How Australian Tax Laws Affect UK Buy-to-Let Mortgages

November 3, 2025

If you move to Australia, you can still be a landlord in the UK. If you own a buy-to-let property in the UK, your tax responsibilities change. This can also change the loans you can get and the money you make. If you want to get a UK BTL Mortgage from Australia, it helps to know how both countries tax your rental income and profits. If you live in Australia and want to buy a home in the UK, the same rules apply to how you plan, borrow and pay it back.

Taxes in the UK and Australia Both Affect Your UK Rent

The UK still taxes money that is generated in the UK, even if you live in Australia. This includes income from a UK rental property and any money you make when you sell it. Australia also taxes its citizens on money they make from all over the world. This means that you also have to tell Australia about your UK rent. The UK and Australia have an agreement to avoid double taxation. You pay UK tax on your UK rent, and then you can get a tax break in Australia. This means you don’t have to pay tax on the same income twice.

You will have to file twice if you live in Australia and want to buy in the UK. You will have to pay taxes in the UK on your UK rent. You will also have to report that rent on your Australian tax return and then ask for a refund for the UK tax you have already paid. This keeps you in both systems and stops you from paying taxes twice.

Does This Change the Choices for Mortgages?

Taxes don’t change how much rent you get. But it does change how much money you get to keep after taxes. After you pay your mortgage and other bills, your net income is what you have left. This net amount can help you figure out how much extra money you should keep if you have a UK Mortgage living in Australia. It can also help you choose between a fixed or tracker rate based on how much risk you’re willing to take and how you plan for repairs and gaps in your income.

Your Residency Status Determines Your Tax Base

If you live in Australia, are a non-resident, or are a temporary resident for tax purposes, your tax obligations will be different. People who live in the area have to pay taxes on all of their income, no matter where it comes from.

People who don’t live in Australia only have to pay taxes on money they make there. People who are only living there for a short time, have to follow different rules. If you live in the UK, your rent there is included in your Australian return. You can then get double tax relief on the UK tax you have already paid.

If you are an Australian resident looking to buy in the UK, make your plans early. Pick a rent and loan amount that will still work after taxes in both countries. This helps keep your options open for a mortgage when lenders look at your case.

If You Want to Sell or Remortgage, Think About the Pros and Cons and the Best Time to Do It

If you sell a house in the UK, you may have to pay UK Capital Gains Tax. Australian residents can also be taxed on capital gains, but the rules are different. According to the rules, some Australians may be able to get a 50% discount on gains if they keep the asset for at least 12 months. The rules and timing for relief are important because both countries can tax the gain. If you plan to sell and then buy another UK BTL or if you plan to remortgage to get cash, think about the tax bill and dates before you sign a new loan.

If you’re an Australian resident who wants to buy or refinance a home in the UK, having a clear plan for your money, dates, and paperwork can help your lender process go more smoothly. For Australians who want to buy or remortgage a home in the UK, clear and correct tax records are very important.

A Note on London Cases

Some people want an Australian buyer to get a London BTL mortgage. Prices can be higher in London, and there are strict rules about how much you can borrow based on your rental income. Your level of comfort may change based on how much rent you are left with after UK tax and any extra money you get from Australia. If you live in Australia and want to get a London BTL mortgage for an Australian, you need to be extra careful about cash-flow, voids and rate stress tests. Make sure that the numbers still add up after you pay taxes in both the UK and Australia.

Getting the Right Help When You Move Abroad

Standard UK mortgage lenders often believe that cases involving expats are harder to deal with and therefore a lot of the them don’t offer expat mortgages as they don’t really understand them. A lot of expat applicants get paid in a foreign currency, and some people living overseas have a thin credit UK file, if any at all.

A mortgage broker who specialises in expatriate mortgages uk can help you find lenders who will work with your unique needs. A broker who can see the whole market and work with specialist lenders can help you save time and get better terms if you need mortgages for Australians who want to buy or remortgage in the UK.

UK Buy-to-Let Mortgages for Australian Expats

If you live in Australia and want to buy a buy-to-let property in the UK, or you live in Australia and would like a second home back in the UK, talking to an experienced expat mortgage specialist can make a big difference.

Expat Mortgage UK helps expats and foreigners get UK residential and buy-to-let mortgages. We also assist with remortgages, ensuring that every client finds the most suitable solution for their individual needs.

We have access to the whole UK mortgage market, including lenders who know how to deal with foreign income and complicated residency situations. We make the process simple and totally transparent, even if you earn money in a different currency or don’t have much / any credit history in the UK.

Our clients get a free Expat Mortgage Calculator, a support line that is open 24 hours a day, and a dedicated expat mortgage adviser and case manager who will help them every step of the way. You can also see how your application is going through our secure client portal, which gives you updates in real time from start to finish.

Looking for a UK Buy-to-Let Mortgage from Australia?

We help people who live in Australia and people who live in the UK get buy-to-let and residential mortgages by giving them expert advice and access to the whole UK mortgage market.

Get in touch with Expat Mortgage UK right away to talk about your options and start your application with confidence.

UK property market still attractive to overseas investors

March 22, 2022

UK property has long been seen as a stable store of value, providing attractive yields in a politically stable environment.

Foreign ownership of properties in England and Wales has trebled since 2010 to around 250,000, with 8,500 properties purchased in 2021 according to the Centre for Public Data. This demonstrates the continuing attraction of UK property ownership. Buyers were spread across 20 different countries with individuals from South East Asia and the Middle East especially active. With house prices continuing to rise, the UK property market continues to provide attractive investment opportunities.

London has traditionally been targeted by non-residents looking to invest. Despite London’s price growth being at a 13-year low, the average property price has increased by 67 per cent since 2010.

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However, the focus is evolving as non-residents look for alternative British cities to invest in. Large scale developments in cities such as Liverpool, Manchester and Leeds have significantly increased non-resident ownership in these areas with attractive yields available.

Buyer behaviour

When individuals are looking to purchase UK property from overseas, there are some key things to consider:

Firstly, location remains critically important with considerations around transport, future investment and development, and the potential for this to drive capital appreciation.

Secondly, property type is a vital factor, paying particular attention to matters such as cladding and the remaining years left on a lease. Buyers are asking themselves important questions like how the transaction will be funded; will finance from an international bank be required? What are the likely fees and costs to consider?

Thirdly, non-residents are taking time to select appropriate professional advice. They want to keep it simple, staying clear on investment objectives and remaining focused on these goals throughout the purchasing decision.

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Brokers’ considerations

Brokers also have a lot to think about when choosing lenders to work with when selling to overseas buyers, such as maintaining high levels of due diligence, given various regulatory developments over recent years. For example, Know Your Customer criteria can vary. Additionally, clients have to provide higher deposits, typically 25 to 50 per cent, depending on the client’s circumstances. Most lenders also require an account to be opened alongside the mortgage to facilitate the monthly payments and receive rental income for buy-to-let properties.

The changing landscape

There have been significant political and economic changes that could impact overseas buyers over the coming years: The introduction of the two per cent stamp duty surcharge from 1 April 2021 and a register to identify overseas property owners. Then, in January 2021, there were changes to the visa application process for British National Overseas (BNO) passport owners in Hong Kong.

So far, 2022 has seen continued interest from foreign buyers. As interest rates and political pressure to regulate or restrict purchases from foreign investors remain low, this trend to buy UK property is likely to continue for the foreseeable future.

By: Gareth Morgan

Source: Mortgage Solutions