FIRB approval, before you sign. Foreign persons must obtain approval to purchase residential real estate in Australia, regardless of property value. Approval should be in place before your contract becomes unconditional, and buyers commonly sign subject to a FIRB approval condition. 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. Foreign persons, including temporary residents, cannot buy established dwellings while the federal ban applies (in place until at least 30 June 2029), with only limited exceptions for investments that significantly increase housing supply. New dwellings and vacant land for development remain open with approval.
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, and it stacks on top of standard transfer duty. Since 8 April 2024 the surcharge applies to all foreign persons regardless of nationality, so the former tax-treaty exemptions (New Zealand, Germany, Finland, South Africa and others) no longer apply.
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, with no tax-free threshold.
Penalties. Acquiring residential property without the required approval, or breaching approval conditions, can lead to significant penalties, including orders to sell 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 isn't occupied, or genuinely available for rent, for at least 183 days in a year, the ATO may impose an annual vacancy fee, generally double the foreign investment application fee, for vacancy years starting on or after 9 April 2024. Application fees for established dwellings tripled at the same time.
NSW foreign-buyer costs at a glance
| Item | Rate / requirement | Timing |
|---|---|---|
| FIRB approval | Required to purchase | Before you sign unconditionally, using a FIRB special condition |
| Standard transfer duty | Normal NSW rates | At or 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, so confirm current figures with Revenue NSW and your conveyancer.
