The Bahamas offers several possible company structures for prospective business owners to choose from. Each business structure has slightly different strengths, depending on the industry and its needs; as well as practical limitations on the protection of business objectives’ liability. However, we would like to introduce you to LTDs, Partnerships, and the Substance Requirements for commercial entities.

Before getting into the details, it must be highlighted that the country’s developed financial services sector, established infrastructure, progressive government, tax-neutral environment, and luxurious lifestyle have all been meticulously promoted to become a major international business center. Some advantages offered by the Bahamas are:

-There are no capitalization restrictions

-No tax implications for investors

-The Bahamas offers individuals and organizations the opportunity to create personalized business structures tailored to the specific needs of international business and wealth management.

-Maximum confidentiality and anonymity

-There are no annual reporting requirements.

Business Structures in the Bahamas

You can use a variety of options when choosing a structure to run your business in the Bahamas. Certain types of investments may require the use of certain vehicles, such as in the case of banking or insurance activities.

For instance, startups working primarily overseas should consider setting up an international trading company.

If your business has multiple investors or employee directors, consider forming a corporation rather than a partnership. Working with too many partners can be overwhelming and difficult to manage. In a business, a small group of directors or managers are usually responsible for the day-to-day operations of the business, but investors are usually excluded.

If you anticipate needing to protect a particular asset, we recommend using a different account company or trust structure to give you peace of mind.

The Bahamian options of business structure include individual business owner limited liability companies, companies under the Companies Law 1992, and companies under the International Companies Law. Among them we have: unlimited liability companies, limited liability companies, individual account companies, joint ventures, partnerships, sole proprietorships, etc.

You must know that the government does not require any ownership or participation in the business by the investor. Also, the investor’s potential liability to third parties or other investors is determined by agreement between the parties. As we have mentioned before, there are no limits to capitalization and no tax implications for investors.

Legal Framework

The government’s aggressive economic growth and development policies are guided by the Bahamas Investment Authority (BIA), which was established to mitigate bureaucratic delays in domestic and foreign investors.

The BIA, which operates from the Prime Minister’s Office, is called a “one-stop shop” aimed at simplifying investment in the Bahamas. The BIA acts as an administrative division of the National Economic Council (NEC) and the Investment Commission.

If you do business in the Bahamas with local residents, please consider setting up a company under the Companies Act 1992. Although many national companies only operate in the Bahamas, Bahamian law does not require Bahamian citizens to act as administrators or participate in national companies.

The enactment of the International Business Companies Act of 1990 easing the process and cost of incorporation and governance, helped to establish the country as a popular destination for foreign investment.

Process

Foreign investors wishing to start a business in the Bahamas must:

1.Submit a project proposal to the BIA along with supporting documents. In this first step, the company name must be approved by the company registry.

-The process includes submitting the required form for a required fee of $50.00 and obtaining the certificate at the registrar’s office. The name will be approved within 24 hours.

2.The final proposal will be considered by NEC, an institution led by the Prime Minister responsible for managing the implementation of national investment policies. This is logical since NEC is the decision-making body for virtually all business projects undertaken by foreign direct investors.

3.After the NEC approves the investment project and establishes the necessary structure to conduct the proposed business, the investor must obtain a business license from the Ministry of Finance [the business licensing body].

General Requirements to Establish a Company in the Bahamas

According to the government’s official website, some general requirements apply to almost all companies and structures in the Bahamas. These are:

-Certificate of incorporation

-Exclusive name of the company, already reserved. The name of the company should be spelled consistently (for example, correct spelling, capital letters, and symbols).

-Memorandum and articles of association.

-The statutory declaration is notarized by a notary public, sworn in by a Justice of the Peace or a lawyer.

-Signatures of all registrants (2 or more)

-In addition to it, you should have:

-At least one shareholder.

-At least one director. There is no residency requirement.

-Legally registered office address.

-Standard authorized capital: $50,000.

-Notarized copy of passport.

-Certificate of Residence (3 months or more)

-First meeting’s minutes.

-Register of Shareholders and Directors.

The request will be processed within 1-7 days from the date of submission of all documents. This service has no expiration date. Related costs of $ 330.00 apply to all regular businesses. However, if you want to have a better and 100% successful experience, let us guide you in this process with the help of our local experts.

