Buying and owning a property as a foreigner in Melbourne (January 2026)

Melbourne is one of Australia's most attractive property markets for foreign buyers, but the rules have changed significantly since April 2025.

This article explains what foreigners can legally buy, own, and do with property in Melbourne right now, including visas, taxes, mortgages, and step-by-step processes.

We update this blog post regularly to reflect the latest regulations, fees, and market conditions in Melbourne.

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 Melbourne.

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 Melbourne. If you’d like to learn more about us, you can check our presentation page.

What can I legally buy and truly own as a foreigner in Melbourne?

What property types can foreigners legally buy in Melbourne right now?

In January 2026, foreign buyers in Melbourne can generally purchase new dwellings, off-the-plan apartments and townhouses, and vacant residential land where they commit to building within four years.

The main restriction is a temporary two-year ban on foreign purchases of established dwellings, which runs from 1 April 2025 to 31 March 2027 and blocks most existing homes from foreign acquisition unless very narrow exceptions apply.

This means that if you see a lived-in apartment, townhouse, or house for sale on Domain or Realestate.com.au in Melbourne, it almost certainly falls into the "established dwelling" category that is currently prohibited for foreign buyers.

The only established-dwelling exceptions involve transactions that demonstrably increase housing supply, such as demolishing an existing home and building two or more new dwellings, but these require specific Foreign Investment Review Board (FIRB) approval and are not typical for individual buyers.

Finally, please note that our pack about the property market in Melbourne is specifically tailored to foreigners.

Can I own land in my own name in Melbourne right now?

Yes, Australia and Victoria do not prohibit foreigners from holding property title in their own name, so if you receive FIRB approval for a permitted property type, you can be registered as the legal owner on the Victorian land title.

The constraints are about what categories of property you are allowed to acquire and the additional taxes and fees you will pay, not about whether your name can appear on the ownership documents.

You will typically need to apply for FIRB approval before signing an unconditional contract, or make your contract conditional on receiving that approval, so the timing of your application is critical to avoid legal complications.

As of 2026, what other key foreign-ownership rules or limits should I know in Melbourne?

As of January 2026, the most important additional rule affecting foreign buyers in Melbourne is the requirement to pay an annual vacancy fee of at least A$5,000 if your property is not occupied or genuinely available for rent for more than 183 days per year.

There is no foreign ownership quota for apartments or condos in Melbourne the way some Asian countries have, but the established dwelling ban effectively limits foreign buyers to new stock regardless of building type.

All foreign buyers must notify the Register of Foreign Ownership of Australian Assets when they buy or sell residential land, which is a compliance step handled through the ATO system alongside your FIRB application.

One notable recent change is the tripling of FIRB application fees for any established dwelling purchases that might qualify for an exception, which reflects the government's intention to strongly discourage such transactions during the 2025 to 2027 ban period.

What's the biggest ownership mistake foreigners make in Melbourne right now?

The biggest ownership mistake foreigners make in Melbourne right now is attempting to buy an established dwelling without realizing the 2025 to 2027 ban applies to them, or assuming that "established" only means old houses when it actually includes any previously occupied property regardless of age or condition.

If you make this mistake by bidding at auction or signing a contract for an established property without FIRB approval, you may face penalties up to A$157,500, potential criminal prosecution, and forced sale of the property, which is a serious financial and legal consequence.

Other classic pitfalls in Melbourne include underestimating total costs because foreign buyers often focus on the purchase price and forget that the 8% foreign purchaser duty plus standard stamp duty plus FIRB fees can add 15% or more to the acquisition cost, and failing to account for the 4% absentee owner land tax surcharge when calculating ongoing holding costs for an investment property.

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 Melbourne?

Do I need a specific visa to buy property in Melbourne right now?

You do not need a special property-buyer visa to purchase real estate in Melbourne, and you can technically buy on a tourist visa, but your visa and residency status determines which property categories you can access and whether you face additional hurdles.

The single most common administrative requirement that blocks buyers without local residency is FIRB approval, which all foreign non-residents must obtain before acquiring residential property in Australia regardless of property type.

You do not strictly need a local tax file number (TFN) before signing a purchase contract, but you will need one if you earn rental income in Australia because that income is taxable and requires lodging returns with the ATO.

