Selling property post migration

[Abha93]

Are there any negative tax implications if we only sell our property after we enter Oz? It's touch and go, but at the moment it seems that the transfer to the new owner might only take place a month or so after we've left.

The profit after the sale and settling our bond will only be a few hundred thousand rand, and the total amount of cash we intend moving over will be a bit below R1m.

[Hugo2]

Are there any negative tax implications if we only sell our property after we enter Oz? It's touch and go, but at the moment it seems that the transfer to the new owner might only take place a month or so after we've left.

The profit after the sale and settling our bond will only be a few hundred thousand rand, and the total amount of cash we intend moving over will be a bit below R1m.

Your date of sale is the date the transaction became final and NOT the date of deeds office transfer. It appears to me the effective date of sale was whilst you were in SA and SA tax resident therefore the SARS CGT withholding tax applicable to non-residents will not be applicable. if you enter Australia on work permit you are also not taxed on gains made before you moved. You will, on work permit probably also escape ATO taxes on events taken place outside Australia. The tax treaty is the third and last issue and that normally ALWAYS favour the country where the property is situated.

Inbox me if you need more help or find me on http://cgt.co.za

[Whynot]

@ Hugo2 & Abha93 - As far as I understood the implications is only after you have emmigrated formally. Just having a PR visa, means all stay the same as if you were still in South Africa with regards to the house sale. Once you formally notified SARS etc everything changes...

[21yearsoutofrsa]

Australian tax residency rules are not dependent on you formally immigrating to Australia. The South African foreign exchange control regulations is an unknown concept in Australia. There are no foreign exchange restrictions in Australia.

You are an Australian tax resident if you meet the Australian tax law rules on residency. These rules are backed up with lots of case law.

[Bloubulletjie]

We are currently South African citizens and have been in Oz for nearly six years now, three years on PR. We brought our money initially in with a foreign investment, wasnt sure if we would settle in at the time. We left a piece of land in Knysna too concerned to let it go in case we came back. ATO contacted us last year enquiring about the original transfer which was easy to clear with proof of transfer and taxclearances from SARS. We have sold our piece of land in Knysna earlier this year and have cleared it with SARS fairly easily. I guys what made it easy was having Tania Kruger on that side to help us with the financials. She tried to imigrate and managed a PR. We helped her and her family out (through the forum) to get started but it unfortonately didnt work out for them in the end. She paid it back (wasnt necessary) by assisting with getting our moneys cleared. Happy to assist with her detail if you wish? My email address is schalk@boweng.com.au. Happy to keep you posted and assist. Waiting for a better exchange rate is never worthwhile but I am not an expert on this. we brought ours over in 2007 @ 6 to the dollar and look where its now.

[Abha93]

Thanks for the replies guys