Limited Liability Company (LTD) in the Bahamas

In the Bahamas, many business owners are choosing to form a limited liability company over other types of business. Limited liability companies have many advantages in making this type of corporation very popular. This service allows Registered Agents and investors to form national organizations or legal associations in the Companies Section of the Registrar General’s Department.

First, as the name suggests, limited liability companies offer a lot of liability protection to their members. The structure of a limited liability company separates the personal assets and liabilities of its members from the assets of the company.

Members, officers, and directors of a limited liability company are not liable for the debts of the company unless they are in good faith or are liable for misconduct before the law.

An important exception to this rule is that members may be liable for the total amount of their investment in a limited liability company or any other outstanding amount that has been reached.

In the Bahamas, a member’s liability may be limited in two ways: by act or by endorsement. When a company is not limited by shares or limited by warranties, it is said to be a limited liability company. (Find more details in Articles 4-8 of the ## Companies Act ##; Articles 7-9 of the ## Law on International Business Companies ##).

In a public limited liability company, a member’s liability is limited to the number of shares the member has not paid for. In a guaranteed limited liability company, the member’s liability is limited to the scope of the contract of the company’s memorandum of understanding to each partner for the liquidation of the company.

A Bahamian limited liability company is required to keep the minutes of association meetings when the company is newly formed. Please also note the following details:

-The memorandum of association must specify whether the company is limited by either a stock limited liability company or a guaranteed limited liability company.

-All dates have to match.

-Likewise, a limited liability company must clearly state the authorized capital of the company, including the par amount to be issued by the company and the share capital represented by non-nominal shares.

-To settle the debts and liabilities of the company, each member contributes the expected amount to the company and the costs associated with dissolution must be specified.

Partnerships

The Bahamas has several types of partnerships, including limited liability General Partnership, Limited Liability Partnership, and Undisclosed Partnerships. Partnerships are ideal for a group of small business partners working together in a joint venture.

Bahamian law relating to partnerships is essentially similar to British law. A limited partnership requires one or more general partners with unlimited liability. Regular partners cannot participate in partnership management.

As a general requirement, Bahamian law establishes that a written partnership agreement must be registered and one of the general partners must submit a notarized declaration of the amount the member has contributed his or her capital.

Business partnerships in the Bahamas, such as limited liability companies, require an appropriate business license. If you want to get to know the details about obtaining this or any other license, do not hesitate to contact us.

Substance

The Commercial Entities (Substance Requirements) Act 2018 (the “Substance Act”) which came into effect on December 31, 2018, is consolidated, registered, or extended under the Bahamian Company Law.

The main purpose of the law is to prevent and impede the formation of “cover” companies in the Bahamas for tax evasion/evasion in the host country of the parties. Because of the effects of Substance law, for-profit entities engaging in “related activities” must demonstrate substantial economic existence and actual economic activity in the Bahamas.

In this regard, business organizations include companies established under the International Business Companies Act and the Companies Act.

The relevant activities are defined by the law in question and are directed to:

-Insurance activities

-Banking activities

-Fund management activities

-Financial transactions and leasing

-Distribution and service center

-Shipping industry.

-Use of intellectual property for commercial purposes.

It also includes subsidiaries that participate as a parent company or in one of the activities described before.

We understand that these processes may be difficult at first. Fortunately,

Banking Services

• • Residency
    

    In our previous articles, such as “About Australia”, and “How to Immigrate to Australia”, we indicated the great environment and the enormous opportunities that as an investor or as a worker you can find in the sixth largest country in the world. Although it’s great geographical distance from the West might scare some, let us tell you that this great country can be the path to your and your family’s success.

    Australia has several visas for both investors and qualified personnel wishing to relocate to this country to work. We have previously applauded the commitment and constant pursuit of merit that Australia has set as a flag, so we assure you that you will move to an environment that promotes development and advancement.

    The Permanent Residency or the PR Visa

    This is one of the programs offered by the Australian government to those who wish to relocate their life to Australia. This visa will be renewable and will have a duration of 5 years from its issuance. Once you receive it, you will be able to move to Australia to live with your family.

    With the Permanent Residency permit, according to the Australian government, you will be entitled to:

    -Remain in Australia indefinitely

    -Work and study in Australia

    -Enter the Australian National Health scheme

    -Apply for bank loans to buy property

    -Sponsor eligible relatives for permanent residence

    -Work in New Zealand

    This program, along with the different types of visas it includes, is the first step in your immigration process to enter Australia. You should apply for it if your stay is indefinite, and even more so if you are going to the country to work or study. It is primarily aimed at skilled labor personnel who can bring benefits to the Australian economy, and we will ensure that you are aware of each type of visa and the requirements of each.

