Can expats buy property in Australia?

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.

If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or WhatsApp (+44-7393-450-837).

This includes if you are looking for a second opinion or alternative investments.

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.

Can expats buy property in Australia?

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.

Who can buy property in Australia?

Australian Citizens and Permanent Residents

• No restrictions on property purchases.
• Eligible for government incentives like the First Home Owner Grant (FHOG) and stamp duty concessions.

New Zealand Citizens (Special Category Visa – Subclass 444)

• Treated similarly to PR holders, with no FIRB restrictions.
• Can buy established homes and investment properties freely.

Temporary Visa Holders (Work and Student Visas)

• FIRB approval is required before purchasing.
• Must sell the property when they leave Australia, depending on property type.
• Can buy new properties and off-the-plan developments without selling later.
• Temporarily banned from buying established dwellings.

Non-Resident Foreigners (Investors and Non-Visa Holders)

• Cannot buy existing homes.
• Can only buy new properties, off-the-plan apartments, or vacant land (must develop within four years).
• Must obtain FIRB approval before purchasing any property.

Can buying property lead to Australian Permanent Residency (PR)?

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.

Foreign Investment Review Board (FIRB Australia) Rules

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.

Who Needs FIRB Approval?

• Australian citizens and permanent residents → No FIRB approval required.
• New Zealand citizens on Subclass 444 visas → No FIRB approval required.
• Temporary residents (student visas, work visas, bridging visas) → FIRB approval required for property purchases.
• Non-residents (foreign investors) → FIRB approval required for all residential property purchases.

FIRB Fees

As of April 9, 2024, FIRB application fees for established residential properties are:

• Property Value up to AUD 75,000: AUD 12,900
• Property Value Between AUD 75,000 – 1 Million: AUD 44,100.
• Property Value Between AUD 1–2 Million: AUD 88,500.
• Property Value Between AUD 2–3 Million: AUD 177,000.

Please check the FIRB website for the full list.

FIRB Application Process

1. Submit an online application through the Australian Government FIRB portal.
2. Provide details of the property, purchase agreement, and buyer identification.
3. Pay the FIRB application fee based on the property value.
4. Wait for approval, typically 30–40 days (urgent cases may take shorter), but it can be extended by up to 90 days.
5. Upon approval, proceed with the property purchase under the conditions set by FIRB.

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).

What Types of Property Can Expats Buy?

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.

New Properties (Allowed for all foreign buyers)

Foreign buyers can freely purchase newly built homes, provided they:

• Are not already occupied by previous owners.
• Are being sold for the first time.
• Have received FIRB approval (unless exempt).

This category includes new apartments, townhouses, and houses in newly developed areas.

Off-the-Plan Apartments (Allowed for all foreign buyers)

Off-the-plan properties are pre-approved for foreign investors, making them one of the most accessible real estate options. Buyers must:

• Purchase from a developer with FIRB approval for foreign sales.
• Ensure the property remains unoccupied before purchase.
• Begin construction within four years if buying in an incomplete project.

Vacant Land for Development (Allowed for non-residents, with conditions)

Foreign buyers may purchase vacant land but must:

• Develop the land within four years of FIRB approval.
• Provide proof of ongoing construction progress.
• Avoid land banking, as holding undeveloped land without building is prohibited.

Failure to meet the development timeline may result in fines or forced resale.

Existing Homes

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 Property (Different FIRB rules apply)

Commercial real estate has fewer restrictions than residential property. Foreign investors can buy:

• Retail, office, or industrial buildings with FIRB approval.
• Farms and agricultural land, though purchases above AUD 15 million require FIRB review.
• Large commercial investments may require government review and higher fees.

Expats considering property investment must carefully evaluate their visa status, FIRB requirements, and financial planning to ensure compliance with Australian property laws.

Expat Mortgage in Australia

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.

Can expats get a mortgage in Australia?

Yes, but financing conditions depend on visa status and residency:

• Australian citizens and permanent residents → Can access standard home loans with low deposits (as low as 5%).
• New Zealand citizens (Subclass 444 visa holders) → Treated similarly to PR holders, with access to full loan options.
• Temporary residents (work and student visa holders) → Can obtain mortgages but require FIRB approval and at least a 20% deposit.
• Non-resident foreign buyers → Eligible for limited loan options with deposits of 20–30% or higher.

Loan-to-Value Ratio (LVR) Requirements for Expats

Lenders use Loan-to-Value Ratio (LVR) to determine how much they will finance:

• Australian citizens and PR holders → Up to 95% LVR (5% deposit).
• Temporary visa holders → Up to 80% LVR (20% deposit).
• Foreign non-residents → Up to 70–80% LVR, but some lenders require 50% deposits.

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.

Interest Rates and Loan Conditions for Expats in Australia

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.

Required Documents for Expat Mortgages in Australia

When applying for a mortgage, expats must provide:

• Passport and visa details.
• Proof of income (overseas employment contract, payslips, tax returns).
• Bank statements from Australian and overseas accounts.
• Proof of deposit funds.

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.

Financial and Tax Risks for Expats in Australia

Capital Gains Tax (CGT) on Property Sales

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.

Land Tax and Ongoing Costs

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.

Pained by financial indecision?

Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.