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
Sydney is one of the most expensive cities in the world for foreign property buyers, mainly because New South Wales stacks a 9% surcharge on top of already-high stamp duty.
We update this article regularly to reflect the latest tax rates, FIRB fees, and professional costs that foreign buyers face in Sydney.
The numbers and rules you see here are current as of early 2026, drawn from official NSW Government and Australian Taxation Office sources.
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.
Overall, how much extra should I budget on top of the purchase price in Sydney in 2026?
How much are total buyer closing costs in Sydney in 2026?
As of early 2026, foreign buyers purchasing residential property in Sydney should budget approximately 14% to 18% of the purchase price for total closing costs, which translates to around A$140,000 to A$180,000 (US$91,000 to US$117,000 or €84,000 to €108,000) on a typical A$1 million Sydney home.
The absolute minimum extra budget for closing costs in Sydney, when keeping expenses to the bare legal minimum, sits around 13% to 14% of the purchase price (roughly A$130,000 to A$140,000, or US$84,500 to US$91,000, or €78,000 to €84,000 on a A$1 million property), because the 9% foreign buyer surcharge alone is unavoidable.
For a conservative "sleep at night" budget that accounts for all potential fees including thorough due diligence, FIRB fees on established dwellings, and comprehensive legal review, Sydney buyers should plan for 18% to 22% of the purchase price (A$180,000 to A$220,000, US$117,000 to US$143,000, or €108,000 to €132,000 on a A$1 million purchase).
The main factors that push your Sydney closing costs toward the high end include purchasing an established dwelling rather than new construction (which triggers much higher FIRB fees), buying at a higher price point (which increases your stamp duty percentage), and adding recommended due diligence like strata reports, building inspections, and specialist legal review.
What's the usual total % of fees and taxes over the purchase price in Sydney?
For most foreign buyers in Sydney in 2026, the usual total percentage of fees and taxes over the purchase price lands between 14% and 18%, making it one of the most expensive markets globally for overseas purchasers.
The realistic low-to-high percentage range that covers most standard Sydney property transactions spans from about 13% (absolute floor for lower-priced properties with minimal extras) up to 22% or more for established dwellings at higher price points with comprehensive due diligence.
Government taxes and charges make up the vast majority of that total, typically accounting for 12% to 16% of the purchase price (dominated by normal stamp duty plus the 9% foreign surcharge), while professional service fees like conveyancing, inspections, and registrations only add about 0.3% to 1.0%.
By the way, you will find much more detailed data in our property pack covering the real estate market in Sydney.
What costs are always mandatory when buying in Sydney in 2026?
As of early 2026, the mandatory costs for foreign buyers in Sydney include NSW transfer duty (stamp duty), the 9% surcharge purchaser duty for foreign buyers, FIRB application fees (for most foreign purchasers), conveyancing or solicitor fees, and title registration plus settlement lodgement costs.
Optional but highly recommended costs that Sydney buyers should not skip include building and pest inspections (especially for houses and terraces), strata reports for apartments and townhouses (because levies, defects, cladding issues, and special levies can become massive hidden costs), and an independent property valuation to sanity-check the purchase price.
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What taxes do I pay when buying a property in Sydney in 2026?
What is the property transfer tax rate in Sydney in 2026?
As of early 2026, NSW transfer duty (commonly called stamp duty) is progressive rather than a flat rate, meaning the percentage increases as your Sydney property price rises, with typical purchases landing around 3.5% to 5.5% for normal duty before surcharges.
Foreign buyers in Sydney face a significant extra transfer tax: the surcharge purchaser duty, which adds a flat 9% of the property's dutiable value on top of the normal stamp duty for contracts signed from 1 January 2025 onward.
Australia does not have VAT, but it does have GST at 10%; however, existing residential property sales in Sydney are generally "input taxed," meaning no GST applies to the sale price, though new builds or developer sales may have GST embedded in different ways.
