Foreign Investment in Residential Property (AU) (2026)
About this article
Sourced from Commonwealth Acts of Parliament, federal regulations, and official government guidance. State-level information reflects each state's own Acts and court decisions. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
Compare by state
Statute citations are verified per state. Select a state to jump to its full section below.
| Primary statute | |
|---|---|
| New South Wales | Duties Act 1997 (NSW) |
| Queensland | Foreign Acquisitions and Takeovers Act 1975 (Cth) |
| South Australia | Foreign Acquisitions and Takeovers Act 1975 (Cth) |
| Tasmania | Duties Act 2001 (Tas) — foreign investor surcharge |
| Victoria | Duties Act 2000 (Vic) |
| Western Australia | Foreign Acquisitions and Takeovers Act 1975 (Cth) |
What is this right?
Non-residents and temporary visa holders who want to buy residential property in Australia need approval from the Foreign Investment Review Board (FIRB) before settling. The rule applies to all foreign persons, including temporary residents on student, work, or bridging visas — a fact that catches a lot of newcomers off guard.
From 1 April 2025 to 31 March 2027 there is a temporary statutory ban on foreign persons (including temporary residents) purchasing established dwellings — full stop, subject to narrow exemptions (permanent residents' principal place of residence, investor migration program holders, Pacific worker housing). The ATO's Residential Real Estate compliance team is funded specifically to enforce the ban. New dwellings and vacant land (with the 24-month construction-start condition) remain available.
Once the ban lifts (subject to government extension), the prior regime returns: temporary residents can apply to buy one established dwelling to live in (not for investment), and any number of new dwellings or vacant land. Non-residents living overseas can generally only buy new dwellings — established homes are off-limits.
FIRB application fees scale with property value. Established dwellings up to $1 million: fee of $14,100. Between $1–2 million: $28,200. Fees climb from there, and they double for vacant land if construction isn't completed in the required window.
Penalties for buying without FIRB approval are severe and rising: criminal penalties of up to $313,500 or 3 years' imprisonment for individuals; civil penalties of up to 25% of the property's value; and the ATO can issue a disposal order forcing the sale. The Treasury has been visibly more aggressive on enforcement in recent years.
When does it apply?
- You are a foreign person — a non-citizen who is not a permanent resident — and want to buy residential property in Australia.
- You hold a temporary visa (student, 482, 491, bridging) and want to buy a home to live in.
- You are an Australian citizen or permanent resident buying jointly with a foreign-person spouse — FIRB approval may still be required.
- You are buying vacant residential land and intend to build within 24 months.
What to Do If You Are a Foreign Buyer Seeking to Purchase Australian Property
- Apply to FIRB before signing a contract — approval must be in place before you acquire an interest in the property. Apply online at firb.gov.au.
- Pay the application fee at the time of application — fees are non-refundable even if your application is refused or you do not proceed with the purchase.
- Include a FIRB condition in the contract of sale — this protects you if approval is not granted.
- Comply with conditions — if approved for vacant land, you must commence continuous construction within 24 months and report progress to FIRB.
- Sell the established property when your visa ends — temporary residents must sell within a reasonable timeframe after departing Australia permanently.
What should you NOT do?
- Don't buy property without FIRB approval — penalties include forced sale, criminal charges, and fines up to 25% of the property's value.
- Don't use an Australian nominee to buy property on your behalf to avoid FIRB — this is a criminal offence for both parties.
- Don't leave vacant land undeveloped — failure to start building within 24 months can result in a disposal order and doubled fees.
- Don't assume New Zealand citizens are exempt — NZ citizens who are not ordinarily resident in Australia are still foreign persons under the Act.
About Housing Rights in Australia
Tenancy rules sit with your state — Victoria's RTA, NSW's RTA, Queensland's RTRA — each with its own tribunal. Federally, Commonwealth Rent Assistance tops up income support for low-income renters, and the First Home Guarantee lets eligible buyers in with a 5% deposit and no LMI. Discrimination in housing is banned by the Racial Discrimination Act 1975, Sex Discrimination Act 1984, and Disability Discrimination Act 1992. If your mortgage is unmanageable, the National Consumer Credit Protection Act 2009 gives you hardship-variation rights.
Worked Examples
ScenarioA temporary resident in Australia wants to buy an existing house to live in.
