Beirut Apartment inheritance

subwoofer on 31/07/2025 - 21:28

Hi OzB

I inherited a Beirut apartment from my grandfather earlier this year. My expectation was that the apartment would be worth somewhere between $150K and $200K USD. To my astonishment it was valued at around $1.5 million USD as it's apparently located in a sought-after suburb called Zeytounah bay with beach views. The real estate agent we spoke to has advised the area is popular with Gulf Arab investors and would sell quickly at the right price.

Now my question is if the property was sold for $1.4 Million which is over two million AUD, how do you transfer that amount of money to Australia without triggering alarms? Does the Australian government tax you on a property you sold overseas? what is the best way to transfer this money with minimal fees?

Financial

Comments

  • Gdsamp on 31/07/2025 - 21:38
    +113

    at that $$ please seek professional advise….

  • Caped Baldy on 31/07/2025 - 21:40
    +19

    I'm sorry for your loss. You definitely need professional advice from a tax specialist. Possibly liable for CGT.

    PS Everytime I see Beirut I think of this line "In Beirut, plane fly over head and drop bomb. I like these planes."

    • subwoofer on 31/07/2025 - 21:46
      -2

      I'm getting conflicting information regarding CGT, I mean it was never an investment property and didn't buy it to sell it at a profit

        • EightImmortals on 01/08/2025 - 08:51
          -2

          Or think about renting it out, if it is in a popular suburb you would get good rent and have an ongoing flow of money and only be liable for taxation based on that increase to your annual wage. You would (should?) be able to claim any expenses (agents, upkeep etc) as a loss for the year. Ask your accountant about this option while you are there.

          • trapper on 02/08/2025 - 12:13
            +1

            @EightImmortals: I don’t think running an IP out of Beirut is a good idea - it’s a pretty unstable region and anything could happen really.

            • EightImmortals on 02/08/2025 - 14:15
              -2

              @trapper: Maybe, seems a better option than letting the government steal most of the value though. I'll be interested in the follow up from the OP about what the accountant advises.

            • oO0Dam0Oo on 03/08/2025 - 18:13

              @trapper: Apparently accomodation is fully booked out at the moment in Lebanon. Would seem not many care and happy to live their full lives.

        • subwoofer on 01/08/2025 - 18:14
          +2

          Not sure why your comment got downvoted but there are good points, totally forgot about the 50% CGT discount which I hope I can take advantage of

          • cowpotato on 01/08/2025 - 20:09
            +2

            @subwoofer: Hope the guidance from the ATO website here points you in the right direction on availability of the CGT discount

          • BartholemewH on 03/08/2025 - 16:40

            @subwoofer: If it was in Australia, you wouldn't be liable for CGT if you sell within 2 years of date of death. I don't see why foreign property would be different, but check it out.

    • Scrooge McDuck on 01/08/2025 - 17:27
      -8

      I'm sorry for your loss.

      I envy his loss.

  • Hydralyte on 31/07/2025 - 21:42
    +10

    I would keep the apartment and visit Lebanon when you have time.

    1,500,000 United States Dollar equals
    134,350,816,800.00 Lebanese pound

    Jesus christ….

    • brawndo on 02/08/2025 - 16:27
      +5

      Maybe it was actually valued at 1.5m Lebanese pound

  • subwoofer on 31/07/2025 - 21:49
    +1

    @Hydralyte yeah back in the day one USD was worth three Liras.

  • JohnSy on 31/07/2025 - 21:52
    +14

    As an Australian resident for tax purposes, you pay tax on your worldwide income. So unless there is some reciprocal tax agreement, you would need to pay CGT on the sale.
    You should seek professional advice.

    Consider if you can use catch-up super contributions to reduce the CGT tax a bit.

    No issues "triggering alarms" as you will be declaring the sale.

    Someone posted a question a few days ago regarding low-cost foreign exchange transfers. (https://www.ozbargain.com.au/node/917054)

      • JohnSy on 31/07/2025 - 22:00

        You will also need to try to find out the original purchase price (and any associated purchase fees) of that apartment to determine the CGT.

      • brad1-8tsi on 01/08/2025 - 13:52
        +18

        I doubt there is reciprocal tax agreement between Australia and Lebanon thanks champ

        You doubt or you know? Australia has tax treaties with ~40 countries.

        Why "champ"? The guy was trying to help.

        Reading through the comments here there is a lot of information that isn't totally accurate. Your really need to find a specialist tax lawyer to find out what your options are. Expect to pay a few hundred for initial advice and 5 figures to see a sale & transfer of money through to completion.

