Foreign ownership in Australia: all the rules explained (2026)

Authored by the expert who managed and guided the team behind the Australia Property Pack

Everything you need to know before buying real estate is included in our Australia Property Pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Australia. If you’d like to learn more about us, you can check our presentation page.

Do foreigners have the same rights as locals in Australia right now?

Can foreigners legally buy residential property in Australia in 2026?

As of early 2026, foreigners can legally buy certain types of residential property in Australia, but a temporary ban on established dwellings is currently in effect until March 2027.

The property types foreigners are allowed to purchase in Australia include new dwellings (such as off-the-plan apartments), vacant residential land with a requirement to build within a set timeframe, and in some cases, properties slated for redevelopment that will significantly increase housing stock.

The key distinction is between "new" and "established" properties, so if you see a listing for an older home, even if it's been recently renovated, it likely counts as established and is off-limits to foreign buyers during the ban period.

We cover all these things in length in our pack about the property market in Australia.

Do foreigners have the exact same ownership rights as locals in Australia in 2026?

As of early 2026, once a foreigner legally acquires an allowed property type in Australia, their day-to-day ownership rights look broadly similar to those of local buyers, including the ability to hold title, rent out the property, and sell it.

The most significant difference is not in what you can do with a property you own, but in getting permission to buy it in the first place, as foreigners face approval requirements, fees, and property type restrictions that locals do not.

Where ownership is equal, both foreigners and locals can register title in their own name, collect rental income, and sell the property on the open market without needing special permission after the initial purchase.

Are there any foreigner-only restrictions in Australia in 2026?

As of early 2026, there are three main categories of foreigner-only restrictions in Australia: the type of property you can buy, extra federal fees and reporting requirements, and additional state-level taxes.

The most impactful restriction is the temporary ban on purchasing established dwellings (existing homes) that runs from 1 April 2025 to 31 March 2027, which means most second-hand houses and apartments are off-limits to foreign buyers during this period.

The official rationale behind these restrictions is to increase housing availability for Australian residents and to ensure foreign investment contributes to new housing supply rather than competing for existing stock.

The most common legal approach foreigners use is simply to focus on new-build apartments and vacant land with development conditions, which remain open to foreign investment under the current rules.

Can foreigners buy property freely anywhere in Australia, or only specific areas in 2026?

As of early 2026, the restriction for foreigners in Australia is based on property type rather than geographic location, meaning there are no specific zones or suburbs officially off-limits to foreign buyers.

In practice, however, the established-dwelling ban means foreigners are effectively limited to areas where new-build stock is available, which tends to be concentrated in urban growth corridors and inner-city apartment developments.

The most popular areas where foreigners commonly purchase property in Australia include Sydney's CBD, Zetland, and Parramatta; Melbourne's Southbank, Docklands, and Carlton; and Brisbane's South Brisbane and Fortitude Valley, all of which have strong pipelines of new apartment developments.

Can foreigners own property 100% under their own name in Australia in 2026?

As of early 2026, foreigners can own property 100% under their own name in Australia, provided the acquisition itself is permitted and any required approvals have been obtained.

The property types that foreigners can register fully under their own name include new dwellings and vacant residential land purchased with the appropriate foreign investment approval.

The process requires applying through the Australian Taxation Office's foreign investment application system, paying the required fees, and then completing standard conveyancing and title registration once approval is granted.

Is freehold ownership possible for foreigners in Australia right now in 2026?

As of early 2026, freehold ownership is available for foreigners in Australia because the standard residential ownership structure in the country is typically freehold rather than long-term leasehold from the government.

The key difference in Australia is not between freehold and leasehold, but between whether you are eligible to buy a particular property type as a foreign person, with new dwellings and vacant land being the main options during the current ban period.

For strata-titled apartments (the most common type of new dwelling foreigners buy), ownership is effectively freehold, meaning you own your unit outright along with a share of the common property in the building.

Can foreigners buy land in Australia in 2026?

As of early 2026, foreigners can buy vacant residential land in Australia, but this typically comes with conditions such as a requirement to commence construction within a specified timeframe, usually four years.

Residential vacant land is the main type foreigners can purchase directly, while agricultural land has separate rules with monetary thresholds, and commercial or industrial land falls under different foreign investment screening processes.

Since direct land ownership is available for residential purposes with build conditions, most foreigners simply proceed through the standard approval process rather than needing alternative structures.

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.

Does my nationality or residency status change anything in Australia?

Does my nationality change what I can buy in Australia right now in 2026?

As of early 2026, your nationality alone typically does not change what you can buy in Australia, because the foreign investment rules focus primarily on whether you are classified as a "foreign person" based on your residency and visa status rather than your passport.

Australia does not maintain a list of banned nationalities for property purchases, so buyers from any country can apply through the same foreign investment process.

There are no bilateral agreements that give specific nationalities preferential treatment for residential property purchases in Australia, so the rules apply equally whether you hold a European, American, Asian, or any other passport.

Do EU/US/UK citizens get easier property access in Australia?

EU, US, and UK citizens do not receive automatic preferential treatment for property purchases in Australia, as the foreign investment framework treats all non-residents and temporary visa holders equally regardless of passport.

