Can I Invest in UK Property as an Australian Resident?
- Expat Property Investments Ltd
- Oct 23
- 4 min read
If you’re a British expat or non-UK citizen living in Australia and wondering, “Can I invest in UK property as an Australian resident?” The answer is a firm yes, you can.
However, as an Australian resident you face unique tax rules, money transfer regulations, and financial planning hurdles that you must navigate carefully, or risk turning an exciting opportunity into an expensive headache.
This guide is packed with specific value for Australian residents looking to buy UK property, whether you want to grow a portfolio, set up a future home base, or build cross-border wealth.
Want to skip the reading and speak to us on a 30 minute consultation call? Book yours here.
Why British Expats Are Looking To Invest in UK Property as an Australian Resident
Living in Australia comes with world-class beaches, coffee, and lifestyle, but let’s be honest, the property market is tough.
Sydney and Melbourne are among the world’s most unaffordable cities. Prices are sky high, taxes are heavy, and rental yields are not setting the world on fire at 2% to 4%.
Meanwhile, the UK offers:
Much lower property prices compared to major Aussie cities
Rental yields in regional UK cities of 8% to 10% gross (download our free ROI Calculator here)
Stable legal and banking systems
A familiar framework for Brits abroad who understand the market
If you’re curious where the smart money goes, check out our article on The Best Areas to Invest in as an Expat. Spoiler alert: It’s often not London, but places like Manchester, Stoke-on-Trent, Leeds, Birmingham, and Liverpool.
Australian Tax Rules You Must Know
Here’s where Australian residents face key obligations.
1. Worldwide Income Tax ATO (Australian Taxation Office)
As an Australian resident, you are taxed on your worldwide income.
That means:
Your UK rental income must be declared in your Australian tax return if you own in your personal name.
Even if the money stays in the UK, it’s still assessable by the ATO.
You can claim a foreign income tax offset for the tax you pay to HMRC (thanks to the UK-Australia Double Tax Agreement), but you must report everything transparently.
This is of course different if you buy in a UK Ltd company and do not take an income from the company. If you're not sure if you should buy in your personal name or a Ltd company, read our guide on it here.
2. Capital Gains Tax (CGT)
When you sell a UK property, you may pay CGT in the UK, and you should declare the gain in Australia. The ATO offers a foreign income tax offset here too, but:
You’ll likely still owe top-up tax if Australia’s rates are higher.
The main residence exemption does not apply to overseas properties.
If you buy the UK property in a UK Ltd company, you will not pay CGT but you will pay corporation tax on profits.
3. Land and Wealth Taxes
Australia has no wealth tax. But the UK applies council tax, non-UK resident landlord taxes, and potentially inheritance tax (IHT) so factor that in.
Again, this is different if you buy in a UK Ltd company. The majority of our clients are UK Ltd companied
If you’re serious, we strongly recommend working with a cross-border tax advisor familiar with ATO and HMRC rules.
Mortgage, Currency & Money Transfer Realities
Mortgage Access
Reach out to us here if you want us to link you with our mortgage broker.
UK lenders love British expats, but:
You’ll need proof of income from Australia, usually in AUD.
Self-employed? Get your ABN records, tax filings, and accountant letters ready.
Expect a 25%–35% deposit for non-UK resident loans.
Australian banks generally won’t lend for overseas property so you’ll need to finance it from the UK side or with cash.
Currency Transfers
The AUD/GBP exchange rate is historically volatile. Between 2015–2025, AUD has fluctuated between 0.48–0.62 GBP. This can swing your deal value by tens of thousands.
Rental income will be in GBP. If you plan to repatriate funds to Australia, exchange rates can swing profits. You may want a UK bank account or use currency transfer services with hedging options.
Transfer Fees & Compliance
Large overseas transfers (>AUD $10,000) must be reported under AUSTRAC rules.
Banks (Commonwealth, NAB, ANZ) will ask for source of funds documents, or you can save thousands using services like Wise.
What You Need as an Australian Resident
To get ready, line up:
Passport
Australian visa / residency proof
Australian income documentation such as payslips & tax returns with your address on
Bank statements showing deposit funds
UK tax registration for non-UK resident landlord scheme if you are buying in your personal name
If you’re self-employed, add:
ABN certificate
Profit & loss statements
Tax filings for at least 2 years
Some More Practical Tips
Work with UK-based professionals
Get a UK-expat specific mortgage broker, solicitor, and accountant familiar with expat and non-UK resident deals. We can connect you with our broker if you need one.
Understand local UK market
Not all UK locations are good for rental yield or growth. Do proper market research or hire a sourcing agent, like us. (shameless plug)
Be aware of property management
As a long-distance landlord, having a good UK property manager is essential. They will handle tenants, repairs, and compliance. We manage the properties that our clients purchase, acting as a one-stop shop. If you're interested in us managing your property, contact us here.
Tools to Help You Invest Smart
We’ve built tools specifically for non-UK residents like you:
Scenario Analysis for Expats: Stress test your plan across currencies, mortgages, and locations.
Investment Location Deep Dive: Data packed reports on where to buy.
Property Analysis & Opinion: Expert second opinion on any deal.
Bespoke Property Sourcing: We find you cash-flowing UK deals.
45-minute Consulting Call: Chat with Dan, our UK property expert, about your specific situation for insights and input.
Ltd Company Formation: Want to buy through a company? We handle the setup.
Why Non-UK Residents Trust Us
At Expat Property Investments, we specialise in helping British expats and non-UK citizens around the world confidently invest in UK property. We are a full compliant UK registered property company.
If you want to chat directly with Dan, book a free discovery call here.
Final Takeaways
Yes, you can invest in UK property as an Australian resident.
You must understand Australian tax on worldwide income, UK tax rules, currency swings, and cross-border banking.
You don’t have to do it alone. We offer free tools, expert advice, and full-service solutions to make it simple.
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