Can Foreigners Buy Property In Australia?
Foreigners - essentially, non-residents - can buy property in Australia, but must apply for approval to ensure overseas investments favour national interest.
The Australian home ownership dream extends far beyond our shores, and many foreigners - essentially, non-residents — are keen to get a slice of the property pie. While permanent residents are typically eligible to buy property, overseas property investors must apply for government approval before purchasing property in Australia. Recent measures will also affect the way foreign property investors can purchase property. Those changes, which include tripled fees for foreign buyers acquiring existing homes, are part of broader measures that aim to boost affordable housing supply.
Defining ‘foreign’ status for property purchase
For property ownership purposes, ‘foreigners’ are essentially non-residents. However, the 'foreigner' designation also includes non-citizens, temporary visa holders, foreign government investors, and certain types of corporations and trusts.
However, the rules governing what constitutes a foreign person are pretty complex. For more information, visit the Australian Taxation Office (ATO) website for a basic summary.
Exemptions
Some overseas investors are exempt from foreign property investment rules. People exempt include:
- Australian citizens living abroad
- New Zealand citizens
- Australian permanent visa holders
- Foreigners who purchase property through a joint agreement are exempt from foreign property investment rules.
Property purchase process for non-residents
Non-resident investors need approval from the Foreign Investment Review Board (FIRB).
Applications involve providing personal details, property information, and purpose of purchase.
Foreign nationals can use this government website to manage the process.
After receiving approval, foreign nationals must also obtain a tax file number (TFN), register theirproperty and lodge an annual return with the ATO.
APPLICATION AND FEES
You'll need to pay an application fee to FIRB when applying for approval. The specific amount depends on the property's value you intend to purchase.
Application fees for acquisitions in new or near new residential dwellings or vacant residential land from 1 July 2024 to 30 June 2025
| Amount | Fee per action |
|---|---|
| Less than $75,000 | $4,300 |
| $1 million or less | $14,700 |
| $2 million or less | $29,500 |
| $3 million or less | $59,000 |
| $4 million or less | $88,500 |
| $5 million or less | $118,000 |
| $6 million or less | $147,500 |
| $7 million or less | $177,000 |
| $8 million or less | $206,500 |
| $9 million or less | $236,000 |
| $10 million or less | $265,500 |
Eligible types of property
Non-residents can generally only buy new dwellings or off-the-plan residential properties.
An off-the-plan acquisition occurs when you engage in a contract to buy new residential taxable Australian property before its construction is finalised. At this point, you secure a contractual entitlement to the construction of the premises.