Typical documents a foreign buyer must present include a valid passport, FIRB approval letter, proof of funds or mortgage pre-approval, and identification documents that meet Australian verification standards, which your conveyancer or solicitor will specify.

Does buying property help me get residency and citizenship in Melbourne in 2026?

As of January 2026, buying property in Melbourne does not give you any direct pathway to Australian residency or citizenship because Australia does not operate a property-based investor visa program.

Australia's main Business Innovation and Investment Program (BIIP), which some people thought of as an "investor visa," closed to new applications on 31 July 2024 and is only processing applications already in the queue.

If you want permanent residency in Australia, the main pathways in 2026 include skilled migration visas if you have an occupation on the relevant skills list, family visas if you have an Australian citizen or permanent resident sponsor, or employer-sponsored visas if an Australian company offers you qualifying employment.

Can I legally rent out property on my visa in Melbourne right now?

Your visa status generally does not prevent you from renting out property you legally own in Melbourne, but you must ensure your purchase approval conditions allow rental use because some historical temporary resident approvals required owner-occupation.

You do not need to live in Australia to rent out your Melbourne property, and many overseas owners manage their investments through local property managers without ever residing in the country.

The most important detail for foreign landlords is that rental income earned in Australia is fully taxable here even if you live overseas, with non-resident tax rates starting at 32.5% and no tax-free threshold, so you will need to lodge Australian tax returns and may want a local accountant.

We cover everything there is to know about buying and renting out in Melbourne here.

How does the buying process actually work step-by-step in Melbourne?

What are the exact steps to buy property in Melbourne right now?

The standard sequence to buy property in Melbourne as a foreigner is: first confirm the property is in an allowed category (new, off-the-plan, or vacant land), then apply for FIRB approval, search and inspect properties, engage a conveyancer or solicitor to review the contract and Section 32 vendor statement, make an offer or bid at auction, pay your deposit (typically 10%), satisfy any finance conditions, and finally complete settlement where your conveyancer handles title transfer and you pay the balance.

You do not need to be physically present for most steps because contracts can be signed electronically, your conveyancer can act on your behalf at settlement, and you can appoint a representative or buyer's agent to attend inspections and even auctions.

The step that typically makes the deal legally binding in Melbourne is exchange of contracts, and if you buy at auction the contract becomes binding immediately when the hammer falls with no cooling-off period, which is why foreign buyers must have FIRB approval in place before auction day.

The typical timeline from accepted offer to final title registration in Melbourne is 30 to 90 days depending on whether the purchase is financed, with 60 days being a common settlement period for standard transactions.

We have a document entirely dedicated to the whole buying process our pack about properties in Melbourne.

Is it mandatory to get a lawyer or a notary to buy a property in Melbourne right now?

A notary is not required to buy property in Melbourne, and Australia does not use the notary-driven system common in continental Europe, but you should engage either a licensed conveyancer or a property lawyer/solicitor to handle the legal transfer.

The key difference is that a conveyancer handles the standard paperwork and transfer process, while a property lawyer can also advise on complex legal issues like FIRB compliance, unusual contract conditions, or disputes, which makes a lawyer the better choice for most foreign buyers.

One key item that should be explicitly included in your lawyer or conveyancer engagement is verification of FIRB approval requirements and ensuring your contract contains an appropriate FIRB condition if approval has not yet been granted, because getting this wrong can expose you to serious penalties.

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 Melbourne?

How do I verify title and ownership history in Melbourne right now?

The official registry to verify title and ownership history in Melbourne is Land Use Victoria, which maintains the authoritative register of all land titles in the state and provides the definitive record of who owns what.

The key document you should request is a Certificate of Title (also called a title search), which shows the current registered owner, any mortgages, caveats, easements, and other encumbrances recorded against the property.

Most conveyancers in Melbourne run a title search covering the current ownership and will flag any issues, though you can request a longer look-back if you have specific concerns about a property's history.

One clear red flag that should stop or pause a purchase is the presence of a caveat from a third party claiming an interest in the property, which could indicate an unresolved dispute, unpaid debt, or competing ownership claim that needs resolution before you proceed.

You will find here the list of classic mistakes people make when buying a property in Melbourne.

How do I confirm there are no liens in Melbourne right now?

The standard way to confirm there are no liens or encumbrances on a Melbourne property is through an official title search from Land Use Victoria, which records all registered mortgages, caveats, charges, and notices against the property.

