FIRB Rules for Foreign Property Buyers in Australia | Mortgagefy
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Foreign Buyers

FIRB Rules for Foreign Property
Buyers in Australia — 2026

Who needs FIRB approval, what you can and can't buy, the fee schedule, and how being a permanent resident changes everything.

April 25, 2026 7 min read Mortgagefy Broker Team
30 days
FIRB decision timeframe
$14,700
Min FIRB fee (up to $1M)
PR = No FIRB
Permanent residents exempt

Free resource

Foreign Buyer Checklist

FIRB, visa, finance, and deposit — a step-by-step checklist for buying property in Australia.

Australia regulates foreign investment in residential property through the Foreign Investment Review Board (FIRB). If you're not an Australian citizen or permanent resident, you need FIRB approval before buying property here.

But the rules are more nuanced than they appear — what you can buy, where, and for how much all depends on your visa status, your residency, and how you intend to use the property.

Quick answer for permanent residents: If you hold an Australian permanent residency visa (any PR subclass), you do NOT need FIRB approval. You are treated identically to an Australian citizen for property purchase purposes.

Who Needs FIRB Approval?

Buyer StatusFIRB Required?Property Restrictions?
Australian citizenNoNo
Australian permanent residentNoNo
New Zealand citizen (on SCV)NoNo
Temporary resident (working, student, 482/457 etc.)YesYes — primarily new dwellings; must sell when leaving
Non-resident foreign national (overseas)YesSignificant restrictions — primarily new dwellings only
Foreign-owned company / trustYesTreated as foreign national

What Can Foreign Buyers Purchase?

Property TypeTemporary ResidentNon-Resident Foreign National
New dwellings (off-the-plan, new construction)✅ Yes — FIRB approval required✅ Yes — FIRB approval required
Vacant land (for development)✅ Yes — must develop within 4 years✅ Yes — must develop
Established residential (owner-occupier)✅ Yes — but must sell when leaving Australia❌ Generally not permitted
Established residential (investment)❌ Generally not permitted❌ Generally not permitted
Commercial property✅ With FIRB (different thresholds)✅ With FIRB (different thresholds)
Critical rule for temporary residents: If you buy an established dwelling as an owner-occupier, you MUST sell the property when you permanently depart Australia or when your visa expires. Failure to do so is a FIRB compliance breach with significant penalties.

FIRB Application Fees (Residential Property)

Property ValueFIRB Application Fee (2026)
Up to $1,000,000$14,700
$1,000,001 – $1,999,999$29,300
$2,000,000 – $2,999,999$58,700
$3,000,000 – $3,999,999$88,000
$4,000,000 – $4,999,999$117,400
$5,000,000+Increasing in $29,300 increments per $1M

These fees are in addition to any state government foreign buyer surcharges:

StateForeign Buyer Stamp Duty SurchargeForeign Buyer Land Tax Surcharge
NSW8% of property value4% annual surcharge
VIC8% of property value2% annual surcharge
QLD7% of property value2% annual surcharge
WA7% of property value0.5% annual surcharge
SA7% of property value0.5% annual surcharge
Total cost example (NSW): A foreign national buying a $900,000 new apartment in Sydney pays: $14,700 FIRB fee + $72,000 foreign buyer surcharge (8% × $900K) + standard stamp duty ~$35,835 = ~$122,535 in purchase costs before legal and mortgage fees. This is why most foreign buyers prefer to apply for permanent residency first.
FIRB foreign buyer rules Australia

How to Apply for FIRB Approval

Applications are made through the ATO's Foreign Investment Review website (firb.gov.au):

  • Step 1: Identify the correct application category (residential, commercial, agricultural)
  • Step 2: Pay the application fee upfront (non-refundable)
  • Step 3: Provide details of the proposed purchase — address, purchase price, your visa status, intended use
  • Step 4: Wait for decision — typically 30 days statutory deadline
  • Step 5: Exchange contracts only after receiving FIRB approval (or after 30 days if no objection received)
Do NOT exchange contracts before FIRB approval. Exchanging before approval is a serious breach. Penalties include forced divestiture (forced sale of the property) and civil penalties up to $157,500 for individuals or 3× the property gain.

Finance Options for Foreign Buyers

Australian mainstream lenders (Big 4 banks) do not lend to non-resident foreign buyers. Options include:

  • Specialist Australian lenders: Some non-bank lenders offer foreign national loans at higher rates and with 30–40% deposit requirements
  • Offshore banking: Some international banks with Australian branches may lend to their existing customers
  • Cash purchase: Many foreign buyers purchase without Australian finance, using overseas funds

Temporary residents (on eligible visas) have better access — some mainstream lenders will approve loans for temporary residents buying new dwellings, typically requiring 20% deposit.

Frequently Asked Questions

Yes, but you'll need FIRB approval based on your current temporary visa status. Once permanent residency is granted, FIRB requirements cease for future purchases. If you've already bought with FIRB conditions, those conditions (like must-sell requirements) expire when your PR is granted.

This depends on how you're purchasing. If the property is solely in your Australian spouse's name, no FIRB is needed. If you're co-purchasing with the foreign national on the title, FIRB approval is required. Some couples buy in the Australian partner's name only to avoid FIRB complications.

Developers can apply for a New Dwelling Exemption Certificate (NDEC) that pre-approves their development for foreign buyer purchases without individual FIRB applications. Many off-the-plan apartment developments hold this certificate, which makes buying simpler for foreign buyers — check if the developer has one before you proceed.

Yes, but with different thresholds. Commercial real estate has a $275 million threshold before FIRB review applies for most foreign buyers. Agricultural land has a $15 million threshold. These thresholds are much higher than residential property, giving foreign commercial investors more flexibility.

Need help navigating FIRB and finance?

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