    You will be able to choose the visa you wish to apply for according to your interests and the reason for your move to Australia. The three main reasons for application are:

    -Family-stream permanent residence visas

    -Work-stream permanent residence visas

    -Business or investment-stream permanent residence visas

    We recommend you to contact us to obtain from our team of experts, all the advice you may need when deciding which visa is the best for you, and which one will give you the best benefits. There are many sectors of the Australian economy looking for qualified personnel and you could be one of the beneficiaries.

    Thinking about what we just said, we’d like to talk to you about the visas you can apply for if you are considering moving to Australia.

    -Work-Stream Permanent Residence Visas

    a. Temporary Skill Shortage Visa (Subclass 482)

    This visa program was born in 2018 and is aimed at allowing Australian employers to “sponsor” a foreign national to work as their employees in Australia. The key to this and many of the other existing work visa programs in Australia is that the employer is not able to find an Australian employee with sufficient skill for the work to be performed. This type has two subtypes, which are: Short-Term and Mid-Term Visas; and the Labour Agreement Stream.

    b. Skilled Independent Visa (Subclass 189):

    This visa allows invited workers with skills required by the Australian government, to live and work permanently anywhere in Australia. This type of visa is probably the more desirable given its flexibility and good chances of approval

    c. Skilled Nominated Visa (Subclass 190):

    This visa lets nominated skilled workers live and work in Australia as permanent residents. An important issue about this type of visa is that you only can apply if you have been nominated by a State or territory government.

    d. Skill Work Regional Visa (Subclass 491):

    This is a provisional visa. It is for skilled workers who want to live and work in regional Australia. This visa has a duration of up to 5 years. Just like in other types of visas we have talked about, you’ll have to be under 45 years old and having an occupation on the Occupation Lists. You’ll have to be either sponsored by an eligible relative or by the State or territory government agency.

    To apply to any of these visas, in general terms, you’ll need to:

    -Be under 45 years old

    -Get at least 65 points on the immigration test

    -Have an occupation on the Short, Medium, or Long-term Skills Lists

    -Receive an invitation to apply

    -Have a good command of the English language, with documents to prove it.

    -The Golden Visas

    But if instead of going to work or study, you are an investor looking for your next project, Australia is also positioned as a more than favorable destination for you. Its excellent economy, international recognition, business quality, and commercial allies make the largest island in the world an important “one to watch”.

    If you are interested in entering the Australian business world, these are the visas you can apply for, and what each one requires:

    -Business Innovation Visa 188A:

    This visa is thought for business owners who have an overall successful business career and are seeking to establish business operations in Australia.

    To apply for this visa, according to Australian law, you’ll need to:

    -Be under 50 years old

    -Have combined net business and personal assets of at least AU$1.250.000

    -Provide proof of your business success

    -Score at least 65 points on the Business Innovation and Investment Points Test

    The Investor Stream 188B:

    This is a 4-year temporary visa. Once the applicant has maintained an investment in Australia for that long, they may apply for permanent residence. The requirements for this type of visa are these:

    -To be nominated by a State or Territory government to invest at least AU$2.5 million if you were nominated after 1 July 2021.

    -Score at least 65 points on the mentioned test

    -To have at least 3 years of experience managing a qualifying business.

    -To have a net business, investment, and personal assets of at least AU$2.5 million

    -Significant Investor Visa 188C:

    This provisional visa is for people who invest at least AUD5 million in Australian investments that meet certain requirements and maintain investment activity in Australia. To apply for this visa, you must:

    -Be invited to apply

    -Be nominated by the State or Territory to invest at least AU$5 million, and have the intention to hold that investment for the whole visa’s life

    -Have the intention to live in the State or Territory whose government nominates you

    Premium Investor Visa 188D:

    This provisional visa is for people who are nominated by Austrade and who invest at least AUD15 million in Australian investments and/or philanthropic contributions. To apply, you must:

    -Be nominated by Austrade

    -Be invited to apply

    -Invest at least AU$15 million in Australian investments and/or philanthropic contributions that meet certain requirements

    -Have a genuine intention to hold the investment for the whole period of the visa (except any part of the investment that is a philanthropic contribution)

    Family-Stream Permanent Visas

    This stream was thought for the spouse/partner, children, or parents of an Australian Citizen or permanent resident. With this option, you will be able to migrate to Australia if a close member of your family meets the above requirement.

