Buying Australian property from the UAE

The short version

With no personal income tax at home there is no foreign tax credit to offset Australian tax, so Australian tax on rent and gains is the final cost: rent is taxed at the non-resident rate (30% from the first dollar), and 15% of the sale price is withheld at settlement and credited against the tax you owe on the gain. If you are an Australian citizen living in the Gulf you do not need FIRB approval at all, so the first question to settle is whether you are a citizen or permanent resident.

Are UAE residents foreign persons in Australia?

Emirati nationals, and foreign nationals living in the UAE, are foreign persons unless they hold Australian citizenship or a permanent visa. Australian citizens living in Dubai or Abu Dhabi do not need approval.

Tax treaty

No. Treasury’s list of income tax treaties does not include the UAE.

Home loans and AED income

Dirhams are a second-tier currency with Australian lenders: typically 60–80% of the income is counted, and lenders adjust their assessment for a no-tax jurisdiction. Australian expats in the Gulf are a core market for the specialist expat brokers.

Lender policy changes. See our home loans guide for how lenders generally treat overseas borrowers.

Visas

The standard skilled, student and partner routes. On a temporary visa you are still a foreign person.

Next steps

• Check the application fee and your state’s surcharge.
• Read the FIRB approval guide.
• Look at new homes foreign buyers can purchase.

Frequently asked questions

firbapproval.com.au is an independent guide. It is not affiliated with, endorsed by or connected to the Foreign Investment Review Board, the Australian Treasury or the Australian Taxation Office. We do not lodge or process applications. Applications are made to the ATO. General information only, not legal, tax, migration or financial advice.