Buying property in Australia as a foreign buyer: complete FIRB guide (2026)

For a foreign buyer, the work starts before the first offer: FIRB approval, the application fee and the state surcharge decide what a property really costs. Budget the full amount and make any contract conditional on approval, so you aren’t bound before approval comes through.

Who is a “foreign person” under FIRB rules?

Australia’s Foreign Investment Review Board (FIRB) administers the Foreign Acquisitions and Takeovers Act 1975 (FATA). Under this legislation, a “foreign person” includes:

• Foreign nationals who are not Australian permanent residents or citizens, including people on temporary visas (student, working holiday, skilled temporary, partner visas, etc.)
• Foreign corporations. Companies incorporated outside Australia, or Australian companies where a foreign person holds 20%+, or foreign persons collectively hold 40%+
• Foreign trusts. Trusts where foreign persons hold a 40%+ interest
• The foreign government sector. Sovereign wealth funds and state-owned enterprises

Who is NOT a foreign person: Australian citizens, Australian permanent residents (PR), and New Zealand citizens who hold a Special Category Visa (subclass 444) are not foreign persons for FIRB purposes. These individuals can purchase any residential property without FIRB approval.

Note that NZ citizens on a 444 visa are treated as residents for FIRB purposes but may still be subject to foreign-purchaser duty surcharges in some states (state rules differ from the FIRB national framework).

What can foreign buyers purchase?

The type of property a foreign person can buy depends on their visa status:

Temporary residents (including temporary visa holders)

Temporary residents may purchase:

• New dwellings (subject to FIRB approval).
• Vacant land for development (subject to FIRB approval and construction conditions).

Temporary residents cannot buy an established dwelling from 1 April 2025 to 30 June 2029, even one they would live in as their main home. The only exceptions are narrow ones, such as a redevelopment that adds at least 20 dwellings, or housing for workers from Pacific Island countries and Timor-Leste. A temporary resident who bought an established home before 1 April 2025 must keep living in it and sell it within 6 months once it stops being their main home or they stop being a temporary resident.

Non-residents (living offshore)

Foreign non-residents face the most restrictions:

• They cannot buy established (existing) dwellings at all, with very limited exceptions.
• They can buy new dwellings, properties that have not been previously sold or occupied (off-the-plan apartments, newly built houses).
• They can buy vacant land for residential development, subject to conditions requiring construction to begin within 4 years.

The policy rationale is to encourage construction of new housing stock rather than foreign buyers competing with Australians for established homes.

Foreign developers

Foreign entities purchasing new dwellings for resale must obtain developer approval. Different thresholds and conditions apply. Seek specialist advice if buying through a foreign development company.

The FIRB application process

FIRB approval must generally be obtained before signing a contract. In practice, many buyers make the contract conditional on FIRB approval, meaning you can sign, but the contract is only binding once FIRB approves. Confirm the wording with your solicitor.

1. Determine if approval is required. Check the guidance at foreigninvestment.gov.au (firb.gov.au now redirects there).
2. Lodge the application. Residential applications go to the ATO, through its Online services for foreign investors. You will need details of the proposed purchase, your visa status, and supporting documents.
3. Pay the application fee. The fee is based on the purchase price and is non-refundable even if approval is denied.
4. Wait for a decision. The ATO has 30 days to decide once the fee is paid, and that can be extended to 90 days.
5. Conditions on approval. Approval is typically granted with conditions, for example, a temporary resident who bought an established home before 1 April 2025 must sell it within 6 months once it is no longer their main home.

FIRB application fees (2026 to 2027)

FIRB fees are tiered by property value. Fees are indexed annually. The fees from 1 July 2026 to 30 June 2027 for new dwellings and vacant residential land are:

Where an exception to the ban lets a foreign person buy an established dwelling, the fee is three times these amounts ($46,800 up to $1M).

These fees are substantial and non-refundable. They are not a tax, they are an administrative fee for processing the application. Always include FIRB fees in your total acquisition cost budget.

State-by-state foreign buyer stamp duty surcharges

In addition to standard stamp duty, all Australian states (except ACT and NT) impose a foreign purchaser surcharge on top of the normal stamp duty. This is a significant additional cost that many foreign buyers underestimate.

Use our Stamp Duty Calculator to estimate your total duty including the foreign surcharge.

