How foreigners can buy property in Australia
A step-by-step guide to purchasing property as a foreigner in Australia, including the rules on which properties you can buy, what tax rates apply and more.
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Australia is an incredibly popular destination for foreign investors looking to buy residential real estate. In the year to September 2024, more than 5,300 foreign investor property purchases were approved by the Foreign Investment Review Board. In total, these purchases were valued at around $6.4 billion.
The majority of Australia’s foreign property investors are based in Asia, with Chinese investors also accounting for more than a third (34%) of all purchases.
But buying property in Australia as a non-resident is complicated. There’s a strict process with various restrictions on the types of properties foreigners can buy. This is why using a specialist buyer’s agent can be a smart way to go about acquiring Australian real estate.
But to give you a good sense of what’s involved, our experts have compiled this guide.
Can foreigners buy property in Australia?
It’s possible to buy certain kinds of property in Australia as a non-resident assuming you follow the correct process and adhere to the various restrictions and conditions imposed by the Australian Government.
The main requirements are that you purchase an eligible category of property (i.e. a new dwelling or vacant land), pay a registration fee and receive approval for the purchase from the Australian Taxation Office (ATO).
Those are the key points in a nutshell, but there’s more to it.
Who is classified as a foreigner when buying property in Australia?
For the purposes of buying real estate in Australia, you’re considered a foreign buyer if you are:
- Not a citizen or permanent resident of Australia
- Not a New Zealand citizen with a special category visa
- A corporation or trust in which a foreign individual, government or corporation holds a substantial interest (or two or more foreign individuals combined hold a substantial interest)
Under Australian foreign investment legislation, you are also considered a foreign individual if you are:
- A temporary resident in Australia (i.e. you hold a temporary visa that allows you to stay in Australia for a continuous period of 12 months or more, or a bridging visa that applies while your application for a permanent visa is assessed
- A New Zealand citizen who is non-resident in Australia
What properties can non-residents buy?
There are strict conditions on the types of properties foreign buyers in Australia can purchase. There are the types of properties you may be able to purchase from overseas:
-
a new or near-new dwelling
-
an established dwelling for redevelopment
-
an off-the-plan property
-
vacant residential land, provided you build a residential dwelling on the land within four years
Why can’t foreigners buy established properties in Australia?
Like many parts of the world, Australia is in the midst of a housing crisis and there are various government policies in place to limit demand for existing housing stock beyond that created by the domestic market.
One of these policies bans overseas buyers from purchasing established properties, from 1 April 2025 to 31 March 2027. There are only a couple of potential exceptions to this rule that would allow a foreigner to buy an established house or unit:
- 1: You will redevelop the established dwelling
- 2: You are purchasing an established dwelling as a foreign company that employs workers from Pacific island countries and Timor-Leste and are required to provide housing for them, including those participating in the Pacific Australia Labour Mobility (PALM) scheme.
What part of Australia do foreign property investors buy in?
Not surprisingly, the vast majority of property purchases by foreign buyers in Australia are concentrated around the eastern states of New South Wales, Victoria and Queensland.
These three states accounted for three out of every four residential property purchases in the 2022/23 financial year, with the bulk of purchases concentrated around the state capital cities of Sydney, Melbourne and Brisbane.
Of the three states, Victoria is the most popular buying location for foreign buyers, particularly when it comes to new dwellings. In fact, there were more new residential properties purchased by foreign buyers in Victoria than in all other Australian states and territories combined.
Victoria has also been the most popular place among overseas investors buying established properties and vacant land, but with Queensland coming a close second.
The average value of a residential property purchased by an overseas buyer in Australia in the year to 30 September 2024 was $1.2 million.
How to purchase property in Australia if you live overseas
Here’s a step-by-step guide to buying property as a foreigner in Australia.
Step 1
Apply for approval
Foreigners can’t legally purchase property in Australia without approval to do so from the ATO. You can apply for general approval to buy property, which may be suitable if you plan to purchase more than one property. Or, if you only intend to purchase a single property, you can apply for an exemption certificate. If you are buying a property directly from a property developer, check if the developer holds a new or near-new dwelling exemption certificate for the development. If they do, you may not need an exemption certificate of your own.
Tip: Approval takes around 40-45 days on average so you need to get your application submitted in good time if you are planning to buy.
Step 2
Pay the fees
You’ll need to pay a fee to the ATO when you apply for approval to buy property as a foreigner, or for an exemption certificate. This fee is calculated as a percentage of the property you plan to buy. Here are the fees that apply to new or near new residential dwellings or vacant residential land from 1 July 2025 to 30 June 2026:
| Purchase amount | Fee per action |
|---|---|
Less than $75,000 | $4,500 |
$1 million or less | $15,100 |
$2 million or less | $30,300 |
$3 million or less | $60,600 |
$4 million or less | $90,900 |
$5 million or less | $121,200 |
$6 million or less | $151,500 |
$7 million or less | $181,800 |
$8 million or less | $212,100 |
$9 million or less | $242,400 |
$10 million or less | $272,700 |
Tip: An important point to bear in mind is that if you pay a fee based on a certain property value but then end up purchasing a lower value property, you won’t get any of the initial fee you pay back. In other words, it’s important to have a clear idea of how much you actually plan to spend from the outset.
