Australian Investment Property for Expats | Expat Taxes
Editorial note, updated June 2026
A few important things have changed since this article was first published, so please read it alongside these updates.
Foreign buyers and established homes: From 1 April 2025, “foreign persons” (which includes temporary residents and foreign-owned companies) are banned from buying established dwellings in Australia unless a limited exception applies. The Government has since extended this ban until 30 June 2029. Importantly, Australian citizens are not “foreign persons”, so if you are an Australian citizen living overseas, the ban does not apply to you and you can still buy established property. If you are not an Australian citizen, get advice before you sign anything.
Tax when you sell: Since 1 January 2025, when a foreign resident sells Australian property the buyer must withhold 15% of the sale price and pay it to the ATO, unless you provide a clearance certificate. Foreign residents also generally do not get the 50% CGT discount on gains made while non-resident, and they pay tax from the first dollar of Australian income (there is no tax-free threshold).
Borrowing is harder than it was: Lending to non-residents and against foreign income has tightened considerably since this was written. Fewer lenders will consider it and those that do apply stricter terms. The general point below still holds, but expect more hoops.
The core information below about your ongoing tax obligations as a non-resident landlord remains correct. As always, get personal advice before you buy.
Owning Australian investment property as an expat can be a great way of accumulating and growing wealth.
No matter how far and wide we travel, owning that great Australian beachside property back home in Oz might be a dream that never leaves us. So now, after you’ve been travelling for a little while, you realise that you might have the funds to be able to set up a property as a nest egg for yourself. Even if you’re thinking of not coming home for quite some time, renting it out wouldn’t be a problem, right?
Owning an investment property in Australia
If you’re a non-resident, owning an investment property means that you will have to keep filing those Australian tax returns. Any income, including income from rental returns or from the sale of a property, will need to be declared to the ATO at tax time.
You will also still be subject to capital gains tax if the asset qualifies as a “taxable Australian property”.
Buying an investment property in Australia
Australian expats can still apply for an Australian mortgage to buy real estate, even if they’re a non-resident. You can also refinance a current home loan this way. Australia has a strong economy and excellent infrastructure, and many Australian expats already know and understand the Australian property markets. For these reasons, even if you’re not planning on returning to Australia, buying an Australian property might be a good choice.
Are there any complications?
If your payslips and overseas tax returns are in English, these should be sufficient to work with most Australian lenders. There will be some barriers in non-English speaking countries, or in countries that don’t provide payslips. Keeping in touch with a good expat accountant should reduce the amount of work you have to do when applying for a mortgage, as we can help with some of the incidental requirements.
What are the risks?
There are many benefits to buying in Australia, but there are certain risks for non-residents. Always make sure that you have someone you trust performing a physical inspection of the property. Even if you do get a building inspection and a pest inspection, there’s nothing quite like a trusted pair of eyes to look over your investment. Stay abreast of local property issues in Australia, as you don’t want to be talked into buying in a market that you know nothing about.
Before you buy
Always speak to experts in Australian tax and accounting before going ahead with a major Australian purchase. Being an expat is complicated. Buying a property is complicated. Speak to a team that knows the ins and outs of both expat life and Australian tax.
Questions?
If you have some questions, or would like us to introduce you to an expat financial planner we’ve worked with previously, get in touch and send us a message.
References (editorial update)
Australian Taxation Office, “Foreign investment – extending the ban on foreign purchases of established dwellings” (ban extended to 30 June 2029). Available at: https://www.ato.gov.au/about-ato/new-legislation/in-detail/international/banning-foreign-purchases-of-established-dwellings
Australian Government, Foreign Investment Review Board, “Residential land” (prohibition on foreign investors purchasing established dwellings, and the requirement to notify the Register of Foreign Ownership of Australian Assets). Available at: https://foreigninvestment.gov.au/guidance/types-investments/residential-land
Australian Taxation Office, “Foreign residents and capital gains tax” (foreign resident capital gains withholding, the main residence exemption, and the 50% CGT discount). Available at: https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/foreign-residents-and-capital-gains-tax
Australian Taxation Office, “Tax rates – foreign resident” (no tax-free threshold for foreign residents). Available at: https://www.ato.gov.au/tax-rates-and-codes/tax-rates-foreign-residents
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