One common type of lien foreign buyers should specifically ask about is any outstanding owners corporation (strata) levies if buying an apartment or townhouse, because these can become a charge against the property and transfer to the new owner.

The best written proof of lien status is the Certificate of Title itself combined with a current owners corporation certificate (for strata properties), which together show both registered encumbrances and any outstanding body corporate debts or special levies.

How do I check zoning and permitted use in Melbourne right now?

The official authority to check zoning and permitted use for any Melbourne property is the Victorian Government's planning system, accessible through VicPlan (the state's interactive planning map) or the simpler Planning Property Report tool.

The document that confirms zoning classification is the Planning Property Report, which you generate by entering the property address and which shows the zone, any overlays (like heritage, flood, or design controls), and links to the relevant planning scheme rules.

One common zoning pitfall foreign buyers miss in Melbourne is purchasing an apartment with a residential zone that restricts or prohibits short-stay accommodation, only to discover they cannot legally use the property for Airbnb-style rentals as they had planned.

Can I get a mortgage as a foreigner in Melbourne, and on what terms?

Do banks lend to foreigners for homes in Melbourne in 2026?

As of January 2026, yes, some Australian lenders do provide mortgages to foreign buyers in Melbourne, but availability is limited because many major banks have withdrawn from this market segment due to compliance complexity and perceived risk.

The realistic loan-to-value ratio range for foreign borrowers in Melbourne is 60% to 70%, meaning you should expect to provide a deposit of 30% to 40% of the property value rather than the 10% to 20% an Australian resident might need.

The single most common eligibility requirement that determines whether a foreigner qualifies is having income in an "acceptable currency" like US dollars, British pounds, euros, or Singapore dollars, because lenders apply significant haircuts or refuse applications entirely for income in less common currencies.

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

Which banks are most foreigner-friendly in Melbourne in 2026?

As of January 2026, the most foreigner-friendly lenders for Melbourne property purchases are typically specialist non-bank lenders accessed through mortgage brokers, plus select offerings from NAB and occasionally HSBC, though policies change frequently and depend on your specific circumstances.

The feature that makes these lenders more foreigner-friendly is their willingness to accept and verify overseas income, process applications for non-residents, and work with the additional documentation requirements that foreign buyers present.

These lenders will generally lend to non-residents who do not have Australian residency, but typically at lower LVRs (60% to 70% maximum) and higher interest rates than they offer to Australian citizens or permanent residents.

We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Melbourne.

What mortgage rates are foreigners offered in Melbourne in 2026?

As of January 2026, foreign buyers in Melbourne typically see mortgage interest rates in the range of 6.5% to 8.0% per annum for standard variable loans, which is roughly 1% to 2% higher than rates available to Australian residents.

Fixed-rate mortgages are available but less common for foreign buyers, and when offered, fixed rates tend to be similar to or slightly higher than variable rates, with most foreign borrowers opting for variable loans that allow more flexibility including interest-only periods of up to five years.

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 Melbourne?

What are the total closing costs as a percent in Melbourne in 2026?

The typical total closing cost for a foreign buyer in Melbourne in 2026 is approximately 14% to 16% of the purchase price, which is roughly double what an Australian resident would pay for the same property.

The realistic range that covers most standard transactions runs from about 13% at the low end (for lower-value properties with minimal professional fees) to 17% or more for higher-value purchases where FIRB fees scale up significantly.

The specific fee categories that make up total closing costs in Melbourne are: standard Victorian stamp duty (around 5% to 6%), the 8% foreign purchaser additional duty, FIRB application fees (A$4,300 to over A$100,000 depending on property value), conveyancing and legal fees (A$1,500 to A$3,000), title searches and registration (A$200 to A$500), and building and pest inspections (A$300 to A$600).

The single biggest contributor to closing costs for foreign buyers is the combined stamp duty burden, where the 8% foreign purchaser additional duty on top of standard duty of around 5.5% creates a combined rate of 13.5% for properties over A$960,000 before any other fees are added.

If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Melbourne.

What annual property tax should I budget in Melbourne in 2026?

As of January 2026, a foreign owner should budget approximately 1.0% to 1.5% of property value per year for recurring holding costs including council rates, land tax, and the 4% absentee owner surcharge, which translates to around A$9,000 to A$15,000 per year (US$5,500 to US$9,000 or EUR 5,000 to EUR 8,500) for a typical A$900,000 Melbourne property.

