Latest News

Foreign property sales by Australians. You must know.

Sell a house in Australia may be complicated, whether it’s your first or tenth. Imagine doing this in a nation with different laws, language, and currency.

While processes vary by country, knowing local legislation and receiving professional and legal advice are essential.

This post will cover the fundamentals of selling foreign property in the UK and other important considerations. Let’s start.

Selling property overseas as an Australian: fundamentals

Being realistic about deadlines is the first step in selling an overseas home as an Australian. The property’s nation and property sales legislation determine how long it takes. Sales in the Australia typically take 2–3 months.

Thus, planning the international sales procedure is crucial. This might include flying, staying at your house, and participating in the sales process or appointing a PoA. POAs can:

  • Legally represent you during sales
  • Draft and sign necessary documents
  • Manage local accounts

Your existing situation will determine how to begin.

Should I pay Australian tax on international property sales?

Foreign capital gains are handled the same as Australian capital gains when selling a property. This tax is called Capital Gains Tax (CGT) and is calculated on gains from sales. This tax applies to property, shares, and other investments.

There are many strategies to avoid CGT or reduce your tax bill. These follow.

Double tax treaties

Bilateral Double Tax Treaties (DTAs) avoid double taxation between nations. Over 40 nations have tax treaties with Australia. Where someone pays taxes depends on tax residence.

Foreign Income Tax Offset (FITO)

This system exempts individuals from paying taxes in Australia if they have previously paid taxes in another nation based on their assessed Australian income for the year. Since several countries have separate tax years, if you spend part of the year in one and then return to Australia, you may be eligible for FITO.

You may need to disclose the sale on your annual Australian tax return, regardless of capital gains. Consult a local tax accountant or lawyer for advice on your choices.

Property preparation for foreign selling

Before hiring pros to sell your home abroad, consider these factors. Considerations may include:

  • Is it the proper moment to sell?
  • Do you have any mortgage payments due?
  • What are the expected selling costs?

Prepare the home for sale after considering all main considerations and making a choice. Typically, you’ll need to:

  • Clean and tidy up the property
  • Make small repairs
  • Professionally evaluate the property
  • Get photos for the advertising

Finding the perfect seller might be helped by staging a house to highlight its greatest attributes. A competent and educated estate agent may speed the sales process, letting you wait for bids.

Sales procedure

The property sales procedure differs by nation and whether you are a resident, dual citizen, or non-resident. Selling a UK house is identical to selling in Australia.

In general, the process involves:

  • Hiring an estate agent and lawyer
  • Setting a price range
  • Organising viewings
  • Receiving offers
  • Negotiating an agreement
  • Drafting the final sales contract
  • Signing all necessary documents

This approach may differ if you own a heritage-listed or multi-party property.

Deal closure and payment

After closing, the property sale profits will likely go into a local account. Once you get the monies, returning them to Australia becomes difficult.

You may do this in many ways:

  • Transfer monies in cash
  • Send by international bank transfer
  • Send via international money transfer provider

A breakdown of the aforementioned approaches follows.

  • Transporting cash

Cashing out earnings is exactly what it sounds like. This strategy is conceivable, but it is unsafe to facilitate for large quantities.

Large amounts—AUD $10,000 or more—must be declared to Australian customs or border force.

  • International Bank Transfer

Telegraphic transfers use the SWIFT network to send money between banks. SWIFT member banks handle the transfer route and may levy additional costs.

  • Other Money Transfer Options

Other Money Transfer services use their own network. Examples of providers:

  • Wise
  • Western Union
  • OFX
  • PayPal
  • Payoneer

These services charge for money transfers.

Currency exchange rates and international transfer fees

Sorry, but moving money internationally, to or from Australia, frequently incurs expenses. Foreign currency exchange rates, margins, and international transfer fees include these expenses. If you’re not cautious, these fees might drain your savings.

To estimate regular transfer costs, use the Wise Pricing Calculator.

Are there import constraints in Australia?

There are no limitations on how much you may carry into Australia, although cash over $10,000 must be disclosed. Declare at least 5 days before receiving an overseas transfer or crossing the border. Penalties apply for not declaring amounts above $10,000.

You may transfer unlimited amounts between bank accounts and international money transfer providers. Before transferring to an Australian account, check your bank’s limitations.

In conclusion

Knowing your duties in both countries can help you sell as an Australian with overseas property. If you profit from a sale as an Australian tax resident, you must pay CGT. Avoid penalties by declaring sums above $10,000 in cash or non-cash to the Australian authorities before sending the money back.

Australian authorities do not prohibit bank-to-bank or electronic money transfers. Remember that transferring money back to Australia may incur various costs.

 Send money wisely

Money transfers with Wise use the mid-market exchange rate, so there are no surprises. Charges are straightforward and secure.

Wise specialises in safe international high-volume shipping. Your savings increase as you send more on a sliding charge structure. Google-like mid-market exchange rates are always used.

Safety is paramount at Wise, which is regulated by the Australian Securities and Investments Commission (ASIC) and maintains an Australian Financial Services Licence (AFSL number 513764).

Wise makes payments simple. Without visiting a bank, you may open an account in minutes after approval.

Over 16 million people use Wise. Registering and seeing the contents takes minutes.








To Top

Pin It on Pinterest

Share This