Company Structure for Investment Property: What Australian Expats Need to Know

Following the changes announced in the 2026–27 Federal Budget, more Australian expats are re-examining how they hold and purchase investment property in Australia. For some, purchasing property through a company structure has become an option worth considering.

But what does the Australian residential mortgage market look like for an Australian expat seeking to purchase an investment property through a company?

Atlas Mortgages recently surveyed 13 Australian lenders to understand how they approach this specific scenario. The findings highlight several practical considerations for Australian expats, particularly when it comes to lender appetite, borrowing structures and the requirements that may apply.

This article explores the findings and outlines what Australian expats should consider when assessing whether purchasing an investment property through a company structure is feasible from a lending perspective.

This article is for general information purposes only and does not constitute tax advice. For advice on the tax implications of purchasing an Australian investment property through a company structure, please speak with your Atlas representative or contact Atlas Tax or Atlas Wealth to discuss your individual circumstances. This article covers the Australian residential mortgage market only.

Why Australian Expats Are Considering a Company Structure

The company structure is not new. What has changed is the mix of factors leading more Australian expats to consider it in 2026.

• Proposed changes to trust distributions announced in the 2026–27 Federal Budget have narrowed one of the traditional planning options for holding Australian investment property.
• A company’s tax rate is a flat 25% to 30% within that structure. For some Australian non-tax residents, this can be a more efficient outcome than the non-resident marginal tax rates that apply to Australian-sourced rental income in an individual name.
• The absence of the 50% Capital Gains Tax discount for Australian non-tax residents on Australian property gains accrued while non-resident means the entity a property is purchased in matters more than it used to.
• A corporate structure often provides cleaner asset protection and succession planning. This is particularly relevant where multiple family members are involved.

The right structure for any individual client is a tax and estate planning question, not a lending question. Structure drives finance. Not the other way around.

Before setting up a company or purchasing property in one, speak to Atlas Tax or a qualified accountant. Once the structure is confirmed, Atlas Mortgages can address the finance.

What Do Lenders Say About Company Structure Investment Property Loans?

Atlas Mortgages surveyed thirteen Australian lenders on a live scenario. That is, a USA-based Australian expat, earning USD income, purchasing an Australian investment property through a company borrower. In conclusion, six lenders accepted the scenario, however even declined.

Lender type	Outcome	Guarantor rule	Maximum LVR
Major bank #1	Accepted*	All directors, regardless of shareholding	80%
Major bank #2	Accepted**	All directors, regardless of shareholding	Standard policy
Non-bank lender A	Accepted	All directors and all shareholders	Case-by-case
Non-bank lender B	Accepted	All directors, regardless of shareholding	90%
Specialist expat lender A	Accepted	All directors, plus shareholders holding 25% or more	80%
Specialist expat lender B	Accepted	All directors, plus shareholders holding 25% or more	80%

* Existing banking relationship of 6 months or more required, or a refinance-in exception via credit escalation.
** Existing eligible banking relationship required. Foreign income must be PAYG. Self-employed foreign income is declined.

Three lenders that previously offered this structure have tightened or discontinued the product in the last twelve months. Atlas Mortgages anticipates that banks will review their position in the coming months as investor behaviour change, it is important to note that that credit policy is always changing.

Five Company Structure Issues Australian Expats Need to Consider

1. All directors are required to guarantee the loan

Under the Corporations Act, an Australian proprietary limited company must have at least one director who ordinarily resides in Australia. It is common for Australian expat clients to assume that a friend, family member or professional can be appointed as the resident director purely to satisfy ASIC, and that person can then be kept off the mortgage entirely because they hold no shares.

That is not how the market works.

Every lender that accepted the scenario in the survey required either:

• All directors on the personal guarantee, regardless of whether they hold any shares. This is the position of the two major banks and two of the non-bank lenders. Or,
• All directors, plus every shareholder holding 25% or more. This is the position of the two specialist expat lenders.

The practical consequence is that whoever is appointed as the Australian resident director must be prepared to sign an unconditional joint and several personal guarantee for the full loan amount.

An example: Consider David. 

David is an Australian expat based in Singapore. He and his wife plan to purchase a $1.2 million investment property in Brisbane through a newly established Pty Ltd. He is the sole shareholder. Therefore, to satisfy ASIC’s resident director requirement, David appoints a professional service provider in Australia to act as resident director. However, on the basis that this person will not need to be personally involved in the loan.

David submits his loan application. Credit responds with the requirement that the professional resident director must sign a personal guarantee. The service provider declines, as would be expected. David’s application does not proceed.

If a plan relies on a non-family resident director engaged for a service fee, that plan will not work with Australian lenders. Any Australian expat considering this structure should choose the resident director on the assumption that person will be a full guarantor from day one. In most cases, that person is a spouse, parent or sibling.

2. Foreign income is accepted, with variation between lenders

Foreign currency income is accepted by every lender that accepted the company borrower scenario. This includes USD, SGD, GBP, HKD, AED and others.

The rules around how that income is assessed vary between lenders.

