Can temporary visa holders buy property in Australia?

The established dwelling ban

From 1 April 2025 to 30 June 2029, the government's policy is that foreign persons — including temporary residents — are generally banned from buying an established (existing) dwelling in Australia, whether or not they intend to live in it (Foreign Investment in Australia, Guidance Note 6: Residential Land, version 5, 1 July 2026). This replaced the earlier rule that let a temporary resident buy one established dwelling as their principal place of residence; that provision does not operate while the ban is in force.

The ban has a small number of exceptions, each assessed case by case on a FIRB application: redevelopment of an established dwelling that increases Australia's housing stock by at least 20 additional dwellings; an acquisition that supports housing supply on a commercial scale, such as an interest in established dwellings within a build-to-rent development, retirement village, aged care facility or student accommodation; and foreign-controlled companies buying housing for workers under the Pacific Australia Labour Mobility (PALM) scheme. None of these is designed for an individual buying a home to live in.

A foreign investment application made before 1 April 2025 is assessed under the rules in force at the time, even if the decision comes later. An established dwelling bought, or notified, on or after 1 April 2025 without meeting one of the exceptions is not approved — the buyer can be required to sell the property and may face a penalty.

Which visa types are affected

The foreign-person rules apply to holders of any Australian visa short of permanent residency or citizenship, including subclass 482 (Skills in Demand), subclass 500 (Student), subclass 485 (Temporary Graduate), subclass 494 (Skilled Employer Sponsored Regional), subclass 417 and 462 (Working Holiday Maker), and bridging visas. All are treated as foreign persons for the established-dwelling ban and for FIRB approval on any residential purchase — the ban does not carve out an exception by visa type or length of stay.

Short-stay visa holders (tourist and business visitor visas) face the same foreign-person rules; for them the more common constraint is financing and their limited time in Australia rather than a different FIRB process.

Buying new dwellings and vacant land on a temporary visa

Temporary visa holders can still buy new dwellings, and there is no cap on the number. A new dwelling purchase is not usually subject to any condition on how it is used afterwards — it can be lived in or rented out (Guidance Note 6: Residential Land).

FIRB approval is still required for each new dwelling purchase, and the application fee applies each time (see below). State stamp duty and land tax surcharges also apply. Property developers selling new dwellings "off the plan" can hold their own approval covering their foreign buyers, in which case the buyer does not need to apply separately — check with the developer or a conveyancer.

A temporary visa holder can also buy vacant residential land, with FIRB approval. Approval is generally conditional on completing construction within four years of the approval, and not selling the land before construction is finished (Guidance Note 6). Treasury has said it will take enforcement action against non-compliance with this condition.

The cost of buying on a temporary visa

The FIRB application fee for a new dwelling or vacant land valued up to AUD 1 million is AUD 15,600, rising in tiers for higher-value property (Foreign Investment in Australia, Schedule of Fees, version 8, effective 1 July 2026). Where one of the narrow established-dwelling exceptions applies, the fee for an established dwelling up to AUD 1 million is AUD 46,800 under the same schedule.

Foreign-buyer stamp duty surcharges are added on top of standard transfer duty and are set separately by each state or territory: Revenue NSW charges a 9% surcharge purchaser duty, the State Revenue Office Victoria charges an 8% foreign purchaser additional duty, and the Queensland Revenue Office charges an 8% Additional Foreign Acquirer Duty. Rates and thresholds differ elsewhere and change over time — check the relevant state or territory revenue office before budgeting a figure.

Foreign owners also pay an annual land tax surcharge on top of standard land tax, calculated on the land's value: 5% in NSW from the 2025 land tax year (Revenue NSW, surcharge land tax), 4% in Victoria (State Revenue Office Victoria, absentee owner surcharge), and 3% in Queensland (Queensland Revenue Office, Land Tax Foreign Surcharge). This applies for each year the property is held while the owner remains a foreign person.

A vacancy fee applies if the property is not occupied, or genuinely available for rent, for at least 183 days in a 12-month period. The ATO sets the vacancy fee at generally the same amount as the FIRB application fee paid when the property was bought.

As a worked example: a AUD 750,000 new dwelling bought in Victoria would attract a foreign purchaser additional duty of about AUD 60,000 (8% of the purchase price) on top of standard transfer duty, plus the AUD 15,600 FIRB application fee — before any ongoing land tax surcharge.

What happens when your visa changes

If you are granted permanent residency while owning property bought as a temporary visa holder, the FIRB conditions attached to that purchase (if any) cease to apply. You can then choose to continue living in the property, rent it out, or sell it — the same as any permanent resident.

The foreign-buyer stamp duty surcharge already paid at purchase is generally not refunded. Some states have introduced partial refund or exemption schemes for buyers who transition to permanent residency within a specified period — these provisions change and vary by state. Check with your conveyancer or the state revenue office.

The land tax surcharge ceases to apply from the date you are no longer a foreign person (the date of PR grant). You may need to notify the state revenue office of your changed status to ensure the surcharge is removed from your land tax assessment.

If a property was bought subject to FIRB conditions requiring its sale should your visa lapse, and your temporary visa expires without a further visa or permanent residency, you must sell within the period set out in your approval. If you do not sell voluntarily, the government can seek a forced divestiture order through the courts.

Practical considerations

Financing is harder on a temporary visa. Most major banks apply stricter lending criteria to temporary visa holders, including lower loan-to-value ratios and higher interest rates. Some lenders will not lend to temporary visa holders at all. Non-bank lenders may offer more flexible terms but at higher rates.

The sale obligation creates uncertainty. If your visa expires unexpectedly — for example, if a PR application is refused — you may be forced to sell in a timeframe that does not align with market conditions. Selling under time pressure can result in a lower sale price.

The surcharges make the breakeven period longer. The additional costs of FIRB fees and surcharges mean that you need to hold the property for longer (or see greater capital appreciation) to break even compared to an equivalent purchase by a permanent resident.

For many temporary visa holders, the financial analysis favours renting until permanent residency is granted, and then purchasing without the surcharges. However, this depends on individual circumstances — the rental market, property price trajectory, the expected timeline for PR, and personal preferences all factor in.

Can I buy an established dwelling to live in as a temporary visa holder?

Generally no. From 1 April 2025 to 30 June 2029, foreign persons — including temporary residents — are banned from buying established dwellings, with only narrow exceptions for large-scale redevelopment, commercial-scale housing supply and PALM-scheme worker housing. An established dwelling bought before the ban, or under one of those exceptions, carries its own conditions from that approval.

If I already own an established dwelling and then get permanent residency, what happens?

The FIRB conditions attached to that purchase cease to apply once you are a permanent resident. You no longer need to sell the property, and you can rent it out if you choose. The stamp duty surcharge already paid at purchase is generally not refunded.

Can I buy a property with a friend or family member on a temporary visa?

If any party to the purchase is a foreign person, FIRB approval is required for that share of the purchase. New dwellings and vacant land remain available; an established dwelling is subject to the ban described above regardless of who else is buying with you. Joint purchases are assessed case by case.

Do I pay capital gains tax when I sell?

If you are an Australian tax resident when you sell, any capital gain is assessable. If you have held the property for more than 12 months, you may be eligible for the 50% CGT discount. If the property was your principal place of residence for the entire period of ownership, the main residence exemption may apply (temporary residents have specific rules around this — consult a tax agent).

Can I buy vacant land and build on a temporary visa?

Yes, with FIRB approval. Approval is generally conditional on completing construction within four years of the approval, and not selling the land before construction is finished. The same foreign-buyer surcharges apply to the land and the completed dwelling.