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Transfer of Tax Residence to Australia: Residency by Investment and Australian Golden Investor Visa
1. Australian Investor Visa (IV)
2. Australian Significant Investor Visa (SIV)
3. Australian Premium Investor Visa (PIV)
Apply for the Australian investor visa
Description of the Australian Residency by Investment Program
What is the Australian golden investor visa? The Australian Business Innovation and Investment (Provisional) visa suite (subclass 188) offers to investors and their families (i) provisional Australian residency and, after 4 years (ii) permanent Australian residency and, after 5 years (iii) Australian citizenship.
The blue Australian passport with a gold embossed cover featuring kangaroo motif security laminate is valid for 10 years (and waterproof). It is printed using the same technology as for Australian banknotes.
Australian citizens have visa-free travel or visa on arrival access to 183 countries and territories and are allowed to hold passports from other countries (that is, a second passport is possible in Australia).
| Launch date | November 2012 |
|---|---|
| Popularity | 2,000 SIV visas issued since inception mainly to Chinese applicants (90%) |
| Change of rules | July 2015 (introduction of PIV) |
| Promoter | Department of Immigration and Border Protection (DIBP), Austrade |
Principle
Australian Investment visas are part of a set of government policies promoting investment, innovation, and commercialization of Australian ideas, and research and development important to Australia’s economic future.
What Is the Australian Investor Visa (IV)?
The Investor Stream visa is a provisional 4-year Australian visa for individuals who (i) are under 55 (ii) have 3 years of management experience (iii) invest AUD 1.5m (USD 1m) in an Australian State or Territory (iv) who score at least 65 on the points test and (v) who have assets of at least AUD 2.25m (USD 1.5m).
What Is the Australian Significant Investor Visa (SIV)?
The Significant Investor Stream visa is a provisional 4-year Australian visa for individuals who (i) invest AUD 5m (USD 3m) into (ii) complying significant Australian investments over 4 years (see below).
- The Australian Significant Investor Visa intends to attract overseas investment and provide a streamlined 4-year pathway to permanent residence for businesspeople from around the world
What Is the Australian Premium Investor Visa (PIV)?
The Premium Investor Stream visa is a provisional 4-year Australian visa for individuals who (i) invest AUD 15m (USD 10m) into (ii) Australian listed securities or commercial real estate over 12 months (see below).
- The Australian Premium Investor Visa is a fast-track 12-month pathway to permanent Australian residence at the invitation of the Australian Government (Austrade)
- The Australian Premium Investor Visa is not so much focused on an individual’s wealth, as on their proven talents and the long-term economic benefit to Australia
What Is the Australian Permanent Visa (Subclass 888)?
The Australian Business Innovation and Investment (Permanent) visa suite (subclass 888) are permanent Australian residence visas and the second stage of the Business Innovation and Investment (Provisional) visas (subclass 188).
- The subclass 888 visa is for individuals who have met the provisional visa’s complying investments and physical presence requirements
- The subclass 888 visa lets its holders
(i) stay in Australia indefinitely
(ii) work and study in Australia and
(iii) apply for Australian citizenship after 5 years of residence in presence of basic knowledge of English
What Are the Key Benefits of Living in Australia?
The advantages of the Australian golden visa and life in general in Australia are as follows:
- The Australian residence permit has no English language requirement
- The Australian investor visa gives permission for the entire family to study and work in Australia
- There is
no inheritance tax in Australia (unlike in the UK who charge 40%)
- Australia and Australian banks have a credit rating of AAA (S&P)
- Decent investment returns:
the Australian S&P/ASX 200 country index is up 85% over the last 10 years (corresponding to an annual return of over 7%)
- Australia has a low unemployment rate: 4.5% (2021)
- Australia has a favourable climate and remains relatively unaffected by Covid-19 due to its restrictive immigration policy
- Under the Australian residence program, Australian citizenship is possible after 5 years (functional English is, however, needed) which is a very short waiting period in comparison to other residency by investment programs such as the Gibraltar Investor Visa (Gibraltar citizenship after 5 years), the Austrian residence card (Austrian citizenship after 6 years), the Portuguese Golden Visa (Portuguese citizenship after 6 years), the Greek Golden Visa (Greek citizenship after 7 years), the Italian Investor Visa (Italian citizenship after 10 years), the Monaco Residence Card (Monaco citizenship after 10 years), the Spanish Golden Visa (Spanish citizenship after 10 years), and the Swiss Investor Visa (Swiss citizenship after 12 years)
What Are the Physical Presence Requirements for Tax Residence in Australia?
(during the provisional 4-year visa to qualify for the permanent visa)
| Non-consecutive presence | 40 days per year over 4 years (applicant) |
|---|---|
| OR | |
| 180 days per year over 4 years (spouse) |
How much are Personal Income Taxes in Australia?
| Income | Progressively up to 47% |
|---|---|
| Dividends | 0% (no double taxation of dividends) |
How much Are Corporate Income Taxes in Australia?
| Income, capital gains | 25% (if turnover under AUD 50m) |
|---|
How much Are Real Estate Taxes in Australia?
| Stamp duty | Up to 5.75% (of transfer value) |
|---|
What Are the Conditions to Get the Australian Investor Visa?
(Description of the SIV Complying Investment Framework)
The Australian investor visa and residency in Australia can be obtained in the following way:
- Investment of AUD 500,000 (10%) into eligible Australian venture capital or growth private equity (VCPE) fund(s) investing in start-up and small private companies (may increase to AUD 1m).
- Investment of AUD 1,500,000 (30%) into eligible managed funds or Listed Investment Companies (LICs) that invest in emerging companies.
- Investment of AUD 3,000,000 (60%) into managed funds investing into eligible Australian listed securities, corporate bonds, and real estate (<10%).
- SIV investments must be made by an Australian Financial Services (AFS) licensed asset manager domiciled in Australia and cannot be used as collateral for leverage
- Portfolio switching periods must not exceed 30 days
- VCPE funds mostly require longer investment terms than the 4-year provisional visa period. It is the responsibility of SIV applicants to decide whether they are willing to invest for periods longer than the provisional visa period
What Are the Costs of the Australian Golden Visa?
| Due diligence and handling fee | €15,000 (includes personal bank account opening in Australia) |
|---|---|
| Visa application charge | AUD 7,880 (main applicant) |
| AUD 3,940 (dependant over 18 years) | |
| AUD 1,975 (dependant under 18 years) |
- A dependant is (i) the applicant’s spouse or de facto (unmarried or same-sex) partner or a child (ii) under 18 or (iii) between 18 and 23 or (iv) over 23 with a partial or total physical or mental disability
- Applicants and dependants over 18 without functional English (here), that is IELTS 4.5 out of 9, must pay a second visa charge instalment in the amount of AUD 9,795 (applicant) or AUD 4,890 (dependant)
What is the Application Procedure and how long Does it Take to Get the Australian Golden Visa?
The application procedure for obtaining the Australian residence permit for investors is as follows:
- Lodgement of an Expression of Interest (EOI).
- Within 2 years: (S)IV invitation received from Australian State, Territory, or Austrade, PIV invitations are received from Austrade only.
- Within 60 days: gather documents, apply.
- Pay application charge, send documents (translated, certified).
- Within 70 days: Make complying (significant, premium) investment.
- Pay second instalment (if applicable), add family members.
- After 4 years: apply for permanent residence (subclass 888 Visa).
- Investors needing time to meet the Australian permanent visa’s physical presence test can apply twice for a 2-year extension of the Australian provisional visa