A Simple Guide for Thai Investors

Many Thai investors are interested in buying apartments or houses in Australia for rental income because rental yields are attractive and big cities keep growing.
Before you buy, it’s worth understanding the taxes so you can plan ahead.

1️⃣ First Step: Government Approval

Foreign buyers, including Thai citizens, must obtain approval from the Foreign Investment Review Board (FIRB) before purchasing.

  • Apply easily online.
  • The application fee depends on the property price (starting around AUD 14,000 for homes priced up to AUD 1 million).

2️⃣ Taxes at the Time of Purchase (Stamp Duty)

Everyone pays stamp duty, a state tax on property transfers.
Foreign investors also pay an additional surcharge of about 7–8%, depending on the state.

Example: Buying a home for AUD 800,000 in Melbourne may require about AUD 80,000 in total stamp duty and surcharge.

3️⃣ Tax While Renting Out

If you rent out the property and earn income—for example AUD 85,000 per year:

  • Non-residents (those who are not Australian tax residents) pay income tax of about 32.5% on net profit.
  • But you can deduct expenses such as repairs, management fees, and mortgage interest to reduce taxable income.

4️⃣ Land Tax

Each state charges annual land tax based on the value of the land (not including the building).
Some states add a surcharge for foreign owners.

5️⃣ When Selling

If you sell the property for a profit, you must pay Capital Gains Tax (CGT) on the gain.

  • Rates vary by state, but the tax is calculated on the profit you make.

Why It’s Still Worth It

Even with several types of tax, Australia remains a very attractive market because:

  • Clear and secure laws protect property rights.
  • Strong rental demand keeps yields high.
  • The Australian dollar sometimes weakens, making purchases cheaper for Thai buyers.
  • Expenses such as repairs and loan interest are deductible for tax purposes.

Investor Tips

  1. Plan taxes early—consult a local accountant.
  2. Apply for FIRB approval before you buy.
  3. Keep all expense records to claim every possible deduction.

Melbourne: A City to Watch

Investors looking to buy property in Australia—especially in Melbourne—should pay close attention because:

  • Transaction activity is strong, from inner-city apartments to suburban homes.
  • Prices remain attractive compared to Sydney, helping rental returns look even better.
  • Melbourne is a hub for education and business, ensuring a wide pool of tenants—students, professionals, and families.

For Thai investors with a long-term vision, Melbourne stands out as one of the safest and most rewarding choices in Australia.