• PAYG foreign income.This is broadly accepted across lenders. Typically, foreign income is shaded to 80% of the gross figure. However, some lenders may assess 100% of the gross or net income, depending on the currency, country of residence and employment type.
• Self-employed foreign income. Accepted by the specialist expat lenders and some non-banks. Requires full company financials, tax returns and, in some cases, an overseas credit report. One of the two major banks that accepts the company structure will not accept self-employed foreign income. Therefore, PAYG only.
• Bonus, commission and equity compensation. Treated inconsistently across the market. As a result, how this income is documented can be as important as the income itself.

3. Deposit and LVR requirements

Maximum LVRs on company borrower expat lending sit below what an owner-occupier onshore borrower would access.

For example:

• Major bank company borrower expat lending: Up to 80% LVR.
• Non-bank company borrower expat lending: Up to 80% LVR, with some to 90%, priced accordingly.
• Specialist expat products: Up to 80% LVR, with 75% on vacant land.

In practical terms, Australian expats using a company structure should budget for a 20% deposit, stamp duty, foreign investor surcharges where applicable, and legal and structuring costs. Futhermore, lenders mortgage insurance is generally not available above 80% LVR in this scenario.

4. Citizenship, residency and FIRB

A common misconception is that Australian citizenship or permanent residency is required to borrow. That is not the case.

• The company borrower. Must be an Australian-registered Pty Ltd with an active ACN and ASIC registration. It must have at least one director ordinarily resident in Australia.
• The expat director and shareholder. Can be an Australian citizen, permanent resident, or in most cases neither. What matters is that the lender is comfortable with the country of residence and the source of income. Atlas Mortgages covers more than thirty countries.
• Tax residency. An Australian non-tax resident can borrow through this structure. Tax residency drives the tax outcome. It does not, on its own, prevent finance.
• Foreign Investment Review Board (FIRB). If the company is deemed a foreign person under the Foreign Acquisitions and Takeovers Act, FIRB approval and the associated fees will apply. This is where structure and policy meet, and where getting the shareholding right at the outset avoids five-figure surprises later.

5. Interest rates and fees

Pricing under a company borrower structure varies more than under a standard individual borrower structure.

• Some lenders will charge the same interest rate whether the property is purchased in a company or in an individual name. Other lenders will apply an interest rate loading, or offer a lower discount, when the borrower is a company.
• Foreign income loadings typically only apply on second-tier lenders.
• Application fees range from approximately $200 to 1% of the loan amount.
• Interest-only loadings apply where interest-only is available, typically around 0.4%.
• Overseas credit reports, additional legal documentation and, in some cases, a General Security Agreement over the company may be required.

These costs do not make the structure wrong. They are the reason that the yield and gearing model should be built on real numbers, not the retail rate advertised on a lender’s homepage.

Is a Company Structure Right for Your Investment Property?

From a lending perspective, the honest answer is that a company borrower structure can work, and it does work, but it is a narrower path than many Australian expat clients realise before they start.

Where it tends to work well:

• Australian expats with a longer-term Australian investment plan of three or more properties who want structural separation from the outset.
• Clients whose tax profile, assessed properly by an accountant, benefits from the company tax rate over their non-resident marginal rate.
• Clients who already bank with one of the two major banks that will accommodate the structure.
• Family arrangements where the Australian resident director is a spouse, parent or sibling who is prepared to be a full guarantor.

Where it tends not to work:

• First-time Australian expat investors purchasing a single property. The additional complexity and cost usually outweighs the benefit.
• Clients relying on a paid third-party resident director. Lender guarantor policy prevents this before it starts.
• Self-employed Australian expats hoping to borrow through a major bank. Only one major will accept the structure, and that lender requires PAYG income.

The lending market has become more restrictive over the last twelve months for this scenario. However, credit policy is always evolving, and Atlas Mortgages anticipates the market will open up over the next six to twelve months as lenders review their position on Australian expat investor lending.

Frequently Asked Questions About Company Structures and Investment Property

Can I appoint an Australian resident director purely for ASIC compliance and keep them off the loan?	No. Every lender that will consider this scenario requires all directors to provide a personal guarantee, regardless of shareholding.
Is foreign income accepted?	Yes. Foreign income is accepted by every lender that will consider a company borrower. Income is typically shaded at 80% of the gross figure. However, some lenders will assess 100% of the gross or net figure depending on the currency, employment type and country of residence.
What is the maximum LVR I can borrow to?	Maximum LVRs sit between 80% and 90% depending on the lender. Most sit at 80%. Lenders mortgage insurance is generally not available above 80% in this scenario.
Do the two major banks offer this structure?	Yes. Two major banks will consider a company borrower with expat foreign income. Both require an existing banking relationship. Although, one requires the foreign income to be PAYG.
Are the interest rates the same as a standard mortgage?	Not always. Some lenders will price a company borrower the same as an individual borrower. However, others will apply an interest rate loading or offer a lower discount within a company structure. Foreign income loadings typically only apply on second-tier lenders.

Contact Us

Managing your financial affairs across borders is a complex space, and having the right support can make all the difference. We specialise in supporting Australian expats with cross-border tax planning, mortgage solutions, superannuation, and wealth management. Contact us to arrange a consultation with a qualified adviser who specialises in Australian expat financial planning. Our team will tailor guidance to your specific circumstances.

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Disclaimer: This article is intended for informational purposes only and does not constitute legal or financial advice. Individuals should consult licensed professionals when seeking guidance regarding their financial circumstances.