OutcomeUnder the established-dwelling ban (1 April 2025 to 31 March 2027), foreign persons — including most temporary residents — generally cannot acquire an established dwelling, even as a principal residence, subject to limited exceptions. A new build or vacant land may still be possible with FIRB approval. Buying without approval is a serious breach, with significant civil and criminal penalties.
Verified against foreigninvestment.gov.au: established-dwelling ban 1 April 2025 to 31 March 2027 with limited exceptions; individual approvals normally required. Educational information, not legal advice.
Common Questions
Who is a 'foreign person' for FIRB?
Generally individuals who aren't an Australian or New Zealand citizen, and aren't holders of an Australian permanent resident visa. It also covers companies and trusts substantially controlled by foreign persons. Status is tested at the time of acquisition — not when contracts are exchanged or settled.
Can a foreign person buy any residential property?
Foreign persons are generally banned from buying established (existing) dwellings between 1 April 2025 and 31 March 2027, subject to limited exceptions. New dwellings and vacant residential land may still be permitted with FIRB approval. Different rules and conditions apply to different categories.
What happens if a foreign person buys without approval?
Acquiring an interest in residential land without required approval is a serious breach. Penalties can include forced disposal of the property, civil penalty orders, and in some cases criminal prosecution. The ATO has dedicated compliance teams enforcing residential foreign investment law.
Do states charge extra for foreign buyers?
Yes. On top of the federal FIRB regime, each state and territory imposes its own surcharges on foreign buyers — typically additional stamp duty at purchase and ongoing additional land tax. Rates vary significantly by state; check your state's section above and the state revenue office for current figures.
What is the foreign investment in residential property right in Australia?
Non-residents and temporary visa holders who want to buy residential property in Australia need approval from the Foreign Investment Review Board (FIRB) before settling. The rule applies to all foreign persons, including temporary residents on student, work, or bridging visas — a fact that catches a lot of newcomers off guard.From 1 April 2025 to 31 March 2027 there is a temporary statutory ban on foreign persons (including temporary residents) purchasing established dwellings — full stop, subject to narrow exemptions (permanent residents' principal place of residence, investor migration...
When does foreign investment in residential property apply?
You are a foreign person — a non-citizen who is not a permanent resident — and want to buy residential property in Australia.You hold a temporary visa (student, 482, 491, bridging) and want to buy a home to live in.You are an Australian citizen or permanent resident buying jointly with a foreign-person spouse — FIRB approval may still be required.You are buying vacant residential land and intend to build within 24 months.
What should I do to get FIRB approval before buying residential property in Australia as a foreign person?
Apply to FIRB before signing a contract — approval must be in place before you acquire an interest in the property. Apply online at firb.gov.au.Pay the application fee at the time of application — fees are non-refundable even if your application is refused or you do not proceed with the purchase.Include a FIRB condition in the contract of sale — this protects you if approval is not granted.Comply with conditions — if approved for vacant land, you must commence continuous construction within 24 months and report progress to FIRB.Sell the established property when your visa ends — temporary...
What mistakes should I avoid with foreign investment in residential property?
Don't buy property without FIRB approval — penalties include forced sale, criminal charges, and fines up to 25% of the property's value.Don't use an Australian nominee to buy property on your behalf to avoid FIRB — this is a criminal offence for both parties.Don't leave vacant land undeveloped — failure to start building within 24 months can result in a disposal order and doubled fees.Don't assume New Zealand citizens are exempt — NZ citizens who are not ordinarily resident in Australia are still foreign persons under the Act.
State-by-state details
New South Wales
Primary statute: Duties Act 1997 (NSW)
Foreign investment in NSW residential property is subject to both the federal Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA) and the NSW-specific surcharge purchaser duty and surcharge land tax.
- NSW imposes a surcharge purchaser duty of 8% (on top of normal stamp duty) on foreign persons acquiring residential property in NSW (Duties Act 1997 (NSW), Chapter 2A, Part 2).
- Foreign owners of residential land in NSW are also liable for surcharge land tax at 4% per annum (Land Tax Act 1956 (NSW)), on top of the standard land tax rates.
- Certain exemptions apply for citizens of countries with bilateral tax treaties that contain non-discrimination clauses (e.g., New Zealand, Finland, Germany, Japan, and others). These exemptions are managed by Revenue NSW.
