Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Sydney's property market is included in our pack
Buying property as a foreigner in Sydney in 2026 means navigating a temporary ban on established homes, hefty NSW surcharges, and a market where new apartments are your most realistic option.
This guide walks you through exactly what you can legally purchase, how much it will truly cost, and the steps to avoid expensive mistakes.
We constantly update this blog post to reflect the latest rules, taxes, and Sydney housing prices.
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 Sydney.
Insights
- Foreign buyers in Sydney face a 9% surcharge purchaser duty on top of regular stamp duty, which alone can add over A$90,000 to the cost of a A$1 million apartment.
- The established dwelling ban running from April 2025 to March 2027 effectively pushes foreign buyers toward new apartments in corridors like Zetland, Mascot, and Parramatta.
- NSW surcharge land tax of 5% annually applies to foreign owners with no tax-free threshold, meaning a property with A$600,000 land value triggers A$30,000 per year in surcharge alone.
- Foreign borrowers typically need 30% to 40% deposits in Sydney, compared to 20% for local buyers, because banks apply stricter income verification and currency haircuts.
- Total closing costs for foreign buyers in Sydney commonly range from 14% to 18% of the purchase price, roughly double what Australian citizens pay.
- Net rental income for non-resident owners is taxed at 30% from the first dollar earned in Sydney, with no tax-free threshold available to foreign residents.
- Mortgage rates for foreigners in Sydney in 2026 typically range from 6.25% to 8.25%, compared to around 5.5% to 6% for local borrowers.
- Strata levies in Sydney apartments commonly run A$2,500 to A$6,000 per year, with properties featuring lifts, pools, or concierge services pushing toward the higher end.
What can I legally buy and truly own as a foreigner in Sydney?
What property types can foreigners legally buy in Sydney right now?
In January 2026, foreign buyers in Sydney can generally purchase new dwellings that have never been sold or occupied, off-the-plan apartments and townhouses, and vacant residential land with conditions requiring construction within set timeframes.
The most important limitation is the temporary ban on established dwellings running from 1 April 2025 to 31 March 2027, which means most existing houses, terraces, and older apartments across Sydney suburbs like Bondi, Paddington, and Newtown are off-limits to foreign buyers.
This effectively channels foreign buyers toward new apartment developments concentrated in growth corridors such as Zetland, Green Square, Mascot, Wolli Creek, Sydney Olympic Park, and Parramatta, where new stock is regularly released.
You will also need Foreign Investment Review Board approval and must pay an application fee before purchasing, with the specific requirements depending on the property type and your circumstances.
Finally, please note that our pack about the property market in Sydney is specifically tailored to foreigners.
Can I own land in my own name in Sydney right now?
Yes, when you buy property in Sydney, you can legally own land in your own name, whether that is a freestanding house on torrens title or a strata apartment where you own your lot plus a share of common property.
The real blocker for foreign buyers in Sydney in January 2026 is not the legal form of ownership but rather obtaining permission to buy, since established properties on most residential land are currently banned while new builds and vacant land come with approval conditions.
If you purchase a strata apartment, which is the most common path for foreign buyers in Sydney right now, you will own your individual unit outright and hold a proportional share of the building's land and common areas through the owners corporation.
As of 2026, what other key foreign-ownership rules or limits should I know in Sydney?
As of January 2026, foreign buyers in Sydney must also budget for NSW-specific surcharges that apply on top of federal requirements, including a 9% surcharge purchaser duty payable at purchase and a 5% annual surcharge land tax with no tax-free threshold.
There is no foreign ownership quota for apartments or condos in Sydney the way some other countries have, so you do not face a building-wide cap limiting how many units foreigners can own in any given development.
You must apply for and receive approval from the Foreign Investment Review Board before purchasing, pay the associated application fee, and notify the Register of Foreign Ownership of Australian Assets when you buy or sell residential land in Sydney.
A notable recent change is the increase in NSW surcharges from January 2025, when surcharge purchaser duty rose from 8% to 9% and surcharge land tax rose from 4% to 5%, making the ongoing cost of foreign ownership in Sydney noticeably higher than in previous years.
What's the biggest ownership mistake foreigners make in Sydney right now?
The biggest ownership mistake foreigners make in Sydney right now is committing to a purchase, often by paying a deposit, before confirming they are actually permitted to buy that specific property type and that they can secure financing.
If you make this mistake, the real-world consequence can be losing your deposit entirely if the contract is not conditional on FIRB approval and your application is refused, or finding yourself locked into a property you cannot afford after underestimating the NSW foreign surcharges.
