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
Australia has strict rules for foreigners who want to buy residential property, and these rules changed significantly in 2025.
This guide walks you through what you can legally buy, how the process works, and what costs to expect as a foreign buyer in Australia.
We constantly update this blog post to reflect the latest regulations, fees, and market conditions.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Australia.
Insights
- Foreign buyers in Australia face a temporary ban on established (second-hand) homes from April 2025 to March 2027, which means most foreigners can only purchase new dwellings or off-the-plan apartments during this window.
- The foreign investment application fee for residential property up to AUD 1 million in Australia is AUD 15,100 in the 2025-26 financial year, and fees increase significantly for higher-priced properties.
- In states like New South Wales, foreign buyers pay a surcharge purchaser duty on top of regular stamp duty, which can push total closing costs to 8% to 15% of the purchase price.
- Australia does not offer a "golden visa" or direct residency pathway through property purchase, and the Business Innovation and Investment Program closed to new applicants in 2024.
- Foreign residents who earn rental income in Australia are taxed at non-resident rates starting at 30% with no tax-free threshold, making tax planning essential before you buy.
- Mortgage rates for foreign buyers in Australia typically run 0.5% to 1.5% higher than resident rates, putting realistic budgeting in the 6% to 7% variable range in January 2026.
- Strata levies for apartments in Australian cities commonly range from AUD 3,000 to AUD 10,000 per year depending on building amenities, which catches many foreign buyers off guard.
- Foreign buyers must obtain approval from the Foreign Investment Review Board before signing contracts, not after, which is the single biggest timing mistake newcomers make.
What can I legally buy and truly own as a foreigner in Australia?
What property types can foreigners legally buy in Australia right now?
As of early 2026, foreigners in Australia can generally buy new dwellings, near-new dwellings (including off-the-plan apartments), and vacant residential land with conditions, but established second-hand homes are subject to a temporary ban running from April 2025 to March 2027.
The most important limitation for foreign buyers in Australia is that you must apply for and receive approval from the Foreign Investment Review Board (administered through the ATO) before you can legally complete a purchase.
In practice, this means most foreign individuals end up buying new apartments, off-the-plan units, or house-and-land packages on city fringes because these property types fit the government's policy goal of adding housing supply rather than competing with locals for existing homes.
If you buy vacant land in Australia, your approval will typically come with a condition requiring you to build a dwelling within a set timeframe, so land-banking without building is generally not permitted for foreign persons.
Finally, please note that our pack about the property market in Australia is specifically tailored to foreigners.
Can I own land in my own name in Australia right now?
Yes, Australia does allow foreigners to hold property in their own name on the title, and there is no blanket ban preventing foreign names from appearing on land registry documents.
However, what you can own depends entirely on the type of land: vacant residential land typically requires approval plus a commitment to build, while land under an established dwelling falls under the current ban for foreign persons unless a limited exception applies.
It is also worth knowing that Australian property can be held under different title structures, with Torrens title being common for houses and strata title being standard for apartments where you own your unit plus a share of common property.
As of 2026, what other key foreign-ownership rules or limits should I know in Australia?
As of early 2026, the most important rule foreign buyers often overlook is that the legal trigger is your "foreign person" status under the foreign investment framework, which can catch individuals, companies, and trusts, so how you structure your purchase (personal name versus entity) changes how the rules apply to you.
Australia does not have a foreign-ownership quota system for apartments or condos like some Asian countries do, so there is no percentage cap on how many units in a building can be sold to foreigners.
Before you can legally buy, you must lodge a foreign investment application through the ATO and pay the applicable fee, and this approval is meant to be secured before you sign contracts rather than treated as a formality afterward.
The most significant recent regulatory change affecting foreign buyers in Australia is the temporary ban on established dwellings for foreign persons, which took effect on April 1, 2025 and runs until March 31, 2027, limiting most foreign purchases to new or off-the-plan stock during this window.
If you're interested, we go much more into details about the foreign ownership rights in Australia here.
What's the biggest ownership mistake foreigners make in Australia right now?
The single biggest mistake foreigners make in Australia right now is trying to buy or sign contracts for an established home first and assuming they can sort out the foreign investment approval later, which during the current ban period means the purchase may be prohibited entirely.
If you make this mistake, you could lose money on due diligence, legal fees, and finance applications only to discover you cannot legally complete the purchase, and in some cases you may face penalties for proceeding without approval.
Other classic pitfalls in Australia include underestimating the state-level costs like foreign buyer stamp duty surcharges (which can add 7% to 8% on top of normal duty in New South Wales), not budgeting for strata levies on apartments, and failing to account for the higher mortgage rates that foreign borrowers typically face.
