0431 516 783
FOREIGN RESIDENT CGT WITHHOLDING

Selling Australian property? Don't lose 15% at settlement.

Since 1 January 2025, foreign resident capital gains withholding applies to every Australian property sale, whatever the price. Without an ATO clearance certificate, the buyer must withhold 15% of the purchase price. We sort the certificate, any variation, and the final CGT return.

Call 0431 516 783 What's included →
15% rate · no threshold Clearance certificates Variations & CGT returns
WHERE IT GOES WRONG

Why settlements get held up.

01

Residents think it doesn't apply to them.

It does. With no price threshold any more, every Australian resident seller needs a clearance certificate, or 15% is withheld and has to be recovered through the tax return.

02

Foreign residents over-withhold.

15% of the price can be far more than the actual tax. A variation can reduce or remove withholding — but it has to be approved before settlement.

03

The final return is overlooked.

Withholding isn't the final tax. A foreign resident seller still has to lodge an Australian tax return to report the gain and get any excess credited back.

We handle the paperwork before settlement. Have a yarn with us — no charge.

Call 0431 516 783
WHAT YOU GET

Our foreign resident CGT service.

From residency check to final return — so settlement isn't held up.

Residency check

Your tax residency status confirmed. It's a legal test, not just where you hold a passport or visa.

Clearance certificate

ATO clearance certificate applied for as soon as the property is on the market. It's generally valid for 12 months.

Withholding variation

If 15% is more than your likely tax, a variation application to reduce or remove the withholding before settlement.

CGT calculation

Cost base, discount eligibility and main residence position for a foreign resident, calculated properly.

Learn more →

Australian tax return

The capital gain reported in your Australian return and the amount withheld claimed as a credit.

Buyer-side help

Buying from a foreign resident? We explain your obligation to withhold and pay the ATO.

FOREIGN RESIDENT WITHHOLDING IN PLAIN ENGLISH

What changed on 1 January 2025

For contracts entered into on or after 1 January 2025, the withholding rate is 15% and the old $750,000 threshold no longer applies. That means the rules apply to every sale of Australian real property, not just expensive ones.

The buyer must withhold 15% of the purchase price and pay it to the ATO, unless the seller gives them a valid clearance certificate (or a variation notice) before settlement.

Australian resident sellers

If you're an Australian resident for tax purposes, apply online for a clearance certificate as soon as you decide to sell. It's free and is usually issued quickly, but give it time before settlement.

Foreign resident sellers

Foreign residents generally can't get a clearance certificate, so withholding applies. If the actual tax on your gain will be less than 15% of the price — for example because of your cost base or a loss — you can apply for a variation before settlement.

Foreign residents at the time of sale generally can't claim the main residence exemption, apart from limited life-events exceptions, and don't get the 50% CGT discount for periods after 8 May 2012.

Sources & law referenced

Last reviewed September 2026. Tax law changes often — we check the current position before advising on your situation.

General information only. This page is general in nature and isn't personal tax, financial or legal advice. Speak to a registered tax agent about your own circumstances before acting.

FAQ

Foreign resident CGT withholding questions.

What is the foreign resident capital gains withholding rate?

For contracts entered into on or after 1 January 2025, the rate is 15% of the purchase price, and there is no minimum price threshold.

Do Australian residents need a clearance certificate?

Yes. Because the threshold was removed, every Australian resident selling property needs an ATO clearance certificate before settlement, or the buyer must withhold 15%.

How long is a clearance certificate valid?

A clearance certificate is generally valid for 12 months from the date it's issued, so you can apply as soon as you plan to sell.

Can a foreign resident reduce the 15% withholding?

Yes, by applying to the ATO for a variation before settlement — for example where the actual gain is small, there's a capital loss, or the seller isn't the one who'll pay the tax.

Do I still need to lodge a tax return if tax was withheld?

Yes. Withholding is a prepayment, not the final tax. You report the gain in your Australian tax return and claim a credit for the amount withheld.

I'm an expat who moved overseas. Am I a foreign resident?

Maybe. Tax residency depends on the statutory tests and your circumstances, not only on where you live. It's worth confirming before you sell, because it changes the CGT result.

Related services

Rental property tax returns Capital gains tax on property Depreciation schedules Land tax planning SMSF property

Where we work

Hills District & Norwest Central Coast NSW Sydney CBD
LET'S TALK

Selling soon? Let's get the clearance done now.

15 minutes on the phone. We'll confirm what you need so nothing is withheld unnecessarily at settlement.

Call 0431 516 783
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