Buying Property as a Temporary Resident in Australia

Australia welcomes hundreds of thousands of temporary residents each year — many of whom want to buy property. But the rules for foreign buyers are complex, expensive, and vary significantly by state. Getting them wrong can cost you tens of thousands of dollars.

Whether you're a temporary visa holder buying solo, or purchasing jointly with an Australian citizen partner, the Foreign Investment Review Board (FIRB) rules will affect your purchase. This guide breaks down everything you need to know — from FIRB application fees to state-level surcharges — so you can plan your purchase with confidence.

What Is FIRB and Do You Need Approval?

The Foreign Investment Review Board (FIRB) reviews proposed property purchases by foreign persons in Australia. If you're a temporary visa holder — regardless of how long you've been in the country — you are generally classified as a "foreign person" under the Foreign Acquisitions and Takeovers Act 1975.

This means you need FIRB approval before you can purchase residential property. The FIRB application fee depends on the property's purchase price, and as of 2026, fees start at around $14,100 for properties under $1 million and increase on a sliding scale for more expensive properties.

Buying Jointly With an Australian Citizen or PR Partner

This is one of the most common scenarios — and one of the most misunderstood. If you're a temporary resident buying jointly with your Australian citizen or permanent resident partner (married or de facto), the FIRB rules still apply to you because you are on the title.

In most cases, you will still need FIRB approval, and the foreign purchaser surcharge will apply. The key question is how your state calculates the surcharge — some states apply it to the full purchase price even if you only own 50%, while others may calculate it on your share.

There are some limited exemptions available. For example, if you're an Australian citizen's spouse and you apply for a specific exemption, some states may waive or reduce the surcharge. These exemptions have strict eligibility criteria and are not automatic — you need to apply for them.

Buying as a Temporary Resident on Your Own

If you're purchasing property as a temporary resident without an Australian partner on the title, the rules are more restrictive. You are generally limited to purchasing new dwellings (properties that have not been previously sold or occupied) or vacant land for development.

You cannot purchase established (existing) dwellings as an investment. There is a narrow exception that allows temporary residents to purchase one established dwelling to use as their primary residence, but this is subject to conditions including that the property must be sold when you leave Australia or when it ceases to be your home.

Foreign Purchaser Surcharges by State

Each Australian state and territory sets its own surcharge rate on top of the standard stamp duty. These surcharges are additional — you pay the normal stamp duty that any buyer would pay, plus the foreign surcharge on top.

Annual Vacancy Fees

This is the cost that catches many foreign buyers off guard. If your property is left unoccupied for more than 183 days in a 12-month period, the ATO can charge you an annual vacancy fee. The fee is roughly equivalent to the FIRB application fee you paid at the time of purchase — so it's a significant recurring cost if your property sits empty.

The vacancy fee applies regardless of whether you intended to occupy the property or rent it out. If you're buying as an investment, make sure the property is tenanted or genuinely available for rent throughout the year. Simply listing it at an unrealistically high rent doesn't count.

What Happens When You Sell

One of the most overlooked issues for temporary residents who buy property is what happens at sale time. Unlike Australian citizens and permanent residents, temporary residents generally do not qualify for the main residence capital gains tax (CGT) exemption.

This means that even if the property was your primary home for the entire time you owned it, you may still owe CGT on any capital gain when you sell. The tax rate depends on your residency status for tax purposes at the time of sale and how long you held the property.

Ongoing Land Tax Surcharges

Beyond the upfront stamp duty surcharge, most states also impose an annual land tax surcharge on property owned by foreign persons. This is an ongoing cost for as long as you hold the property and remain classified as a foreign person.

In NSW and Victoria, this surcharge is currently 4% of the land value — which on a property with a land value of $800,000 means an additional $32,000 per year in land tax surcharge alone. This cost is often underestimated by foreign buyers who focus primarily on the upfront purchase costs.

The Bottom Line

Buying property as a temporary resident in Australia is absolutely possible, but the additional costs are substantial and the rules are complex. Between FIRB fees, stamp duty surcharges, vacancy fees, land tax surcharges, and CGT implications, you could be paying anywhere from $50,000 to $200,000+ more than an Australian citizen buying the same property.

The single most important thing you can do is get professional advice before signing anything. A conveyancer who specialises in foreign buyer transactions and a tax advisor who understands international tax residency rules are essential — not optional. The cost of professional advice is a fraction of the cost of getting these rules wrong.