Other classic pitfalls in Sydney include not ordering a strata report for apartment purchases, which can hide expensive special levies or building defects, and assuming Australian banks will lend to you on the same terms as local buyers when they typically require much larger deposits and apply stricter income verification.
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 Sydney?
Do I need a specific visa to buy property in Sydney right now?
You do not need a specific "property visa" to buy in Sydney, but your visa or residency status determines what you can purchase, and if you are on a tourist visa you are treated as a foreign person limited to new or off-the-plan properties with FIRB approval required.
The most common administrative blocker for buyers without local residency is securing finance, since Australian banks apply much stricter lending criteria to non-residents and may decline applications from buyers without Australian income or a local credit history.
You will generally need Australian tax identifiers once you earn rental income, and banks commonly require tax residency documentation as part of the mortgage application process, so having these sorted early helps avoid delays.
Foreign buyers in Sydney typically need to present a valid passport, proof of foreign address, evidence of funds or finance approval, and any visa documentation if they are in Australia, with your solicitor or conveyancer coordinating the identity verification process.
Does buying property help me get residency and citizenship in Sydney in 2026?
As of January 2026, buying property in Sydney does not automatically give you residency or citizenship because Australia does not offer a classic golden visa program where a real estate purchase directly qualifies you for immigration benefits.
If you want to become a permanent resident in Australia, you will need to pursue other pathways such as skilled work visas, employer sponsorship, partner visas, or the investor visa program, which requires significant capital investment in complying investments rather than just buying a home.
Can I legally rent out property on my visa in Sydney right now?
Your visa status does not prevent you from renting out property you own in Sydney, since the key requirements relate to tax compliance and proper income declaration rather than what visa you hold.
You do not need to live in Australia to rent out your Sydney property, and most foreign owners manage their rentals through licensed local property managers who handle tenant relations, maintenance approvals, and rent collection.
Foreign owners must declare all rental income to the Australian Taxation Office, keep detailed records of rental expenses, and pay tax on net rental income at foreign resident rates, which in 2026 start at 30% from the first dollar with no tax-free threshold.
We cover everything there is to know about buying and renting out in Sydney here.
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How does the buying process actually work step-by-step in Sydney?
What are the exact steps to buy property in Sydney right now?
The standard buying sequence in Sydney involves confirming you can legally purchase the property type, arranging finance or proof of funds, making an offer and receiving the contract for sale, conducting pre-exchange checks on title, strata, building, and zoning, exchanging contracts and paying the deposit, then settling via electronic conveyancing where money and title formally transfer.
You do not need to be physically present for most steps because your solicitor or conveyancer can handle contract exchange, identity verification, and settlement remotely, though some banks may require additional verification if you are overseas.
The deal typically becomes legally binding when you exchange contracts with the seller, though NSW has a cooling-off period of five business days for most private treaty sales, with the important exception being auctions where you are committed immediately.
From accepted offer to final registration in Sydney, the typical timeline ranges from six to twelve weeks, depending on whether you are buying an existing new apartment ready for settlement or an off-the-plan property where settlement occurs after construction is complete.
We have a document entirely dedicated to the whole buying process our pack about properties in Sydney.
Is it mandatory to get a lawyer or a notary to buy a property in Sydney right now?
A notary is generally not required for buying property in Sydney, but using a licensed conveyancer or solicitor is functionally essential because they handle the title searches, contract amendments, duty payments, and participation in the electronic settlement workspace.
The main difference in Sydney is that notaries typically only certify documents for international use, while solicitors and conveyancers do the actual legal work of reviewing contracts, identifying risks, and executing the settlement process on your behalf.
Your lawyer or conveyancer's engagement should explicitly include reviewing the contract for sale, ordering title and strata searches, advising on special conditions, liaising with your lender, and handling the eConveyancing settlement process through to registration.
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 Sydney?
How do I verify title and ownership history in Sydney right now?
The official registry to verify title and ownership history in Sydney is NSW Land Registry Services, which your conveyancer accesses to pull current title records, registered interests, mortgages, easements, and any caveats affecting the property.
The key document to confirm ownership is the Certificate of Title or current title search, which shows the registered owner, the lot and plan details, and any encumbrances or restrictions recorded against the property.
In Sydney, buyers commonly look back at least 20 to 30 years of ownership history to identify any patterns of disputes, unusual transfers, or potential issues that might affect future use or value.
