Australian Property Taxes for Non-Residents in Bosnia and Herzegovina
Odin Tax is your expert partner for handling Australian tax returns as an expat living in Bosnia and Herzegovina. With specialised support, streamlined processes, and accurate filings, we make navigating tax obligations straightforward and stress-free for Australian expats.
- Australian Expat Tax Knowledge: Specialised guidance for Australian expats' tax needs.
- Effortless Tax Compliance: Our system ensures your return is precise, timely, and stress-free.
- Comprehensive Service Bundle: Ongoing, year-round support beyond tax filing, giving you complete peace of mind.
CONTENTS
The Ultimate Expat Tax Advantage Bundle
Discover the ultimate resources to maximise your property investments and streamline your expat tax obligations.
From managing your Australian tax return to offering tailored tax strategies, we cover every aspect to help you maximise your savings and ensure compliance with Australian tax laws.
Key Takeaways
- Residency Status Is Crucial: Your tax residency status determines your tax obligations in Australia.
- Consider the Tax Implications: AU Expats must consider various taxes related to Australian property, including income tax on rental income, capital gains tax on property sales, and potential stamp duty or land tax.
- Professional Tax Assistance Is Invaluable: Due to the complexity of expatriate tax situations, using a specialised tax agent like Odin Tax can help ensure compliance, maximise deductions, and potentially save money.
AU Tax Implications for Australian Expats in Bosnia and Herzegovina
Tax Residency Status
Your tax obligations in Australia depend on your residency status. As an Australian expat living in Bosnia and Herzegovina, you are generally considered a non-resident for tax purposes, meaning you are only taxed on income sourced within Australia.
Example: If you earn AUD 50,000 from a rental property in Sydney, you must declare this income as a non-resident on your Australian tax return. However, if the ATO classifies you as a resident, you’ll be liable for tax on all global income, including income earned in Bosnia and Herzegovina.
Note: The ATO assesses factors such as your ties to Australia and the length of your stay abroad to determine residency status.
Non-Resident Income Tax
Non-residents are subject to higher tax rates and are not eligible for the tax-free threshold. Taxable income for non-residents includes rental income, dividends, and capital gains on Australian assets.
Example: For a non-resident, rental income up to AUD 135,000 is taxed at a rate of 30%, without the benefit of a tax-free threshold.
| Taxable Income | Applicable Tax |
|---|---|
$0 – $135,000 | 30% |
$135,001 – $190,000 | $40,500 plus 37% |
$190,001 and above | $60,850 plus 45% |
Foreign Resident Tax Rates in Australia 2025-26
Capital Gains Tax (CGT)
Non-residents are liable for CGT on Australian property. Selling a property in Australia may require you to pay CGT, and exemptions like the main residence exemption generally do not apply to non-residents.
Example: Selling a property in Melbourne bought for AUD 500,000 and sold for AUD 800,000 would result in a taxable gain of AUD 300,000, subject to CGT.
Negative Gearing
Australian expats are eligible for negative gearing benefits, which allow property-related expenses to offset taxable income, potentially reducing tax liability.
Example: If your rental income is AUD 20,000 and expenses total AUD 25,000, the AUD 5,000 loss can offset other Australian-sourced income, reducing your overall tax obligations.
Stamp Duty for AU Non-Residents
Foreign buyers, including non-residents, may be subject to additional stamp duty charges, which vary depending on the state.
Example: In New South Wales, foreign buyers incur an extra 8% surcharge on top of standard stamp duty rates.
Tax Filing Requirements
As an Aussie expat in Bosnia and Herzegovina, you must lodge an Australian tax return if you have taxable income from Australian sources, including rent, dividends, or capital gains.
Example: Earning AUD 10,000 from dividends and AUD 30,000 from rental income requires reporting both on your Australian tax return.
Foreign Income
Typically, non-residents don’t need to report foreign income to the ATO. However, if you regain residency status, all global income, including income from Bosnia and Herzegovina, must be declared in your Australian tax return.
Note: Keep records of foreign income as they may be needed if your residency status changes.
What Happens If You Don't File an Australian Tax Return?
Penalties and Interest
The ATO imposes fines for late tax filings, beginning with one penalty unit per 28-day period overdue, up to a maximum of five units. As of 2024, each penalty unit is $330, bringing the total maximum penalty to $1,650.
Legal Action
Continued non-compliance can lead to legal action by the ATO, including garnishment of wages or seizure of assets.
Lost Benefits
Failure to file your Australian taxes may forfeit eligibility for tax credits, offsets, and the ability to carry forward losses.
Increased Scrutiny from the ATO
The ATO may conduct a detailed review of your financial records, potentially leading to audits or additional penalties if discrepancies are found.
Compounding Issues
Ignoring tax obligations can lead to escalating fines and interest charges, complicating future tax resolution.
Impact on Future Residency Status
Unsettled tax obligations may affect future plans to return to Australia and could complicate residency applications.
Reputation
Non-compliance with tax laws can harm your personal and professional reputation, especially if you are involved in business or finance.