        • MITM on 01/08/2025 - 14:17
          +2

          There's no Double Taxation Treaty between Lebanon and Australia. So sell up in Lebanon and pay any tax due. Then repatriate the proceeds to Australia and add it to your income for the year. Ouch. PS. WISE will give you a special custom rate for transferring large amounts around the globe. Get a quote. At the end of the day, you will receive far more than you guestamated after all fees and charges. Well done you.

          • Binchicken22 on 02/08/2025 - 11:49

            @MITM: Why would it needed to be added as "income"? Surely he doesn't have to pay income tax on a lump sum of cash that was inherited?

    • lilyesp on 02/08/2025 - 15:34
      +2

      Ridulous though …like someone pays for something in another country and what aust gov wants to claim their tax on them ….wtf 🤔

      • sangohan on 02/08/2025 - 19:34

        what aust gov wants to claim their tax on them

        it's a fact of being an australian citizens, which does give you benefits for which the tax funds.

        • lilyesp on 02/08/2025 - 21:04
          -1

          Why….we pay taxes in aust already. If anything e.g. lebaon..taxes shoild go to their gov not our ato grubby hands

    • Senatekill on 02/08/2025 - 16:38
      +1

      sell it and transfer the money here say its a gift. fark paying this commie govt tax…..

  • JimmyF on 31/07/2025 - 22:15
    +28

    how do you transfer that amount of money to Australia without triggering alarms?

    You don't, park that money overseas and bring it back in smaller amounts as needed.

    • Wiadro on 31/07/2025 - 22:20
      +15

      literally this,
      sell house, move to the money to a tax-free haven under a shell company, create local aussie company here, then use shell company to pay aussie company, claim all business tax write offs each year so you pay minimal tax on the earnings <30% prob could get it down to <5%
      rinse and repeat for a few shell companies and local companies

      dont complain on here when the ATO investigates you

      • subwoofer on 31/07/2025 - 22:29
        +1

        damn sounds complicated but definitely worth it if it works and everything is above board

        edit: if it's gonna be illegal maybe not a good idea

        • djsweet on 31/07/2025 - 23:15
          +44

          It’s only illegal when you do it. If some big global tech company does it, then it’s all above board.

          • Scrooge McDuck on 01/08/2025 - 18:09
            +1

            @djsweet: A bottle of Grange here a donation there, and Bob's your uncle.

            • whyisave on 02/08/2025 - 01:04
              +1

              @Scrooge McDuck: Frank was honest.
              Larry was happy.
              Bob was your uncle.
              Tom, Dick and Harry was everyone else.

        • SlickMick on 01/08/2025 - 09:00
          +1

          I do think it would be worth getting advice from someone who deals in that kind of thing. There would be options that aren't illegal, but minimises tax.

        • boirganz on 02/08/2025 - 12:27
          +1

          Legal perhaps.

          Ethical ? Moral ? Depends on your ethics and morals I guess.

      • lilyesp on 02/08/2025 - 15:35

        Come back here for advice when ato investigates

      • sangohan on 02/08/2025 - 19:35

        1.2mil is too little to do any of that.

    • wetsandwich on 01/08/2025 - 10:17
      +2

      That's actually worse and specifically illegal/flagged, it's called structuring if you structure things to fly under the radar.

      • JimmyF on 01/08/2025 - 10:39
        -1

        That's actually worse

        Worse than what?

        and specifically illegal/flagged

        How can it be illegal, see the comments above, this is what big companies do all the time! Hence why most pay near zero tax in Australia.

        So for companies its called using the tax system as it is designed, but for people its called tax evasion? LOL

        • freefall101 on 01/08/2025 - 11:44
          +1

          Having worked as a big company accountant this is absolutely not how companies do it. You need some level of assets that you can leverage to do it, you can't just shuffle cash.

          • JimmyF on 01/08/2025 - 13:07
            -2

            @freefall101:

            you can't just shuffle cash.

            and yet every day these global companies do just that!

            • freefall101 on 01/08/2025 - 13:48

              @JimmyF: Why does any company pay tax in Australia if they just need to move cash from one place to another to avoid it?

              • JimmyF on 01/08/2025 - 17:51
                +1

                @freefall101:

                Why does any company pay tax in Australia

                In the scheme of tax paid vs income or profit, most pay next to nothing compared to the average wage earner who pays a higher % on their income than these companies do on their profits.

