Do You Need FIRB Approval To Buy Property In Australia?

If you’re a foreign citizen or temporary resident looking to buy property in Australia, don’t start with the question, “How much can I borrow?”

Instead, answer this question: “What type of property am I actually allowed to buy?”

Australia’s foreign-investment rules can restrict the type of residential property you can acquire, even where a lender is willing to consider your home-loan application.

From 1 April 2025 to 30 June 2029, foreign investors are generally prohibited from purchasing established dwellings in Australia. Limited exceptions apply. Foreign buyers can still generally seek approval for eligible new and near-new dwellings and vacant residential land for development.

For many non-resident buyers, that creates two separate tests:

• Are you permitted to acquire the property?
• Can you get a lender to finance it?

Getting one right does not automatically mean the other will work.

What Is FIRB Approval?

“FIRB approval” is the term commonly used for Australia’s foreign-investment approval process.

The Foreign Investment Review Board (FIRB) advises the Australian Government on foreign-investment matters, but residential real-estate applications are generally administered by the Australian Taxation Office (ATO).

Foreign investors generally need to lodge a residential property application before acquiring Australian residential land unless an exemption applies. Applications are made through ATO Online services for foreign investors.

Whether you need approval depends on factors including your citizenship and residency status, who you are buying with, the ownership structure and the type of property.

Home Loan Experts Broker Insight: Property Eligibility And Loan Eligibility Are Different

Based on the non-resident scenarios we’ve reviewed, one of the most important distinctions is between being eligible for finance and being eligible to acquire the property.

A lender may be prepared to assess your visa and income, but that does not mean the property itself is permitted under Australia’s foreign-investment rules.

That is why, for a temporary resident or foreign buyer, we would normally want the property type checked before the buyer commits significant time or money to the transaction.

Who Needs FIRB Approval?

Foreign citizens and temporary residents generally need FIRB approval before buying residential property in Australia, unless an exemption applies.

The exact rules depend on your residency status, who you’re buying with and the type of property you want to purchase.

Temporary Residents

Temporary residents are generally treated as foreign investors under Australia’s foreign-investment framework and usually need approval before acquiring residential land unless an exemption applies.

During the current established-dwelling ban, a temporary resident will generally need to focus on property such as:

• A new dwelling
• An eligible near-new dwelling
• Vacant residential land for development

The previous general position under which a temporary resident could apply to purchase one established home as their principal residence does not apply during the current ban. The prohibition now runs until 30 June 2029, subject to limited exceptions.

Foreign Citizens Living Overseas

Foreign citizens who are not Australian permanent residents will also generally require foreign-investment approval before buying Australian residential property.

They may generally seek approval for eligible new or near-new dwellings and vacant residential land for development, but are generally prohibited from acquiring established dwellings during the current ban unless an exception applies.

What Types Of Property Can Foreign Buyers Purchase In Australia?

Foreign buyers can generally apply to purchase new or near-new dwellings and vacant residential land for development, while established dwellings are generally restricted under the current rules.

• New dwellings (Apartments, townhouses, houses in new developments)
• Near-new dwellings (sold by the developer but the sale did not settle)
• Vacant residential land

For a foreign buyer, the property type should be checked before the loan search goes too far. A lender may be willing to assess your income and residency status, but that does not necessarily mean the property you have chosen is permitted under Australia’s foreign-investment rules.

What Is A Near-New Dwelling?

“Near-new” does not simply mean a property that was built recently.

Under the foreign-investment rules, a near-new dwelling can include certain dwellings in a residential development that were previously sold by the developer but where the earlier transaction failed to settle, provided the relevant conditions are met.

That distinction matters because a recently constructed property is not automatically treated as new or near-new simply because of its age.

For example, renovating an established dwelling does not ordinarily turn it into a new dwelling for foreign-investment purposes.

Can Foreign Buyers Purchase Vacant Land?

Yes, foreign buyers can generally seek approval to purchase vacant residential land for development.

Approval will generally require at least one residential dwelling to be built, with construction completed within four years from the date of approval. The land generally cannot be sold before the required construction has been completed.

