Foreign Investment in Residential Property in Australia

By Ahmed Alsaedi, Founding Editor

Source: Foreign Acquisitions and Takeovers Act 1975 (Cth); Foreign Acquisitions and Takeovers Fees Imposition Act 2015 (Cth); Foreign Investment Reform (Protecting Australia's National Security) Act 2020 (Cth)

Reviewed by the Commoner Law Editorial Team. 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

Australian Federal Law

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.

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 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.

State Law

Use the jurisdiction bar at the top of the page to pick your state — you'll see how state law differs from Australian federal law.

6 states available

Common Questions

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 resi...

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.

Foreign Investment in Residential Property in other states

Same topic, different jurisdiction. Pick the one that applies to you.