Can I buy property in Dubai via SMSF? Do I have to inform / get permission from ATO?

 Author: TobyJDodd(Devotee)Registered Tax Professional

19 Apr 2024

Hi @AndyRob

It is possible to buy foreign property via an SMSF but it can get tricky really fast and I recommend you obtain specialist legal advice prior to entering into any contract.

You do not need prior ATO permission

Some notes - Generally

You need to ensure your SMSF trust deed and your funds investment strategy allow the investment.

You need to have a clear plan as to how the SMSF will legally own the property. This can get tricky as many foreign nations do not recognise superfunds. You will also need to prove title to the property. (Which can be difficult in non Torrens title systems)

You will need to have a clear plan as to how the SMSF will collect the rent and pay the outgoings. Once again this can get tricky as many foreign nations do not recognise superfunds. Be aware of the requirement to keep superfund assets seperate from your personal assets at all times.

You will need a clear plan as to how the SMSF will transfer the funds overseas.

You need to have a clear plan as to how you will value the property to market value each year with sufficient independent evidence

You and your related parties will not be able to use the property.

You will need a clear plan as to how you will independently prove to you auditor that no charge has been placed over the property.

If your fund needs to borrow to complete the purchase there is a lot more to think about.

Toby