If you receive rental income from an Australian property, you must declare the income in an Australian tax return.
If you sell an Australian property, you must report the sale in an Australian tax return and pay capital gains tax in any profit.
Foreign Investment Review Board approval
If you are a foreign resident you cannot buy an established residential dwelling in Australia, either directly in your name or through a trust relationship or company structure. Penalties apply for breaching this rule.
You can buy other types of Australian residential property, such as new dwellings, vacant land and property that is to be redeveloped, but you must first get approval from the Foreign Investment Review Board.
If you are a temporary resident you can buy an established dwelling if you use it as your residence in Australia and get approval from the Foreign Investment Review Board.
Residential real estate applications
To apply to purchase residential real estate you will need to complete the application form on the Foreign Investment Review Board websiteExternal Link. However, the ATO will assess your residential real estate applications.
Residential real estate includes:
- vacant land
- an existing house
- a new house.
To apply you will need to pay a fee. The fees apply for each application and the amount is determined by the value of the property.
There are limited circumstances where a fee waiver or remittance will be granted and each will be determined on a case-by-case basis. Fees will generally not be waived or remitted following an unsuccessful attempt to purchase property or if there has been a change of mind to invest in the targeted property.
Fee waivers will not be considered before an application has been submitted.
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