Buying property in Australia as a foreigner: FIRB rules and what you can purchase

Who counts as a foreign person

Under Australia's foreign investment framework, a "foreign person" includes any individual who is not an Australian citizen and not an Australian permanent resident. This means temporary visa holders (482, 500, 485, 462, and all other temporary visas), non-resident foreign nationals who have never lived in Australia, and New Zealand citizens who do not hold a permanent visa (though NZ citizens have some special provisions).

Permanent residents and Australian citizens are not subject to FIRB restrictions on residential property purchases. Once you are granted permanent residency, you can buy any type of property — new or established — without FIRB approval and without the foreign buyer surcharges.

This distinction makes the timing of your property purchase relative to your visa status critically important. Buying before permanent residency triggers FIRB approval requirements, application fees, and ongoing surcharges. Buying after permanent residency avoids all of these.

What foreign persons can and cannot buy

The rules differ depending on the type of property and the buyer's visa status (FIRB Guidance Note 3).

New dwellings (properties that have not been previously sold or occupied as a residence) can be purchased by any foreign person with FIRB approval. There is no restriction on the number of new dwellings a foreign person can buy. This category includes off-the-plan apartments in new developments, newly built houses that have not been previously occupied, and dwellings in new residential developments that the developer has received a new dwelling exemption certificate for.

Established dwellings (existing, previously occupied properties) are generally off-limits to non-resident foreign nationals. The logic is that foreign purchases of existing housing stock reduce supply for Australian residents.

Temporary visa holders have a specific exception: they can buy one established dwelling to use as their residence while they hold their temporary visa, subject to FIRB approval. This dwelling must be used as their home — it cannot be rented out as an investment. If the visa holder leaves Australia permanently or their visa expires, they must sell the property.

Vacant land can be purchased by foreign persons with FIRB approval, but with a development condition: construction of a dwelling must commence within 24 months of receiving approval. The land cannot be left undeveloped indefinitely.

The FIRB approval process

Before a foreign person acquires residential real estate, they must apply to the FIRB for approval. The application is submitted through the FIRB's online portal and must be lodged before any binding contract is signed (or, for auction purchases, before the auction).

The FIRB assesses whether the proposed acquisition is consistent with Australia's national interest and the specific conditions for the property type. For standard residential purchases (new dwellings by foreign buyers, one established dwelling for a temporary visa holder), approval is generally granted subject to conditions.

Processing times vary. The FIRB has a statutory period of up to 30 days to make a decision, with the possibility of extension to 90 days for complex cases. In practice, straightforward residential applications are often processed within 30 days.

Approval is property-specific. FIRB approval relates to a specific property at a specific address — it is not a general permission to buy property. If you are outbid at auction and want to buy a different property, a new FIRB application is required.

For a detailed breakdown of the FIRB application process, fees, and conditions, see the guide on FIRB approval fees and process.

FIRB application fees

FIRB charges application fees based on the value of the property. The fee schedule is tiered, with higher fees for more expensive properties. For properties valued at AUD 1 million or less, the fee is AUD 14,100 (as of the current schedule). For properties between AUD 1 million and AUD 2 million, the fee is AUD 28,200. Fees continue to increase for higher-value properties (FIRB).

These fees are non-refundable, even if the application is refused or the purchase does not proceed. For temporary visa holders buying their first home in Australia, this represents a significant additional upfront cost on top of stamp duty and other purchase expenses.

The fee schedule is updated periodically — check the current figures on the FIRB website before applying.

State-level surcharges for foreign buyers

In addition to FIRB fees, most Australian states and territories impose surcharges on foreign buyers. These come in two forms.

Foreign buyer stamp duty surcharges are additional charges on top of the standard stamp duty payable by all buyers. As of recent rates, NSW charges an 8% surcharge, Victoria charges 8%, Queensland charges 7%, Western Australia charges 7%, South Australia charges 7%, and Tasmania charges an additional 3%. The surcharge is calculated on the purchase price or market value of the property. On a AUD 800,000 property in NSW, the foreign buyer surcharge alone is AUD 64,000, on top of the standard stamp duty of approximately AUD 31,000.

