Last reviewed: 31 October 2026
Quick answer
When an owner who is not an Australian tax resident sells Australian property, the buyer must generally withhold 15% of the price at settlement and pay it to the Australian Taxation Office, unless the seller has a clearance certificate or a variation. The withheld amount is credited when the seller lodges an Australian tax return. Foreign residents also generally cannot claim the main residence exemption or the capital gains discount on gains after 8 May 2012. For a Thai tax resident, bringing the sale money into Thailand may also have Thai tax consequences.
Before you list the property
- Check who owns it and how. Joint tenants, tenants in common, a company and a trust each sell differently. If an owner has died, probate may be needed first.
- Check the mortgage and any caveats. The lender’s discharge process and any caveats on title can delay settlement.
- Prepare the vendor statement. Victorian law requires a vendor statement (section 32 statement) before the buyer signs. Errors can allow a buyer to withdraw.
- Plan the tax position. Your accountant should estimate Australian capital gains tax and consider whether a withholding variation is worth applying for.
Foreign resident withholding
The 15% withholding applies to contracts entered into from 1 January 2025, with no minimum price. Australian residents avoid it by giving the buyer a clearance certificate. A seller who is a foreign resident can apply to the ATO to vary the rate, for example where the expected tax is lower than the amount withheld. Applications take time, so start early.
Whether you are a foreign resident for these rules is a tax residency question, not a visa question. A Thai national who has lived in Melbourne for years may be an Australian tax resident, and an Australian citizen living in Bangkok may not be.
Signing from Thailand
Many Victorian contracts are now signed electronically. Some documents, such as certain transfer, verification of identity and power of attorney documents, need an authorised witness. Overseas, that is often an Australian consular officer or a notary. Getting this wrong is a common cause of delay. If you will be travelling or unavailable, a Victorian power of attorney can allow someone you trust to sign for you.
Bringing the money to Thailand
Since 1 January 2024, Thailand has taxed its tax residents on foreign income earned from that date when the income is brought into Thailand. A capital gain on Australian property may fall within that rule. Thailand and Australia have a double tax agreement, and credit for Australian tax may be available, but the Thai position should be confirmed with a Thai tax adviser before the money is transferred. See our separate article on Thai tax and Australian income.
Selling an inherited or estate property
If the property belonged to a parent who has died, the executor or administrator usually needs a Victorian grant before selling. Inherited property has its own capital gains tax rules, and beneficiaries overseas can be treated differently from Australian residents.
Frequently asked questions
Will 15% of my sale price be withheld?
Generally yes, if you are a foreign resident for tax purposes and do not have a variation. The amount is credited against your Australian tax when you lodge a return.
Can I reduce the withholding?
A foreign resident can apply to the ATO for a variation before settlement. Allow time for the application.
Do I need to fly to Melbourne to sell?
Usually not. Most steps can be done remotely, but some documents must be witnessed by an authorised person overseas.
Will Thailand tax the sale money?
Possibly, if you are a Thai tax resident and bring the money into Thailand. Get Thai tax advice before transferring it.
How we help
Chua Tan Associates has practised in Melbourne since 1990 and advises Thai and Thai-Chinese families on Australian legal matters. We work by video and alongside your lawyers, accountants and private bankers in Thailand. We help with:
- acting on the sale from contract to settlement;
- withholding variations, working with your accountant;
- powers of attorney and signing arrangements from Thailand;
- estate sales where the owner has died.
The first step is a paid 30-minute consultation by video or in Melbourne. Contact us to book.
This article is general information only and is not legal, tax or financial advice. Do not rely on it for your own situation: the law and practice change, and the right answer depends on your facts. Points about Thai law and Thai tax are a general overview only; obtain advice from a Thai lawyer or tax adviser for matters in Thailand.
Official sources
More guides for Thai and Thai-Chinese families
Related reading
Chua Tan Associates acts for families and their professional advisers on Australian legal matters with a cross-border dimension, working alongside lawyers overseas. To arrange a confidential consultation, please contact our Melbourne office on +61 3 9602 3988 or submit an enquiry. Advice is available in English, Mandarin and Cantonese.
Justin Chua (蔡智勋), lawyer and mediator, Chua Tan Associates, Melbourne. General information only, not legal advice.
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