The main way annual property tax is assessed in Melbourne is through two separate levies: council rates charged by your local municipality based on the property's capital improved value, and state land tax calculated as a percentage of the unimproved land value above certain thresholds, with the 4% absentee owner surcharge added on top for non-resident foreign owners.

How is rental income taxed for foreigners in Melbourne in 2026?

As of January 2026, foreign residents earning rental income from Melbourne property are taxed at non-resident rates starting at 32.5% on every dollar of net rental income, with no tax-free threshold available as Australian residents enjoy.

The basic filing requirement is that foreign owners must lodge an annual Australian tax return declaring their rental income minus allowable deductions (property management fees, repairs, interest on loans, depreciation), and if using a property manager, that manager may be required to withhold tax from rental payments.

What insurance is common and how much in Melbourne in 2026?

As of January 2026, the typical annual insurance premium for a standard Melbourne home ranges from A$1,500 to A$3,500 (US$900 to US$2,100 or EUR 850 to EUR 2,000) for a detached house, while apartment owners often find building insurance embedded in their owners corporation fees with separate landlord or contents insurance costing A$300 to A$1,200 per year.

The most common type of property insurance coverage owners carry in Melbourne is building insurance for houses (covering the structure against fire, storm, and other damage) or landlord insurance for investment properties (covering building, loss of rent, and tenant damage).

The biggest factor that makes insurance premiums higher or lower for the same property type in Melbourne is the property's location relative to flood and bushfire risk zones, with properties in declared risk areas facing significantly higher premiums or coverage exclusions.

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 Melbourne, 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
FIRB Guidance Note 1	Official Australian Government guidance explaining foreign investment rules for residential property.	We used it to define what Australia considers new, established, and vacant land for foreign buyers. We also relied on it for approval conditions and timing requirements.
Australian Taxation Office	The ATO's official policy page for the current established dwelling ban and enforcement approach.	We used it to confirm the 1 April 2025 to 31 March 2027 ban window and limited exceptions. We treated this as the controlling rule for what foreign buyers can purchase.
FIRB Guidance Note 10 (Fees)	Official government guidance on how foreign investment application fees are calculated and indexed.	We used it to explain FIRB fee structures and why fees vary by property value. We referenced it to avoid relying on unofficial fee estimates.
State Revenue Office Victoria (FPAD)	Victoria's tax authority stating the official foreign purchaser additional duty rate.	We used it for the 8% additional duty figure and to ensure our closing cost calculations reflect current Victorian law.
State Revenue Office Victoria (Absentee Surcharge)	Victoria's official guidance on the absentee owner land tax surcharge.	We used it to confirm the 4% surcharge rate and explain how it adds to ongoing holding costs for foreign owners.
Consumer Affairs Victoria	Victorian Government consumer regulator providing practical buying guidance.	We used it to outline the real-world steps buyers take in Melbourne, including contract review and auction rules.
Land Use Victoria	Victoria's official land registry for title data and ownership records.	We used it to explain what a title search shows and why it's the authoritative way to verify ownership in Melbourne.
VicPlan	Victorian Government's official statewide viewer for zoning and planning overlays.	We used it to show how buyers can check zone and overlay information for any Melbourne property address.
Planning Property Report	Official Victorian Government tool for quick property-by-property planning summaries.	We used it as the simplest way to get a zoning summary for a specific Melbourne address.
Department of Home Affairs	Official Australian Government immigration page for program changes and closures.	We used it to confirm that Australia has no current property-to-residency pathway and that BIIP closed on 31 July 2024.
Reserve Bank of Australia	Australia's central bank providing the official cash rate target.	We used the 3.60% cash rate as the macro benchmark to estimate realistic mortgage rate ranges for foreign buyers.
ATO Foreign Resident Tax Guidance	Official ATO guidance on what foreign residents must declare and how they are taxed.	We used it to explain that rental income earned in Australia is taxable for foreign owners at non-resident rates.
Canstar	Established Australian financial comparison site with verified lender data.	We used it to cross-check typical LVR and deposit requirements for non-resident borrowers in Australia.
Home Loan Experts	Specialist mortgage broker with documented non-resident lending expertise.	We used their published rate ranges and currency requirements to estimate foreigner mortgage costs and eligibility criteria.

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.