Many Aussie expats assume that once they move overseas, rent from their foreign property doesn’t concern the Australian Taxation Office (ATO).
Not quite!
If you’re still considered an Australian tax resident, you must declare worldwide income, including rent from investment properties outside Australia.
👉 Official ATO reference:
Rental Properties and Foreign Income | ATO
💡 Who Needs to Report?
If you:
- Own rental property in another country (e.g., UK, Canada, or Singapore)
- Are still a resident for Australian tax purposes, and
- Receive rent or income from that property
…then that rent must be declared in your Australian tax return.
🔗 Related: Expat Tax Residency Explained
Even if you already pay tax overseas, you may still owe the ATO — though you can usually claim a foreign income tax offset.
🌍 How Double Tax Treaties Help
Australia has double tax agreements (DTAs) with many countries to avoid paying tax twice on the same income.
These treaties decide which country gets taxing rights and how to apply foreign tax credits.
🗂️ Official list:
Australia’s Double Tax Treaties | ATO
🔗 Related reading: Double Taxation for Expats – Explained Simply
🧮 Declaring the Income
When preparing your return:
- Convert all foreign income and expenses into AUD using the ATO average exchange rate.
- Include the rent and related expenses (interest, maintenance, agent fees).
- If foreign tax was paid, claim a Foreign Income Tax Offset (FITO).
- Keep all records in both languages if applicable.
⚖️ What If You’re a Non-Resident?
If you’ve become a non-resident, you generally only declare Australian-sourced income.
That means:
- Rent from your Australian property stays taxable here, and
- Rent from foreign property is taxed only in your new country (subject to treaties).
🔗 Related: Departure Tax & Residency Rules
But be careful — residency changes mid-year can make a return more complex.
Always confirm which part of the year you were resident for tax purposes.
🦊 Felix’s Quick Tips
🦊 Keep all lease agreements, foreign tax receipts, and bank statements.
🦊 Use ATO’s online exchange rate tool for conversions.
🦊 Double-check residency status before lodging — it changes your reporting scope.
🦊 Consider professional advice if you rent property in countries without a DTA with Australia.
🇦🇺 For Aussie Expats
- Learn full details in the Australia Expat Tax Guide.
- Selling soon? Review CGT Rules When Selling Property Abroad.
- Compare with the Canada Expat Tax Guide if you hold property there.
- Download your Free Expat Tax Ebook for checklists & examples.
🧭 See Also
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