In Australia, the 6-year rule for maintaining a main residence exemption on a former home generally does not apply to non-residents for tax purposes. If you are a foreign resident when you sell a property (after June 30, 2020), you cannot access the 6-year exemption, even if it was your home for part of that time, unless specific, narrow "life event" exceptions are met.
The "90-day rule" for non-residents typically refers to two different concepts: in U.S. immigration, it's a guideline for determining if a non-immigrant misrepresented their intent by engaging in certain activities (like unauthorized work or immediate marriage) within 90 days of arrival, leading to visa fraud or inadmissibility. In Canadian tax law, the 90% rule allows non-residents to claim full federal tax credits if 90% or more of their world income is from Canadian sources, otherwise, credits are prorated.
Non-resident Indians (NRIs) are taxed on income earned or collected in India. This could be from sources like property rent, share dividends, and investment and savings capital gains, if over a specified limit. Income earned outside India is not taxable in India.
They will be entitled to the CGT annual exemption. For non-resident trusts the CGT charge will be at 24% or 28% (24% for gains on residential property and 28% for gains on carried interest), and they too will be entitled to an annual exemption, at half the rate for individuals.
If you are not a U.S. citizen, you are considered a nonresident of the United States for U.S. tax purposes unless you meet one of two tests. You are a resident of the United States for tax purposes if you meet either the green card test or the substantial presence test for the calendar year (January 1 – December 31).
Who is considered a temporary non-resident? Individuals that leave the UK for fewer than 5 years (periods of 12 months, not tax years), and prior to leaving have lived in the UK for at least 4 out of 7 of the most recent years, can be treated as being a 'temporary non-resident' upon returning to the UK.
The IRS uses two tests—the green card test and the substantial presence test—for assessing your alien status. If you satisfy the requirements of either one, you're considered a resident alien for income tax purposes; otherwise, you're treated as a non-resident alien.
Under the pre-2020 rules, a property could retain its CGT-free status if sold within 6 years of moving out (or indefinitely if not rented). But now, if you're a foreign resident at the time of disposal, the 6-year rule provides no protection.
If the visa type is F-1 or J-1, the non-resident alien may be exempt from federal taxes only if the country of residence has negotiated an income tax treaty covering the payment received while visiting the U.S. For additional information and guidance on requesting payments to NRAs, please see Payments to Non-Resident ...
You may have to pay tax when you sell (or 'dispose of') your UK home if you're not UK resident for tax purposes. Even if you have no tax to pay, you must tell HMRC you've sold the property within 60 days of transferring ownership (conveyancing).
Nonresident aliens
US investment income is generally taxed at a flat 30 percent tax rate, which may be reduced by a tax treaty. Certain types of investment income may be exempt from US tax.
You may be considered a non-resident of Canada if you did not have significant residential ties with Canada and one of the following applies:
Even if you are no longer living in the U.S., you are required to file a return by the stated deadlines.
If you're in Canada for less than 183 days and don't have significant ties to the country—like a home or family here—you could be considered a non-resident. Non-residents are generally only taxed on income earned in Canada, not on worldwide income.
Generally, NRIs are not mandated to file ITRs solely based on their non-resident status. However, their obligation to file hinges on their total income generated in India during a specific financial year. The Income Tax Act 1961 dictates the income threshold that triggers mandatory ITR filing for NRIs.
According to a new study published by the Fraser Institute, in 2024 the average Canadian family (including single people) paid $48,306 in total taxes. Given the average family's total cash income was $114,289 in 2024, this means families paid 42.3 per cent of their incomes in taxes levied by all levels of government.
Persons who are nonresident aliens for tax purposes are generally taxed at much higher rates on all U.S. source income than are resident aliens and citizens. Therefore, it is important for NRAs to have a basic understanding of the U.S. tax system and how to minimize over taxation.
Types of Disregarded Income
Non-residents do not pay UK tax on interest earned from UK banks or building society accounts. This includes standard savings accounts, fixed-term deposits, and ISAs (where eligible). While UK tax is not due, your country of residence may still tax this income, depending on local rules.
The simple answer is yes: Non-US citizens can buy any property in America with complete ownership rights. You can purchase freely whether you're an American expat considering a vacation home, investment property, or a foreign national looking at US real estate.
You cannot nominate another property as your main residence during the period you're applying this rule. If you move back into the property and live in it again, the six-year clock resets.
Individuals who are foreign residents are entitled to the CGT main residence exemption in the same way as individuals who are residents of Australia for taxation purposes.
A nonresident alien is an alien who has not passed the green card test or the substantial presence test.
As per the prevailing FEMA regulations, you are considered as an NRI if:
This is for people who live permanently in the United States. Synonymous terms for immigrant status are: Permanent Resident, immigrant, green card holder, and resident alien.