Living overseas and selling property in Australia?
If you are a foreign resident for tax and you sell Australian property, the buyer may have to hold back 15% of the price and pay it to the tax office. You then lodge a tax return to work out the real tax. Here is how it works.
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Foreign resident capital gains withholding
- For contracts from 1 January 2025, the rate is 15% of the purchase price
- There is no minimum price – it can apply to every sale of Australian real property
- Australian residents need a clearance certificate to stop withholding; foreign residents cannot get one
Can the 15% be reduced?
Yes, in some cases. You can apply for a variation before settlement – for example if you are making a loss, have capital losses, or the real tax will be much less than 15%. It takes time, so apply early.
Do I still need to lodge a tax return?
Yes. The 15% is not the final tax. You lodge an Australian tax return, work out the actual capital gain, and get a credit for the amount withheld. You may get a refund or owe more.
Things foreign residents should know
- Foreign residents generally cannot use the main residence exemption, except in limited life event situations
- Foreign residents generally cannot use the 50% CGT discount for gains after 8 May 2012
- The CGT rules change again from 1 July 2027
- You may also need to report the sale in the country where you live – check the tax treaty
How UV TAX can help
- Check your residency status
- Apply for a withholding variation
- Calculate the capital gain
- Lodge your Australian tax return online from anywhere in the world
⚠️ General information only – not tax or legal advice. Residency and CGT rules are complex. Overseas tax rules are not covered – speak to a tax adviser in your country as well. This page is a simple overview as at November 2026 and does not consider your personal circumstances. Laws, rates and thresholds change, and outcomes are decided by the tax office or the courts – UV TAX cannot guarantee any result. Please get advice for your situation before acting.
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0466 268 405Frequently asked questions
How much is withheld when a foreign resident sells property?
For contracts from 1 January 2025, the buyer generally withholds 15% of the purchase price.
Can I reduce the withholding?
You can apply for a variation before settlement if the real tax will be lower, for example if you are making a loss.
Is the 15% the final tax?
No. You lodge an Australian tax return to work out the actual tax and get a credit for the amount withheld.
Can I use the main residence exemption?
Foreign residents generally cannot, except in limited life event situations.
Can you help me if I live in India or overseas?
Yes. We work online with clients living overseas.
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General information current as at November 2026.