A clear red flag that should stop or pause your purchase is finding an unresolved caveat, an unreleased mortgage from a previous owner, or for strata properties, undisclosed major building defects or pending legal action in the owners corporation records.
You will find here the list of classic mistakes people make when buying a property in Sydney.
How do I confirm there are no liens in Sydney right now?
The standard way to confirm there are no liens or encumbrances in Sydney is through your conveyancer ordering a full title search from NSW Land Registry Services, which shows any registered mortgages, easements, covenants, or caveats against the property.
For strata properties in Sydney, you should specifically ask about unpaid strata levies, because these can become a charge against the lot and the owners corporation can pursue recovery from new owners for any outstanding amounts.
The best written proof of lien status is the current title search combined with, for strata properties, a Section 184 strata certificate that discloses any outstanding levies, special contributions, or legal proceedings involving the owners corporation.
How do I check zoning and permitted use in Sydney right now?
The authority to check zoning and permitted use for any Sydney property is the NSW Planning Portal, specifically the Spatial Viewer tool, which lets you search an address and see the zoning classification, overlays, heritage listings, and applicable planning controls.
The single document or map reference that confirms zoning is the Local Environmental Plan for the relevant council area, which you can access through the Spatial Viewer and which specifies the zone, permitted uses, and any special restrictions.
A common zoning pitfall foreign buyers miss in Sydney is purchasing an older inner-city terrace or apartment without realizing it has heritage restrictions that limit renovations, or buying in a strata building where by-laws restrict short-term letting like Airbnb even if zoning would otherwise allow it.
Buying real estate in Sydney 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 Sydney, and on what terms?
Do banks lend to foreigners for homes in Sydney in 2026?
As of January 2026, yes, some Australian banks do lend to foreigners for homes in Sydney, but the pool of lenders is smaller, eligibility checks are stricter, and you should expect less favorable terms than local borrowers receive.
Foreign borrowers in Sydney commonly see loan-to-value ratios capped at 60% to 70%, meaning you will need a deposit of 30% to 40% of the purchase price, compared to the 20% deposit that Australian citizens might manage.
The most common eligibility requirement that determines whether you qualify is proof of stable income, with banks applying conservative haircuts to foreign income, currency conversion discounts, and often requiring employment in a recognized currency like USD, GBP, or EUR.
You can also read our latest update about mortgage and interest rates in Australia.
Which banks are most foreigner-friendly in Sydney in 2026?
As of January 2026, the banks most commonly regarded as foreigner-friendly for Sydney mortgages include HSBC Australia, which has an established international mortgage program, along with selective offerings from major banks like Commonwealth Bank, Westpac, NAB, and ANZ depending on your profile.
The single most important feature that makes these banks more foreigner-friendly is having established processes for verifying overseas income, accepting documentation in English or from recognized countries, and maintaining dedicated international banking teams.
Some of these banks will lend to non-residents who do not live in Australia, but typically with stricter conditions, higher deposits, and often only for certain property types like new apartments in major cities including Sydney.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Sydney.
What mortgage rates are foreigners offered in Sydney in 2026?
As of January 2026, foreign buyers in Sydney typically see mortgage interest rates ranging from around 6.25% to 8.25% per annum, which is higher than the approximately 5.5% to 6% rates available to local borrowers with standard profiles.
Variable rates tend to be slightly lower than fixed rates for foreigners in Sydney in 2026, but the gap is narrow, and many foreign borrowers choose variable loans to maintain flexibility or because fixed-rate products are simply not offered to them by their lender.
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 Sydney?
What are the total closing costs as a percent in Sydney in 2026?
Foreign buyers in Sydney in 2026 should expect total closing costs to typically fall between 14% and 18% of the purchase price, which is significantly higher than the roughly 5% to 6% that Australian citizens pay due to the additional foreign surcharges.
The realistic low-to-high range varies depending on property value and your exact circumstances, with lower-priced new apartments trending toward 14% and higher-value properties pushing toward 18% as stamp duty scales up.
The main fee categories making up closing costs in Sydney include NSW transfer duty, the 9% surcharge purchaser duty for foreign buyers, FIRB application fees, legal and conveyancing fees, title searches, building and strata inspections, and any bank or mortgage establishment fees.
The single biggest contributor to closing costs for foreign buyers in Sydney is the combination of standard transfer duty plus the 9% surcharge purchaser duty, which together can easily exceed 12% of the purchase price on a typical Sydney apartment.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Sydney.
What annual property tax should I budget in Sydney in 2026?
