Can Foreigners Own Property in Australia? The 2026 Legal Guide

Yes, foreigners can own property in Australia, and ownership is freehold and secure once the purchase is complete. What you are allowed to buy, however, is now tightly restricted. Since 1 April 2025 a temporary ban has stopped foreign persons, including temporary residents and foreign owned companies, from buying established, that is already built, dwellings. The ban has been extended to 30 June 2029. In practice most non residents can now only buy new dwellings, off the plan apartments, or vacant residential land they intend to develop.

Every purchase needs FIRB approval

Foreign investment in residential property is governed by the Foreign Acquisitions and Takeovers Act 1975 and screened through the Foreign Investment Review Board framework, now administered by the Australian Taxation Office. A foreign person must apply for and receive approval before buying residential property. There is a zero dollar screening threshold for residential land, which means approval is required regardless of the property's price. Buying without approval is a breach of the law, not a technicality.

What you can and cannot buy

New dwellings and off the plan apartments are allowed with approval. Vacant residential land is allowed with approval and is usually granted on the condition that you complete construction within four years, so land cannot be bought and left idle. Established dwellings are banned for foreign buyers until 30 June 2029. Narrow exceptions exist, for example proposals that genuinely increase housing supply through redevelopment, and New Zealand citizens are treated differently and are generally exempt from the ban and from many of the approval requirements.

Application fees and the annual vacancy fee

FIRB application fees are significant and are indexed every year on 1 July. Fees for residential land start at roughly 15,100 Australian dollars for property valued up to one million dollars and rise on a sliding scale as the value increases. Separately, a foreign owner whose dwelling stays vacant or unrented for more than 183 days in a year must pay an annual vacancy fee, set at least equal to the original application fee. The fee is designed to discourage foreign owned housing from sitting empty.

State stamp duty and land tax surcharges

Federal rules are only part of the cost. Australian states levy their own foreign buyer surcharges on top of ordinary stamp duty and land tax. New South Wales applies a surcharge purchaser duty and an annual surcharge land tax on residential property bought by foreign persons. Victoria applies an 8 percent foreign purchaser additional duty and a 4 percent absentee owner land tax surcharge. Queensland applies an 8 percent additional foreign acquirer duty and a foreign owner land tax surcharge. These rates change frequently and vary by state, so confirm the current figure with the relevant state revenue office before you make an offer, because the surcharge can add tens of thousands of dollars to a purchase.

Who counts as a foreign person

The rules cast a wide net. A foreign person includes an individual who is not an Australian citizen or permanent resident, a temporary resident such as someone on a work or student visa, a foreign owned company, and a trust with substantial foreign interests. Temporary residents are caught by the established dwelling ban in the same way as non residents. Permanent residents and Australian citizens living overseas are generally not foreign persons for these rules, and New Zealand citizens receive distinct treatment. If your status is unclear, confirm it before making an offer, because getting it wrong does not excuse a breach.

Financing and timing

Approval takes time, and contracts should account for it. Foreign buyers commonly make their purchase conditional on receiving FIRB approval, since signing an unconditional contract before approval is granted is risky. Australian lenders also apply stricter conditions to non resident borrowers, often lower loan to value ratios and additional income verification, so arrange financing early. Because most foreign purchases are off the plan, expect a long gap between exchange and settlement, during which the vacancy fee obligation and the surcharges continue to apply once you own the completed dwelling.

Buying through a company or trust

Using an Australian company or trust does not sidestep these rules. If the entity is foreign controlled, the FIRB approval requirement, the established dwelling ban and the state surcharges all still apply, because the rules look through to the underlying foreign ownership. Structuring a purchase to hide foreign control is itself a breach.

The cost of getting it wrong

Penalties for breaching the foreign investment rules are severe. They include civil penalties, forced disposal of the property, and in serious cases criminal liability, and enforcement by the ATO has increased. Before committing, engage an Australian solicitor and confirm your FIRB position in writing. Bektu exists to help foreign buyers verify these rules and the parties they are dealing with rather than relying on a selling agent's summary.