Property in Australia as an Expat — A Guide to FIRB, Eligibility and Costs

Buying property in Australia can be very different to buying in other countries. Eligibility depends on your visa status, the type of property you are looking to buy, and how you are classified under Australia’s foreign investment rules. These factors can affect whether you are able to purchase at all, whether approval is required, and what additional costs may apply.

Are you considered a 'foreign buyer'?

Your visa status, whether you are “ordinarily resident” in Australia, and the state or territory where you are purchasing can all impact the type of property you can buy and the process involved. On top of that, Australia has a federal foreign investment regime, state-based stamp duty surcharges, and in some jurisdictions ongoing land tax surcharges. These regimes overlap, but they do not always use exactly the same rules or definitions.

As at 13 April 2026, the biggest federal change to be aware of is this: from 1 April 2025 to 31 March 2027, foreign persons, including temporary residents and foreign-owned companies, are temporarily banned from purchasing established dwellings in Australia unless an exception applies. That means many expats who may previously have been able to buy an existing home to live in now cannot do so during this period.

The federal foreign investment rules first look at whether you are considered a “foreign person.” In simple terms, a non-citizen is only treated as ordinarily resident in Australia if they have been physically present for 200 or more days in the previous 12 months and their continued stay is not subject to a time limit. In practice, most temporary visa holders are still treated as foreign persons, even if they have been in Australia for an extended period, because their visa remains time-limited. New Zealand citizens who hold or are eligible for a Special Category Visa are generally exempt from requiring foreign investment approval for residential property.

This classification is not always applied consistently across different levels of government. State-based taxes, such as surcharge stamp duty and land tax, use their own definitions, which can differ from the federal rules. In NSW, for example, a person is generally treated as a foreign buyer for surcharge duty purposes if they are not an Australian citizen and not ordinarily resident in Australia, with similar 200-day residency requirements. However, there are specific exemptions for certain permanent residents, partner visa holders, and other visa categories, depending on whether they meet the relevant criteria.

The key point is that being physically in Australia, earning an income locally, or intending to stay long-term does not automatically mean you are treated as a local buyer. Your status needs to be assessed under both the federal FIRB rules and the relevant state legislation, as they do not always align.

What property are you actually allowed to buy?

For residential land, foreign persons generally need approval before acquiring an interest, regardless of value. Australia’s policy has historically been to channel foreign investment into new housing supply rather than established stock. That is why the distinction between new dwellings, established dwellings, and vacant residential land matters so much.

New dwellings

A new dwelling is broadly one that has been built on residential land, has not previously been sold as a dwelling, and has not previously been occupied. In instances where an older dwelling has been demolished and replaced with a single new dwelling, the property is still considered to be an 'established' dwelling, and is not permitted to be purchased by foreign buyers. New dwellings are only considered to be 'new' under FIRB rules if they have increased the housing stock. For example, new dwellings which have been built on previously vacant land, or where a single dwelling has been knocked down and replaced with multiple dwellings.

Vacant residential land

Foreign persons can generally apply to acquire vacant residential land, but approval is usually conditional on construction being completed within 4 years and the land not being sold before construction is complete. That is designed to ensure the land is actually developed and contributes to housing supply.

Established dwellings

This is where the biggest restriction now sits. From 1 April 2025 to 31 March 2027, foreign persons are temporarily banned from purchasing established dwellings unless an exception applies. The updated residential land guidance also makes clear that retrospective applications lodged on or after 1 April 2025 for an established dwelling will be assessed under that ban.

In practice, that means many expats and temporary visa holders who are treated as foreign persons are now effectively limited to:

• new dwellings,

• near-new dwellings in eligible circumstances,

• vacant residential land for development, or

• very limited exception cases.

How the FIRB application process works

Residential applications are handled through the ATO’s Online Services for Foreign Investors. The current official process is to apply and pay the relevant fee through the ATO before you purchase residential real estate or land in Australia.

Fees are generally payable at the time an application or notice is lodged. For most applications, there is a period of 30 days for making a decision in relation to an application or notification, which will not start until the correct fee has been paid.

From a practical transaction perspective, foreign persons who want to reduce the risk of losing a property while waiting for approval can enter into a contract that is conditional on receiving foreign investment approval. This is done by submitting an offer 'subject to FIRB approval'.

FIRB fees

FIRB fees are indexed relative to the purchase price and type of investment, and are updated each year and depend on both the value and kind of investment. For the 2025–26 fee schedule:

• residential land with established dwellings starts at $44,100 for acquisitions of $1 million or less, and rises to a maximum of $3,514,800 for acquisitions above $40 million;

• residential land with no established dwellings starts at $14,700 for acquisitions of $1 million or less, and rises to a maximum of $1,171,600 above $40 million.