    Although the Australian administration gives preference to spouses, dependent children, or parents, it also provides the chance to other family members dependents of the permanent resident to move to Australia. With no doubt, Australia has its doors open.

    Australian Citizenship

    To apply for Australian citizenship, you must first have obtained a permanent resident visa and have met each of the requirements of your visa. You must also meet the following criteria to be eligible for citizenship:

    -Have passed a Citizenship test (only for those under 60 years old)

    -Be a permanent resident at the time of the application and at the time of the decision

    -Satisfy the resident requirements

    -Be likely to reside in Australia

    -Be of good character

    Once you have met these requirements, and your citizenship has been approved, you will enjoy these rights:

    -Live in Australia

    -To apply for an Australian passport (The world’s 8th most powerful according to Henley & Partners.

    -Register as an Australian citizen by descent any of your children born overseas after you become a citizen

    -Vote in the elections and much more!

    Getting your Australian permanent residency is the first step to a new life and the first link on the road to Australian citizenship. Being part of this country is certainly conducive to a good and successful life, so contact us today to start your immigration process!

  • An Expat’s Life
    

    Australia is one of the preferred countries for ambitious workers and entrepreneurs looking to turn their lives around and get to the next level. This country, known among other things for being the largest island in the world, is one of the most migrant-friendly.

    Australia has long supported foreign nationals in times of crisis and needs, benefiting also from the talents and skills they may have to grow and develop the Australian economy and other sectors, on which many of its visa and residency programs for foreigners are based.

    Australia combines a long list of opportunities for those who wish to move to its territory, with an enviable natural beauty that will undoubtedly make those who arrive in the country feel that they are in a different land. Modernity is also not lacking in Australia, which every day strives to keep moving forward and be at the forefront in all sectors.

    In addition to its opportunities, it is necessary to talk about its people, and the enormous cultural mix that exists in Australia, thanks, among other things, to its policies of openness towards migrants, makes a large number of different cultures and lifestyles coexist in this country, which in no way antagonize each other, but on the contrary, coexist day by day to advance and grow.

    You will find a very friendly place

    Australia is one of the friendliest countries in the world, and that makes it easy for those who have come from far away to start a new life (with all the fears and apprehensions that may entail) to adjust in the best possible way. The ex-pat community in Australia enjoys a high quality of life and considerably lower stress levels than in many other countries around the world.

    Australia’s high quality of life is supported by being ranked 6th in the Human Development Index for 2021, which among other things measures life expectancy, personal income level, and education. Undoubtedly, Australia has made and continues to raise its standards day by day.

    And as we mentioned before, the great cultural diversity in Australia and its controlled migration programs make that day by day a great number of cultures and ways of life unite and coexist with each other, in an environment without great indexes of xenophobia or discrimination. This and much more is why Australia has achieved so much in recent years.

    Likewise, this friendly attitude is not just confined to its people but carries over into the realm of business and investment. Australia is one of the freest economies in the world (3rd in the Heritage Foundation’s Index of Economic Freedom), where the State not only respects private property and allows the business sector to operate freely, but is constantly searching for mechanisms and methods to optimize the niche to generate more and more profits.

    This great country does not stagnate and it doesn’t get too comfortable. It will always seek to evolve towards a better tomorrow.

    Cost of Living

    Although living in Australia can be a bit expensive, there are excellent opportunities for those who decide or are invited to live in Australia, either to invest in the creation of new businesses or to join the country’s workforce.

    According to portals such as Numbeo and Wise, the cost of living for a person in Australia (without taking into account rental charges), is between A$ 1,300 and A$ 1,400 per month (US$ 963 – US$ 1,038). According to these platforms, the minimum wage in Australia (higher than in the United States and the United Kingdom) is A$ 19.84 per hour, which is already a significant monthly income.

    In addition to this, Australia is constantly looking for qualified personnel who can provide benefits, development, and growth to its different economic sectors, an activity that in no way can be underpaid, so, under these terms, life in this country can be more than affordable.

    As far as rental prices are concerned, in the main cities, a one-bedroom apartment in the center of town can cost up to A$ 1,789 per month, which is still somewhat affordable with the right work and lifestyle.

