With lots of Australians returning home over recent years - many have purchased properties overseas that have now turned into investment properties. 

But can you still claim depreciation on an overseas property

You’re entitled to claim 2.5% of these construction costs per annum with Australian properties, 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 1992. 

Internal items like carpets, ovens, lights, and blinds can now only be depreciated as you would with an Australian property; they are required to be brand new. These items are known as Rental Property Plant & 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 – that this can all be done online these days. 

The main barrier to depreciating an overseas property is working out the constructions costs; this is where we can help. 

Washington Brown has many affiliations around the world. We have serviced such countries as New Zealand, USA, Asia, UK & Europe. 

Washington Brown can prepare a tax depreciation schedule on your overseas investment property. 


Tyron Hyde is the CEO of Washington Brown and is considered one of Australia’s leading experts in property tax depreciation. He is also a registered tax agent.  Washington Brown manages construction costs worth over $2 billion and completes 10,000 schedules annually. For a depreciation schedule quote CLICK HERE and follow the 3 simple steps or estimate your depreciation cost. 

The Washington Brown Free Depreciation Calculator will give you an estimate of the depreciation deductions you could claim on your investment property.

Read more Expert Advice articles by Tyron

Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.