Foreign Investment in Residential Property
Written in plain language for general understanding. This is educational content, not legal advice. Based on Commonwealth Acts of Parliament, federal regulations, and official government guidance.
What is this right?
Non-residents and temporary visa holders who want to buy residential property in Australia must get approval from the Foreign Investment Review Board (FIRB) before purchasing. This rule applies to all foreign persons, including temporary residents on student, work, or bridging visas.
Temporary residents can apply to buy one established dwelling to live in (not for investment), and any number of new dwellings or vacant land (provided construction starts within 24 months). Non-residents (people living overseas) can generally only buy new dwellings — not established homes.
FIRB application fees depend on the property value. For established dwellings up to $1 million, the fee is $14,100. For properties between $1–2 million, it is $28,200. Fees increase with property value and are doubled for vacant land if construction is not completed within the required timeframe.
Penalties for buying without FIRB approval are severe: criminal penalties of up to $313,500 or 3 years imprisonment for individuals, and civil penalties of up to 25% of the property's value. The ATO can also issue a disposal order forcing you to sell the property.
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 should you do?
- 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.
Legal Resources
We may earn a commission if you use these services — at no extra cost to you. This supports our mission to make legal information free for everyone.