Australia’s property market is attractive to expats and foreign investors living abroad due to its economic stability, strong legal framework, and high-quality infrastructure.
However, Australian laws heavily regulate foreign property ownership, particularly for non-residents and temporary visa holders. So can foreigners buy property in Australia?
Yes, but expats must navigate Foreign Investment Review Board (FIRB) approval, high stamp duty surcharges, financing restrictions, and tax obligations before purchasing property.
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Some of the facts might change from the time of writing, and nothing written here is financial, legal, tax or any other kind of individual advice, nor a solicitation to invest.
Understanding the rules, restrictions, and financial implications of buying property in Australia is crucial for expats to make informed investment decisions.
This post details the restrictions, eligibility requirements, legal framework, financing options, and taxation policies affecting expats and foreign property buyers.
Australian property laws distinguish between citizens, permanent residents, temporary visa holders, and foreign investors.
While Australian citizens and PR holders can buy property freely, non-residents and temporary visa holders face restrictions set by the Foreign Investment Review Board (FIRB).
It is also important to note a two-year ban starting on April 1, 2025 on foreigners buying existing homes.
Unlike some countries, owning property in Australia does not grant PR or citizenship. However, expats investing in commercial real estate or through the Business Innovation and Investment Visa (Subclass 188/888) may qualify for PR under business migration programs.
Expats considering property investment should evaluate their visa status, FIRB obligations, and financial capacity, as buying property in Australia involves higher costs, strict legal requirements, and potential resale limitations.
The Foreign Investment Review Board (FIRB) regulates property purchases by non-residents and temporary visa holders to protect Australia’s housing market and prevent excessive foreign ownership.
Foreign buyers must obtain FIRB approval before purchasing residential property, except in specific cases such as New Zealand citizens or Australian PR holders.
As of April 9, 2024, FIRB application fees for established residential properties are:
Please check the FIRB website for the full list.
Failure to comply with FIRB regulations can lead to significant penalties, including imprisonment, forced property sales or fines of up to AUD 4.95 million for individuals and AUD 49.5 million for companies (based on the value of a penalty unit for offences committed on or after 7 November 2024, as per the Crimes Act 1914).
Expats and foreign investors face strict property purchase restrictions, depending on their visa status and residency.
Non-residents are generally limited to new properties, off-the-plan developments, and vacant land. Previously, temporary visa holders were able to purchase a home for personal residence; however, from 1 April 2025 to 31 March 2027, foreigners including temporary visa holders are not allowed to purchase the established dwellings in Australia, unless limited exceptions apply.
Foreign buyers can freely purchase newly built homes, provided they:
This category includes new apartments, townhouses, and houses in newly developed areas.
Off-the-plan properties are pre-approved for foreign investors, making them one of the most accessible real estate options. Buyers must:
Foreign buyers may purchase vacant land but must:
Failure to meet the development timeline may result in fines or forced resale.
From 1 April 2025, temporary residents (e.g., student or work visa holders) are temporarily banned from buying established dwellings in Australia, for 2 years, which may or may not be extended.
There are limited exceptions, such as investments that significantly increase housing supply or purchases by spouses of Australian citizens/PR holders as joint tenants.
Commercial real estate has fewer restrictions than residential property. Foreign investors can buy:
Expats considering property investment must carefully evaluate their visa status, FIRB requirements, and financial planning to ensure compliance with Australian property laws.
Expats and foreign buyers can apply for home loans in Australia, but banks impose stricter lending criteria for non-residents.
Foreign buyers typically face higher deposit requirements, stricter income verification, and higher interest rates compared to Australian citizens and permanent residents.
Yes, but financing conditions depend on visa status and residency:
Lenders use Loan-to-Value Ratio (LVR) to determine how much they will finance:
Some banks require proof of foreign income, which must be in a stable currency (USD, GBP, EUR, CAD, SGD).
Lenders may apply a foreign income cut (discount factor of 20–40%), meaning they only recognize a portion of foreign income for loan calculations.
Expats and foreign buyers often face higher interest rates than local borrowers. Factors influencing loan rates include residency status, deposit size, and foreign currency earnings.
Some banks may also require non-residents to hold an Australian bank account and may limit loan terms to 15–25 years instead of the standard 30 years.
When applying for a mortgage, expats must provide:
Expats planning to finance property purchases should consult lenders in advance, compare mortgage rates, and consider using Australian-based mortgage brokers for better loan access.
Non-residents selling property in Australia are required to pay full Capital Gains Tax (CGT) on the sale, with no access to the 50% CGT discount that is available to Australian tax residents. This significantly increases the tax burden on foreign property owners compared to local investors.
Additionally, the Main Residence Exemption no longer applies to non-residents, meaning that even if the property was previously their primary residence, they are still liable for CGT upon sale. This rule change, implemented in 2019, affects expats who previously lived in Australia but now reside overseas.
As of January 1, 2025, the Australian government imposes a withholding rate of 15%. This means all property sales by foreign residents are subject to the 15% withholding tax, regardless of the property’s value.
This amount is withheld from the seller’s proceeds and must be reclaimed by filing a tax return with the Australian Taxation Office (ATO), where applicable.
However, the former 12.5% withholding tax will still be assessed for property worth at least $750,000 on any sales agreement signed until year-end 2024, even if the deal closure happens in 2025.
Foreign property owners may be subject to additional land tax surcharges, which vary by state. Some states, such as Victoria, New South Wales, and Queensland, impose higher land tax rates specifically for foreign owners, increasing the annual cost of holding property.
Apart from land tax, property owners must also cover council rates, maintenance, and insurance costs, which can add to the overall financial burden. These expenses are mandatory for all property owners, regardless of residency status, and must be factored into long-term investment planning.
Consulting property lawyers, expat financial advisors, and mortgage brokers is recommended to ensure compliance with Australian property laws and tax regulations.