    Taxation

    The Australian tax system, although it does not offer major exemptions to companies, is still attractive to foreign investors, as they see this as a small price to pay for the high level of economic freedom and the State’s respect for private enterprise.

    Companies must pay a flat rate of 30% on their income, and although there are no exemptions, there are “rebates” on the rate for small businesses. As for what for Europe would be VAT, Australia has a rate of 10%, and it is applied not only for final products but also on the sale of raw materials.

    As for personal taxation, as we have mentioned in previous articles such as Companies & Structures and the Privatus Maximus’ Freedom Rating for Australia, the country’s tax system, unlike those countries that have a flat rate for all profits, is progressive; meaning that tax rates increase as income increases.

    In our previous articles, we pointed out that the Australian tax system stipulates that you will be subject to different tax rates depending on whether you are an Australian resident or a foreign resident as far as the Australian tax administration is concerned.

    If you earn income up to A$18,200 in a tax year, you will not be subject to tax, so tax rates will start to apply for income above this.

    However, you may still be eligible for certain tax deductions from work expenses you have incurred during a tax year. This is an important tool to reduce your tax burden, and our team can assist you in this regard. Among the expenses that you can mark as work expenses for tax deduction purposes, we can count:

    -Travel Expenses

    -Cost of Uniforms

    -Personal laptop, phone, Tablet or desktop if you use them for work

    Rhythm of life

    Australia has remained a destination full of attractions and promises for those who choose not only to visit but plan to make a life here. The world’s largest island offers a lifestyle that attracts millions of enthusiasts every year. The combination of great weather, scenery, and opportunities is more than complete and for all tastes.

    Australia is known for its hospitality and friendliness. If you start a new life in this country, rest assured that it will take little time for you to be accepted as a part of the community. This country believes in “respect to be respected”, which extends to all contexts.

    During the week, the pace is quite high. Everyone devotes their time and effort to the accomplishment of their daily duties and tasks. Australia has a good work schedule that is often accompanied by a visit to bars and restaurants to relieve the burdens and daily stress among the same co-workers.

    On weekends, there are plenty of options for recreation and relaxation. Since many of Australia’s major cities are located on the coastline, trips to the beach with family or friends are more than common and a great way to free the mind. If you are an ex-pat, once you have settled into your new home, you can begin to interact with your neighbors and community through sports, BBQs, talks, etc.

    As for the climate, it varies depending on the region where you are located. Undoubtedly, and according to many travel portals, the best climates are found in the southern coastal area, so you could consider them over the more antagonistic climates of the center and north of the country.

    Contact Us!

    Starting your life in a new country is always a critical step in anyone’s life, but if the destination country offers all the conditions and opportunities to make this transition as pleasant and easy as possible, that country is worth it.

    During this series of articles, we have shown you the advantages, opportunities, conditions, and why you should consider Australia not only as an investment destination but as your permanent place of residence. This country is committed to advancement and development, so if you share this vision, you should contact us today to find out what places and options are best for you in Australia.

    Obtaining a residency and later citizenship are options that are on the table, and our team will be there to support you in all stages of the different processes that you can initiate in Australia. We are waiting for you!

  • Funds
    

    Being an entrepreneur, investor, or even a family man, the protection of assets, property, and even money, is one of the main concerns. In addition to this, when you own some capital, it is more than understandable that you want to have those resources generating profits, instead of being stored and exposed to taxes, lawsuits, bankruptcy, etc.

    We have already talked about the excellent conditions and opportunities that Australia offers for investment. Thanks to its great economic openness, different types of companies and businesses you can start, and its broad tax policy, establishing your capital in the sixth largest country in the world is a great idea.

    In this article, we will introduce you to 2 investment mechanisms that are quite common in Australia, but at the same time can make a difference in protecting your assets and help you save not only hundreds but perhaps thousands of dollars in taxes. We are talking about Trusts & Funds.

    We will analyze each mechanism with its advantages, types, and opportunities to provide you with the best information and avoid any confusion. As always, our experts will be at your service if you wish to invest in any of these mechanisms available in Australia.

    Trusts in Australia

    According to the Australian Taxes Office (ATO), the trusts are recognized as a legal relationship between privates where an asset (cash, stocks, shares, etc) is held by a trustee for the benefit of the asset’s owner. This relationship is not a legal entity but still is subject to taxation for tax administration.

