Loans in Australia

Do I get a foreigner stamp duty charge on expat loans in Western Australia?

If you are a temporary resident without a 444 visa and are purchasing a residential property  or a vacant land, commercial property, or are purchasing a property with a foreign person, you will have to pay a foreigner stamp duty charge on the property in Western Australia.

The foreigner stamp duty charge on expat loans in Western Australia is 7% if you signed a contract following 1st January 2019 and are not an Australian citizen. 

In the event you signed your contract prior to this date, and the settlement takes place afterwards, you will not have to pay additional stamp duty.

Do I get a foreigner stamp duty charge on expat loans in Australia in South Australia?

In a similar way to other states such as Western Australia, temporary residents or foreign citizens must pay a foreigner stamp duty charge on expat loans in South Australia. 

If you have a 444 visa, this counts as an exemption. In the event that you signed your contract post 1st January 2018, this is also a criteria that will require foreigner stamp duty if you’re not an Australian citizen.

If you make an application with a foreign person, their portion will require stamp duty payment.

Do I get a foreigner stamp duty charge on expat loans in Australia in New South Wales?

If you’re an Australian citizen or Australian permanent resident, you don’t get a foreigner stamp duty charge in New South Wales. If you purchase a property with a foreign spouse, stamp duty will be required on the portion of the property of your spouse.

The value of the stamp duty charge is 8%, and foreign corporations might also be required to pay the stamp duty charge.

Do I Get a Foreigner Stamp Duty Charge on Expat Loans in Australia

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Do I get a foreigner stamp duty charge on expat loans in Australia in Victoria?

If you are a foreign citizen or are applying for a property with a spouse who is not an Australian citizen, foreigner stamp duty will be charged either to you (if you’re a foreign citizen) or to your spouse (for their portion of the property) in Victoria.

You will pay 8%, which is the additional duty rate, if you are not an Australian citizen.

Stay aware of the ghost tax too, which is now 2% and applies to land if you are an absentee owner and are not an Australian citizen.

Here’s a quick example of stamp duty charges in Victoria:

  • You purchase a property for $400,000
  • The stamp duty is normally $21,535
  • With the increases in stamp duty, you must pay $52,209 in fees
  • Stamp duty is $30,674 more for foreigners in Victoria

Do I get a foreigner stamp duty charge on expat loans in Australia in the Australian Capital Territory?

Some extra good news is that no foreign buyers stamp duty surcharge applies to foreign buyers in the Australian Capital Territory (ACT).

Do I Get a Foreigner Stamp Duty Charge on Expat Loans in Australia

Stay aware of foreigner stamp duty and make calculations with Odin Mortgage

As an Australian citizen, you don’t need to make any payments for foreign buyers stamp duty, but stay aware of it if you are purchasing with a foreign spouse and always make calculations to prepare for purchasing a property.

Calculations for stamp duty can be made at Odin Mortgage—the superior mortgage brokers for expat mortgages and home loans. Take a look at our calculators and services for more information.

Get a free Australian mortgage assessment today.

Apply online to get a free recommendation with real rates and repayments.

Do I Get A Foreigner Stamp Duty Charge On Expat Loans in Australia FAQs

What other surcharge fees do foreign buyers and foreign investors have to pay?

There are a couple of other surcharge fees that foreign buyers and foreign investors have to pay, such as surcharges for residential land if you purchase residential property. 

It’s also expected that if you have entered into a purchase rental property contract, and you only purchase a part of the property, additional duty may apply to the transfer from a sole name to joint names.

In which situations am I exempt from a foreigner stamp duty charge on expat loans in Australia?

There are some scenarios in which you don’t pay a foreigner stamp duty charge on expat loans in Australia. If you are an Australian permanent resident, an Australian citizen or a New Zealand citizen who signs the contract in Australia and has a special category visa (such as a 444 visa), you will not have to pay the stamp duty surcharge.

Is it possible to minimise a foreign citizen stamp duty surcharge?

Purchasing a property in the Northern Territory of Australia is one way to avoid or minimise foreign citizen stamp duty surcharges. 

Other options include purchasing land and building your property or choosing to have the mortgage in the name of the Australian citizen and paying stamp duty on just the portion of the foreign person.

How can I calculate the foreigner stamp duty charge?

Go to our stamp duty calculator to get an accurate calculation of the stamp duty you must pay on your property as an Australian expat.

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