Thinking about investing in real estate in Australia? For overseas buyers, the process can feel complicated—especially when laws differ across different states in Australia. This guide breaks down the essentials: from FIRB requirements to tax implications and legal restrictions.
1. FIRB Approval – The Essential Starting Point
If you’re not an Australian citizen or permanent resident, getting approval from the Foreign Investment Review Board (FIRB) is typically the first step before buying property in Australia. This process ensures that foreign investment aligns with the country’s economic and housing goals.
Who needs FIRB approval?
Foreign individuals or entities (non-residents)
Temporary visa holders
Overseas corporations and trusts
What properties can you buy?
New builds: Generally allowed
Vacant land: Permitted, but building must start within four years
Established homes: Heavily restricted—only allowed in very limited circumstances
Helpful tip: Always apply for FIRB approval before committing to a purchase. If you’re making an offer, include a condition making the contract subject to FIRB approval.
2. Understanding the Tax Landscape
Which states charge additional duty for foreigners?
In Australia, foreigners are subject to a stamp duty surcharge ranging from 7-8% on top of standard stamp duty rates in some states and territories. The surcharge is typically applied to foreign buyers who are not permanent residents of Australia
These vary by location and can significantly affect your budget.
Additional Foreign Acquirer Duty (AFDA) Stamp Duty Surcharges (2025):
NSW: 9%
Victoria: 8%
Queensland: 8%
- South Australia: 7%
Land Tax Surcharges (2025):
NSW: 5%
Victoria: 4%
Queensland: 3%
- South Australia: No additional surcharge applies
These charges apply in addition to normal rates and should be factored into your long-term cost estimates.
Capital Gains Tax (CGT):
Non-residents are liable for CGT on Australian property sales, without the 50% discount available to residents. The ATO has also tightened compliance measures in recent years, so accurate reporting is crucial.
3. Legal Limits on What You Can Buy
Australia’s foreign investment policy is aimed at boosting housing supply—not adding pressure to the existing market. New restrictions introduced in 2025 reflect this goal.
Temporary Ban on Established Properties (2025–2027):
From 1 April 2025 to 31 March 2027, foreign buyers are generally not allowed to purchase second-hand (established) residential properties. The aim is to reserve more homes for Australian residents.
Permitted Purchases Include:
New dwellings (approved developments)
Off-the-plan apartments (meeting certain criteria)
Vacant land (if developed within four years)
4. Choosing the Right Ownership Structure
How you hold your property can make a big difference in terms of taxes and compliance.
Common ownership options:
In your personal name
Through an Australian company
Via a trust (unit or discretionary)
Important Note: Even if a trust might distribute to a foreign beneficiary, it may still trigger foreign owner surcharges. Likewise, companies with overseas shareholders are generally not exempt from these charges.
A smart structure—designed with guidance from a tax expert and property lawyer—can protect your investment and prevent future headaches.
5. What are the property taxes for non – residents in Australia?
Non-residents in Australia face several property-related taxes, including:
- Stamp Duty: Non-residents often pay an additional surcharge on top of the standard stamp duty, which can range from 7-8% in states like New South Wales and Victoria.
- Land Tax: Non-residents are subject to land tax, with additional surcharges in some states. For instance, NSW imposes a 4% surcharge on residential land owned by non-residents, while Victoria levies a 2% absentee owner surcharge.
- Foreign Investment Review Board (FIRB) Application Fees: Non-residents must obtain FIRB approval for property purchases, incurring application fees based on the property value.
- Capital Gains Tax (CGT): Non-residents are liable for CGT on Australian property sales, without the 50% discount available to residents.
- Vacancy Fee: A fee equivalent to the FIRB application fee may apply to foreign-owned residential properties vacant for more than six months per year.
It’s important to note that specific tax rates and rules vary across states and territories.
Summary – Key Points for Foreign Buyers
Thinking of buying in NSW, Victoria, or Queensland? Keep these essentials in mind:
✅ FIRB approval is almost always required—apply early
✅ Plan for stamp duty and land tax surcharges
✅ Know which types of property you’re allowed to buy
✅ Choose the right ownership structure to avoid extra taxes
✅ Work with a qualified team to manage contracts and compliance
If you’re considering an investment Azzato Property Group – Buyers Agent can connect you with our professional colleagues for proper guidance. Make sure you’re not just compliant—but also set up for long-term success.
Need help navigating the process? Reach out to a qualified property lawyer and accountant that understands the Foreign Investment rules or buyers’ agent experienced in working with international clients. We can put you in contact with our professional colleagues.
Ready to begin shaping your financial future? We work with a select group of clients at a time, so availability is limited. Take the next step and secure your FREE discovery call today.
Disclaimer This guide provides general information and is not a substitute for professional legal, tax, or investment advice. Consult professionals for advice tailored to your circumstances. If you’d like to know more, we are happy to put you in contact with our team of experts.