Lodge Your Australian Tax Return from Bosnia and Herzegovina
Do It Yourself
Filing your Australian tax return independently as an expat is feasible but challenging without professional assistance.
Tax Knowledge
Navigating the implications of residency status, foreign income, and CGT requires thorough understanding of Australian tax law.
Time Commitment
Compiling documents, assessing deductions, and ensuring accuracy can be time-intensive, with the risk of costly errors.
Risk of Missing Out on Deductions
Without professional assistance, you might overlook deductions and credits that could reduce your tax bill.
Support and Resources
Addressing questions or challenges during filing may prove difficult without expert assistance.
Get It Done for You
Hiring a tax specialist makes the process easier and can enhance accuracy.
Expert Advice
A tax professional with experience in expatriate tax laws provides customised guidance based on your unique situation.
Comprehensive Service
With a full-service approach, your agent should handle everything from AU tax return preparation to strategic tax advice and ongoing support.
Cost and Time Efficiency
Their fees may be offset by the savings they identify through deductions and credits, potentially maximising your refund.
Complete AU Tax Solution for Aussie Expats in the Bosnia and Herzegovina!
Odin Tax simplifies your Australian tax obligations with a full-service solution. Here’s how we support you.
Consultation
Talk to our tax expert to discuss your Australian tax circumstances and next steps.
Document Collection
We assist you in gathering all required documents, including income statements and any relevant deductions.
Australian Tax Status Review
Our experts carefully examine your financial information, ensuring no deductions or credits are missed.
AU Tax Lodgment
We handle the accurate and timely lodgment of your tax returns, ensuring everything is fully compliant with Australian tax regulations.
Ongoing Support
Even after your returns are lodged, we offer continuous support, providing tax planning advice and keeping you informed of any changes in tax laws that may affect you.
FAQs about Australian Taxes for Non-Residents in Bosnia and Herzegovina
Are there any exemptions or benefits I qualify for as an Australian expat in Bosnia and Herzegovina
Yes, Aussie expats in Bosnia and Herzegovina may qualify for benefits such as:
- CGT Main Residence Exemption: Selling your main residence may provide a CGT exemption, even as a non-resident, if specific conditions are met.
- Foreign Income Exemption: Generally, non-residents are not taxed on income earned outside of Australia, meaning income from Bosnia and Herzegovina is usually exempt.
- Tax Offsets and Credits: Expats may qualify for offsets such as the foreign income tax offset if they’ve paid tax on income earned abroad.
- Negative Gearing: Deductions related to investment properties can reduce taxable income, potentially lowering tax obligations.
- Superannuation Contributions: Contributions to Australian super funds are typically untaxed until withdrawn.
- Temporary Resident Benefits: Temporary residents are taxed only on Australian-sourced income, not foreign earnings.
- Absence Rule for Main Residence: If renting out your primary residence, you may still qualify for a CGT exemption for up to six years, subject to specific conditions.
- Double Taxation Agreement: Australia does not have a Double Taxation Agreement with Bosnia and Herzegovina. As a result, overlapping tax obligations may occur, although non-residents are typically only taxed on Australian-sourced income. Consulting a tax professional can clarify how best to handle any overlap.
How much is the Australia income tax for non-residents?
Non-residents face a tax rate of 30% on income up to AUD 135,000, 37% on income between AUD 135,001 and AUD 190,000, and 45% for income above AUD 190,001, with no tax-free threshold.
How do I file a tax return in Australia?
Filing is straightforward with a Tax File Number (TFN) and a MyGov account. Adjust your MyGov settings to allow overseas access and submit your return through myTax for the most efficient online filing.
Necessary documents include bank details, proof of income, deductible expenses, and any private health fund information if applicable.
For further assistance, you can refer to our How to Lodge your Australian Tax Return as an Expat page.
What are the property taxes for non-residents in Australia?
Non-residents must pay various property-related taxes in Australia, including income tax on rental income, CGT on property sales, state-based stamp duty, and potentially land tax, with additional surcharges for foreign buyers.
What is the capital gains tax rate in Australia from Bosnia and Herzegovina?
Non-residents are taxed on net capital gains, which are calculated after deducting losses. Assets purchased after May 2012 may be eligible for a 50% CGT discount.
Example: Selling a property bought for AUD 500,000 and sold for AUD 700,000 results in a taxable capital gain of AUD 200,000, which is subject to CGT for non-residents.
Can I claim Australian tax deductions?
Australian expats with property investments can claim several deductions, including:
- Expenses for rental property management and maintenance.
- Depreciation of furniture and other assets.
- Utility and internet costs related to rental properties.
- Landline and electricity expenses associated with managing rental properties.
For detailed advice on deductions or help with your Australian tax return, contact our team at Odin Tax.
Why should I choose Odin Tax for Australian expat taxes?
Odin Tax offers expert support to make managing your Australian tax returns as an expat in Bosnia and Herzegovina seamless. Here’s how we can help:
- Extend your filing timeline for peace of mind.
- Benefit from expert advice to maximise your savings.
- Get ongoing support from our dedicated team.
- Access educational materials, webinars, and one-on-one consultations.
Contact our team of tax specialists today to get started right away!
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