Moving overseas and renting out your home? Read this first
Many people rent out their home when they move overseas for work. It can work well, but there are tax traps – especially if you sell while you are a foreign resident.
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The rent is taxable
Rental income from an Australian property is taxed in Australia even if you live overseas. You can claim expenses like interest, agent fees, rates, insurance, repairs and depreciation.
If you become a foreign resident
- You generally need to lodge an Australian tax return for your Australian income
- Foreign residents pay tax from the first dollar – there is no tax-free threshold
- No Medicare levy is generally payable
- Tell your bank and agent so the right withholding applies to interest
The 6-year rule
While you are away you may be able to keep treating the property as your main residence for up to 6 years, as long as you do not treat another property as your main residence.
⚠️ The big trap: selling while overseas
If you are a foreign resident when you sell, you generally lose the main residence exemption – even for the years you lived there. This can mean a large tax bill. Many people choose to sell after returning to Australia instead. Get advice before you sign a contract.
Negative gearing
Different rules apply to residential properties bought after 7:30pm AEST on 12 May 2026, with losses quarantined from 1 July 2027. Ask us how this applies to your property.
⚠️ General information only – not tax or legal advice. Residency is decided case by case. Overseas tax rules are not covered – check with an adviser in the country you move to. 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.
Moving overseas? Plan your property tax first
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0466 268 405Frequently asked questions
Do I pay Australian tax on rent while living overseas?
Yes. Rent from Australian property is taxed in Australia, and you can claim allowable expenses.
Do foreign residents get the tax-free threshold?
No. Foreign residents generally pay tax from the first dollar of Australian income.
Can I keep the main residence exemption while overseas?
You may be able to use the 6-year rule while renting it out, but you generally lose the exemption if you are a foreign resident when you sell.
Should I sell before or after I return?
It depends on your situation, but selling as a foreign resident can mean a big tax bill. Get advice first.
Related
General information current as at November 2026.