Americans in Australia 2025: The Tax Reality of Crypto & Stocks Abroad

Australia is fast becoming a haven for tech-savvy professionals and digital nomads.

21:07 22 June 2025

Australia is fast becoming a haven for tech-savvy professionals and digital nomads. Among them, an increasing number of American expats are navigating new financial terrain, particularly in crypto and stock investments. Yet, for all the upside potential, one persistent shadow follows them—US expat tax in Australia.

Yes, even if you're thousands of miles from the U.S., those investments can come with a tax tag. Here's what every American in Australia with crypto or stock exposure needs to know in 2025.

Being a Non-Resident in the U.S., But Still Required to File Taxes

Even if you live and work in Sydney or Brisbane and earn no U.S.-sourced income, as a U.S. citizen or Green Card holder, you're still legally required to file a U.S. tax return. That includes reporting gains from crypto trading, stocks, ETFs, and dividends—regardless of where your brokerage is located.

A user in a popular crypto forum shared:

“I moved to Melbourne thinking I’d left my IRS days behind. Then my accountant told me I owed taxes on crypto trades I made on Binance and Swyftx. Total shock.”

For U.S. expats investing in Australia, the IRS treats cryptocurrency as property, not currency, meaning every sale or swap is a taxable event—even if you’re paid in Bitcoin for freelance work.

Filing U.S. Taxes in Australia as a Crypto/Stock Investor

The process is more complex than your average W-2 filing. Here's what you’ll need:

1. Form 1040 – Required for all U.S. citizens abroad.
   
   
2. Schedule D and Form 8949 – Used to report capital gains or losses from crypto and stock trades.
   
   
3. Form 8938 (FATCA) – If your foreign assets exceed certain thresholds.
   
   
4. FBAR (FinCEN 114) – If the total value of your non-U.S. bank accounts exceeds $10,000 at any point.
   
   

For example, if you bought Ethereum on Swyftx and later sold it for a profit, that transaction needs to be listed—even if your gains were already taxed under the Australian Capital Gains Tax regime.

A reviewer on Trustpilot for ExpatTaxOnline shared:

“I had no idea I had to report every crypto transaction. My portfolio had hundreds of trades. The firm handled all the IRS forms for me, and they also gave me a capital gains summary I could submit to the ATO too.”

How Can I Avoid Paying Double Taxes?

Double taxation is a major fear among expats—but there are legal ways to reduce or eliminate it:

• Foreign Tax Credit (Form 1116): Offsets your U.S. tax bill with taxes paid to the ATO. Especially useful if you sold stocks or crypto and paid CGT in Australia.
  
  
• Foreign Earned Income Exclusion (FEIE - Form 2555): Can exclude up to $130,000 of salary income from U.S. taxation—but doesn’t apply to investment income.
  
  
• Treaty Benefits: The U.S.–Australia tax treaty may help, but it does not eliminate your obligation to file. Be cautious: cryptocurrency isn’t always covered by treaty provisions.
  
  

A Sydney-based American investor commented on Reddit:

“I paid CGT in Australia and then used the credit on my U.S. return. No double tax, but a lot of paperwork. I used a CPA who specializes in both systems.”

What If I’m a Green Card Holder Living in Australia?

Green Card holders are considered U.S. residents for tax purposes, even if they’ve relocated permanently. That means any crypto held on local exchanges like CoinSpot or stock accounts with Aussie brokers must be reported—just like a U.S. brokerage.

The IRS has become increasingly aggressive about tracking foreign-held digital assets under FATCA. Expect disclosures from Australian crypto exchanges to increase in 2025.

“I Never Paid Taxes at All”—Am I in Trouble?

If you’ve never filed U.S. taxes but have been investing in crypto or stocks in Australia, you might be eligible for the IRS Streamlined Filing Compliance Procedures—a penalty-free amnesty for non-willful non-filers.

Requirements:

• File 3 years of federal tax returns
  
  
• File 6 years of FBARs
  
  
• Sign a non-willfulness certification
  
  

One Perth-based tech worker recounted:

“I thought because I was a citizen only by birth, I wasn’t liable. Then my Aussie bank asked about my U.S. status due to FATCA. ExpatTaxOnline helped me through the streamlined process. No penalties, but it was stressful.”

Crypto and Stock Trends Among U.S. Expats in Australia

A 2024 survey from Finder Australia revealed:

• 28% of Australians now hold some form of cryptocurrency
  
  
• Among American expats in Australia, 52% hold U.S. or Australian-listed stocks
  
  
• Most cite retirement planning and inflation hedging as key reasons
  
  

As Australia continues to offer vibrant tech growth, especially in fintech and blockchain hubs like Melbourne, these numbers are expected to climb in 2025.

Steps to Stay Compliant with U.S. Tax While Living in Australia

Step	Action
Track all trades	Use apps like CoinTracker or Koinly for accurate logs.
Use tax pros	File via firms that understand crypto and dual taxation.
File FBAR and FATCA	Disclose accounts above reporting thresholds.
Leverage credits	Avoid double-taxation with FTC.
Streamlined program	If you’ve never filed, consider IRS amnesty options.

Final Thoughts

Investing in crypto or stocks as a U.S. expat in Australia isn’t just about portfolio strategy—it’s a tax reality check. Understanding your responsibilities under US expat tax in Australia will help you preserve your profits, avoid penalties, and build wealth confidently from abroad.

If you're unsure about your compliance status or how to declare complex crypto trades, seek expert guidance from international tax firms or consult IRS.gov for authoritative updates.

People Also Ask (PAA)

1. Do I need to report crypto held in Australian exchanges to the IRS?
   Yes. The IRS considers cryptocurrency as property. If you're a U.S. citizen or Green Card holder, you must report foreign crypto holdings and trades, even if they occurred on Australian exchanges like CoinSpot or Swyftx.
2. Can I use Australian capital gains taxes to offset U.S. crypto taxes?
   Yes. You can claim a Foreign Tax Credit (Form 1116) to reduce or eliminate U.S. tax liability if you’ve already paid tax on crypto gains to the Australian Taxation Office (ATO).
3. What if I was born in the U.S. but have lived in Australia my whole life?
   Even accidental Americans—those born in the U.S. but raised abroad—are considered U.S. citizens for tax purposes and must file U.S. tax returns unless they renounce citizenship.
4. Will the IRS know if I never filed U.S. tax returns while trading crypto abroad?
   Most likely, yes. FATCA agreements between the U.S. and Australia require financial institutions to report account details of U.S. persons. The IRS increasingly monitors foreign-held digital assets.