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.
Which visa or residency status changes what I can do in Australia?
Do I need a specific visa to buy property in Australia right now?
You do not need a special "property buyer visa" to purchase real estate in Australia, but if you are classified as a foreign person under the foreign investment framework, you must follow the approval process and are generally limited to new or off-the-plan properties rather than established homes during the current ban period.
The most common administrative hurdle for foreign buyers without local residency in Australia is getting finance, because many Australian banks are cautious about lending to non-residents and require extensive documentation of foreign income.
You do not need a local tax file number (TFN) before making an offer, but you will need to set up your tax and foreign investment accounts early because approvals and tax registrations take longer to arrange at the last minute than most buyers expect.
Foreign buyers in Australia typically need to present a valid passport, proof of funds, the foreign investment approval letter, and in some cases certified identity documents, with your conveyancer or solicitor guiding you on exactly what your state requires.
Does buying property help me get residency and citizenship in Australia in 2026?
As of early 2026, buying residential property in Australia does not directly give you residency or citizenship, and Australia does not run a straightforward "invest in real estate and get a visa" program.
The old Business Innovation and Investment Program (BIIP) streams, which some people mistakenly thought of as a golden visa pathway, were closed to new applicants in 2024 according to the Department of Home Affairs.
If you want to live permanently in Australia, you will need to explore other pathways such as skilled worker visas, employer sponsorship, family reunion, or business innovation programs that do not rely solely on property investment.
Can I legally rent out property on my visa in Australia right now?
Your visa status does not prevent you from renting out property you legally own in Australia, because the rental income rules are based on tax residency rather than immigration status.
You do not need to live in Australia to rent out your property, and most foreign landlords manage their investments remotely by hiring a licensed local property manager to handle inspections, repairs, tenant selection, and bond compliance.
The key thing foreign owners must know is that Australian-source rental income is taxable in Australia regardless of where you live, and if you are a foreign tax resident, you will pay tax at non-resident rates starting at 30% with no tax-free threshold, so you should plan your tax obligations before you buy.
We cover everything there is to know about buying and renting out in Australia here.
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How does the buying process actually work step-by-step in Australia?
What are the exact steps to buy property in Australia right now?
The standard sequence to buy property in Australia as a foreigner involves shortlisting suitable properties (keeping in mind new versus established restrictions), engaging a conveyancer or solicitor, lodging your foreign investment application and paying the fee, arranging finance, exchanging contracts with a deposit, completing pre-settlement checks, settling (usually electronically through your representatives), and then handling post-settlement tasks like registration and insurance.
You do not usually need to be physically present in Australia to complete a purchase because your legal representative can sign documents and coordinate settlement on your behalf, though some banks may require certified identity documents or video verification.
The step that typically makes the deal legally binding in Australia is the exchange of contracts, which is when both parties sign and the buyer pays a deposit, though cooling-off rules vary by state (New South Wales, for example, gives buyers a short cooling-off period on most residential sales).
From accepted offer to final registration in Australia, you should expect the process to take roughly 6 to 12 weeks for a standard transaction, though off-the-plan purchases settle much later when construction completes.
We have a document entirely dedicated to the whole buying process our pack about properties in Australia.
Is it mandatory to get a lawyer or a notary to buy a property in Australia right now?
A notary is typically not required in Australian residential conveyancing, and while a lawyer or conveyancer is not always legally mandatory, regulators strongly recommend engaging one because contracts, searches, and settlement procedures are technical and state-specific.
The key difference in Australia is that a conveyancer specializes in property transfers and is often more affordable for straightforward deals, while a lawyer can also advise on broader legal issues like contract disputes or complex ownership structures.
When you engage a conveyancer or lawyer for a property purchase in Australia, make sure their scope explicitly includes reviewing the contract of sale, ordering all necessary searches (title, zoning, strata if applicable), and coordinating settlement through the electronic system.
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.
What checks should I run so I don't buy a problem property in Australia?
How do I verify title and ownership history in Australia right now?
To verify title and ownership history in Australia, you (or your conveyancer) should order a current title search from the relevant state titles registry, such as NSW Land Registry Services in New South Wales, Land Victoria in Victoria, or Titles Queensland in Queensland.
The key document you need is the Certificate of Title or title search result, which shows the registered owner, lot and plan details, and any registered interests like mortgages, caveats, or easements affecting the property.
Most buyers in Australia check the current ownership and recent history going back at least 10 to 20 years, which is usually enough to spot any unusual transfer patterns or unresolved disputes.
