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offshore newbie

Discussion in 'Introductions' started by tpc3126, 13th Apr, 2008.

  1. tpc3126

    tpc3126 New Member

    5th Jan, 2008
    Hi everybody,

    I'm after a bit of advice. I'm currently working offshore and am officially a non resident for tax purposes. My portfolio consists of 15% bonds and 85% shares which I trade through an offshore broker. I'm looking to balance my portfolio but am worried about the tax implications of IPs. I figure since negative gearing makes no difference to me the only benefit of an IP is leveraging?

    Can anyone suggest any alternative investment avenues apart from shares, which will not effect my tax status and not leave me so exposed to the market.

    I will be moving from this postion in aprox. 4 years and back to a normal tax paying job, so an exit strategy is also something that must be considered. The strategy at the moment (you'll love this one!!) - buy highly liquid, the day before resettling in AUS cash the lot, then rebuy when in the country (and liable for CGT). I'm certain this is flawed but then that's why I'm here!

    Thanks for any help you can give.
    Last edited by a moderator: 13th Apr, 2008
  2. Rob G.

    Rob G. Well-Known Member

    6th Jun, 2007
    Melbourne, VIC
    There are specialists who advise ex-patriots on the best strategies.

    With your dividends, interest and royalties you will be aware that this is subject to witholding tax - i.e. no tax return for you AND no deductions against this income so watch any borrowing expenses here.

    Most assets are exempt from CGT for non-residents unless it is land or an "interest in land".

    If you acquired your securities when overseas, you will be deemed to have acquired them on the day you become a resident - so you don't need to sell before returning as any gain up to that point is exempt.

    This is only very general, you really need individual advice for your specific circumstances.

    Also, there are implications in the other country of residence.