                Don't make it out like these global companies are not screwing every tax system over as much as they can. We have tech companies doing the Double Irish Dutch Sandwich for tax avoidance. We have oil companies racking in trillions paying no tax and instead have their hand out for gov tax subsidies.

                Its a joke, all while the common worker is taxed more and more each day.

        • drfuzzy on 02/08/2025 - 10:44

          In breach of division IVA anti-avoidance rules

      • trapper on 02/08/2025 - 12:49

        You can move your money however you like - as long as it’s from a legitimate source, there’s no issue.

  • JohnSy on 31/07/2025 - 22:16
    +4

    Also, I am assuming this apartment has already been transferred into your name. If it hasn't, that may change things somewhat. If it's still in the deceased estate it may be possible to get the estate to sell it, pay the CGT and transfer you the sale proceeds as cash. This cash wouldn't be subject to CGT. The tax the deceased estate pays would likely be governed by which country the estate is being handled by. It seems like CGT in Beirut is less than in Australia.

    • subwoofer on 31/07/2025 - 22:26
      -1

      It was transferred to my name earlier this year, I didn't even take into account that there may be tax payable in Lebanon, I'm assuming it won't be as much as the Australian CGT which is 37% which is my current tax bracket

      • JohnSy on 31/07/2025 - 23:31
        +1

        Hmm, that's a shame, I think Beruit CGT make have only been 8% possibly. Due to the amount I am assuming there will be a reasonable gain depending on how long it was owned, therefore most of this CGT gain will push you income in the 45% + 1.5% bracket. Given the 50% discount, that's around 23.25% tax on the gain amount.

        Anyway, this is a complicated matter. Get some good advice from accountants in Australia and also Beirut. You may need to pay tax CGT in both countries and you may get a credit back to reduce the Australian CGT.

        Best of luck.

      • EightImmortals on 01/08/2025 - 07:43
        +5

        It wont be 37% mate, once you declare the money from the sale your yearly tax rate will jump to 45% (or whatever the current graft amount is). Go see a decent accountant, ask them what can you do to avoid as much taxation as you can.

        • TilacVIP on 01/08/2025 - 07:56

          Most likely this, as these grubs (ATO) will go for the easy targets, as in OP's case, while others, who commit fraud/theft (eg. lady from Mildura getting caught doing the GST refund rort), to the tune of $35k, get away with a slap on he wrist, ie no jail time.

      • freefall101 on 01/08/2025 - 11:53
        +2

        Stop screwing around and go talk to an accountant who specialises in this. You could be hurting yourself by letting it fall over tax years.

        I worked in big 4 in tax, including a lot of international taxes. I still wouldn't give you advice on this because every case is different. But I can tell you that a whole lot of what you're being told in this thread is rubbish. Even your assumption here that you won't pay taxes at Australian rates is wrong. You're a tax resident of Australia, you pay taxes here at our rates.

        • Some Guy on 02/08/2025 - 10:53

          Then OP should go and live in the apartment for the time it takes to be a non-resident for tax purposes.

  • Protractor on 31/07/2025 - 22:23
    -2

    Ask my Arab mate.
    Azziff

    • 87percent on 01/08/2025 - 09:25

      He might be buddies with my korean friend, Gud Won

      • Antikythera on 02/08/2025 - 19:14

        or perhaps the Greek sky diver i trained with, Con Descending.

    • oO0Dam0Oo on 03/08/2025 - 18:21

      Google Mike Hunt for an initial consult.

  • jv on 31/07/2025 - 22:56
    +1

    Does the Australian government tax you on a property you sold overseas?

    Definitely…

    • CandyMan on 02/08/2025 - 14:03

      Only if you are Australian for tax purposes

  • DingoBilly on 31/07/2025 - 23:04
    +7

    Go see a professional.

    Most people here have no clue and have never been in a similar situation. You have enough money to pay for it ffs.

  • fantombloo on 31/07/2025 - 23:18
    +3

    OP's username checks out.

  • Jolakot on 01/08/2025 - 01:03
    +7

    Perhaps you should send cold emails to random people asking for their assistance transferring a large sum of money out of the country, I know a Nigerian prince who had great success with this method.

    • 87percent on 01/08/2025 - 09:27
      -5

      Legit sounds like a spam email

  • foxmulder on 01/08/2025 - 01:03

    Inheritance should be tax free isn't it?

    If you married, inheritance can be legally not splitted to your spouse if you want to.

    • apsilon on 01/08/2025 - 05:24
      +1

      In the case of property you pay CGT unless that property was your PPOR and/or, I think but don't quote me, you sell within 2 years of inheriting it. As others have said if legit OP should be speaking to a good accountant and/or solicitor.

