What happened
Australian investors are increasingly looking to the United Arab Emirates (UAE) as a destination for property investment, driven by high taxes and inflation in their home country. About 6 percent of Dubai's foreign buyers are Australians, according to the Khaleej Times.
Property developer BNW Developments has opened its first Australian office in Sydney to cater to the growing interest from Australian buyers. The company's chairman and founder, Ankur Aggarwal, said that Australians are seeking to diversify their investments and capitalize on the UAE's super-low tax regimes.
The UAE's residency framework, including its Golden Visa program, is also an attraction for Australian investors. Additionally, the country's tax system, which does not impose personal income tax or a general personal capital gains tax, is seen as a benefit.
However, economist Saul Eslake warned that Australians investing in the UAE are still liable for Australian capital gains tax when the property is sold. He also pointed out that investors would need to consider the costs and risks associated with moving overseas to reduce their Australian tax liabilities.
Financial expert Shane Shmuel said that Australia's economic outlook could make overseas markets attractive to some investors, citing the country's high inflation rate and restrictive tax policies. He noted that Dubai, in particular, offers a more promising economic environment, with a strong international population and cross-border demand.
