Foreigners Buying Property in Australia 2026

The practical outcome in 2026 is simple: if you are a foreign buyer, your strategy should be designed around adding housing supply, and your transaction plan must be built around FIRB approval, state surcharges, and exit tax planning.

1) Start by classifying the buyer correctly

Before choosing a property, confirm whether the buyer is a foreign person under Australia’s foreign investment framework (this can include temporary residents, non-residents, and foreign-controlled entities). Classification drives:

what property types are eligible
which exemptions might apply
likely conditions (especially for development)
the fee tier and approval pathway. [3]

2) Property pathways that work in 2026 (ranked by lowest operational risk)

Pathway A: New (or near-new) dwellings and off-the-plan

This is generally the lowest-friction option because policy channels foreign capital into new supply. It is often the most straightforward pathway for both non-residents and temporary residents in 2026. [3][4]

Pathway B: Vacant residential land (with a 4-year build requirement)

Foreign persons can acquire vacant residential land, but approvals commonly require that construction is completed within four years, with evidence provided once complete. This pathway carries build, cost, and compliance risk, so it suits buyers who can genuinely deliver a project to deadline. [4]

Pathway C: Redevelopment exemptions (developer-grade)

Buying an established dwelling is generally banned until 31 March 2027, but limited exceptions can apply where redevelopment materially increases housing supply. Current ATO guidance references redevelopment proposals involving at least 20 additional dwellings, with completion timeframes and reporting conditions. This is typically a developer pathway, not a standard investor approach. [1][5]

Pathway D: Commercial-scale housing (specialised)

Certain proposals that support housing availability at commercial scale (for example, specific accommodation categories) may be considered under the limited exception settings. These are highly fact-specific and should be structured carefully with legal and tax advice alongside the FIRB strategy. [1]

3) FIRB approval process and timeframes (what to expect)

FIRB approval is generally required before acquiring residential land, and applications are now managed through the Foreign Investment Portal. [6][7]

The statutory decision timeframe is commonly referenced as 30 days, but it does not start until the correct fee is paid, and extensions can occur. [8]
In practice, allow weeks to a few months, depending on complexity and information requests.

4) FIRB fees (2025–26): budget early, fees are non-refundable

Residential land fees scale by consideration/value. For residential land other than established dwellings, published fee tiers include:

up to $1m: $15,100
up to $5m: $121,200
$40m+: $1,205,200 [9][10]

5) State-based foreign buyer surcharges: often the biggest cost shock

Foreign purchasers can face substantial additional duty on top of standard transfer duty, depending on the state:

NSW: surcharge purchaser duty 9{477fb71c01144b26ec6eb422099df48469b3b21edef8af379794774af2ca9d1d} (from 1 January 2025) [11]
VIC: foreign purchaser additional duty 8{477fb71c01144b26ec6eb422099df48469b3b21edef8af379794774af2ca9d1d} [12]
QLD: Additional Foreign Acquirer Duty (AFAD) 8{477fb71c01144b26ec6eb422099df48469b3b21edef8af379794774af2ca9d1d} [13]
WA: foreign transfer duty 7{477fb71c01144b26ec6eb422099df48469b3b21edef8af379794774af2ca9d1d} [14]
ACT: instead of a duty surcharge, note the foreign ownership land tax surcharge applies (ongoing holding cost). [15]

Practical recommendation: if the buyer has flexibility, state choice can materially change the total acquisition and holding cost profile.

6) Tax on exit: plan the end before you buy

Two rules commonly catch foreign and temporary residents:

CGT discount: the full 50{477fb71c01144b26ec6eb422099df48469b3b21edef8af379794774af2ca9d1d} CGT discount is generally not available to foreign and temporary residents for gains after 8 May 2012 (apportionment can apply in some circumstances). [16][17]
Foreign resident capital gains withholding (FRCGW): for contracts from 1 January 2025, buyers generally withhold 15{477fb71c01144b26ec6eb422099df48469b3b21edef8af379794774af2ca9d1d} and remit it to the ATO, with the previous threshold removed. [18]

7) A practical step-by-step pathway (how to run it cleanly)

Phase 1: Pre-purchase

Confirm buyer classification and structure
Select eligible property pathway (new/off-the-plan vs land with build obligation vs development-scale exemption)
Model total costs (FIRB fees, state surcharges, holding costs, exit tax assumptions)

Phase 2: Finance and approvals

Align finance strategy with FIRB timing (many lenders require clarity before progressing)
Lodge FIRB through the Portal with a complete, well-organised evidence pack [6][7]

Phase 3: Settlement and compliance

Settle with duty surcharge fully budgeted
If land or redevelopment conditions apply, track deadlines and keep evidence ready for reporting [4][5]

How JBF Solutions helps

JBF Solutions supports foreign buyers with:

upfront eligibility triage (so you do not chase ineligible properties)
finance strategy and lender matching
a cost and timing model that includes FIRB, state duties, and exit friction
coordination with your legal and tax advisers so the transaction runs as one plan, not three disconnected workstreams

References (summary list)

Temporary ban on established dwelling purchases by foreign persons (1 April 2025 to 31 March 2027), including limited exceptions.
ATO legislative summary: ban applies to foreign persons including temporary residents (1 April 2025 to 31 March 2027).
ForeignInvestment.gov.au residential land overview and policy settings (updated Dec 2025).
Guidance on vacant residential land acquisition and build expectations (policy channel to new supply, anti land-banking settings).
ATO residential application guidance referencing redevelopment exception settings (including “at least 20 additional dwellings”).
Foreign Investment Portal launch timeline (submissions and payments available from 28 May 2025).
Supporting commentary on Portal rollout and purpose (efficiency, consolidated lodgement and compliance).
ForeignInvestment.gov.au fees guidance: statutory timeframe does not start until the correct fee is paid (updated 2 Jan 2026).
Schedule of fees PDF (2025–26) showing residential land (other than established dwellings) fee tiers.
Guidance Note 10 (Fees) confirming fee ranges including $15,100 to $1,205,200 for residential land (no established dwellings).
Revenue NSW: surcharge purchaser duty rate is 9{477fb71c01144b26ec6eb422099df48469b3b21edef8af379794774af2ca9d1d} from 1 January 2025.
Victoria State Revenue Office: foreign purchaser additional duty is 8{477fb71c01144b26ec6eb422099df48469b3b21edef8af379794774af2ca9d1d}.
Queensland Revenue Office: AFAD is an extra 8{477fb71c01144b26ec6eb422099df48469b3b21edef8af379794774af2ca9d1d} duty.
WA Government: foreign transfer duty is an additional 7{477fb71c01144b26ec6eb422099df48469b3b21edef8af379794774af2ca9d1d} on residential property for foreign persons.
ACT Revenue Office: foreign ownership land tax surcharge applies (0.75{477fb71c01144b26ec6eb422099df48469b3b21edef8af379794774af2ca9d1d} of AUV per year).
ATO: CGT discount rules for foreign residents.
ATO: CGT discount overview noting the full discount cannot be used for gains made by foreign or temporary residents after 8 May 2012 (rules and apportionment concepts).
ATO: FRCGW overview confirming 15{477fb71c01144b26ec6eb422099df48469b3b21edef8af379794774af2ca9d1d} applies from 1 January 2025 to all property.

General information only, not legal or tax advice. Rules and duties change and depend on your exact residency, structure, and the property. Always obtain tailored advice before transacting.