Do foreign buyers need FIRB approval in NSW?
Yes. Foreign persons must obtain Foreign Investment Review Board (FIRB) approval to purchase residential real estate in Australia, regardless of property value. Approval must be in place before the purchase completes, so buyers usually sign the contract subject to a FIRB approval condition. Applications are submitted through ATO Online Services for foreign investors. The process takes up to 30 days from receipt of full application fees, plus 10 days for notification, and may extend by up to 90 days if further assessment is needed.
Can foreign buyers purchase an established home?
Generally no, for now. From 1 April 2025 to 30 June 2029, foreign persons, including temporary residents and foreign-owned companies, are banned from buying established dwellings in Australia unless a limited exception applies. Foreign investment is instead directed towards new dwellings and vacant residential land that adds to housing supply. Because this measure has been extended and could change again, confirm the current rules before you commit.
What is surcharge purchaser duty in NSW?
Foreign persons buying residential property in NSW pay surcharge purchaser duty at 9% (effective 1 January 2025) of the greater of the purchase price and property value. It is paid on top of standard transfer duty, and must be paid by the earlier of the settlement date or 3 months from the contract date. Since 8 April 2024, the surcharge applies to all foreign persons regardless of nationality, as the former tax-treaty exemptions no longer apply.
What is surcharge land tax?
Foreign owners of residential land in NSW also pay surcharge land tax at 5% (from the 2025 land tax year), charged annually for as long as they own the property. It applies in addition to any standard land tax.
What are the penalties for skipping FIRB approval?
Buying without the required FIRB approval breaches the foreign investment rules and can lead to significant fines, criminal penalties and orders to sell the property. That is why the FIRB condition matters before you are locked into a purchase.
What do foreign buyers do after settlement?
Register with the ATO. Within 30 days of settlement, foreign persons must record their acquisition on the Register of Foreign Ownership of Australian Assets using the ATO's online notification system.
Watch the vacancy fee. If a dwelling is not occupied, or not genuinely available for rent, for at least half the year, the ATO can impose an annual vacancy fee. For vacancy years starting on or after 9 April 2024, the fee is generally double the foreign investment application fee, so check the current amount before you buy.
NSW foreign-buyer costs at a glance
| Item | Rate / requirement | Timing |
|---|---|---|
| FIRB approval | Required to purchase | Before you sign unconditionally — use a FIRB special condition |
| Established dwellings | Ban on foreign purchases (limited exceptions) | 1 April 2025 to 30 June 2029 |
| Standard transfer duty | Normal NSW rates | At/near settlement |
| Surcharge purchaser duty | 9% (from 1 January 2025) | On top of standard duty |
| Surcharge land tax | 5% (2025 land tax year) | Annual, while foreign-owned |
| ATO register | Register of Foreign Ownership of Australian Assets | Within 30 days of settlement |
Because the surcharges and standard duty stack up, it helps to line up a conveyancer who itemises every cost before you commit.
General information only — not legal advice; foreign-ownership rules and rates change. Confirm current figures with Revenue NSW, the ATO and your conveyancer.