    There are two main actors in the relationship established by the Trust: The trustee, and the beneficiary.

    -Trustee: Is the legal person or company responsible for the assets within the trust and that has to make sure that the relationship is being managed according to the deed.

    -Beneficiary: It’s the person, persons, or entities that benefit from the trust. In other words, they are those who receive the assets contained within the trust.

    Some benefits come with trusts, and we are going to tell you which are they:

    -It protects your personal and business assets.

    -They are considered a wealthy-creation vehicle.

    -Trusts help you minimize your tax obligations.

    -Trusts have low compliance costs

    -Flexibility over capital and income distribution

    -Protect money and other resources at the same time they are producing profits.

    Trusts are very important instruments for the protection of assets, which can be used not only by investors and businessmen but also by families seeking to maintain a secure future. We have already talked about Australia’s openness to foreigners, so if you are starting a new life here, this information is of interest to you.

    There are different types of trusts in this country, which are:

    a) Discretionary Trusts:

    This is the most common form of trust used in Australia. According to its description, the trustee has full discretion as to how the incomes are distributed to the beneficiaries. It’s mostly used by families.

    The main reason to use this type of trust is for asset protection and tax planning. Despite the trustee can decide not to distribute the income to certain members of the family, but it comes with certain tax increases.

    b) Fixed Trusts:

    Unlike the discretionary trust, with this type, the trustee doesn’t have discretionary power over the income distribution. At the beginning of this trust, fixed rates are established for each beneficiary, so that each beneficiary has a specific percentage of the trust’s income.

    To clarify the idea, in fixed trusts, the beneficiaries’ interests are set according to their “holding units”, just like shares are issued to shareholders of a company.

    c) Hybrid Trusts:

    As its name suggests, this type of trust has characteristics of both fixed and discretionary trusts. It combines the benefits from both types of trusts with fixed-income rates and the trustee’s discretion.

    This type counts with unitholders and discretionary beneficiaries. The trustee has the power to distribute the incomes among beneficiaries, but also they are distributed according to the number of units that each one of the beneficiaries holds. This type has great income and capital gain tax advantages.

    d) Testamentary Trusts:

    As its name suggests, it only starts to act after the testator has passed away. In a few words, the testator’s assets don’t go directly to its beneficiaries, but to trust on behalf of themselves.

    In general, the terms of this trust are set by the testator’s will, and it’s generally aimed to secure the beneficiaries’ well-being.

    e) Special Disability Trusts:

    This type is set to provide help and assistance to immediate relatives in order of taking care of a family member who has a disability. Before the trust can be set up, the beneficiary must be assessed as severely disabled, according to law.

    The assets of this trust can be used to pay for several expenses, including medical and accommodation needs.

    Funds in Australia

    Once we have talked about the types of trusts and their benefits, it is time to cover the figure of the funds that you can access in Australia. There are several types of funds you can invest in this country.

    After you invest in a managed fund, its manager will buy and sell assets like shares or bonds looking for profits for you. When you invest in funds in Australia, you own units of the fund, which value will vary according to the assets.

    In Australia, there are several types of managed funds you can invest in and generate profits, which is why we’d like to tell you some of these advantages:

    -Great amounts of money are not required

    -There are several global investment opportunities

    -You will have a regular income while your money works

    -While investing your money with experts, your investment will have a better performance.

    We will now tell you which are the main managed funds in which you can invest in Australia:

    a) Cash Funds:

    These are low-risk and short-time investments. The main destinations for these investments are money market deposits, short-term government bonds, and bank bills.

    b) Fixed Interest or Bond Funds:

    This type includes low and high-risk investments. The main actor in this type is the corporate bonds, which can generate several incomes and returns within different periods. Australia has a great fixed interest fund chart, due to a profitable and stable environment, which generates confidence among the investors.

    c) Mortgage Funds:

    Invests in property loans (mortgages). Some funds are high risk. The fund’s risk depends on the quality of the borrowers and the purpose of the loan. You receive income as long as the borrower pays interest. Your investment doesn’t increase in value. It can fall in value if borrowers can’t repay their loans. You should pay attention to that.

    d) Property Funds:

    As its name says, the investments in this type of funds go to residential property, commercial property, or property developments. Some property funds are high risk. You might not be able to withdraw your money from the fund at short notice, but the profits to gain are very attractive.

    e) Share Funds:

    With this type of fund, you will be able to invest in listed companies in Australia, overseas, or both. There are a lot of business and a deep chart of investment opportunities for this fund. It offers the potential for higher returns but also has higher risk.