- The federal FIRB approval requirement and application fees still apply to all foreign purchases in NSW. Vacant residential property attracts additional federal vacancy charges.
Queensland
Primary statute: Foreign Acquisitions and Takeovers Act 1975 (Cth)
Foreign investment in residential property is regulated federally by the Foreign Acquisitions and Takeovers Act 1975 (Cth). Queensland imposes an additional surcharge on foreign buyers.
- Queensland imposes an Additional Foreign Acquirer Duty (AFAD) of 8% on top of the normal transfer duty when a foreign person acquires residential property in Queensland, under the Duties Act 2001 (Qld).
- Queensland also imposes a land tax surcharge of 2% on foreign-owned residential land (in addition to ordinary land tax), under the Land Tax Act 2010 (Qld).
- These surcharges apply to foreign individuals, foreign corporations, and trustees of foreign trusts. Some exemptions apply for Australian permanent residents and citizens of certain treaty countries (e.g., New Zealand).
- FIRB approval is still required for most foreign acquisitions of residential property. Foreign buyers generally can only purchase new dwellings or vacant land for development (not established homes).
South Australia
Primary statute: Foreign Acquisitions and Takeovers Act 1975 (Cth)
Foreign investment in SA residential property is subject to the federal Foreign Acquisitions and Takeovers Act 1975 (Cth) and SA-specific surcharges introduced in recent years.
- SA imposes a foreign ownership surcharge on stamp duty of 7% (on top of normal stamp duty) for foreign purchasers of residential property, under the Stamp Duties Act 1923 (SA).
- SA also imposes a land tax surcharge of 2% on residential land owned by foreign persons, under the Land Tax Act 1936 (SA).
- Federal FIRB approval is required before any foreign person acquires residential property in SA. Application fees apply and vary based on the property value.
- Vacant property owned by foreign persons may attract additional federal vacancy charges if the property is not genuinely occupied or available for rent for at least 183 days per year.
Tasmania
Primary statute: Duties Act 2001 (Tas) — foreign investor surcharge
Foreign investment in Tasmanian residential property is subject to the federal Foreign Acquisitions and Takeovers Act 1975 (Cth) and Tasmania-specific duty surcharges.
- Tasmania imposes a foreign investor duty surcharge of 8% on the purchase of residential property by foreign persons, under the Duties Act 2001 (Tas). This is on top of normal conveyance duty.
- Tasmania also imposes a foreign investor land tax surcharge of 2% on residential land owned by foreign persons, under the Land Tax Act 2000 (Tas).
- Federal FIRB approval is required before any foreign person acquires residential property in Tasmania. Application fees vary based on the property value.
- Vacant property owned by foreign persons may attract additional federal vacancy charges if the property is not genuinely occupied or available for rent for at least 183 days per year.
Victoria
Primary statute: Duties Act 2000 (Vic)
Foreign investment in Victorian residential property is subject to both federal FIRB requirements and Victorian-specific surcharges administered by the State Revenue Office (SRO).
- Victoria imposes a surcharge duty of 8% on foreign purchasers of residential property (Duties Act 2000 (Vic), Part 4A), on top of standard land transfer duty.
- Foreign owners of land in Victoria pay absentee owner surcharge land tax at 4% per annum (Land Tax Act 2005 (Vic)), in addition to standard land tax rates.
- Victoria also has a vacant residential land tax (1% of the capital improved value) for properties in inner and middle Melbourne that are left vacant for more than 6 months in a calendar year — this applies to all owners, not just foreign owners (Vacant Residential Land Tax Act 2017 (Vic)).
- Certain exemptions from the foreign purchaser surcharge duty exist for citizens of countries with specific bilateral investment treaties or tax treaties containing non-discrimination articles.
Western Australia
Primary statute: Foreign Acquisitions and Takeovers Act 1975 (Cth)
Full Western Australia guide →Foreign Investment in Residential Property in other states
Same topic, different jurisdiction. Pick the one that applies to you.
- New South WalesForeign Investment in Residential Property
- VictoriaForeign Investment in Residential Property
- QueenslandForeign Investment in Residential Property
- Western AustraliaForeign Investment in Residential Property
- South AustraliaForeign Investment in Residential Property
- TasmaniaForeign Investment in Residential Property