Foreign owner land tax surcharges are annual charges on property owned by foreign persons. These are covered in detail in the guide on land tax surcharges for foreign owners.

The combined effect of FIRB fees, stamp duty surcharges, and ongoing land tax surcharges makes property ownership significantly more expensive for foreign persons than for Australian citizens and permanent residents. These costs should be factored into any cost-benefit analysis of buying versus renting, and of buying before versus after obtaining permanent residency.

Buying at auction

Buying at auction as a foreign person requires advance planning. The standard auction process in Australia involves signing a binding contract on the day of the auction, which means FIRB approval must be obtained before the auction, not after.

If you plan to bid at auction, submit your FIRB application well in advance (at least 30 days before the auction date), specifying the property address and the maximum price you intend to offer. If approved, you can bid up to the approved amount. If the winning bid exceeds your approved amount, you may need to either not bid further or submit a variation to your FIRB approval.

Some sellers of new developments arrange blanket FIRB exemptions through new dwelling exemption certificates, which simplify the process for foreign buyers purchasing in those developments. Check with the developer or their sales agent whether an exemption certificate is in place.

Financing as a foreign buyer

Obtaining a mortgage as a non-resident foreign buyer in Australia has become more difficult in recent years. Most major Australian banks (CBA, ANZ, NAB, Westpac) have significantly reduced or eliminated lending to non-resident foreign nationals. Some smaller banks and non-bank lenders still offer loans to foreign buyers, but typically at higher interest rates, with lower loan-to-value ratios (often 60–70% rather than 80–90%), and with additional documentation requirements.

Temporary visa holders living and working in Australia have somewhat better access to financing, particularly if they have an Australian employer and can demonstrate income in Australian dollars. Lenders may still apply stricter criteria than for permanent residents.

Some foreign buyers finance purchases through lenders in their home country or use cash from overseas. If financing through an overseas lender, be aware that some FIRB conditions may restrict the types of security arrangements that can be placed on Australian property.

What happens when your visa status changes

If you buy property as a temporary visa holder and later receive permanent residency, the FIRB conditions on your property cease to apply. You are no longer required to sell when your visa expires (because you now have permanent residency), and the property can be used as a residence or rented out.

However, the foreign buyer surcharges already paid (stamp duty surcharge at the time of purchase) are generally not refunded when visa status changes. Some states have introduced refund or exemption schemes for buyers who transition to permanent residency within a specified period — check the rules in your state, as these provisions change frequently.

If your temporary visa expires and you do not obtain permanent residency, you must sell the property. Failure to sell can result in enforcement action, including forced disposal and civil penalties.

Can a permanent resident buy any property in Australia?

Yes. Permanent residents are not subject to FIRB restrictions and can buy new or established dwellings without approval and without foreign buyer surcharges. If you are close to receiving permanent residency, waiting until after the grant can save tens of thousands of dollars in FIRB fees and stamp duty surcharges.

Can I buy property in Australia if I have never lived there?

Yes, but only new dwellings or vacant land (with development conditions), and you need FIRB approval. You cannot buy an established dwelling if you are not a temporary visa holder living in Australia.

Do the FIRB rules apply to commercial property?

Commercial property has separate FIRB rules with different thresholds and conditions. This guide covers residential property only. Foreign investment in commercial property, agricultural land, and business acquisitions is governed by different provisions under the Foreign Acquisitions and Takeovers Act 1975.

What if I buy a property without FIRB approval?

Purchasing residential property without required FIRB approval is a breach of the foreign investment rules. Consequences can include forced divestiture (being ordered to sell the property), civil penalties, and criminal prosecution in serious cases. The government has increased enforcement in recent years and actively audits foreign property ownership.

Can I buy property jointly with my Australian citizen spouse?

If one party to the purchase is a foreign person, FIRB approval is generally required for the entire purchase. However, some concessions may apply — for example, if the Australian citizen spouse is the majority owner. Check with a property lawyer or the FIRB directly for your specific situation.