Can I Purchase Property Overseas?
Yes, you can! As an Australian, you have the right to purchase property in many countries around the world. Here's what you need to know.
The Short Answer
Yes, Australians can purchase property in most countries, but the rules vary significantly depending on where you're buying. Some countries allow full freehold ownership, while others restrict foreigners to leasehold or specific property types.
The key is understanding the specific regulations in your target market and working with local legal experts to ensure you're compliant and protected.
Australia doesn't restrict its citizens from buying property overseas. The limitations come from the country where you're purchasing.
Every country has its own laws about foreign ownership. Some are very open, others are restrictive. Research is essential.
Always work with a local lawyer who specializes in foreign property purchases. This protects your investment and ensures compliance.
Common Questions
In most cases, no. Many countries allow non-residents to purchase property. However, some countries offer better ownership rights or lower taxes to residents, which is where Golden Visa programs become attractive.
Freehold
You own the property and the land it sits on outright, forever. This is the strongest form of ownership. Examples: Thailand (condos), Japan, Dubai, Europe.
Leasehold
You own the right to use the property for a fixed period (e.g., 25-99 years). At the end of the lease, ownership reverts to the landowner unless renewed. Examples: Bali, Thailand (land/houses).
It depends on the country. Some markets offer mortgages to foreigners (Thailand, Dubai, Europe), while others don't (Bali, Japan). Even where available, you'll typically need:
- A larger deposit (40-50% is common)
- Proof of income and employment
- A local bank account
- Higher interest rates than locals
Many Australians use equity release (refinancing their Australian property) to fund overseas purchases.
Not automatically in most cases. However, some countries offer "Golden Visa" programs where property investment above a certain threshold grants you residency rights:
- Greece: €250,000 investment = residency
- Spain: €500,000 investment = residency
- Portugal: €500,000 investment = residency (commercial only, 2023 changes)
- Dubai: AED 750,000+ = 2-year renewable visa
- Bali, Thailand, Japan: No visa from property purchase alone
As an Australian tax resident, you must declare all worldwide income to the ATO, including:
- Rental income from overseas properties
- Capital gains when you sell
You may also owe taxes in the country where the property is located. Tax treaties between Australia and other countries often prevent double taxation, but this is complex. Always consult with an accountant who specializes in international property.
It can be, but it requires due diligence. Risks include:
- Legal complexities and language barriers
- Currency fluctuations
- Political instability
- Developer or agent fraud
- Difficulty enforcing contracts
Mitigate these risks by: Working with reputable agents and developers, hiring a local lawyer, visiting the property in person, understanding all costs and obligations, and never rushing into a decision.
Yes, in most cases. Many foreign property owners generate rental income through long-term tenants or short-term platforms like Airbnb. However, you'll need to:
- Comply with local rental and tax laws
- Hire a local property manager (if you're not on-site)
- Declare rental income to the ATO
- Understand that yields and occupancy rates vary by location
Quick Overview by Market
| Market | Ownership Type | Visa from Purchase? | Mortgage Available? |
|---|---|---|---|
| Bali | Leasehold (25-30 years) | No | No (foreigners) |
| Thailand | Freehold (condos only, 49% quota) | No | Limited (40-50% LVR) |
| Japan | Full freehold | No | Very difficult |
| Dubai | Freehold (designated zones) | Yes (AED 750K+) | Yes (40% deposit) |
| Greece | Full freehold | Yes (€250K+ Golden Visa) | Yes (30-40% deposit) |
| Spain | Full freehold | Yes (€500K+ Golden Visa) | Yes (30-40% deposit) |