Investing in Australia as an expat or non-resident comes with a unique set of tax, legal, and financial considerations.
Whether you are a temporary visa holder, permanent resident, or foreign investor, understanding how to invest as an expat in Australia means understanding the rules governing property ownership, stock market participation, superannuation, and taxation.
If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or WhatsApp (+44-7393-450-837).
This includes if you are looking for a second opinion or alternative investments.
Some of the facts might change from the time of writing, and nothing written here is financial, legal, tax or any other kind of individual advice, or a solicitation to invest.
Australia offers a strong economy, a stable financial system, and an open investment market, making it an attractive destination for expats looking to invest in real estate, the stock market (ASX), businesses, or retirement funds.
However, non-citizens must navigate Foreign Investment Review Board (FIRB) approvals, tax residency rules, capital gains tax (CGT) implications, and restrictions on certain financial products.
The Australian Taxation Office (ATO) classifies individuals as either Australian tax residents or non-residents, which determines how income, investments, and capital gains are taxed.
Tax residents must report worldwide income, while non-residents are taxed only on Australian-sourced income but at higher rates with no tax-free threshold.
Australian tax residents must declare foreign salaries, rental income, dividends, and capital gains and can benefit from the tax-free threshold (AUD 18,200 in 2024) and progressive tax rates. They are also eligible for certain tax offsets and deductions.
Non-residents, however, pay tax on Australian income from the first dollar at a rate of 30+%, face higher capital gains tax (CGT) on property sales, and may be taxed on their foreign income in their home country depending on tax treaties.
Australia has Double Taxation Agreements (DTAs) with over 40 countries, including the UK, US, Canada, and Singapore, which help prevent double taxation.
DTAs determine which country has primary taxation rights over different income types and allow expats to claim foreign tax credits for tax paid abroad. Expats should review their home country’s DTA with Australia to avoid double taxation on foreign earnings.
Expats classified as Australian tax residents must report all foreign income to the ATO, including salaries, rental earnings, and investment gains.
The Australian Securities Exchange (ASX) is one of the world’s largest stock markets, offering access to a wide range of investments, including individual shares, exchange-traded funds (ETFs), managed funds, and bonds.
Yes, foreign residents, temporary visa holders, and non-residents can invest in ASX-listed stocks and other securities. However, the ability to trade in Australia depends on:
Expats can open an Australian brokerage account, but some brokers have restrictions on foreign investors. The process typically requires:
For non-residents, an international brokerage account may be required if an Australian broker does not allow non-resident trading.
Global brokers like Interactive Brokers, Saxo Bank, and eToro allow ASX trading for foreigners, but make sure to check the pros and cons of each platform if they’re apt for your needs.
Franking credits are a tax advantage for Australian residents, allowing them to offset dividend tax paid at the corporate level. However:
Yes, foreign residents, non-residents, and temporary visa holders can buy certain types of property in Australia, but they must obtain Foreign Investment Review Board (FIRB) approval, unless they qualify for an exemption.
FIRB generally approves purchases of new properties, off-the-plan apartments, and vacant land for development, but substantial amount of fees are required for the application.
However, in Feb 2025, the Australian government announced a ban on foreign home buyers including temporary visa holders.
Hence, from 1 April 2025 to 31 March 2027, foreigners are not allowed to buy established dwellings in the country, which may or may not be extended after a review.
Non-residents who earn rental income from Australian property must pay tax at a rate of 30+%, with no tax-free threshold.
However, they can claim deductions for maintenance, depreciation, and mortgage interest to reduce taxable income. In contrast, Australian tax residents are taxed on rental income at progressive rates (0% to 45%) and can benefit from negative gearing, which offsets rental losses against other taxable income.
Foreign property owners must pay Capital Gains Tax (CGT) when selling Australian property. Non-residents no longer qualify for the Main Residence Exemption, meaning they pay full CGT even if the property was their former home.
Additionally, a 15% withholding tax (from 1 January 2025) applies to all property sales. The previous threshold of AUD 750,000 has been removed for the contracts entered into on or after 1 January 2025.
But, even if a deal closes in 2025, the previous 12.5% withholding tax will still be applied to any sales agreement signed until the end of 2024 for property valued at at least $750,000.
Foreigners can apply for mortgages, but Australian banks often impose stricter conditions, including:
While expats can invest in Australian property, they must navigate FIRB regulations, tax obligations, and financing restrictions before purchasing real estate.
Australia has a strong business environment, stable economy, and open policies for foreign investors, making it an attractive destination for expats wanting to start or invest in a business.
However, non-citizens must meet specific legal, tax, and visa requirements before operating a business.
Yes, non-citizens, temporary visa holders, and permanent residents can start businesses, but the requirements vary:
Expats looking to invest rather than start a business can explore:
Expats living in Australia can keep offshore investments in their home country or other financial hubs. These investments may include foreign stocks, mutual funds, property, or business interests, but they are subject to Australian tax laws if the expat is classified as an Australian tax resident.
As mentioned, expats who are Australian tax residents must report worldwide income, including:
If an expat is a non-resident for tax purposes, they are not taxed on foreign investments in Australia, but their home country may still impose taxes.
Holding offshore assets in foreign currencies exposes expats to forex risk, especially if they plan to convert funds to Australian dollars (AUD) later. Strategies to manage currency fluctuations include:
Expats in Australia can open international brokerage accounts with platforms like Interactive Brokers, Saxo Bank, or eToro to access global markets. However, these accounts may be:
For better clarity on tax rules on investments, expats investing offshore should seek expat financial advisors to minimize double taxation risks and ensure compliance with Australian tax laws.