Once you’ve bought the property, an additional annual vacancy fee may apply to foreign buyers if you don’t live in or rent out the property for at least 183 days (six months) in a year.
Step 3
Use local professionals to help you
Buying a property in Australia as a foreigner is complicated and mistakes can be costly. It’s a good idea to seek the help of professionals like a buyer’s agent and conveyancer early in the process. That way you will have a trusted professional on hand to answer questions, submit paperwork and act as your representative during the all-important purchase negotiations. The reality is it’s going to be virtually impossible to buy property in Australia with any degree of success without the help of locally-based professionals.
Tip: Make sure any Australia-based service providers you use can operate using your preferred language. The last thing you want is important details being lost in translation.
Step 4
Register the property
If you're a foreign owner of residential property in Australia, you'll need to register your ownership with the Australian Taxation Office (ATO) through the Land and Buildings Register (LABR). This is separate from the state-based land title registration and is part of the federal foreign investment reporting obligations. You must register your ownership of the property within 30 days of the transaction settling.
How much tax do non-residents pay on property purchases?
Foreign owners of property in Australia are subject to considerably higher rates of state property taxes compared to domestic property owners (with a small number of exceptions).
These are the additional tax rates that apply to foreign buyers and owners, unless an exemption applies.
| State/Territory | Stamp Duty Surcharge | Land Tax Surcharge |
|---|---|---|
NSW | 9% | 5% of the land value of your property |
Victoria | 8% | 4% (absentee owner) |
Queensland | 8% | 3% on taxable land valued at $350,000 or more |
South Australia | 7% | None |
Western Australia | 7% | None |
Tasmania | 8% | 2% |
ACT | None | 0.75% |
Northern Territory | None | None |
How can a buyer’s agent help foreigners buy property in Australia?
Helps you understand the rules
Buying property in Australia as a foreigner isn’t as simple as just finding a home you like. There are specific government rules you’ll need to follow. A buyer’s agent can walk you through exactly what you’re allowed to buy (for example, new or off-the-plan properties) and what you need to steer clear of and project manage the process, including referrals to lawyers and other professionals who can advise you.
Finds the right property for you
A buyer’s agent can help you find the kinds of properties that meet both your goals and the legal requirements. Whether you’re after a high-yield investment apartment or a house in a growth suburb, they’ll search on your behalf, including tapping into off-market listings that aren’t advertised publicly. They’ll also check that the property is a smart investment based on location, rental demand and long-term value.
Gives you local insight
Australia’s property market varies a lot from one city or suburb to the next, and even from one street to the next. A buyer’s agent can tell you which areas are growing, what kinds of properties are in demand and where you’re likely to get the best return. This insight is impossible to ascertain without local knowledge. Buyer’s agents can also use their network of real estate agents to help you access properties that have not yet made it to market.
Negotiates on your behalf
Once you’ve found a property you’re interested in, your buyer’s agent steps in to handle negotiations with the seller or real estate agent. Because they’re experts in the market, they know how much the property is really worth and how to negotiate the best possible price and terms for you. They’re working for you, not the seller, so their goal is to save you money and make sure the deal works in your favour.
Manages the whole buying process
Buying property involves a lot of moving parts, especially when you’re purchasing from overseas. A buyer’s agent can coordinate with everyone involved in the transaction: conveyancers, solicitors, mortgage brokers, Foreign Investment Review Board advisors and even building and pest inspectors. They’ll keep the process on track and keep you informed every step of the way, so you don’t have to chase up different people from different time zones.
Supporting you after the purchase
Once you’ve bought the property, a good buyer’s agent’s work doesn’t stop. They can continue to add value by helping you connect with trusted local property managers if you’re planning to rent it out, or recommend tradies and service providers if the property needs a bit of work. Some buyer’s agents also offer support if you’re building a portfolio, helping you plan future purchases or even handle resale when the time comes.
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Australian property market insights in 2025
Sydney market
Median value: $1,190,616 (+0.9% YoY)
Houses have outperformed units for capital growth YoY, but units remain a strong vehicle for income and yield.
Melbourne market
Median value: $781,318 (-2.6% YoY)
The Melbourne market has lagged behind other capitals for the last couple of years, but represents a strong opportunity for buyers to find value.
Brisbane market
Median value: $899,824 (+8.6% YoY)
Sustained demand means Brisbane is now a very expensive market (only behind Sydney nationally). It's unlikely to get cheaper any time soon. Buying well is key.
Adelaide market
Median value: $827,675 (+11.0% YoY)
Adelaide has been one of Australia's hottest markets, with capital growth and yields on units in particular being the envy of much of the country.
Canberra market
Median value: $854,398 (-0.5% YoY)
Canberra's property market is showing signs of recovery after a subdued performance in 2024. Buyer demand is strong and supply is limited.
Perth market
Median value: $806,205 (11.9% YoY)
The Perth market has been Australia's runaway success in recent years and a magnet for investors in particular. Just look at the returns on units.
Gold Coast market
Median value: $1,033,555 (+8.2% YoY)
The Gold Coast has quickly grown into on eof Australia's premium property destinations. But it's a highly diverse region and choosing the right area and property is key.
Sunshine Coast market
Median value: $1,047,537 (+6.6% YoY)
The Sunny Coast is no longer just a retiree haven. With a fast-growing population, it's a mecca for families. Truly great properties are like hen's teeth.