Can foreigners buy property in Australia? Yes, here’s how

Foreign buyers – those that are non-permanent residents and non-citizens – can purchase residential property in Australia, but will need approval from the Foreign Investment Review Board (FIRB) to ensure their investment works in favour of the national interest. 

The government believes that foreign investment in Australian property is good for the economy and benefits Australians. Many banks also offer investment loans to non-residents – although the eligibility criteria may be different for you.

The Australian property market attracted $4.9 billion of foreign investment between 2022-23, according to the FIRB . 

In the same year, there were 5,360 residential real estate purchases by foreign investors, 75% of which purchased a property in Victoria, New South Wales, or Queensland.

For property ownership purposes, the Australian government defines ‘foreigners’ as any non-resident. This can include non-citizens, temporary visa holders, foreign government investors, and corporations or trusts.

Those who are exempt from seeking FIRB approval to buy residential real estate in Australia include:  

• An Australian citizen living in Australia or overseas 
• A New Zealand citizen 
• An Australian permanent visa holder or permanent resident (PR). 

Foreign investors can also purchase a property through a joint agreement with someone eligible to buy a property in Australia without FIRB approval, like an Australian citizen living in Australia.

In Australia, foreign buyers aren’t allowed to purchase ‘established dwellings’. This means you are limited to buying:

• New buildings that have never been lived in
• Off-the-plan residential properties
• Vacant land. 

1. Check your eligibility. Familiarise yourself with the Foreign Investment Review Board (FIRB) rules for buying a home as a non-Australian resident. For example, it must be a new build, not a home that has been lived in previously.
2. Apply for approval. Apply to purchase a property through the Australian Taxation Office (ATO) using the online services for foreign investors site. 
3. Pay the fee. Pay the application fee through the ATO website. The application fee can vary, so check the FIRB’s guidance on fees for foreign investors. Typically, you’ll find out if your application is approved or denied within 30 days.

Tax and fees for foreigners buying property in Australia

The FIRB charges an application fee, which depends on the value of the property you plan to purchase.

Currently, the application fees for the 2024-25 financial year are:

For properties valued at over $5 million, the fees incrementally increase all the way up to a fee of $1,171,600 for properties valued at $40 million or more. 

What happens if you buy a property in Australia without FIRB approval? 

According to the Foreign Acquisitions and Takeovers Act 1975 , a foreigner that purchases or acquires a property without approval can face a maximum criminal penalty of 15,000 penalty units and/or 10 years imprisonment. 

Penalty units, which are indexed to inflation in Australia, are, as of 1 July 2023, worth $313. This means that anyone who purchases a property without FIRB approval faces a maximum penalty of $4,695,000. 

So, if it’s not already clear, the Australian government takes foreign investment and its effect on the national interest very seriously.

Yes, there are plenty of Australian lenders that will let foreigners borrow money to buy a home here. However, as a foreigner, you might face stricter lending criteria than the locals do. 

This could include: 

• Paying a higher interest rate 
• Needing a larger deposit size (30-40%) 
• Imposing restrictions on foreign income used to pay the loan. 

Don’t let this deter you though! There are plenty of options out there such as internationally recognised banks that operate in Australia that offer home loans like HSBC and Citibank.

If you are looking to buy a new home in Australia check out our home loan guides, or compare home loans on Mozo.