EU citizens have no special advantages in Australia's property market because Australia is not part of the European Union and there are no property-related bilateral agreements in place.

US and UK citizens similarly face the same approval requirements, fees, and property type restrictions as buyers from any other country, with the only meaningful distinction being whether you hold Australian permanent residency or citizenship.

If you're American, we have a dedicated blog article about US citizens buying property in Australia.

Can I buy property in Australia without local residency?

Non-residents and tourist-visa holders can purchase property in Australia, but they are limited to new dwellings and vacant residential land, and the established-dwelling ban applies fully to them through March 2027.

Residents (permanent residents and citizens) can buy any property type without foreign investment approval, which is a significant advantage over non-residents who face both type restrictions and application requirements.

A tourist-visa holder buying property in Australia must apply through the ATO's foreign investment process, pay the applicable fees (which scale with property value), and meet any conditions attached to the approval such as build timelines for vacant land.

What are the biggest legal grey areas for foreigners in Australia?

What are the biggest legal grey zones for foreigners in Australia in 2026?

As of early 2026, there are four main legal grey zones that trip up foreign property buyers in Australia: confusion between "new" and "established" property classifications, timing issues when visa status changes mid-purchase, underestimating vacant land build conditions, and overlooking ongoing compliance obligations like vacancy fee returns.

The riskiest grey zone is accidentally purchasing an established dwelling when you believed it was new, because marketing terms like "newly renovated" or "brand new kitchen" do not make a property legally "new" under the foreign investment rules.

The best precaution is to get written confirmation from your conveyancer or solicitor that the property qualifies as a new dwelling or vacant land under the foreign investment framework before signing any contract.

We have built our property pack about Australia with the intention to clarify all these things.

Can foreigners safely buy property using a local nominee in Australia?

Nominee arrangements are exactly where foreigners get into serious legal trouble in Australia, because the foreign investment framework looks through ownership structures to determine who really controls or benefits from the property.

Using a local nominee who is not your spouse creates significant risk because if the nominee is the legal owner, they have the legal power to sell, mortgage, or refuse to transfer the property, and you have limited recourse if the relationship sours.

Buying through a local spouse does not automatically provide protection either, as Australia's foreign investment rules examine beneficial ownership and control, so a structure designed purely to avoid foreign buyer restrictions can still be treated as a foreign acquisition.

Purchasing through a locally registered company is also scrutinized, because if the company is "foreign-controlled" (meaning foreigners hold substantial interests), it is still treated as a foreign person and subject to the same restrictions.

What happens if a foreigner dies owning property in Australia?

When a foreigner dies owning property in Australia, the estate typically goes through a probate or administration process handled by the relevant state Supreme Court, which can be slower and more complex when documents, translations, or cross-border issues are involved.

Foreign heirs must obtain a grant of probate or letters of administration from an Australian court (or have a foreign grant "resealed"), provide translated and certified documents where necessary, and then work with a local solicitor to transfer the property title.

Foreign heirs face no specific restriction on reselling inherited property, but if the seller cannot prove Australian tax residency at settlement, up to 15% of the sale price may be withheld by the buyer under capital gains withholding rules.

The most common complication is failing to plan for probate delays and tax residency documentation, which can be avoided by having a valid Australian will that covers your Australian assets and keeping clearance certificate requirements in mind for your heirs.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.

Can foreigners realistically get a mortgage in Australia in 2026?

Do banks give mortgages to foreigners in Australia in 2026?

As of early 2026, some Australian banks and lenders do offer mortgages to foreigners, but approval is harder than for locals, with stricter documentation requirements, higher deposit expectations (often 30% to 40% of the property value, meaning around AUD 300,000 to 400,000 or USD 190,000 to 250,000 or EUR 175,000 to 230,000 on a AUD 1 million property), and fewer lender options.

The main eligibility requirements banks impose on foreign mortgage applicants in Australia include verified income documentation (often requiring Australian-formatted payslips or tax returns even for overseas income), a strong credit history, proof of genuine savings, and meeting serviceability buffers that APRA requires all lenders to apply.

You can also read our latest update about mortgage and interest rates in Australia.

Are mortgage approvals harder for non-residents in Australia in 2026?

As of early 2026, mortgage approvals are meaningfully harder for non-residents than for Australian residents, primarily because lenders face greater difficulty verifying offshore income, assessing foreign credit histories, and managing currency risk.

The typical difference in loan-to-value ratio is that residents can often borrow up to 80% or more of the property value, while non-residents are usually limited to 60% to 70%, meaning a non-resident buying a AUD 1 million property might need a deposit of AUD 300,000 to 400,000 (roughly USD 190,000 to 250,000 or EUR 175,000 to 230,000) compared to AUD 200,000 for a resident.

Non-residents typically must provide additional documentation that residents do not, including certified translations of income documents, proof of overseas employment, and sometimes a larger "genuine savings" buffer held in an Australian account for several months before application.

We have a whole document dedicated to mortgages for foreigners in our Australia real estate pack.

Are foreigners protected by the law in Australia during disputes?

