FIRB approval — before you sign. Foreign persons must obtain approval to purchase residential real estate in Australia, regardless of property value. In NSW, approval must be obtained before entering into a contract. Applications are submitted via 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.
What you can buy. Non-resident foreign persons generally cannot purchase established dwellings, while temporary residents may purchase one established dwelling as their principal residence.
Surcharge purchaser duty — 9%. Foreign persons in NSW pay surcharge purchaser duty calculated at 9% (effective 1 January 2025) of the greater of the purchase price and property value. This must be paid by the earlier of the settlement date or 3 months from the contract date.
Surcharge land tax — 5%. In addition, foreign owners pay surcharge land tax at 5% (from the 2025 land tax year) once they become legal property owners.
Penalties. Failure to obtain FIRB approval before signing a contract is an offence resulting in fines, imprisonment and forced sale of the property.
Register with the ATO. Within 30 days of settlement, foreign persons must register their acquisition on the Register of Foreign Ownership of Australian Assets using the ATO's online notification system.
Vacancy fees. If the property remains unoccupied and unavailable for rent for less than half the year, the ATO may impose an annual vacancy fee equal to the foreign investment application fee.
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 |
| 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 |
General information only — not legal advice; foreign-ownership rules and rates change. Confirm current figures with Revenue NSW and your conveyancer.