Who counts as a foreign buyer in Victoria?
You are generally treated as a foreign buyer if you are not an Australian citizen, not a permanent resident, and not a New Zealand citizen holding a Special Category Visa. The federal (FIRB) and Victorian duty tests differ at the edges, for example permanent residents living overseas and New Zealand citizens, so check both before you sign.
Do foreign buyers need FIRB approval?
Yes. Foreign buyers generally need Foreign Investment Review Board (FIRB) approval before purchasing property. Insert a special condition in the contract that lets you terminate if you cannot obtain FIRB approval before settlement, so you avoid financial loss. Buying without approval can lead to significant monetary penalties as well as a forced sale.
Can foreign buyers purchase established dwellings?
Since 1 April 2025, foreign persons, including temporary residents, have been banned from purchasing established dwellings unless a limited exception applies, such as an investment that significantly increases housing supply. This is a Federal measure administered by the ATO and is in place until at least 30 June 2029. Permanent residents and New Zealand citizens remain outside the ban. Confirm the current rules before you sign.
What extra duty do foreign buyers pay in Victoria?
On top of standard land transfer (stamp) duty, foreign buyers pay a foreign purchaser additional duty. Contracts entered from 1 July 2015 to 30 June 2016: 3% (there was no additional duty before 1 July 2015). From 1 July 2016 onwards: 7%. From 1 July 2019 onwards: 8%. For a plain-English view of the other costs at settlement, see what conveyancing costs across Queensland, NSW and Victoria and what conveyancing disbursements are.
What ongoing obligations apply after settlement?
Register with the ATO. Register the acquisition within 30 days of settlement on the Register of Foreign Ownership of Australian Assets.
Keep it occupied. The property must be occupied or genuinely available for rent for at least half of the year, or you may face an annual vacancy fee from the ATO.
Absentee owner land tax surcharge. Victoria also charges an absentee owner land tax surcharge of 4% (from the 2024 land tax year) on land held by absentee owners, payable annually on top of any standard land tax. For a natural person, being an absentee owner turns on being a foreign natural person who does not ordinarily reside in Australia and who was absent from Australia on 31 December, or for more than six months in the calendar year.
Vacant residential land tax. Separately from the Federal vacancy fee, Victoria has a vacant residential land tax that can apply to homes left vacant. It is a distinct state tax, so confirm the current settings and rates with the State Revenue Office.
Land tax at settlement. In Victoria, a vendor generally cannot pass land tax on to the buyer as a settlement adjustment. Under section 10G of the Sale of Land Act 1962, this applies where the sale price is below an indexed threshold ($10.4 million as at 1 January 2025), which covers effectively all residential sales.
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 — protect yourself 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. Confirm the current figures with the State Revenue Office and your conveyancer before you rely on them.
