How overseas buyers buy property in Australia

What to know first

• Established (resale) dwellings closed to foreign buyers 1 April 2025 – 30 June 2029 — new dwellings and off-plan remain the open route for foreign purchasers
• FIRB approval required for every foreign purchase; application fee ~A$14,100 for properties ≤A$1,000,000 (2026)
• Non-residents pay tax on rental income from the first dollar (30% minimum) and lost the 50% CGT discount in 2012 — materially less tax-efficient than the UAE or Malaysia for this platform
• Victoria (Melbourne) state stamp duty surcharge: 8% on top of standard transfer duty
• New Zealand citizens are exempt from FIRB requirements — the only foreign nationality with this exemption

The general process

1. Confirm what foreigners may own in Australia and in which areas.
2. Set your budget in AUD, including taxes, fees and currency costs.
3. Shortlist areas and check the developer or seller.
4. Appoint an independent local lawyer before paying anything substantial.
5. Reserve, sign the contract, and pay through the approved channel.
6. Complete registration, and take tax advice in both countries on any rent or sale.

The exact steps and order differ by country and by project.

Financing for foreign buyers

Maximum loan to value

Typically lower than for residents — non-resident foreign buyers commonly see 60–70% LVR caps, bank-dependent

Typical rate

Broadly in line with standard Australian variable/fixed rates, though foreign-buyer-specific loan products can carry a premium

Notes

FIRB approval is required before a foreign person can even proceed with a purchase — factor the FIRB application fee and timeline into any purchase

Residency through property

Programme

No property-linked residency visa — Australia does not offer a golden-visa-style pathway; property purchase confers no migration benefit on its own

Taxes and running costs

Income tax on rent

Non-residents pay Australian tax on rental income from the first dollar (no tax-free threshold): 30% up to A$135,000, 37% to A$190,000, 45% above

Capital gains tax

Non-residents have not been entitled to the 50% CGT discount since 8 May 2012 — full gain is taxable. A Foreign Resident Capital Gains Withholding (FRCGW) of 15% of the sale price is withheld by the buyer at sale (a prepayment credited against final tax, not an extra tax)

Transfer tax or fees

Standard state stamp duty plus a foreign-buyer surcharge: 8% in Victoria (Melbourne), on top of standard transfer duty

Annual property costs

Strata/owners-corporation fees vary by building; land tax surcharges for foreign owners apply in most states on top of standard land tax