  • garetz on 01/08/2025 - 06:26
    +1

    You need to find 3 individuals, one familiar with Beirut laws, one for international inheritance laws, and a local solicitor/lawyer.

    if you get usd for the sale, you should open a bank account locally that can accept usd in the account and allows you to convert to multiple currencies.
    pretty sure HSBC has such an account available.

  • ForkSnorter on 01/08/2025 - 07:32
    +1

    Bizarre question for randoms on Ozbargain. You'd be mad not to talk to a solicitor/tax advisor regardless of what advice you get on here.

  • Adz81 on 01/08/2025 - 07:46
    +3

    (profanity) me drunk.

    Why ask here?

    You've got half a brain, you're obviously going to seek advice from a professional & follow that.

    Or hey, DM me & I'll put you in touch with a foundation that specialises in exactly this kind of things my friends cousin's uncle's wife's brother did it once and they didn't need to pay tax at all, and it's legal & legit and just requires a small retainer made out to the foundation, Cousin Adam Strata Happenings (trading as CASH) and they'll take care of the rest.

    • Protractor on 01/08/2025 - 10:12
      -1

      Take the veracity of this tale with a handful of salt, is my advice.

  • numloxx on 01/08/2025 - 08:02
    +1

    Smells like a scam.

  • coffeeinmyveins on 01/08/2025 - 08:24
    +5

    I inherited a Beirut apartment from my grandfather earlier this year. My expectation was that the apartment would be worth somewhere between $150K and $200K USD. To my astonishment it was valued at around $1.5 million USD

    Is this the new version of the nigerian prince scam?

    • Antikythera on 02/08/2025 - 19:17

      agent will suggest an advertising campaign, only $40k …and some professional drone photos a bargain at $25k. for such a high value property well worth it.

      oh no! the estimate was wrong and it sells for $120K

  • ihbh on 01/08/2025 - 08:31
    +4

    Make sure strata/you have building insurance on it. Imagine being hit by a wayward missile before you can get all your questions answered!

    • Scrooge McDuck on 01/08/2025 - 18:26
      +1

      Or a "freak" fireworks stored next to fertiliser "accident".

    • whyisave on 02/08/2025 - 01:10

      What is the apartment has an awesome rooftop, to play saxophone on, and watch some 'fireworks' ?

  • Chewy2221 on 01/08/2025 - 08:47

    Not financial advice. When my uncle died he had a number of assets which were assessable ( in the hands of beneficiaries )under ATO CGT rules. His house was CGT exempt as he bought it prior to the magic date of 20/09/1985. When did your relative buy the property?
    If prior to the above date then - happy days. Good luck

    • subwoofer on 01/08/2025 - 18:27

      Thanks dude I'm sure the apartment was built early 2010s, that area is fairly new.

  • petestrash on 01/08/2025 - 09:07
    +4

    I had this situation 10 years ago.

    I don't know if anything has changed, but at the time as long as the property was sold within 2 years of death, no capital gains tax was payable on the amount you receive as an inheritance.

    This does ignore any death duty or other tax that may apply in Lebanon, which you will need separate advice on.

    I would suggest your first call is the tax office, they can advise you for free on the current rules.

    After that, and with the free information, you can speak with an accountant if necessary to come up with a plan.

    • Merish4U on 01/08/2025 - 10:29
      +1

      100%

      The only wrinkle I could forsee would be IF the person who bequeathed it was an Australian citizen and it was not their PPOR but an investment property held by them or a financial body they controlled eg family trust. As their could be tax payable on that.

      But I suspect this is likely NOT the case, so then it's an inheritance. 0% tax payable on that (might be you have to sell within 2 years). So then it's just how to move the proceeds of sale (as originally asked by OP) with minimal issues/fees/red flags. There should be existing forum answers on that.

      Regardless as you're for all intents and purposes looking at a ~$AUD2.5m windfall - I'd spend on consultation with a solicitor specialising in these matters to confirm what you already suspect - perhaps start with prominent legal firms in Lebanese suburbs in Sydney etc - you might be able to answer the Lebanese specific stuff (death txes, propery sales) via the one chap. The few thousand $$$ at most will be worth it to sleep easy.

    • AustriaBargain on 01/08/2025 - 14:15

      How common is this? Anyone without a grandparent leaving them millions of dollars must feel like a second class citizen, especially when they end up renting the investment properties they inevitably buy..

