Foreign buyers purchasing property

Can a foreigner buy property in Australia? Yes. Foreign persons can buy certain types of Australian residential property, but different rules apply depending on their status and the property. Approval may be required before entering into a contract, and until 30 June 2029 foreign persons, including temporary residents, generally can't buy established homes.

Buying as a foreign person runs on a separate set of rules to a resident purchase. Getting those rules wrong can have serious financial consequences, so it's worth understanding the process before you commit to a property.

It helps to understand the shape of the whole process: approval may be required before you buy, you can only buy certain kinds of property, you may pay extra state-based charges on top of the usual costs, and there can be ongoing obligations once you own it.

This guide frames those moving parts at a high level. The exact rates and thresholds differ by state and change over time, so the linked explainers below carry the current figures.

Who is considered a foreign buyer in Australia?

Australian foreign investment rules use the concept of a "foreign person", which can include individuals and entities with different citizenship, residency or ownership circumstances. Whether the rules apply to you depends on your status and how you are buying the property. The foreign buyers explainer covers who counts as a foreign person.

Key takeaways

• Approval may be required before you commit to a residential property: whether you need approval, when it must be obtained and what you can buy depends on your circumstances and the property.
• What you can buy is limited: from 1 April 2025 to 30 June 2029, foreign persons, including temporary residents, are generally banned from buying established homes, with limited exceptions. New dwellings, off-the-plan property and vacant land can generally still be bought with approval.
• Expect extra state charges: foreign buyers may pay costs an Australian buyer of the same property would not, including additional transfer duty and, in some states, a land tax surcharge. The amounts vary by state and change from time to time.
• There can also be ongoing obligations after settlement, including ATO registration and vacancy-fee requirements for relevant properties.
• Make sure the contract deals clearly with what happens if the required approval isn't obtained in time. Your conveyancer can help you understand what protection the contract provides before you commit.

1. Approval before you commit

Where approval is required, it isn't something to treat as an administrative step to sort out after you've committed to the purchase.

The timing matters. Either obtain approval before you sign, or make sure the contract is expressly subject to foreign investment approval. Don't sign an unconditional contract planning to arrange approval before settlement.

FIRB and the ATO. People commonly refer to "FIRB approval", after the Foreign Investment Review Board. Foreign investment applications are now handled through the ATO's foreign investment system, so you may see both names used for the same process.

Application fees are generally non-refundable if the purchase doesn't proceed, so it pays to be confident in the property first. Buying without the approval you needed can have serious consequences, including penalties and, in some circumstances, a requirement to dispose of the property. That is why this step sits at the front of the process rather than the back. For the mechanics of who counts as a foreign person and how to apply, see the Foreign buyers purchasing property explainer.

2. What you're allowed to buy

The rules distinguish between different types of residential property, which is why a new dwelling and an established home can have very different eligibility.

In practice, approval typically covers vacant land for development, residential development, or newly constructed and off-the-plan dwellings. From 1 April 2025 to 30 June 2029, foreign persons are generally banned from buying established dwellings, with limited exceptions. The ban includes temporary residents who want to buy a home to live in, which was previously possible with approval.

Confirm a property falls within what you're permitted to buy before you get attached to it. The category of dwelling, not just the price, can determine whether the purchase is open to you.

Can a foreign buyer buy an established home in Australia?

Generally not at the moment. From 1 April 2025 to 30 June 2029, foreign persons, including temporary residents, are generally banned from buying established dwellings, with limited exceptions. Check eligibility before making an offer or signing a contract.

Can a foreign buyer purchase property with an Australian citizen or permanent resident?

Buying jointly can change how the foreign investment rules apply. The answer depends on who is buying, how the property is held and the relevant state rules, so check your circumstances before signing.

3. What extra costs do foreign buyers pay?

Foreign buyers may pay costs that an Australian buyer of the same property would not. These can include additional transfer duty and land tax surcharges, depending on the state and the buyer's circumstances.

These charges are set by each state's revenue office, calculated differently, and change from time to time. This guide keeps the comparison qualitative and points you to each state's explainer for the current figures. Treat the table below as a map of what to budget for, then get the exact rate from the relevant page before you sign.

The rates and the way each charge is calculated are set out in those state explainers. Always confirm the current figure there rather than relying on a number you saw quoted elsewhere, as these charges have been revised more than once in recent years.

4. What to check before and after settlement

Before signing

• Approval: whether you need it, and by when. Without a contract term dealing with what happens if approval isn't obtained in time, a failed or delayed approval can leave you exposed.
• Property eligibility: committing to a property you're not permitted to hold can have serious consequences, including a requirement to dispose of it.
• Contract protection: make sure the contract deals clearly with what happens if the required approval isn't obtained in time.
• Additional costs: any additional transfer duty, on top of the standard costs of buying.

After settlement

• Registration: there can be post-settlement registration requirements with the ATO, depending on the investment and your circumstances. This is easy to overlook once the keys are in hand.
• Occupancy and availability: where a vacancy fee applies, it can depend on whether the property is occupied or genuinely available for rent.
• Ongoing state obligations: land tax, and any surcharge that applies to foreign owners.

5. Questions to ask before you sign

• Can I legally buy this property?
• Do I need approval before I sign, or before settlement?
• Does this property qualify?
• What additional costs will I pay, on top of the standard costs of buying?
• What happens if approval is delayed or refused?
• What do I need to do after settlement?

Foreign property purchases have more moving parts than a resident purchase. A conveyancer can help you understand how the contract, approval and settlement process fit together, and flag issues before you commit.

This guide is general information, not legal or tax advice. Foreign investment rules and state charges change; confirm the current position on the state explainers and with a licensed conveyancer or solicitor before you commit.