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  • Property developer NDEC and NNDEC obligations

    Check your property developer clients' understanding of their reporting obligations if they sell property to foreign buyers using New Dwelling Exemption Certificates (NDEC) and Near-New Dwelling Exemption Certificates (NNDEC).

    These exemption certificates permit property developers to sell residential property up to the value of $3 million to foreign buyers without the buyer having to obtain their own Foreign Investment Review Board (FIRB) approval to purchase property in a development. Property developers with NDEC and NNDECs are limited to selling a maximum of 50% of total dwellings in the development.

    If your property developer clients use an NDEC or NNDEC, remind them they must report their sales to us every six months using the New Dwelling Exemption Certificate ReportExternal Link. They must report from the date stated on their exemption certificate, until they reach the sale allowances in their development.

    Your property developer clients must also pay fees for sales made under the NDEC to us as instructed in their approval. The amount payable depends on the sale price. Their payment is due within 30 days of the end of their reporting period.

    Legislation to introduce similar fees for sales under an NNDEC is being considered. If this legislation passes, your property developer clients will need to remit fees to us for sales they make under the certificate. We will let you and your property developer clients know more about their obligations for NNDECs once this law has passed.

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    Last modified: 08 Oct 2019QC 60272