Stamp duty in Sydney is due around settlement or within the statutory NSW timeframe (your conveyancer handles the timing), and for the 9% foreign surcharge specifically, it becomes payable on the earlier of three months from exchange of contracts or the settlement date.
Are there tax exemptions or reduced rates for first-time buyers in Sydney?
NSW offers first-home duty relief through the First Home Buyers Assistance Scheme, which can provide full exemptions or concessions depending on the property price and buyer eligibility, but many foreign buyers will not qualify due to citizenship and residency requirements.
If you buy property through a company in Sydney instead of as an individual, land tax treatment can differ significantly (companies and trusts are assessed differently), and the foreign person surcharges may still apply if the company is classified as a foreign entity.
There is a tax difference between new-build and resale properties in Sydney, mainly related to GST: resale homes typically have no GST on the sale, while new builds from developers may have GST reflected in the price or handled through margin schemes.
To qualify for first-home exemptions in NSW, buyers must meet specific criteria including being a natural person (not a company), never having owned property in Australia before, and intending to live in the property as their principal residence, with various price thresholds determining whether you get a full exemption or partial concession.
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.
Which professional fees will I pay as a buyer in Sydney in 2026?
How much does a notary or conveyancing lawyer cost in Sydney in 2026?
As of early 2026, Sydney buyers typically pay A$1,500 to A$3,500 (US$975 to US$2,275 or €900 to €2,100) for conveyancing legal fees, plus another A$300 to A$1,200 (US$195 to US$780 or €180 to €720) for disbursements, searches, and registrations, bringing the total legal bundle to roughly A$1,800 to A$4,700.
Conveyancing fees in Sydney are typically charged as flat rates rather than a percentage of the property price, though more complex transactions involving strata issues, foreign ownership documentation, or unusual title matters may attract higher fees.
Translation and interpreter services for foreign buyers in Sydney typically cost A$250 to A$900 (US$160 to US$585 or €150 to €540), with the lower end covering translation of key contract sections and the higher end covering full contract explanation sessions plus certified translations of identification and foreign documents.
A tax advisor is not always necessary but becomes valuable if you might be classified as a foreign person for NSW surcharge land tax purposes, are buying through a company or trust, or plan to rent the property out, with typical fees ranging from A$500 to A$2,500 (US$325 to US$1,625 or €300 to €1,500) depending on complexity.
We have a whole part dedicated to these topics in our our real estate pack about Sydney.
What's the typical real estate agent fee in Sydney in 2026?
As of early 2026, real estate agent commissions in Sydney are negotiable and typically range from 1.5% to 2.5% of the sale price, but this cost is almost always paid by the seller rather than the buyer.
In NSW, the seller signs an agency agreement with the real estate agent and pays the commission, so as a buyer in Sydney you typically do not pay the selling agent's fee directly, unless you hire a separate buyer's agent to help you find and negotiate a property.
If you do hire a buyer's agent in Sydney, fees can range from a flat fee of around A$5,000 to A$15,000 (US$3,250 to US$9,750 or €3,000 to €9,000) up to 1% to 2% of the purchase price for premium services, depending on the level of assistance and property value.
How much do legal checks cost (title, liens, permits) in Sydney?
Legal checks in Sydney, including title searches, liens verification, and permits review, are typically bundled into conveyancing disbursements and cost around A$300 to A$900 (US$195 to US$585 or €180 to €540), though complex strata or community title properties can push costs higher.
Independent property valuations in Sydney, which lenders often require and buyers should consider for peace of mind, typically cost A$400 to A$900 (US$260 to US$585 or €240 to €540), with higher fees for complex, unique, or high-value homes.
The most critical legal check you should never skip in Sydney is the strata report for apartments and townhouses, because it reveals levies, special assessments, building defects, cladding issues, litigation history, and sinking fund health, which are often the true hidden costs in Sydney property.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Sydney.
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What hidden or surprise costs should I watch for in Sydney right now?
What are the most common unexpected fees buyers discover in Sydney?