Rates checked against each state revenue office on 30 September 2026. NSW’s surcharge rose to 9% on 1 January 2025 (it was 8%), and Queensland’s to 8% on 1 July 2024 (it was 7%). Revenue offices update rates and thresholds regularly, so verify before you transact.

Land tax surcharges for foreign owners

Most Australian states also impose an additional annual land tax surcharge on property owned by foreign persons. This is a recurring charge on top of standard land tax.

• NSW. 5% annual surcharge on the land value of residential properties owned by foreign persons (from the 2025 land tax year; it was 4%)
• VIC. 4% absentee owner surcharge (from the 2024 land tax year; it was 2%), on top of general land tax
• QLD. 3% surcharge on the taxable value above $350,000 of Queensland land owned by absentees and foreign companies or trusts
• SA. Check RevenueSA for any land tax surcharge on foreign owners before you buy
• WA. No specific foreign-owner land tax surcharge (but standard land tax applies)

Always check the current rates with the relevant state revenue office, as these surcharges have been increasing in recent years. For high-value properties, the annual land tax surcharge can amount to tens of thousands of dollars per year.

Tax implications for foreign property investors

Rental income, withholding tax

Non-resident foreign investors who earn rental income from Australian property are subject to Australian tax:

• Non-residents pay tax at 30% on the first $135,000 of Australian-sourced income (2025 to 2026 rates), with no tax-free threshold available to non-residents.
• Rental expenses (interest, management fees, rates, insurance, depreciation) are still deductible, reducing the taxable rental income.
• You must lodge an Australian tax return each year you earn Australian income.
• Withholding agents (property managers) may be required to withhold tax from rent in some circumstances.

Capital Gains Tax (CGT)

When a foreign person sells Australian residential property:

• Australian CGT applies to the capital gain.
• Foreign residents are not entitled to the main residence exemption for the period they are a foreign resident (since 2020 reforms). This is a significant tax, you cannot exempt the gain on your “home” if you were a foreign resident during the ownership period.
• The 50% CGT discount is generally available to foreign residents only for the period they were an Australian tax resident. For non-residents, no discount applies to gains accrued while a non-resident.
• Foreign Resident Capital Gains Withholding (FRCGW). For contracts signed from 1 January 2025, the buyer must withhold 15% of the purchase price on the sale of any Australian property, whatever its value, and pay it to the ATO, unless the seller gives a clearance certificate (Australian residents) or a variation notice. From 1 July 2017 to 31 December 2024 the rate was 12.5% and applied only to property worth $750,000 or more. The contract date decides, not settlement (ATO, page updated 22 June 2026).

FIRB notification on sale

If you bought under a FIRB approval with conditions, you may be required to notify FIRB when you sell. Check your approval conditions carefully.

Using a company or trust

Some foreign buyers consider purchasing through an Australian company or discretionary trust for asset protection or tax planning reasons. Key points:

• An Australian company or trust becomes a foreign person for FIRB purposes if it is controlled by foreign persons, typically if a foreign person holds 20%+ (company) or 40%+ (trust).
• Buying through a structure does not exempt you from FIRB approval requirements or foreign-purchaser surcharges, the surcharges apply to the entity making the purchase if it is a foreign person.
• A structure may have advantages for estate planning, liability limitation, or income splitting, but these benefits must be weighed against the additional compliance costs (company fees, annual returns, separate tax returns).
• Self Managed Superannuation Funds (SMSFs) have separate rules, non-residents generally cannot be trustees or members of an SMSF investing in Australian property.

Do not establish a corporate or trust structure without specific legal and tax advice.

Practical tips for foreign buyers

• Budget the full cost upfront. Add FIRB fees + foreign purchaser surcharge + standard stamp duty + conveyancing to your deposit. On a $1M property in NSW, this can easily total $130,000+.
• Engage a solicitor experienced in foreign investment before making any offers. A general-practice solicitor may not be familiar with FIRB conditions and their implications.
• Make contracts conditional on FIRB approval if you haven’t obtained it before signing. Get the wording approved by your solicitor.
• Allow at least 60 to 90 days from application to settlement when planning your purchase timeline.
• Maintain Australian tax compliance. Lodge an Australian tax return each year you have Australian income.
• Check your visa conditions. Some visa subclasses have additional restrictions on property ownership. Your migration agent can advise.
• New dwellings only (for non-residents). Focus your search on off-the-plan apartments and new builds.