This is another area where the current rules differ from older information still found online. Buyers should rely on the conditions attached to their approval rather than assuming older development timeframes still apply.

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Buying A Home in Australia As A Non-Resident

Everything you need to know as a non-resident buying a property in Australia.

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Who Generally Doesn't Need FIRB Approval?

A residential property application is generally not required where the purchaser is:

• An Australian citizen, including an Australian citizen living overseas
• An Australian permanent resident
• A New Zealand citizen who holds, or is eligible for, a Special Category visa
• A foreign person buying as joint tenants with an Australian-citizen spouse
• A foreign person buying as joint tenants with an Australian-permanent-resident spouse
• A foreign person buying as joint tenants with an eligible New Zealand-citizen spouse

Other exemptions can apply, so the specific ownership structure should still be checked.

What If I'm Buying With My Australian Spouse?

A foreign person generally does not need to submit a residential property application where the property is purchased as joint tenants with an:

• Australian-citizen spouse
• Australian-permanent-resident spouse
• Eligible New Zealand-citizen spouse

The exemption does not apply in the same way where the property is acquired as tenants in common.

Have your solicitor or conveyancer confirm the proposed ownership structure before signing the contract.

What’s The Difference Between Joint Tenants And Tenants In Common?

Joint tenants and tenants in common are two different ways of owning property together, with the key difference being how each owner’s share of the property is held and what happens to that share if they die.

With joint tenancy, the owners jointly hold the property and there is generally a right of survivorship if one owner dies.

With tenants in common, each owner holds a defined share of the property.

For foreign-investment purposes, that distinction matters because the spouse exemption described above applies to qualifying purchases as joint tenants, not tenants in common.

Ownership structure can also have estate-planning, tax and legal consequences, so obtain independent advice about the structure that is appropriate for you.

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Can Foreign Buyers Purchase Established Homes?

No, foreign buyers cannot purchase established homes.

From 1 April 2025 to 30 June 2029, foreign investors are generally prohibited from purchasing established residential dwellings in Australia. Limited exceptions continue to apply.

This is particularly important for temporary residents because intending to live in the property yourself does not, by itself, allow you to buy an established home during the ban.

Can Foreign Buyers Purchase New Property?

Foreign buyers can generally seek approval to purchase eligible new residential dwellings.

Government guidance generally considers a dwelling new where it has been built on residential land, has not previously been sold as a dwelling and has not previously been occupied, subject to the detailed rules.

There is also an important practical exception for some developments.

If a developer holds an eligible new or near-new dwelling exemption certificate covering the property, the foreign purchaser generally does not need to lodge their own foreign-investment application for that purchase.

Ask the developer and your solicitor or conveyancer to confirm that the property is actually covered before relying on the exemption.

Does It Matter Whether I Plan To Live In The Property Or Rent It Out?

It can, but under the current rules the bigger questions are generally who you are and what type of property you are buying.

A temporary resident cannot get around the current established-dwelling prohibition simply by saying the property will be owner-occupied.

By contrast, eligible new and near-new dwellings are generally not subject to conditions concerning how the dwelling is used, although the buyer must still satisfy the broader foreign-investment requirements that apply to the transaction.

The home-loan assessment is separate again.

How Much Does FIRB Approval Cost?

Foreign-investment application fees vary with the value and type of property and are indexed over time.

For the 2026-27 financial year, the fees for notifiable residential-land transactions other than established dwellings include:

Source: Residential fees for foreign person, ATO

Where an established dwelling is permitted under an exception, the fees are substantially higher. For example, the 2026-27 fee for an established dwelling valued at $1 million or less is $46,800.

Because fees depend on the transaction and the applicable fee rules, check the current Government schedule before applying.

Home Loan Experts Broker Insight: Work Out Your Cash To Complete, Not Just Your Deposit

A mistake our brokers keep seeing is assuming that having the required deposit means you have enough money to make a purchase.

For a foreign buyer, the more useful figure is often cash to complete.