Are foreigners legally protected like locals in Australia right now?

Foreigners receive the same formal legal protections as locals in property matters in Australia, because courts and consumer protection laws apply regardless of nationality or residency status.

Both foreigners and locals share equal rights to sue for breach of contract, seek remedies for misleading conduct under Australian Consumer Law, and have disputes heard in state courts or tribunals.

The main practical gap is not in legal rights but in information and process knowledge, as foreigners may be less familiar with Australian contract norms, disclosure requirements, and the role of conveyancers, which can create disadvantages during negotiations or disputes.

The most important safeguard a foreigner should put in place is hiring an independent, licensed conveyancer or property solicitor before signing anything, as they can identify non-standard clauses and ensure your interests are documented correctly.

Do courts treat foreigners fairly in property disputes in Australia right now?

Australian courts apply the same legal standards to foreigners and locals, and there is no official rule or documented pattern showing systematic bias against foreign property buyers in court proceedings.

The typical duration for a foreigner to resolve a property dispute through Australian courts ranges from 12 to 24 months for contested matters, with legal costs often running from AUD 20,000 to over AUD 100,000 (roughly USD 12,500 to 62,500 or EUR 11,500 to 58,000) depending on complexity.

The most common type of property dispute foreigners bring to court involves contract issues such as failure to settle, deposit disputes, or allegations of misleading conduct by agents or vendors.

Alternative dispute resolution options for foreigners include state-based consumer tribunals (like NCAT in New South Wales or VCAT in Victoria), mediation services, and contractual arbitration clauses, all of which can be faster and cheaper than full court proceedings.

We cover all these things in our list of risks and pitfalls people face when buying property in Australia.

We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

What do foreigners say after buying in Australia in 2026?

Do foreigners feel treated differently during buying in Australia right now?

Based on buyer feedback patterns, a significant majority of foreigners report feeling treated differently during the Australian property buying process, primarily due to extra paperwork, longer timelines, and higher costs compared to what local buyers experience.

The most commonly reported difference is the requirement to go through the foreign investment approval process, which adds weeks to the purchase timeline and involves fees that locals simply do not pay.

On the positive side, many foreigners report that once they are working with experienced agents and conveyancers who understand the foreign buyer process, the transaction itself proceeds smoothly and professionally.

Find more real-life feedbacks in our our pack covering the property buying process in Australia.

Do foreigners overpay compared to locals in Australia in 2026?

As of early 2026, foreigners typically do not pay significantly more than locals for the same property at the point of sale (usually 0% to 3% price premium), but their total acquisition cost is substantially higher due to state stamp duty surcharges (7% to 8% in most states) and federal application fees, adding roughly AUD 70,000 to 120,000 (USD 44,000 to 75,000 or EUR 40,000 to 70,000) in extra costs on a AUD 1 million property.

The main reason foreigners end up paying more is not that sellers charge them higher prices, but that government-imposed surcharges and fees create a significant additional cost layer that local buyers simply do not face, effectively making the same property 7% to 12% more expensive for a foreign purchaser.

What sources have we used to write this blog article?

Whether it's in our blog articles or the market analyses included in our property pack about Australia, we always rely on the strongest methodology we can … and we don't throw out numbers at random.

We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.

Source	Why It's Authoritative	How We Used It
Australian Taxation Office (Property Types)	Official government guidance for foreign property buyers.	We used it to explain what property types foreigners can legally buy in 2026. We also used it to create practical checklists for readers.
ATO (Established Dwelling Ban)	Official source for the 2025-2027 ban dates and rules.	We used it to confirm the exact ban period from 1 April 2025 to 31 March 2027. We also used it to explain what exceptions exist.
Foreign Investment Guidance Note 6	Government's detailed interpretive guidance on residential land.	We used it to explain new dwelling definitions and vacant land conditions. We also used it to clarify redevelopment exceptions.
Revenue NSW	Official NSW tax authority for stamp duty surcharges.	We used it to explain the extra duty foreigners pay in New South Wales. We also used it to calculate total cost premiums.
State Revenue Office Victoria	Victoria's official tax authority for foreign buyer duty.	We used it to explain additional duty in Victoria. We also used it as a model for how states define foreign purchaser.
APRA Prudential Practice Guide APG 223	Australia's banking regulator setting mortgage lending standards.	We used it to explain why banks are strict with foreign borrowers. We also used it to ground our mortgage difficulty assessment.
ATO (Foreign Investor Fees)	Official fee schedule indexed by financial year.	We used it to describe upfront FIRB application fees. We also used it to support cost expectations for buyers.
ATO (Vacancy Fee Return)	Primary compliance page for the vacancy regime.	We used it to explain ongoing reporting obligations for foreign owners. We also used it to flag compliance items buyers often miss.
Australian Consumer Law (AustLII)	The actual legal text of Australia's consumer protection framework.	We used it to confirm that legal protections apply equally to foreigners. We also used it to ground our dispute rights explanation.
ATO (Clearance Certificates)	Official explanation of withholding risk at settlement.	We used it to explain resale friction points for foreign sellers. We also used it to show how exit mechanics differ for foreigners.

We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.