The most common unexpected fees foreign buyers discover in Sydney include FIRB application fees that can run into tens of thousands of dollars (especially for established dwellings), strata special levies for building repairs or cladding remediation, and the annual 5% surcharge land tax on land value if you are classified as a foreign person and do not qualify for an exemption.
Foreign buyers can inherit unpaid property taxes or debts in Sydney, which is why your conveyancer's searches and settlement adjustments are designed to identify and resolve any outstanding council rates, water charges, or strata arrears before you take ownership.
The most common Sydney "scam-shaped" risks include pressure to pay deposits to non-trust accounts, fake holding deposits demanded before contracts are reviewed, and email impersonation of law firms in settlement communications, so you should always verify payment account details by calling a known phone number before transferring any significant funds.
Fees that are usually not disclosed upfront in Sydney include strata special levies (only revealed when you read the minutes and financials), upcoming building defect remediation costs, insurance premium spikes in strata buildings, and your potential exposure to annual surcharge land tax based on your foreign person status and the property's land value.
In our property pack covering the property buying process in Sydney, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Sydney?
If the Sydney property you are buying has a tenant, you should budget an extra A$200 to A$800 (US$130 to US$520 or €120 to €480) for additional legal review of the lease agreement, bond documentation, rent ledger, notice periods, and tenant rights under NSW tenancy law.
When you purchase a tenanted property in Sydney, you legally inherit the existing lease and must honor its terms, including the rent amount, lease duration, and tenant's right to remain in the property until the lease ends or is lawfully terminated.
You generally cannot terminate an existing lease immediately after purchase in Sydney, as NSW residential tenancy laws protect the tenant's right to stay until the lease expires, though you may be able to give notice for a "no grounds" termination at the end of a fixed term or negotiate a mutual agreement with the tenant.
A sitting tenant in Sydney can affect your negotiating position either positively (guaranteed rental income appeals to investors) or negatively (owner-occupiers may want vacant possession), and tenanted properties sometimes sell at a small discount of 2% to 5% compared to vacant properties depending on lease terms and market conditions.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Sydney.
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 fees are negotiable, and who really pays what in Sydney?
Which closing costs are negotiable in Sydney right now?
The negotiable closing costs in Sydney include your conveyancer's fixed fee (shop around and compare quotes), building and pest inspection providers, strata report services, and buyer's agent fees if you hire one.
The closing costs that are fixed by law or regulation and cannot be negotiated in Sydney include NSW transfer duty, the 9% foreign buyer surcharge purchaser duty, FIRB application fees, and government registry and lodgement charges.
On negotiable fees in Sydney, buyers can typically achieve savings of 10% to 20% by comparing quotes from multiple conveyancers or inspection providers, though the savings are modest in dollar terms compared to the much larger government taxes that dominate your closing costs.
Can I ask the seller to cover some closing costs in Sydney?
In Sydney, it is relatively uncommon for sellers to agree to cover buyer closing costs directly, because the largest buyer costs are government taxes that the seller cannot easily absorb or pay on your behalf.
When sellers in Sydney do help with closing costs, it is more commonly achieved through a reduction in the purchase price rather than the seller explicitly paying your stamp duty or legal fees, which effectively gives you more cash to cover those costs yourself.
Sellers in Sydney are more likely to accept covering closing costs (via price reduction) in buyer's market conditions, when a property has been listed for a long time, when there is limited competition, or when a quick settlement suits the seller's timeline.
Is price bargaining common in Sydney in 2026?
As of early 2026, price bargaining is common in Sydney but the amount you can negotiate depends heavily on the suburb, property type, and how long the listing has been on the market.
In "hot" pockets of Sydney with high demand, buyers typically negotiate 0% to 5% below the asking price, while in areas where listings are stale or overpriced, discounts of 5% to 10% below asking are achievable, which on a A$1.5 million property means potential savings of A$75,000 to A$150,000 (US$49,000 to US$97,500 or €45,000 to €90,000).
