Who counts as a foreign buyer. You are generally a foreign buyer if you are not an Australian citizen, a permanent resident, or a New Zealand citizen on a Special Category Visa.
FIRB approval is generally required. Foreign buyers generally require foreign investment (FIRB) approval when purchasing residential property. Foreign persons, including temporary residents, cannot buy established dwellings while the federal ban applies (in place until at least 30 June 2029). New dwellings and vacant land for development remain open with approval. The federal (FIRB) test and the Victorian duty test also differ at the edges, for example for permanent residents living overseas and New Zealand citizens, so check both.
Foreign purchaser additional duty rates (Victoria). Contracts entered from 1 July 2015 to 30 June 2016: 3% (no additional duty applied before 1 July 2015). From 1 July 2016: 7%. From 1 July 2019: 8%.
Occupancy requirement. Properties must be occupied or genuinely available for rent for at least half of the year, or face annual ATO fees.
Register with the ATO. Acquisitions must be registered within 30 days of settlement on the Register of Foreign Ownership of Australian Assets.
Protect yourself in the contract. Insert a special condition in the contract to allow you to terminate if you are unable to obtain FIRB approval before settlement, to avoid financial loss.
Penalties. Purchasing without approval may result in significant monetary penalties as well as a forced sale.
Absentee owner land tax surcharge, 4%. Victoria also charges an absentee owner land tax surcharge of 4% (from the 2024 land tax year), payable annually on top of any standard land tax. It applies to absentee owners, meaning foreign individuals who do not ordinarily reside in Australia and were absent on 31 December or for more than six months of the year, not to every foreign-owned property.
Vacant residential land tax. Separately from the federal vacancy fee, Victoria charges vacant residential land tax statewide (from 1 January 2025) where a home sits vacant for more than six months in a year: 1% of capital improved value, escalating to 2% and 3% for consecutive vacant years.
Land tax at settlement. For almost all residential purchases the seller cannot pass their own land tax on to you at settlement.
Foreign buyer duties and obligations in Victoria at a glance
| Requirement | What it is | Timing |
|---|---|---|
| FIRB approval | Foreign buyers need Foreign Investment Review Board approval to purchase | Before you sign unconditionally, protected with a FIRB special condition |
| Standard transfer duty | The normal Victorian duty on the purchase | At settlement |
| Foreign purchaser additional duty | An extra 8% (for contracts from 1 July 2019) | On top of standard duty, at settlement |
| Occupancy | Occupy it, or genuinely make it available for rent, for at least half the year, or face annual ATO fees | Ongoing |
| ATO register | Register the acquisition on the Register of Foreign Ownership of Australian Assets | Within 30 days of settlement |
| Absentee owner land tax surcharge | An extra 4% (from 2024) | Annual, while absentee-owned |
General information only, not legal advice. Foreign-ownership rules and duty rates change, so confirm the current figures with the State Revenue Office and your conveyancer before you rely on them.
