Overseas property investment

Discussion in 'Other Investments' started by Gary007, Jan 6, 2014.

  1. Gary007

    Gary007 New Member

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    So my wife is Indonesian and she went back to Indonesia for 2 months for a holiday and we invested in a property worth around $41k and is part of the second tower block to be built and will take about 2 years to complete. My question is has anyone invested in property overseas and what has the ATO been like to deal with or how to deal with them.
     
  2. boston

    boston Well-Known Member Silver Stacker

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    Why would you tell the ATO?
     
  3. Gary007

    Gary007 New Member

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    Doesn't the ATO track overseas investments?
     
  4. Gilligan

    Gilligan Member

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    No, Gary, no!

    Always wanted to say that in context :)
     
  5. long88

    long88 Member

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    how can they track ? you dont provide your tfn, etc etc.

    have you try to search for your own name and noticed how many similarities with other name on the country.

    every goverment always welcome investor money..

    the problem is more of when you make money.. you have to pay tax to that country, then take that money out from the country (capital control). i think current max you can send is $100k USD.

    when you pay tax to host country, you then declare that you have pay tax on that particular country to ato.. and you will receive tax credit (check with your accountant to be sure of this).
     
  6. Bullion Stacker

    Bullion Stacker Member

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    What are you expecting to receive rental wise?

    I may be interested
     
  7. Big A.D.

    Big A.D. Well-Known Member Silver Stacker

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    Australia has a double taxation treaty with Indonesia so (generally) you won't have to pay tax in both countries i.e. if you earn money in Indonesia, you pay tax on that money in Indonesia but not in Australia.

    If I remember correctly, it was negotiated in the early 90s so it should be pretty easy for any accountant to look up the details and any rulings that have been made since then. You can also just call up the ATO and ask them to give you a quick rundown of how it works and what it means. There are plenty of people with property in Indonesia so it isn't an incredibly obscure topic.
     
  8. Gary007

    Gary007 New Member

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    Not much my wife told me $400 or $500 a year, my wife said you don't make money in rent you make your money when you sell.
    The property wasn't built and the price was $21k so as development continues to grow the price increases so when we went for it the price was $41k and It should increase to around $52 or $55k so that is where I am hoping to make some money then invest in another property or a business. It's sad that I can't buy in australia but that's the way the world works.
     
  9. redwood

    redwood New Member

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    ATO cares if its through a Self Managed Superannuation Fund, they really care and needs to be structured very carefully. SMSF property investment is prevalent in the United States,.

    I'm attending an Indonesian property forum in May, don't know much about regulation there.
     

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