As I understand, temporary tax residents are exempt from CGT on selling overseas house.
Do they still need to include it in the tax return in IT4 target foreign income?
If Yes, do they include their share of the profit or only the taxable amount as they may receive a CGT discount in the foreign country!
Also what if it’s exempt from CGT in that foreign country, do they still need to include it in the tax return?
Hi @Maru85,
Generally foreign and temporary residents are subject to CGT only on taxable Australia property, such as real estate in Australia.
To be a temporary resident you need to meet the following criteria:
Therefore, CGT does not apply to overseas properties if you meet the conditions of being a temporary resident. If it is exempt from CGT in a foreign jurisdiction then this does not cause the income to be taxable in Australia.
Hi @Maru85,
Generally foreign and temporary residents are subject to CGT only on taxable Australia property, such as real estate in Australia.
To be a temporary resident you need to meet the following criteria:
Therefore, CGT does not apply to overseas properties if you meet the conditions of being a temporary resident. If it is exempt from CGT in a foreign jurisdiction then this does not cause the income to be taxable in Australia.
21 May 2026 · 4 min read time
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