Property tax rate for non-resident foreigners in Australia

If you own a home in Australia, you don't need to pay any property tax.

Recently, some states like NSW also added a new tax called “ghost tax” in an effort to curb the foreign investors who are fueling the housing prices in the country.

You need to pay ghost tax at a flat annual fee of A$ 5,000 if the property is vacant or not rented for more than six months.

With holding Taxes in Australia

You need to pay taxes on rental income.

You need to pay withholding tax on interest, loyalties, and dividends.

Capital Gain Taxes in Australia

Capital gain tax is included in the marginal rate of tax for non-citizens which is 46.5%.

For those properties that were owned before May 2012, the foreign buyers had an opportunity to save up to 50% if the property was owned for more than 12 months.

But after 2012, the discount is only available for residents and non-residents or foreign buyers have to pay tax on 100% profit.


Stamp duty in Australia

In Australia, stamp duty is not levied by the federal government, but by different states and  the rate differs between states.

Although the rates changes between the 8 states, the maximum rate applied is 5.5%.

In some states, there are higher rates for foreign buyers to make residential properties more affordable to local buyers.