Selling Overseas Property and Transferring Funds to Australia – What You Need to Know

Selling Property Overseas? These Are the Top 5 Questions Australians Ask

Selling property overseas and transferring the proceeds to Australia can be a financially rewarding move—but it comes with important tax obligations. Understanding how the Australian Taxation Office (ATO) treats capital gains on overseas assets is essential. These are the top questions that this blog will answer for you:

1. Are you selling property overseas and wondering how it affects your Australian tax obligations?

2. Do you need help understanding capital gains tax on foreign property sales?

3. Have you paid tax overseas and want to know if you can claim a foreign income tax offset in Australia?

4. Are you planning to transfer funds from an overseas property sale into Australia and unsure about compliance?

5. Do you want to avoid penalties and stay compliant with ATO rules when declaring overseas property gains?

   
   

Capital Gains Tax (CGT) on Overseas Property:

If you are an Australian resident for tax purposes, you must declare all income and capital gains from worldwide sources—including the sale of overseas property. The capital gain is calculated by converting the purchase and sale prices into AUD using the exchange rates at the respective dates. The CGT event is triggered on the date the contract is signed, not the handover date. If you’ve paid tax on the gain in the country of sale, you may be eligible for a foreign income tax offset in Australia.

Claiming Foreign Tax Offset

Australia has tax treaties with several countries, including India, which may allow you to claim a foreign income tax offset. To qualify, you must:

• Have paid tax on the gain overseas

• Maintain records proving the payment

• Report the gain in your Australian tax return

Tips to Stay Compliant

• Keep detailed records of the property purchase and sale

• Convert all amounts to AUD using correct exchange rates

• Consult a tax advisor to ensure accurate reporting

• Declare the gain in your tax return even if tax was paid overseas

  
  

Conclusion

Selling property overseas and bringing the money to Australia can be a smooth process if you follow ATO guidelines and seek professional advice. At 7 Bells, we help clients navigate international transactions and ensure full compliance with Australian tax laws.