A clear red flag that should pause your purchase in Australia is finding unregistered caveats, multiple rapid transfers in a short period, or any ongoing legal proceedings noted against the title.
You will find here the list of classic mistakes people make when buying a property in Australia.
How do I confirm there are no liens in Australia right now?
In Australia, encumbrances that affect land (including mortgages, caveats, and easements) are shown on the title register, so your title search from the state registry is the primary way to confirm there are no liens on the property.
One common type of encumbrance buyers should specifically ask about in Australia is unpaid strata levies for apartments, because these can become a liability for the new owner and do not always appear on the title until formally registered.
The best proof of lien status in Australia is the official title search result from the state land registry, combined with a strata certificate (for apartments) that shows the levy payment status and any special levies planned.
How do I check zoning and permitted use in Australia right now?
To check zoning and permitted use in Australia, you should use the official planning maps provided by each state or local council, such as the NSW Planning Portal Spatial Viewer, VicPlan in Victoria, or Brisbane City Council's City Plan online tool.
The document that confirms zoning classification in Australia is the planning certificate (called a Section 10.7 certificate in NSW) or the property report generated from the state planning portal, which shows the zone and any overlays affecting your property.
A common zoning pitfall foreign buyers miss in Australia is assuming a residential property can be used for short-term rentals like Airbnb, when many councils have restrictions or require development approval for this use, so you should always check before buying if you plan to rent short-term.
Buying real estate in Australia can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Australia, and on what terms?
Do banks lend to foreigners for homes in Australia in 2026?
As of early 2026, yes, some Australian banks do lend to foreigners for home purchases, but fewer lenders offer these products, requirements are stricter, and you will typically need a larger deposit than a local resident would.
Foreign borrowers in Australia most commonly see loan-to-value ratios in the 60% to 70% range, meaning you should budget for a deposit of at least 30% to 40% of the purchase price.
The most common eligibility requirement that determines whether a foreigner qualifies for a mortgage in Australia is the ability to verify foreign income to the bank's satisfaction, with lenders often requiring translated payslips, tax returns, and bank statements from your home country.
You can also read our latest update about mortgage and interest rates in Australia.
Which banks are most foreigner-friendly in Australia in 2026?
As of early 2026, the most foreigner-friendly lenders in Australia tend to be banks with established international or expat borrower processes, and while specific policies change frequently, buyers often shortlist HSBC Australia, some second-tier banks, and select non-bank lenders that specialize in non-resident lending.
What makes these lenders more foreigner-friendly is their willingness to accept a wider range of foreign income documentation and their experience processing applications from buyers who do not have Australian tax residency or employment history.
Most of these lenders will consider non-residents (buyers without local residency), but the terms are typically tighter, with lower LTV ratios and sometimes a rate premium compared to what they offer to Australian residents.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Australia.
What mortgage rates are foreigners offered in Australia in 2026?
As of early 2026, foreign buyers in Australia should realistically budget for variable mortgage rates in the 6% to 7% range, which is typically 0.5% to 1.5% higher than the rates offered to prime Australian resident borrowers.
Fixed-rate mortgages for foreigners in Australia are available but often come at a similar or slightly higher premium compared to variable rates, and the spread depends on the loan term and lender appetite at the time you apply.
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 will taxes, fees, and ongoing costs look like in Australia?
What are the total closing costs as a percent in Australia in 2026?
For foreign buyers purchasing property in Australia in 2026, total closing costs typically range from 8% to 15% of the purchase price, with the wide range driven mainly by state-level stamp duty and foreign buyer surcharges.
The low end of around 8% applies in states with lower surcharges or for lower-priced properties, while the high end of 15% or more is common in states like New South Wales or Victoria where foreign buyer surcharges add 7% to 8% on top of standard transfer duty.
The specific fee categories that make up closing costs in Australia include stamp duty (transfer duty), foreign buyer surcharge duty, the foreign investment application fee (AUD 15,100 for properties up to AUD 1 million in 2025-26), conveyancing and legal fees, title searches, building and pest inspections, and strata reports for apartments.
The single biggest contributor to closing costs for foreign buyers in Australia is almost always the combination of stamp duty and the foreign buyer surcharge, which together can easily exceed 10% of the purchase price in major states.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Australia.
What annual property tax should I budget in Australia in 2026?
As of early 2026, foreign property owners in Australia should budget roughly AUD 6,000 to AUD 15,000 per year (approximately USD 4,000 to USD 10,000 or EUR 3,600 to EUR 9,000) for a typical metro apartment when combining council rates, strata levies, and state land tax where applicable.
