• Shiv Jaidka

SMSF and overseas property

SMSF trustees often consider investing in overseas property with the recent property prices worldwide. Investment is not prohibited under the law, but let us discuss everyday complexities.

 

Ownership:

SMSF is a unique structure to Australia, and all the fund assets must be owned by the SMSF trustee, generally a company. You need to ensure that the overseas ownership registry recognises the Australian company.

Borrowing:

If you intend to borrow money to purchase the property, only a few Australian Banks lend to SMSF, and they may not be willing to lend to buy an overseas property. If you plan to borrow from the Foreign Bank, they may not comply with the specific limited recourse rules applicable to the SMSF.


Overseas Taxes:

By owning an overseas property, the SMSF trustee may become subject to the foreign tax office obligations. You may have to explore the double tax treaty between Australia and the relevant country.


Get in touch if you wish to discuss this further.


(Disclaimer: This advice is general and does not consider your circumstances).


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