    In general, funds and trusts in Australia provide great support to entrepreneurs, investors, businessmen, and families in the preservation and growth of their capital and resources. Being successful in business is not just about generating large returns or income, but also about knowing how to protect and grow them further.

    At Privatus Maximus, we want your assets to be protected, so our large team of experts is ready to work side by side with you to determine the best mechanism for you, your business, and your family. Don’t waste any time and contact us.

  • Government Agencies
    

    The Commonwealth of Australia is set as a federal parliamentary constitutional monarchy. Under this form of government, the Head of State is Queen Elizabeth II of England, while the national affairs of the world’s largest island are conducted by the Prime Minister, elected by the coalition with the largest number of seats in Parliament.

    This country has an elaborate ministerial system, among which the following should be considered when doing business:

    Attorney’s General Department

    This is the office responsible for the administration and enforcement of justice in Australia, at the local, regional and national levels. Since 2019, this organism has also ruled industrial relations.

    Department of Education, Skills, and Employment

    This department was born in 2020, following the merger of the Department of Education and the Department of Employment, Skills, Small and Family Business. It is dedicated to “ensuring Australians can experience the wellbeing and economic benefits that quality education, skills, and employment provide.

    In our article “About Australia” we talked about the visas you can access as an investor. The importance of this department lies in the fact that it is in charge of training and providing the qualified personnel you will need in your new business in Australia.

    Department of Finance

    This department assists the government across a wide range of policy areas to ensure its outcomes are met. Its assistance covers the public resources management, governance, and accountability frameworks. It has 4 areas of focus: Budget and Financial Reporting; Business Enabling Services; Commercial and Government Services; Governance and Resource Management.

    Department of Foreign Affairs and Trade

    In addition to ensuring the security of the country, and looking after each of its interests, it is also responsible for the generation of ties and links with international organizations, seeking to increase investment opportunities and the welfare of Australians abroad.

    Department of Industry, Science, Energy and Resources

    This department is responsible for driving economic growth and job creation in Australia. It superseded the Department of Industry, Innovation and Science on February 1st, 2020. Within its responsibilities, the department is in charge of energy and science policy, construction industry, innovation, policy and technologies.

    Department of the Treasury

    This department is responsible for the economic and fiscal policy, as well as market regulation and the Australian Budget. According to Australian law, this department is divided in four groups: Fiscal, Macroeconomic, Revenue and Markets.

    The Treasury also works with state and territory governments on key policy areas, as well as managing federal financial relations.

  • Real Estate and Investments
    

    Australia boasts one of the largest and freest economies in the world, thanks to a series of policies that highlight the promotion of competition, respect for private property, and very low levels of government corruption, which makes its different economic sectors worthy of monitoring by firms and investors from all over the world.

    In addition to this, Australia has a real estate market full of opportunities to generate profits and benefits for whoever wants to, and more importantly, can enter this niche.

    Investing in real estate will not generate immediate and explosive profits and wealth, but it will be a stable and steady source of income from rental property transactions, which, with the right property, can be more than desirable and profitable.

    Some Highlights of Real Estate Investment in Australia

    To know what awaits you as an investor in the real estate business in Australia, you should know some of its advantages:

    -Low-interest rates and a lot of government incentives

    -Huge growth potential

    -The real Estate Sector is a very safe one in the long term

    -This sector is a lot less volatile than other markets, like stocks, shares, etc.

    -According to Australian law, there are several tax deductions available for long-term investments.

    -You will have control over your investment. You’ll decide what happens with it and how to run it.

    -High yield investment with rental returns often being sufficient to cover the mortgage costs if using debt financing, especially on commercial property

    -Debt lending is available on numerous types of properties.

    Investing in real estate in Australia can bring you these and many other benefits if you find the right investment, and for that, among other things, you can count on the support of our experienced team, who will advise you and give you the best options to preserve your wealth, and also, make it grow.

    Why Buy a Property in Australia?

    As in any market, there are better options than others, but even so, the Australian real estate market offers a wide and varied list of options ready to satisfy the desires of the most ardent investors.