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What monthly, quarterly or annual costs will I pay as an owner in Sydney?
What's the realistic monthly owner budget in Sydney right now?
A realistic monthly owner budget in Sydney ranges from about A$400 to A$1,500 (US$260 to US$975 or €240 to €900) for a typical property, though this can vary dramatically based on whether you own a house or an apartment with strata levies.
The main recurring expense categories that make up this monthly budget in Sydney include council rates (A$100 to A$250 per month), water charges through Sydney Water (A$30 to A$90 per month), strata levies for apartments and townhouses (A$200 to A$900 per month), and building insurance (included in strata levies for apartments, or separate for houses).
The realistic low-to-high range for monthly owner costs in Sydney spans from about A$150 per month (US$100 or €90) for a modest house with no strata in a lower-rated council area, up to A$1,500 per month (US$975 or €900) or more for a high-rise apartment with premium amenities, pools, lifts, and concierge services.
Strata levies are the monthly cost that varies the most in Sydney, because they depend on the building's age, amenities, insurance premiums, and whether any special levies have been raised for defect repairs, cladding remediation, or major capital works.
You can see how this budget affect your gross and rental yields in Sydney here.
What is the annual property tax amount in Sydney in 2026?
As of early 2026, Sydney does not have a single annual property tax; instead, property owners pay council rates (typically A$1,200 to A$3,000 per year or US$780 to US$1,950 or €720 to €1,800) and may also owe NSW land tax if the property is not their principal residence and exceeds value thresholds.
The realistic low-to-high range for annual council rates in Sydney spans from about A$1,200 per year (US$780 or €720) in lower-rated areas to A$3,500 or more per year (US$2,275 or €2,100) for high-value properties in expensive council areas, with rates varying by local government area and property value.
Council rates in Sydney are calculated based on the land value of your property (determined by the NSW Valuer General) multiplied by a rate set by your local council, with different categories for residential, business, and other property types.
Foreign property owners in Sydney face an additional annual cost: the surcharge land tax at 5% of the property's unimproved land value, with no tax-free threshold, which can add tens of thousands of dollars per year if you do not qualify for an exemption, making this one of the biggest ongoing surprise costs for overseas buyers.
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.
If I rent it out, what extra taxes and fees apply in Sydney in 2026?
What tax rate applies to rental income in Sydney in 2026?
As of early 2026, if you are a foreign resident for Australian tax purposes, your Sydney rental income is taxed at foreign resident individual tax rates starting at 30% for income from A$0 up to A$135,000, with no tax-free threshold and no Medicare levy.
Landlords in Sydney can deduct a wide range of expenses from rental income before calculating tax, including loan interest, property management fees, repairs and maintenance, insurance, strata levies, council rates, water charges, and depreciation on fixtures and fittings.
After deductions, the realistic effective tax rate for typical Sydney landlords who are foreign residents ranges from about 20% to 30% on net rental income, depending on how much they can claim in interest, depreciation, and other expenses.
Foreign property owners in Sydney do pay the same rental income tax rates as foreign residents (there is no extra "foreigner" rental tax), but they cannot access the tax-free threshold or lower rates that Australian residents enjoy, which means tax applies from the first dollar of net rental income.
Do I pay tax on short-term rentals in Sydney in 2026?
As of early 2026, short-term rental income from platforms like Airbnb in Sydney is taxable just like long-term rental income, and you must report all earnings to the Australian Taxation Office and pay tax at the applicable rates for your residency status.
Short-term rental income in Sydney is taxed the same way as long-term rental income (no separate rate or category), but you may face stricter compliance requirements including platform reporting obligations, potential strata by-law restrictions, and local council registration or day limits in some areas.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Sydney.
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If I sell later, what taxes and fees will I pay in Sydney in 2026?
What's the total cost of selling as a % of price in Sydney in 2026?
As of early 2026, the total cost of selling a Sydney property typically ranges from 2% to 4% of the sale price, not including any capital gains tax liability that may apply.