That can include the deposit plus the FIRB application fee, ordinary transfer duty, any applicable foreign-purchaser surcharge, conveyancing and legal costs, inspections, settlement adjustments and relevant lender costs.

Our brokers also highlight why these costs should be checked for the specific state or territory rather than applying a single national assumption to every foreign buyer.

A borrower can therefore meet a lender’s deposit requirement and still not have enough cash available to complete the purchase.

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How Do I Lodge A FIRB Application?

You can lodge your application on the Australian Tax Office’s Residential Real Estate Application Form.

You’ll need to provide your contact details, full legal name, address of the property and pay the required FIRB approval fee.

Have your passport and Australian visa (if applicable) handy as you’ll need to enter those details.

If you don’t know the title details of your property, then you can leave these blank. For new properties, they often do not have title details until a few weeks before they are complete.

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When Should I Apply For FIRB Approval?

Before you become unconditionally committed to the purchase.

Current guidance says a foreign person should have approval or an applicable exemption before entering a contract to buy residential property. Where an agreement is entered before a decision is received, the appropriate foreign-investment condition needs to be dealt with correctly. Obtain legal advice before signing.

Home Loan Experts Broker Insight: Speak To The Broker Before The Property Search Becomes Serious

Before a buyer starts making serious offers, a broker can help establish the likely borrowing range, lender options, how much overseas income may actually be usable for servicing, the required deposit and the likely cash needed to complete.

That does not replace legal advice about whether the property can be acquired. It means the finance and foreign-investment work can happen in the right order.

Otherwise, a buyer can find the property first and only then discover that the required LVR isn’t available, the lender treats the overseas income differently than expected, or the transaction needs more cash than anticipated.

How Long Does FIRB Approval Take?

Foreign-investment fees guidance provides a statutory decision period of 30 days, but that period does not begin until the correct application fee has been paid.

ATO guidance also says residential applications can take up to 30 days to consider after full payment has been received.

Treat that as a statutory timeframe rather than a promise that every application will take exactly 30 days.

Allow for approval when discussing contract and settlement timing with your solicitor or conveyancer.

Does FIRB Approval Mean I'll Get A Home Loan?

No, an FIRB approval is not an unconditional approval for a home loan.

FIRB or foreign-investment approval deals with whether the acquisition can proceed under Australia’s foreign-investment framework.

Mortgage approval is a lender’s credit decision.

A lender can separately assess your visa or citizenship, country of residence, income currency, tax position, employment, existing debts, deposit, LVR, supporting documents and the property itself.

For Non-Resident Borrowers, Rate Comes After Eligibility

First identify the lenders that can actually assess the borrower. Then compare the suitable options.

For someone earning overseas income, a low advertised interest rate is irrelevant if that lender will not accept the applicant’s residency, currency, employment arrangement, required LVR or supporting documents.

Do Foreign Buyers Pay Extra Stamp Duty?

Yes, foreign buyers could pay extra stamp duty.

FIRB fees are federal foreign-investment charges. They are separate from state and territory property taxes.

Depending on where the property is located and the purchaser’s circumstances, the transaction can also involve standard transfer duty, a foreign-purchaser surcharge and potentially foreign-owner land-tax rules.

These rules vary between states and territories and change independently of FIRB policy.

That is why our broker evidence treats the whole cash-to-complete position as more useful than applying a simple deposit percentage to a foreign buyer’s budget.

Check the relevant state or territory revenue authority and obtain legal or tax advice where required.

Do You Need Help With A Mortgage?

We are mortgage brokers that specialise in financing the purchase of Australian real estate by foreigners, Australians living abroad or people temporarily residing in Australia.

Before making an offer, find out:

• What type of property you may be able to buy
• Which lenders may consider your residency and income
• How your overseas income may be assessed
• How much you may be able to borrow
• Your likely cash required to complete the purchase

Please call us on 1300 889 743 or (+61 2 9194 1700 if you are overseas) or fill in our free assessment form and we can contact you via email or phone to discuss your finance options.