Foreign buyers purchasing property

Buying property in Australia as a foreign person is entirely possible, but it runs on a separate set of rules to a resident purchase — and getting those rules wrong is one of the few mistakes in property that can cost you the property itself. Before you fall for a home, it helps to understand the shape of the whole process: you generally need federal approval before you buy, you can only buy certain kinds of property, you pay extra state-based charges on top of the usual costs, and you carry 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.

Key takeaways

• Approval comes first: foreign buyers generally need Foreign Investment Review Board (FIRB) approval before purchasing residential property, regardless of the property's value.
• What you can buy is limited: approval is usually confined to new dwellings or vacant land for development — established homes are largely off-limits to non-residents.
• Expect extra state charges: foreign buyers pay additional state-based duty (and, in some states, a land tax surcharge) on top of standard costs — the amounts vary by state.
• The obligations don't end at settlement: you must register the purchase with the ATO after settlement, and keep the property occupied or genuinely available for rent to avoid an annual vacancy fee.
• Protect yourself in the contract: a special condition letting you exit if approval isn't granted in time is the single most important safeguard.

1. Approval before you commit

The first thing to understand is the sequence: for a foreign person, approval is a precondition of buying, not a formality you tidy up afterwards. Applications are made to the ATO through its online service for foreign investors, and the timing matters — in some states approval must be in place before you even enter into the contract, not merely before settlement. 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 is an offence, and the consequences can extend to penalties and a forced sale — which is exactly 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

Foreign investment rules steer overseas buyers toward property that adds to Australia's housing supply. In practice that means approval typically covers vacant land for development, residential development, or newly constructed dwellings, while non-resident foreign persons generally cannot purchase established dwellings. Temporary residents sit in a middle category with narrower allowances, usually tied to living in the home themselves. The takeaway at this altitude is simple: confirm a property falls within what you're permitted to buy before you get attached to it, because the category of dwelling — not just the price — determines whether the purchase is even open to you.

Foreign-buyer surcharges by state at a glance

Federally, you also need FIRB approval before an unconditional contract, must register on the Register of Foreign Ownership of Australian Assets within 30 days of settlement, and may face an annual vacancy fee if the home isn't occupied or genuinely available for rent for at least 183 days a year. Rates change — confirm current figures with the relevant state revenue office.

3. The extra costs, state by state

Beyond the standard purchase costs every buyer faces, foreign buyers carry additional state-based charges. These are set by each state's revenue office, calculated differently, and change from time to time — so 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 watch — and the ongoing obligations

A foreign purchase carries a few risks and duties that a resident purchase doesn't, and most of them are avoidable if you know they exist:

• Approval falling through: without a contract condition allowing you to terminate if approval isn't granted in time, a failed or delayed approval can leave you exposed to serious financial loss.
• Buying the wrong category of dwelling: committing to an established home you're not permitted to hold can trigger a forced sale.
• Missing the registration step: foreign owners must register the acquisition with the ATO after settlement — this is easy to overlook once the keys are in hand.
• Vacancy fees: if the property isn't occupied or genuinely available for rent for enough of the year, the ATO may charge an annual vacancy fee.
• A change in your status: in some states, a change in your foreign status within a set period after buying creates fresh notification obligations.

5. Questions to ask before you sign

• Do I have (or can I obtain) FIRB approval before the point my state requires it?
• Is this property a category I'm actually permitted to buy?
• What is the current additional duty in this state, and have I budgeted for it on top of standard duty?
• Does my contract include a special condition letting me terminate if approval isn't granted?
• Can I meet the occupancy or availability requirement, or should I expect a vacancy fee?

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.