Worldwide income
Australian residents for tax purposes must declare income earned anywhere in the world. Temporary residents are treated differently for most foreign income.
Ask your adviserAm I a resident, or a temporary resident, for the years I will own the property?
Rental income
Returns from overseas assets, including rental income from real estate, are declared as if the assets were in Australia.
Ask your adviserAfter handover, which rental deductions apply to a foreign property?
Capital gains
Capital gains tax may apply when you sell an overseas asset. Assets acquired before becoming resident are treated as acquired on the date you became resident, and ceasing residency is treated as a disposal.
Ask your adviserHow would a sale, or a change in my residency, be calculated?
Foreign income tax offset
An offset may be available for tax paid overseas if you paid it, can prove it and the foreign country had taxing rights. It is not always equal to the tax paid, and claims over $1,000 need a limit calculation.
Ask your adviserWould any UAE tax give me an offset?
Income years
Most countries do not have an income year ending on 30 June, so foreign income may need apportioning across Australian returns.
Ask your adviserHow do I allocate rent and costs across income years?
Tax treaty
Treasury’s list of Australia’s income tax treaties, last updated on 24 March 2026, does not include the United Arab Emirates.
Ask your adviserWhat does the absence of a treaty mean for my position?
UAE side
Under Cabinet Decision No. 49 of 2023, an individual’s income from selling or letting UAE property without needing a licence is not treated as a business activity for UAE Corporate Tax.
Ask your adviserHow does that interact with my Australian return?
Owning UAE property, or holding a UAE residence permit, does not by itself make you a foreign resident for Australian tax purposes or remove your duty to declare worldwide income. Take your circumstances to an Australian tax adviser before assuming any change.
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