A Guide to Buying Property in Australia as a Non-Tax Resident

If you're an Australian Expat living abroad and considering investing in the Australian property market, you're not alone. Many expats choose to buy property back home to maintain a foothold in the market, plan for their eventual return, or grow their wealth through real estate. While you're legally able to purchase property in Australia, being a non-tax resident expat adds layers of complexity, especially when it comes to financing, taxation, and compliance with Australian laws.

This guide is designed to help you understand the ins and outs of purchasing Australian property while living overseas, with a focus on the key professionals who can support you throughout the process.

Can You Buy Property in Australia as a Non-Tax Resident Expat?

Yes, as an Australian Expat, even if you're not tax resident, you can legally purchase property in Australia. However, your non-residency status can affect how much you can borrow, the interest rates available to you, and how your income is assessed.

Challenges of Buying Property as an Expat

Buying property in Australia as a non-tax resident expat presents some logistical and financial challenges:

• Tighter lending criteria: Lenders may apply stricter borrowing conditions, often discounting foreign income or requiring higher deposits.

• Tax complexity: Different rules apply to non-residents, particularly around capital gains tax and income from rentals.

• Time zones and distance: Being in a different country makes managing inspections, auctions, and legal paperwork more difficult.

Buying with a non-citizen spouse

Australian citizens and permanent residents are not required to obtain approval from the Foreign Investment Review Board (FIRB) when buying property in Australia. If you are planning on buying property with your non-citizen spouse, you are generally exempt where the property is held jointly.

However, non-citizens may pay an additional stamp duty surcharge when buying property in Australia, depending on the state.

The Key Professionals Who Can Help

Fortunately, you don’t have to navigate the property buying process alone. Here are the core professionals you’ll want in your corner:

1. Financial Planner

A Financial Planner with experience working with expats can help assess whether the property fits into your overall wealth strategy. They'll also help with budgeting, risk management, and retirement planning to ensure your property purchase aligns with your long-term goals.

2. Mortgage Broker

Working with a mortgage broker who specialises in expat lending is critical. They can:

• Match you with lenders who are comfortable working with non-residents

• Help you secure finance with more favourable terms

• Navigate currency exchange issues and documentation requirements

A good broker will also stay updated on lender policies, which can change frequently, especially in regard to non-resident income.

3. Tax Accountant

Tax residency can be a grey area, so it’s crucial to engage a tax accountant with expertise in both Australian and international taxation. They can:

• Clarify how rental income and capital gains will be taxed

• Advise on tax deductions and depreciation benefits

• Help structure your investment (e.g., personal name, trust, or company) for tax efficiency

Your accountant will also be essential for staying compliant with Australian Taxation Office (ATO) regulations from abroad.

4. Buyer’s Agent

A buyer’s agent acts exclusively on your behalf to find and negotiate property purchases. For expats, they’re particularly valuable because they:

• Do the groundwork while you're overseas

• Inspect properties and provide unbiased advice

• Bid at auctions or negotiate private sales

• Understand local markets and can help avoid costly mistakes

Tips for a Smooth Buying Process

• Get pre-approval first: Knowing your borrowing power upfront helps narrow your property search and strengthens your offer.

• Understand ongoing obligations: Non-residents still have to pay council rates, land tax, and may have additional tax reporting requirements.

• Factor in currency risks: Exchange rate fluctuations can impact your deposit, repayments, and rental income if you’re earning in a foreign currency.

• Stay informed: Property markets vary widely across Australia. Tap into local insights via your team on the ground.

Conclusion

Buying property in Australia as a non-tax resident expat is entirely possible, but it requires careful planning, the right team, and a good understanding of how your residency status impacts your obligations and entitlements. By leaning on the expertise of a financial planner, mortgage broker, tax accountant, and buyer’s agent, you’ll be better equipped to make informed, confident decisions that support your financial future.

Runway Wealth Management is the trusted Financial Adviser to the Australian Expat community. Our tailored advice is backed by expertise, education and experience, which allows us to be at the forefront of Australian Expat Financial Planning.

If you would like to speak to one of our Expat Financial Advisers about this blog or if you have other queries, we would be more than happy to speak with you. Feel free to send us an enquiry through the ‘Contact Us’ tab provided in the link below:

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General Advice Disclaimer: The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances, and objectives. We recommend you obtain professional financial advice specific to your circumstances.