      • Antikythera on 02/08/2025 - 19:24
        +1

        Anyone without a grandparent leaving them millions

        all but one of my grandparents were dead before i was born. the other by the time I was two.

        dad's farm, which he had worked since he was 14, was actually grandma's. when she died it was split five ways, amongst his four siblings who had not worked on it at all.

        and that's how I grew up near the beach where dad retired rather than on a farm.

  • GordonD on 01/08/2025 - 09:51

    You've gotten something for nothing. Just pay the taxes due on it, whatever they are, and stop trying to avoid them.

    People who are trying to avoid "triggering alarms" by bringing in large amounts of money from somewhere like Lebanon are people who are up to something. That's what the alarms are there for. If this is a genuine windfall inheritance you should draw attention to it, justify it with documentation, and pay what's due.

    • Protractor on 01/08/2025 - 10:13
      +2

      You've gotten something for nothing. Just pay the taxes due on it

      Absolutely

    • pharkurnell on 01/08/2025 - 13:45

      Agree! your a million$ ahead already…

    • mrvaluepack on 01/08/2025 - 13:52

      There is no tax if Op got it at inheritance and disposes of it. Base cost is at time of transfer which would be very close to current market value.

    • onesandtwos on 01/08/2025 - 18:02

      Agree, the amount whether $1.5m or $250k should be approached the same.

    • subwoofer on 01/08/2025 - 18:24
      +3

      The whole point of the post is to get some ideas on what to do next, nothing wrong with minimizing your tax, never said I want to dodge it, I already pay close to ~ $50k a year to the tax man and I'm not complaining

      • gromit on 01/08/2025 - 19:22
        -1

        Then why ask about not triggering alarms with the transfer. Nothing wrong with triggering alarms if you have legitimate documention for the source.

        • Scrooge McDuck on 01/08/2025 - 19:42

          Triggering alarms can cause delays and banks to close your account because they'd just rather not deal with it. A delay on millions of dollars could amount to tens of thousands or worse in lost interest.

          Also there's potential for being investigated by authorities who don't always get everything right.

          So it's diligent to minimise these risks.

          • gromit on 01/08/2025 - 20:22
            -1

            @Scrooge McDuck: If you have the paperwork the delays are practically non existant, however trying to work around triggering them is the best way to trigger long delays while u try and explain.

            • tenpercent on 01/08/2025 - 21:25

              @gromit: Working around triggering alarms could be as simple as having a conversation with your bank in advance and providing them all the paperwork and evidence before the transfer is attempted.

              • Protractor on 01/08/2025 - 21:28
                -1

                @tenpercent: But the conversation with the bank ignores the web based audience component!

  • wetsandwich on 01/08/2025 - 10:18
    +2

    Nobody here has any clue, so please do the exact opposite of the majority of advice.

    Do just see a professional. Whatever they cost, will be better than doing what a random person here who probably has never owned property has to say.

  • surfingedge on 01/08/2025 - 10:31
    +3

    The important question is whether your grandfather was an Australian resident. You said it was not an investment property. Was it his home, i.e. did he live in Lebanon?

    If he wasn't a resident of Australia, then you acquired the apartment at its value when you inherited it, so only a few months of gain. However it is the AUD value that counts obviously, so you would somehow need to get an accurate valuation of the property in AUD at the time you inherited

    If your grandfather was an Australian resident then the other answers so far are mostly correct. If during the time he owned the apartment, he moved to and from Australia and it was his home some of the time, then it gets very complicated. One of the issues may be that the Lebanese pound was artificially manipulated - if he bought it in LBP a long time ago then you may get taxed on the LBP devaluation

  • Fredfloresjr on 01/08/2025 - 11:00
    +2

    Imagine paying massive tax, it means, several people on CENTRELINK will be part of the inheritance. Crazy to think lol.

    Anyway, there are several ways bro that you can get away. Good luck.

    • Cluster on 01/08/2025 - 13:23
      +2

      Or… the OP will be helping to finance hospitals, schools, the police force, firefighters, and others that keep society running instead of turning into a hellhole.

      • MITM on 01/08/2025 - 14:27
        +2

        We're all financing the above while the Government is turning it into a hellhole.

      • Scrooge McDuck on 01/08/2025 - 18:57

        According to the government's budget papers this year's spending is projected as:

        37.0 % on social security and welfare
        15.9 % on health
        6.9 % on education
        https://budget.gov.au/content/bp1/download/bp1_bs-5.pdf

        So "people on Centrelink" is by far the largest component of what the government spends our taxes on.

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