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Permanent resident owning a property and leaving Australia

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Hi,

 

My wife and I have decided to end our marriage and I will be relocating back to Spain however, I have a 6 years old daughter and property here in Australia I intend to visit regurlarly. 

Due to the fact that my ex wife does not have a full time job, the bank will not accept the mortgage to be transfered to her so I will still be co-owning the porperty in Australia after my departure. 

I will be contributing to the mortgage any other expenses that are associated with my daughter so I will leave a bank account open so my ex wife can withdraw funds as necessary.

Does this situation still puts me as a resident for tax purposes?

 

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Hi @GV2020

 

Thank you for reaching out.

 

Work out your tax residency. If you have been living in Australia and have left or intend to leave,  use our Determination of residency status – leaving Australia tool. It will take between 5 and 10 minutes to use this tool.

 

There are special capital gains tax (CGT) rules you need to know if you're a foreign resident for tax purposes. These rules will impact you when you sell residential property in Australia.

 

See Foreign residents and main residence exemption. A change in law on 12 December 2019 means if you are a foreign resident for tax purposes at the time you dispose of your residential property in Australia, you will not qualify for exemption from Capital Gains Tax (CGT) unless you satisfy the life events test. Read the link above for the life events test criteria - it  does mention distribution of assets between you and your spouse as a result of your divorce, separation or similar maintenance agreements; however, you would need to consider the criteria based on your own circumstances.

 

All the best for the future.

 

1 REPLY 1
Highlighted

Most helpful response

Community Support

Replies 0

Hi @GV2020

 

Thank you for reaching out.

 

Work out your tax residency. If you have been living in Australia and have left or intend to leave,  use our Determination of residency status – leaving Australia tool. It will take between 5 and 10 minutes to use this tool.

 

There are special capital gains tax (CGT) rules you need to know if you're a foreign resident for tax purposes. These rules will impact you when you sell residential property in Australia.

 

See Foreign residents and main residence exemption. A change in law on 12 December 2019 means if you are a foreign resident for tax purposes at the time you dispose of your residential property in Australia, you will not qualify for exemption from Capital Gains Tax (CGT) unless you satisfy the life events test. Read the link above for the life events test criteria - it  does mention distribution of assets between you and your spouse as a result of your divorce, separation or similar maintenance agreements; however, you would need to consider the criteria based on your own circumstances.

 

All the best for the future.