Australian residency is an often overlooked option for individuals seeking permanent residence in a first-world, English-speaking country.
The recently introduced Business Innovation and Investment Visa requires nomination by the state or territory in which the investment is made, and relaxes or waives many of the usual visa assessment criteria. For instance, there is no longer a requirement for starting a business or having a “substantial presence” within Australian territory.
To qualify for the visa, you must place A$5 million or more (US$5.15 million) into “complying investments” in return for provisional permanent residence. This provisional Australian residency may be confirmed as permanent residence if maintained over four years and is conditional on a physical presence of only 160 days over this period. Once you achieve permanent residence, you have the opportunity to reclaim your investment.
Examples of complying investments include state or territory government bonds, Australian Securities and Investment Commission regulated managed funds (including cash deposits and bonds issued by financial institutions, agribusiness and infrastructure projects, and real estate) or direct investments into Australian proprietary companies.
The Business Innovation and Investment Visa is a great “residence insurance” policy for home-based businesses, investors worried about seizure of assets, or a quick escape route to a safe and affluent country. While aimed primarily at the Asian market, it’s also ideal for anyone seeking a residence solution that doesn’t require physical relocation.
However, if you’d like your provisional residence in Australia to lead eventually to Australian citizenship and a passport, you’ll qualify only after four years continuous residence with a yearly average of no more than 90 days absence. You may apply for citizenship no earlier than 12 months after acquiring permanent residence.
Individuals resident in Australia for more than 182 days annually generally must pay Australian tax other on their worldwide income. That means if you want to acquire Australian citizenship and passport, you’ll need to pay Australian taxes, at least until you qualify. The good news is that Australia, while hardly a “tax haven,” has a wide network of tax treaties that provide tax relief for income generated outside Australia.
Article By Jonathan Chalmers
For more information on acquiring residence in Australia, contact:
Jonathan Chalmers
c/o The Nestmann Group, Ltd.
100 Pall Mall
St James
London SW1Y 5NQ
United Kingdom
Tel.: +(44) 20 7321 3771
Fax: +(44) 20 7321 3738
E-mail: london [at] nestmann.com
Copyright © 2013 The Nestmann Group, Ltd.
(Jonathan Chalmers is a citizenship and residence consultant based in London. He heads up The Nestmann Group’s representative office there.)