    According to different indexes and measurements, the value of properties in Australia is in the midst of a constant boom, which shows no signs of stopping soon, making the investment for later sale, renovation, or simply renting them, more than attractive. This growth would have been up to 20.6% so far this year.

    The importance of this figure is magnified given the situation of the last year for the whole world, caused by the Covid-19 pandemic, which in most of the economies generated great contractions and paralyzations. That the real estate sector, as well as other areas of the Australian economy, has recovered and is producing profits and earnings, is a sign of this country’s continued commitment to success and growth, so your investment will be focused in an environment that is conducive to business and with great opportunities to generate profits.

    You should keep in mind that the primary spirit of this type of investment is for your wealth to bring you more returns, rather than being stuck in a bank account. Unlike other options, such as mutual funds, real estate investment is much more durable and gives you the possibility of receiving a steady income for a long period of time. Undoubtedly, after a life of work and business, having this type of option is more than rewarding.

    Some Expenses You Should Be Aware Of

    When buying property in Australia, whether for your personal enjoyment or looking to generate profit and revenue, you need to consider a number of expenses and fees that go beyond just paying for the value of the property. Read on to keep in mind everything you may need. Also, always remember that our team will be ready to help you with whatever you need.

    -Deposit

    If you’re looking to avoid the high costs of lenders’ mortgage insurance, you probably will need to make a deposit of 20% on the value of the property.

    -Purchase Costs

    There is a little bit more than just paying for the property. You’ll need to consider the stamp duties, which are different in each state and are calculated in accordance with the property’s value. The legal transfer of ownership is another cost that you need to consider, as well as the registration fees. Some advisors recommend investors consider building and pest inspections. This will make your investment a lot safer and profitable.

    -Buyer’s Agent Fees

    Lately, a lot of investors and entrepreneurs are paying for agents who help them to get the perfect property at the perfect price, and of course, that comes with a cost. So if you’re considering using one of these agents, you will need to consider them as another cost for your real estate investment.

    -Property Management

    There are a lot of people who personally dedicate their effort to the conservation and preservation of their property, but if you’re interested in hiring a professional who runs your investment and looks after it, there are specialized personnel who take care of these types of responsibilities. So, if you want to focus your energy on making more investments, businesses, or generating more profits, you can hire these managers.

    -Repairs and Maintenance

    You may think about these expenses after you buy your property, but smart investors also consider the repairs that the property needs in order to be perfect for its new owner. Taking into account the expenses you must make to keep your property in good condition and able to generate profits will save you a few headaches.

    Property Taxes in Australia

    In other articles, we have talked to you about how the tax system in Australia works, and how you can access several deductions and exemptions if you organize yourself and your business in the right way, and that is why we’re here.

    Regarding properties, there are certain taxes that apply in Australia, according to the use given to the property, and which are not limited to living spaces, but extend to properties of different types of businesses.

    In Australia, these taxes are:

    -Land Tax

    This is an annual tax levied on all and every real estate property. An advantage is that in most cases, you may apply for an exemption if the property is your primary place of residence. This tax is paid to the State and the territory government, and its rate depends on the combined unimproved value of your taxable property, according to Australian regulations.

    -Stamp Duty

    If you buy a property, either if it is for getting income from rent, or as a part of any other type of business, you will have to pay stamp duty to your respective territory or State government. According to Australian regulations, the stamp duty is a tax rate on certain documents and transactions, like property transfers. There are different rates and taxes according to the specific State or territory you’re located in.

    As for other taxes, if you receive income and gains from the rental of your property, some of that income may be taxable. However, as good news for you, you may be eligible for certain deductions for expenses associated with the maintenance and care of the property, which would lower your tax burden.

    Structure

    Whether you should buy a property in your own name, a company or a trust all depends on your ultimate goals and objectives. Some structures are better than others to reduce taxes, including capital gains tax, land tax, etc. while others will be better for asset protection. Our team of experts will be able to guide you in what the best structure will be for your personal goals and objectives.

    What can we do for you?

    Australia is full of opportunities and the real estate business is not out of these promises. We have a number of them to offer.

    Thanks to its varied regions, climates, and attractive locations, the different properties you can access on the world’s largest island can provide you with a significant number of income and other types of earnings.

    If you are interested in acquiring a property in Australia, either for your personal use or as a way to make your wealth generate steady income and profits, it is time to contact us and discover a number of offers we have for you.

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