As of January 2026, foreign owners of a typical Sydney apartment should budget roughly A$7,000 to A$15,000 per year (approximately US$4,500 to US$9,500 or EUR 4,200 to EUR 9,000) for combined council rates, water, strata levies, and the 5% surcharge land tax that applies without any tax-free threshold.
Annual property tax in Sydney is assessed through a combination of council rates based on land value set by the Valuer General, plus for foreign owners the surcharge land tax calculated as 5% of the unimproved land value, which can add tens of thousands of dollars depending on location.
How is rental income taxed for foreigners in Sydney in 2026?
As of January 2026, foreign residents earning rental income from Sydney property pay tax at 30% on net rental income from the first dollar, with no tax-free threshold available, rising to 32.5% on income above A$135,000.
Foreign owners must lodge an Australian tax return each year declaring their rental income and can claim deductions for allowable expenses like property management fees, repairs, interest on loans, and depreciation, with the ATO requiring proper records of all income and expenditure.
What insurance is common and how much in Sydney in 2026?
As of January 2026, annual insurance premiums for a Sydney property typically range from A$300 to A$1,200 (approximately US$190 to US$770 or EUR 180 to EUR 720) for contents and landlord insurance on an apartment, or A$1,500 to A$4,000 (approximately US$960 to US$2,550 or EUR 900 to EUR 2,400) for building insurance on a house.
The most common type of property insurance coverage in Sydney is building insurance for houses and landlord insurance for rental properties, while strata apartment owners typically only need contents insurance since the building itself is insured through the owners corporation.
The biggest factor that makes insurance premiums higher or lower for the same property type in Sydney is the property's location and associated risk profile, including flood zone mapping, bushfire ratings, proximity to coast, and the building's construction type and age.
Get the full checklist for your due diligence in Sydney
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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 Sydney, 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 | Official federal authority administering foreign investment rules and compliance. | We used it to confirm the established dwelling ban dates, scope, and exceptions. We cross-checked it against FIRB announcements for accuracy. |
| Foreign Investment Review Board | Official federal site explaining Australia's foreign investment framework. | We used it to define what foreign persons can and cannot buy as of January 2026. We anchored our property type guidance on their official categories. |
| Revenue NSW Transfer Duty | NSW government authority for stamp duty rules and thresholds. | We used it to describe NSW purchase taxes and premium duty thresholds. We based our closing cost percentages on their official rate structure. |
| Revenue NSW Surcharge Purchaser Duty | Official NSW source for foreign buyer surcharge rates and rules. | We used it to confirm the 9% surcharge rate applying from January 2025. We incorporated it into our total closing cost calculations. |
| Revenue NSW Surcharge Land Tax | Definitive NSW source for foreign owner annual land tax surcharges. | We used it to confirm the 5% surcharge land tax rate from 2025 onwards. We used their examples to estimate annual holding costs for foreign owners. |
| ATO Foreign Resident Tax Rates | Official tax table for foreign resident individuals in Australia. | We used it to explain how rental income is taxed for non-residents. We confirmed the 30% starting rate with no tax-free threshold. |
| Reserve Bank of Australia | Official source for Australian lending rate statistics. | We used it to anchor typical housing loan rates near January 2026. We applied a conservative foreign borrower margin to estimate realistic rates. |
| APRA Residential Mortgage Guidance | Banking regulator setting prudential expectations for mortgage lending. | We used it to explain why foreign borrowers face stricter checks. We based our deposit and LVR estimates on their prudential framework. |
| NSW Government Buying Guide | Official NSW consumer guidance for residential buying rules. | We used it to explain the exchange, cooling-off, and settlement flow. We confirmed deposit and contract processes against their guidance. |
| NSW Land Registry Services | Maintains the official land titles register for NSW. | We used it to explain how to verify title and ownership history. We described what documents conveyancers should pull before exchange. |
| NSW Registrar General | Regulator of NSW land title system and electronic conveyancing. | We used it to confirm that modern NSW settlements use electronic conveyancing. We explained why you need a conveyancer even without a notary. |
| NSW Planning Portal | Official NSW government planning and zoning lookup tool. | We used it to explain how buyers check zoning and overlays. We incorporated it into our due diligence guidance for Sydney properties. |
| ASIC MoneySmart | Australia's official consumer finance guidance from the securities regulator. | We used it to explain which insurance is needed for houses versus strata apartments. We based our premium estimates on their guidance. |
| City of Sydney | Official Sydney council source for how rates work and are calculated. | We used it to illustrate the council rates concept with a real reference point. We generalized carefully since Sydney has many different councils. |
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.
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