You can view a full schedule of fees for the 2025-2026 financial year on the ATO's website here.

Ongoing FIRB compliance after purchase

Federal compliance does not end at approval. There are also post-purchase obligations for foreign investors.

The first is the Register of Foreign Ownership of Australian Assets. The foreign investment framework requires foreign persons to give register notices for relevant acquisitions unless an exemption applies.

The second is the vacancy fee regime. A foreign owner must lodge a vacancy fee return every year within 30 days of the end of each vacancy year. If the dwelling was not occupied or genuinely available for rent for at least 183 days in the year, a vacancy fee may apply. For vacancy years starting on or after 9 April 2024, the vacancy fee is usually double the original application fee. This does not apply to temporary visa holders who are living in the property themselves.

State and territory surcharge duty and land tax

Even if you are allowed to buy under the federal rules, you may still face substantial state taxes, which vary depending on the state or territory you are purchasing in. Surcharge duty is payable in addition to ordinary transfer duty, and surcharge land tax is payable each year, calculated on the unimproved land value. These rates and rules change frequently, so it’s best to check with the relevant state or territory authority for the most up-to-date information.

Why visa status matters

Visa status matters for at least three reasons.

First, it can determine whether you are a foreign person for federal approval purposes. Temporary residents are generally still foreign persons under the foreign investment framework.

Second, it can affect whether you are treated as a foreign person for state surcharge duty and land tax. This is particularly important when purchasing a property jointly with someone who is not a permanent resident or citizen.

Third, your visa and residency profile may affect the practical lending side even though lender policy is not set by FIRB. That is why foreign investment advice, tax advice and mortgage-broker advice often need to be coordinated rather than handled in isolation.

The practical sequence to follow

If you are an expat planning to buy, the safest order is:

1. work out whether you are a foreign person for federal purposes;

2. check whether the property type is actually permitted under the current federal rules;

3. confirm whether FIRB approval is required before exchange or before the contract becomes binding;

4. cost the FIRB fee and any possible vacancy fee exposure;

5. then check the state you are buying in for surcharge duty and ongoing land tax or absentee-owner-style surcharges;

6. only after that move to lender strategy, legal review and negotiation.

That order matters because people often jump straight to the property search and only later discover they cannot buy that type of property, or that the state surcharge materially changes the numbers. The current rules are detailed enough that you should assume the answer depends on your exact facts, not broad assumptions.

Frequently asked questions

Do I need FIRB approval if I am on a temporary visa?

Usually yes. Temporary residents are generally foreign persons for the foreign investment framework, and residential land acquisitions generally require approval before purchase.

Can a temporary resident buy an established home to live in?

At the moment, generally no. From 1 April 2025 to 31 March 2027, foreign persons, including temporary residents, are temporarily banned from buying established dwellings unless an exception applies.

Can I buy a new apartment or off-the-plan property as an expat?

Potentially yes, but if you are a foreign person you will usually still need to apply and pay the relevant fee before purchase. New dwellings are the part of the market Australia’s policy is most open to.

Can I buy vacant land?

Potentially yes, but approval is generally conditional on development being completed within 4 years and the land not being sold until construction is complete.

If I am buying with my Australian-citizen spouse, do the foreign-buyer rules still matter?

They can. Whether FIRB approval or state surcharges apply depends on how the acquisition is structured, who acquires the interest, and which regime you are looking at. Joint ownership does not automatically make the foreign-buyer issue disappear, especially for state surcharge rules.

Do FIRB fees depend on property value?

Yes. The fee depends on both the property type and value, and the 2025–26 schedule is indexed annually.

Are FIRB fees refundable if the purchase doesn't proceed?

Not automatically. The rules allow for fee adjustments, waivers and remissions in some circumstances, but these are handled case by case and are not something you should assume.

Is there anything I need to do after settlement?

Yes. Foreign owners may need to give register notices on the Register of Foreign Ownership of Australian Assets and must lodge a vacancy fee return every year. If the dwelling was not occupied or available for rent for at least 183 days, a vacancy fee may apply.

Which states are the most expensive for foreign-buyer surcharges?

On current published rates, NSW is 9% surcharge purchaser duty and Victoria and Queensland are both 8%. NSW also has a particularly high ongoing surcharge land tax at 5% of unimproved land value from 2025 onwards.

What is the single biggest mistake expats make?

Assuming that because they have moved to Australia, have a job here, or intend to live here, they can buy any residential property in the same way as an Australian citizen or permanent resident. The current rules are much more technical than that.