Abu Dhabi freehold versus Australian FIRB rules
Foreign buyers of established homes in Australia face FIRB approval, fees and restrictions, and surcharge duty in several states. Abu Dhabi has no equivalent foreign-buyer restriction: non-residents can freely buy freehold property in any designated freehold area, which includes every Modon master community, with no approval process and no foreign-buyer surcharge. The Abu Dhabi Real Estate Centre registers the title in your name directly.
Tax on Abu Dhabi rental for Australian residents
The UAE levies no income tax on rental income. As an Australian tax resident, your Abu Dhabi rental is assessable income taxed at your marginal rate, and you must declare it on your Australian tax return. Allowable deductions include service charges, property management, depreciation (a quantity surveyor can prepare a schedule) and foreign mortgage interest. There is no UAE withholding tax, and because the UAE rate is zero the foreign tax credit provides no relief.
- Declare foreign rental and foreign assets on your ATO return.
- Capital gains on sale are taxable in Australia; the UAE levies no capital gains tax.
The 10-year Golden Visa in Australian dollars
An investment of AED 2 million, about A$820,000, qualifies you and your family for a 10-year renewable UAE Golden Visa. Several Modon apartments in Hudayriyat Island and Downtown start near this level. The visa does not require relocation and does not affect your Australian tax residency.
Remote purchase and the Power of Attorney
Australian buyers can complete a Abu Dhabi purchase largely remotely. A Notarised and Apostilled Power of Attorney, arranged through an Australian notary and DFAT authentication, lets a representative in Abu Dhabi sign the SPA, register the title and handle handover. We coordinate the POA drafting, the escrow transfer and the Oqood (off-plan) or Title Deed registration so only a short visit is needed for key collection.