You Can Buy, But There Are Rules: What Non-Residents Must Know Before Buying Property in Australia Description: Foreign buyers can

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Australia remains one of the most attractive destinations for property investment in the world, thanks to its political stability, legal certainty, and strong demand for housing. However, if you’re not a citizen or permanent resident, buying into the Australian market comes with a number of rules, conditions and (unfortunately) surcharges that you need to get your head around before signing anything.

This article sets out exactly what you can and cannot buy as a non-resident, what approvals are needed, and what extra costs and obligations apply. If you're thinking of buying in Victoria, we also break down the Victorian surcharges and timelines to keep you compliant.

1. Who Can Buy Property in Australia?

Under the Foreign Acquisitions and Takeovers Act 1975 (Cth), non-residents can still purchase property in Australia but must generally obtain prior approval from the Foreign Investment Review Board (FIRB). Whether you're eligible depends on your residency status:

  • Australian Citizens (even if living overseas): no restrictions.

  • Permanent Residents: can purchase property without FIRB approval.

  • Temporary Residents (e.g. on a 482 or student visa): can apply to buy one established dwelling to live in while residing in Australia.

  • Foreign Non-Residents: can only buy new properties, vacant land for development, or commercial real estate with FIRB approval.

If you're buying through a company or trust, those entities may also be considered “foreign persons” under the law.

2. What Types of Property Can Foreign Buyers Purchase?

Property TypeForeign Buyer EligibilityEstablished homes❌ Not allowed for non-residents (temporary ban)New dwellings✅ Allowed with FIRB approval or exemption certificateVacant residential land✅ Allowed, must build within 4 yearsCommercial/industrial land✅ Allowed (thresholds vary)

Since April 2025, a temporary ban has been placed on foreign buyers acquiring existing dwellings. The policy aims to increase housing availability for local residents. There are only narrow exceptions for foreign developers purchasing to demolish and rebuild multiple dwellings.

3. FIRB Approval – What It Means and How to Apply

Before buying residential property, foreign investors must apply to FIRB and pay a non-refundable fee. The current minimum fee (as at June 2025) is $14,100 for transactions under $1 million, with higher fees for more expensive purchases.

The FIRB process involves:

  • Lodging an online application via the ATO portal

  • Paying the applicable fee

  • Waiting for approval (usually within 30 days)

You must not sign an unconditional contract before FIRB approval is obtained. It's essential that your contract is subject to FIRB approval to avoid breaching Australian law.

4. The Extra Costs Non-Residents Must Pay

Foreign purchasers face a range of additional costs on top of standard stamp duty:

  • FIRB Application Fee: $14,100 minimum (indexed annually)

  • Foreign Purchaser Surcharge (Victoria): 8% of the purchase price, added to standard duty

  • Land Tax Surcharge (Victoria): 4% if the property is not your principal residence

  • Federal Vacancy Fee: equal to your FIRB fee if the property is left vacant for over 6 months per year

These costs are significant and should be built into your budget from the outset. They apply even if you never reside in the property.

5. Ongoing Compliance and Responsibilities

Once you’ve bought, the obligations don’t stop there. Non-residents must:

  • Register their interest on the national Register of Foreign Ownership of Australian Assets within 30 days of settlement

  • File an annual vacancy fee return with the ATO

  • Sell the property within six months if they cease to be a resident (for temporary residents only)

Fines and civil penalties for non-compliance can be severe, including forced sale of the property and penalty interest.

6. Tips for Buying as a Non-Resident

  • Always get your contract reviewed by a professional who understands foreign ownership rules

  • Make sure your contract includes a clear FIRB approval clause

  • Ensure the property you’re buying complies with state planning laws and zoning requirements

  • Confirm with your lender what finance options are available for non-residents – many banks will require larger deposits and impose stricter conditions

  • Beware of rent restrictions, resale obligations, and tax implications in both Australia and your home country

Final Word

Buying property in Australia as a non-resident is certainly possible, but it's not simple. The rules exist for good reason, and ignoring them can be both expensive and legally risky. That said, with the right advice and structure in place, many foreign buyers have successfully invested in Australian property.

If you're looking to purchase property in Victoria, get in touch with Victorian Property Settlements. We can guide you through FIRB compliance, surcharge calculations, and contract preparation with practical and professional advice.

Victorian Property Settlements – Trusted for over 25 years by Victorian buyers and sellers
Visit: www.victorianpropertysettlements.com.au