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Overseas Property

Fancy a villa in Tuscany? What about a Condo in LA or Loft apartment in New York? I do!

But can I claim depreciation on this property… The short answer is yes! 

Depreciation Calculator

The main difference, however, is in claiming the building allowance – that’s the wear and tear on structural elements of the property like bricks and concrete. 

With Australian properties, you can claim 2.5% of these construction costs per annum, as long as the property was built after July 1985. The rate for overseas properties is the same – but the date is different. Construction of an overseas property must have commenced after 1990.

So if you want to maximise your depreciation benefits on an overseas property, look for a newer property built in the last decade or two. Internal items like carpets, ovens, lights and blinds – can also be depreciated, as you would with an Australian property. This is often referred to as plant and equipment.

An excellent place to start your research is on the ATO’s website. You can download a publication called Tax-Smart Investing: What Australians Investing in Overseas property Need to know.

Like any property investment, you’ll need to do your homework, research the local market, and find out about rental yields and occupancy rates. But the best thing is – this can all be done online these days.

The main barrier to depreciating an overseas property is working out the construction costs and the expense of flying a quantity surveyor overseas.

Washington Brown has several affiliations around the world. We regularly inspect properties in London… New Zealand… I even did an inspection in Koh Samui (Thailand) recently.

We can help you claim the maximum eligible deductions if you have an investment property located overseas. Request a free quote here to get started.

I created a video about claiming depreciation on overseas property; I hope you enjoy it.

So there you have it. You can still invest in overseas property and reap the benefits of the Australian Tax system’s depreciation laws. But remember, the property must have been built or renovated after 1990.

If you need a depreciation schedule for your investment property – get a quote here or let us prepare an estimate of the likely deductions available to you – just submit your property for a free review here. Start claiming depreciation on your overseas property today!

Depreciation Calculator

More and more Australians are investing in property overseas due to the high Australian dollar and some countries’ economies being much weaker than Australia’s and showing a downturn in their property markets.

But can you still claim depreciation if your investment property is not in Australia?

The answer is yes, you can depreciate an overseas investment property… but there are a few key differences. The first main difference is in regards to claiming the building allowance. With Australian properties, you can claim 2.5% of these construction costs per annum, as long as the property was built after July 1985. The rate for overseas properties is the same – but the date is different. Construction of an overseas property must have commenced after 1990.

So if you want to maximise your deprecation benefits on an overseas property, look for a newer property built in the last decade or two.

Internal plant and equipment items, such as carpets, ovens, lights and blinds, can also be depreciated as they would be in an Australian investment property. You can download a very useful publication from the Australian tax office website, “Tax-Smart Investing: What Australians Investing in Overseas property need to know”.

(UPDATE: Deductions for plant and equipment items may only apply to commercial properties, brand new properties, if you bought the property prior to May 9, 2017, or some other exceptions – Read about the Budget changes here).

The main barrier to depreciating an overseas property is working out the construction costs and the expense of flying a quantity surveyor overseas to prepare your depreciation report. Washington Brown has several affiliations worldwide, and we regularly inspect properties in London, New Zealand, Asia, Europe and the States.

Click the link if you need a quote for an Overseas Depreciation Quote 

About Tyron Hyde

Tyron Hyde is the CEO of Washington Brown Quantity Surveyors. He is regarded as one of the industry's leading experts in property tax depreciation, is regularly quoted in the media & asked to speak at conferences.

Learn why more Property Investors Choose Washington Brown to prepare their depreciation reports.