The realistic low-to-high percentage range for total selling costs in Sydney spans from about 1.5% (minimal marketing, negotiated low commission) to 5% or more (premium marketing packages, higher commission, extensive legal review).
The specific cost categories that make up this total include real estate agent commission (the largest item), marketing and advertising costs (often A$5,000 to A$20,000 in Sydney), conveyancing legal fees, and any early mortgage discharge fees if you have a loan.
The single largest contributor to selling expenses in Sydney is almost always the real estate agent's commission, which typically ranges from 1.5% to 2.5% of the sale price and is negotiated between the seller and the agent before listing.
What capital gains tax applies when selling in Sydney in 2026?
As of early 2026, capital gains tax (CGT) in Australia is not a separate tax but rather a component of your income tax, meaning any taxable capital gain from selling Sydney property is added to your other income and taxed at your marginal rate (which for foreign residents starts at 30%).
The main exemption to capital gains tax in Australia is the principal place of residence exemption, which can fully exempt the gain if the property was your main home, though foreign residents face restrictions on this exemption and may not qualify depending on their circumstances and how long they lived in the property.
Foreigners selling property in Sydney face a significant disadvantage: they generally cannot access the 50% CGT discount that Australian residents receive for assets held more than 12 months, especially for properties acquired after May 2012, meaning the full capital gain may be taxable.
The capital gain in Sydney is calculated as the sale price minus your cost base, which includes the original purchase price, stamp duty paid, legal fees, and the cost of any capital improvements you made, giving you a net gain (or loss) that feeds into your tax calculation.
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 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 |
|---|---|---|
| Revenue NSW - Transfer duty | Official NSW government authority that sets and administers stamp duty. | We used it to anchor what transfer duty is and when it's payable in Sydney. We then translated the duty schedule into realistic percentage ranges for typical Sydney purchase prices. |
| Revenue NSW - Surcharge purchaser duty | Official NSW rulebook for the foreign buyer duty surcharge. | We used it to confirm the 9% surcharge from 1 January 2025 and that it applies on top of normal transfer duty. We built the extra budget ranges around that 9% layer. |
| Revenue NSW - Surcharge land tax | Official NSW explanation of the foreign owner land tax surcharge. | We used it to confirm the 2025 onward 5% rate on unimproved land value with no tax-free threshold. We used their examples to show scale and surprise bill risk for foreign owners. |
| Foreign Investment Australia - Schedule of fees | Official Commonwealth fee table for FIRB applications in 2025-26. | We used it to pull concrete FIRB fee amounts by price band including the higher fees for established dwellings. We then built minimum versus maximum closing cost scenarios around those bands. |
| ATO - GST and residential property | Australia's tax authority explaining GST treatment for residential property. | We used it to confirm that existing residential property sales are input taxed with no GST on the sale. We used that to answer the VAT/GST question plainly for buyers. |
| ATO - Foreign resident tax rates | Official ATO tax rate table for foreign residents. | We used it to anchor rental income tax brackets for non-resident individuals. We then turned that into a simple "what rate might I pay" summary for landlords. |
| ATO - CGT discount for foreign residents | Official ATO guidance on whether foreigners get the 50% CGT discount. | We used it to explain that many foreign residents do not get the full 50% discount. We built the "sell later" tax expectations around that limitation. |
| NSW Government - Conveyancing overview | Official NSW Government consumer explainer of conveyancing. | We used it to define what conveyancing covers and why you need a solicitor or licensed conveyancer. We mapped that to the practical fee items a Sydney buyer sees. |
| City of Sydney - Council rates | Actual local council page for rates in a core Sydney area. | We used it as a concrete example of how Sydney councils charge rates and provide calculators. We used it to justify budgeting council rates as a real annual line item. |
| Sydney Water - Residential pricing | Official utility pricing page for Sydney Water. | We used it to ground the fact that water charges have specific 2025-26 prices and billing periods. We used it to shape a realistic ongoing water budget range for Sydney homes. |
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