Speak with an Australian Expat Financial Adviser

Yes, you can invest in shares as an Australian living overseas. There is no rule stopping Australian Expats from owning or buying shares. However, your tax residency status, ability to access brokerage platforms and host country rules will impact how you go about investing in shares as an Australian living overseas. Australian Expats should first understand whether they are classified as a resident or a non-resident for Australian tax purposes. The tax treatment of dividends and capital gains differs for non-residents. Further, non-residents do not receive franking credit refunds. Australian Expats should use a brokerage platform or investment account provider that caters to Australians living overseas. Australian Expats should seek an investment platform that supports their non-resident tax status in Australia and their overseas country of residence and does not have any restrictions on foreign investors. While non-residents for Australian tax purposes can usually invest in shares without being subject to capital gains tax in Australia, you should understand any tax implication in your host country.

In most cases, it’s unnecessary for Australian Expats to invest offshore. Investing in shares as non-resident for Australian tax purposes is usually tax-efficient, as non-residents are exempt from Australian capital gains tax (CGT) (except certain assets) and subject to low withholding tax on investment income. Offshore structures rarely add meaningful benefit. They can introduce complexity, including multi-country tax reporting, higher administration and reduced transparency. In contrast, Australian-based platforms offer strong regulation, investor protections, and simpler reporting. Importantly, you can still achieve global diversification through Australian platforms, with access to international shares, ETFs, and managed funds without the added risk and complexity of investing offshore.

Australian expats can manage equity-based compensation (RSUs, stock options, and ESPPs) by focusing on timing tax events, diversification, and strategic decision-making across each structure. Australian Expats with equity-based compensation should understand how each structure works and is taxed. When receiving equity-based compensation as an Australian Expat, there is a risk of overexposure to your employer’s stock and therefore, Australian Expats require a structured strategy to avoid concentration risk and to diversify.

A Financial Adviser can help an Australian Expat with wealth management by: • Reviewing assets, liabilities and savings to build a coordinated wealth strategy; • Choosing compliant investment platforms that are suitable for non-residents; • Developing tailored investment portfolios with diversified asset allocations that are aligned to goals and risk profiles, while ensuring compliance with tax residency status; • Identifying opportunities and risks due to residency status and living overseas; • Reviewing and optimising existing investments to assess whether they are suitable for non-residents and recommend adjustments to better align with objectives; • Making strategic adjustments to investments as market or circumstances change; • Provide ongoing guidance during market movements to support long-term goals; • Strategise RSUs and equity compensation and manage currency movements.