Australia does not have a single national property tax; instead, you pay council rates (set by local government based on property value), strata levies if you own an apartment or townhouse (covering building maintenance and insurance), and in many cases state land tax (which often applies to investment properties and may include a foreign owner surcharge).
How is rental income taxed for foreigners in Australia in 2026?
As of early 2026, foreign tax residents who earn rental income from Australian property are taxed at non-resident marginal rates starting at 30% on the first dollar of net rental profit, with no tax-free threshold available.
Foreign owners must lodge an Australian tax return each year declaring their gross rental income and claiming allowable deductions (such as interest, property management fees, repairs, and depreciation), and the ATO may also require quarterly or annual withholding arrangements in some cases.
What insurance is common and how much in Australia in 2026?
As of early 2026, owners of apartments in Australia typically pay around AUD 300 to AUD 1,200 per year (approximately USD 200 to USD 800 or EUR 180 to EUR 720) for contents and landlord insurance, since building insurance is usually covered through strata levies; for standalone houses, building insurance alone can run AUD 1,200 to AUD 3,500 per year depending on location and risk factors.
The most common type of property insurance coverage in Australia is building insurance for houses (covering the structure against fire, storm, and other damage) and landlord insurance for rental properties (covering tenant damage, loss of rent, and liability).
The biggest factor that makes insurance premiums higher or lower in Australia is the property's location relative to natural disaster risk zones, with homes in cyclone-prone areas of Queensland, flood-prone regions, or bushfire-exposed zones paying significantly more than equivalent properties in lower-risk suburbs.
Get the full checklist for your due diligence in Australia
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
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 Name | Why It's Authoritative | How We Used It |
|---|---|---|
| Australian Taxation Office (ATO) - Foreign Residential Investor Fees | Official Commonwealth site administering foreign investment applications and fees. | We used it for the official fee schedule by price band for 2025-26. We also confirmed the established dwelling ban dates and timing. |
| Treasury/FIRB Residential Land Guidance Note 6 | Government guidance explaining how residential foreign investment rules work in practice. | We used it to confirm what property types are permitted versus prohibited for foreigners. We referenced it for approval conditions like build timelines on vacant land. |
| Foreign Investment (Treasury/FIRB) Fees Hub | Official government page explaining how foreign investment fees are structured. | We used it to confirm fee mechanics and cross-check the ATO fee tables. We referenced it for vacancy fee concepts. |
| ATO - How to Apply for Residential Property | Official application workflow for foreign buyers. | We used it for the practical approval steps before exchange. We referenced it for timing expectations in the buying process. |
| Revenue NSW - Surcharge Purchaser Duty | NSW government revenue authority's official guidance on foreign buyer duty. | We used it to explain how foreign buyer stamp duty surcharges work. We referenced it as a major-state example of additional costs. |
| Consumer Affairs Victoria | Victorian consumer regulator's official buyer guidance. | We used it to support the recommendation to hire your own conveyancer or solicitor. We referenced it for role explanations. |
| NSW Government - Contracts and Deposits | Official NSW government consumer guidance for property buyers. | We used it to illustrate how exchange, deposits, and cooling-off work. We referenced it as an example of state-based process rules. |
| NSW Land Registry Services | Official government-authorized land titles operator for NSW. | We used it to show how buyers verify ownership via the registry. We referenced it as a model for title searches nationally. |
| Victoria Land Registry | Official Victorian government page about title searches and the land register. | We used it to explain what a title search reveals and why it matters. We referenced it to show encumbrance checking. |
| NSW Planning Portal Spatial Viewer | Official NSW planning map viewer for zoning and controls. | We used it to explain how buyers check zoning by address. We referenced it as the practical "where to click" example. |
| VicPlan (Victoria Planning) | Victorian government planning map and reporting tool. | We used it to show the Victorian equivalent of NSW zoning checks. We referenced it to reinforce that planning checks are state-based. |
| ATO - Foreign Resident Tax Rates | Official tax rate table for non-resident individuals. | We used it to explain how rental profit is taxed for foreign tax residents. We referenced it for marginal rate guidance. |
| ATO - Rental Properties Guide | ATO's detailed technical guide for rental income and expenses treatment. | We used it to explain what counts as rental income and typical deductions. We referenced it for ongoing ownership costs. |
| Department of Home Affairs - BIIP Closure | Official immigration authority page on program status. | We used it to confirm Australia does not have a simple property-to-residency pathway. We referenced it to frame residency discussions realistically. |
| Reserve Bank of Australia - Interest Rates | Central bank's official time series for lending rates. | We used it to anchor mortgage rate estimates in official national data. We referenced it to estimate the resident versus non-resident pricing gap. |
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.