Josh Tay
Last Updated on 08-Aug-2025
Can I buy a property in Australia even if I am not a resident?
Yes, it is possible for a non-resident to buy a property in Australia, but you are subject to different rules and regulations compared to residents. In order to purchase, you must first be granted permission to do so by the Foreign Investment Review Board.
Non-residents can purchase property as a foreign entity or through an Australian resident trustee, and the rules regarding taxes, permit requirements, and owning and selling property are in compliance with Australian laws.
Australia is an attractive destination for non-residents seeking a lucrative investment opportunity. However, navigating the complex regulations and approval process can be daunting.
In this article, we will demystify the process and provide valuable insights to help you make an informed decision.
Foreign Investment Review Board (FIRB) Regulations and Approval Process
The Foreign Investment Review Board (FIRB) is the authority responsible for regulating non-resident property purchases in Australia.
FIRB approval is required for various acquisitions by foreign persons. These include "substantial interest":
What is a foreign person under FIRB?
- an individual not ordinarily resident in Australia, a foreign corporation or a foreign. government holds at least 20 per cent in the limited partnership, or two or more persons each of whom is an individual not ordinarily resident in.
The FIRB rules restrict the types of properties that non-residents can buy. Since December 2015, non-residents may only buy:
To apply for FIRB approval, non-residents must submit their application through the Australian Tax Office (ATO) website. The FIRB application process typically takes 30 days, and there are fees associated with the application.
Fees and Timelines for Approval
The FIRB application process involves several steps and timelines:
-If approved, the applicant can proceed with the property purchase. If declined, the applicant must comply with the FIRB's conditions or seek an exemption.
A non-resident individual is liable to Australian income tax only on income (other than interest, royalties, and dividends, which are generally subject to withholding tax [WHT]) derived from sources in Australia, and certain statutory income that is taxable on a basis other than source (e.g. certain capital gains).
Australian Non-Resident Withholding Tax Rates
Type of Payment | Non-Tax Treaty Country | Tax Treaty Country (Indicative rates - refer to DTA) |
Unfranked Dividends | 30% | Generally 15% |
Franked Dividends | 0% | 0% |
Interests | 10% | Generally 10% |
Royalties | 30% | Generally 10% |
Stamp Duty
Stamp duty is a tax levied on the transfer of property ownership.
Non-residents may be subject to higher stamp duty rates compared to Australian residents. The stamp duty rates vary between states and territories, so it is important to check the specific rates applicable in the location of your investment property.
General stamp duty rates in VIC
Property value | Stamp duty payable |
$0 - $25,000 | 1.4% of the value of the property |
$25,000 - $130,000 | $350, plus 2.4% of the value above $25,000 |
$130,000 - $960,000 | $2,870, plus 6% of the value above $130,000 |
$960,000 - $2,000,000 | 5.5% of the value of the property |
Income Tax
Non-residents are subject to Australian income tax on income derived from Australian sources, such as rental income from an investment property. The income tax rates for non-residents are higher than those for Australian residents, with no tax-free threshold.
Non-residents pay tax at a rate of 32.5% on taxable income up to $120,000, 37% on income between $120,001 and $180,000, and 45% on income over $180,000.
How much income tax does a foreigner pay in Australia?
Foreign resident Income tax rates 2020 to 2025
Taxable income | Tax on this income |
0 – $120,000 | 32.5c for each $1 |
$120,001 – $180,000 | $39,000 plus 37c for each $1 over $120,000 |
$180,001 and over | $61,200 plus 45c for each $1 over $180,000 |
Capital Gains Tax (CGT)
A capital gain or loss is the amount of money you make or lose on the sale of an asset.
The capital difference is how much you purchase the asset for versus how much you sell it for.
Non-residents are subject to Australian CGT on the sale of Australian assets, including investment properties. The CGT rate is the same as the non-resident income tax rate, with no tax-free threshold.
It is important to note that non-residents may be eligible for a CGT discount if they have held the asset for at least 12 months.
Can non-residents get loans in Australia?
Yes! Australian expats don't have to worry about eligibility for loans even while living outside of Australia. Non-residents can apply for a home loan even if they're living and working abroad.
Typically, overseas citizens can expect to borrow between 30% to 80% of the purchase price of the property as a foreign resident buying property in Australia. Some lenders may require a higher deposit around 40% for non residents.
Can I get a home loan without a deposit in Australia?
Yes, you can! Many lenders are willing to consider these grants as a deposit, which means you are essentially buying your home without having to save up for a deposit.
Banks in Australia offer up to 95% loan-to-value ratio (LVR) loans, meaning you will need at least a 5% deposit if you use the First Home Owners Grant.
The Foreign Investment Review Board (FIRB) rules have several exceptions and exemptions that apply to specific situations. Here, we will discuss these exceptions and the specific requirements and conditions for each:
Temporary Residents Buying Property for Their Own Use
Temporary residents are allowed to buy property for their own use, but there are certain conditions and requirements:
Foreigners Buying Commercial Property
Foreigners are allowed to buy commercial property in Australia, but there are specific requirements and conditions:
Other Exceptions
There are other exceptions to the FIRB rules, including:
The FIRB rules have several exceptions and exemptions that apply to specific situations. Understanding these exceptions and the specific requirements and conditions for each is crucial for non-residents looking to buy property in Australia.
The annual vacancy fee is a requirement for foreign property owners in Australia to ensure that their properties are rented out or occupied for at least 183 days in a year.
This fee aims to address the issue of housing affordability and encourage foreign property owners to contribute to the housing market by making their properties available for rental or sale.
Purpose
The annual vacancy fee serves several purposes:
Implications of Not Meeting the Vacancy Fee Requirements
If foreign property owners fail to meet the vacancy fee requirements, they may face the following implications:
The annual vacancy fee is a crucial requirement for foreign property owners in Australia to ensure that their properties are rented out or occupied. Failure to meet this requirement can result in significant penalties and fines.
It is essential for foreign property owners to understand their obligations and comply with the vacancy fee requirements to avoid any legal or financial consequences.
Buying property in Australia as a non-resident can be a lucrative investment opportunity, with many successful investors achieving significant returns on their investments.
Here, I will share two case studies that highlight the potential for high returns on investment and the feasibility of the process:
Jazz Sidana: From Small Apartment to Multi-Million-Dollar Portfolio
Jazz Sidana, a migrant from India, turned a small apartment into a multi-million-dollar portfolio through strategic investments. Sidana initially purchased a small apartment in Melbourne for $250,000.
Over the next few years, he carefully managed the property, renovating it to increase its value. He then used the equity from this property to purchase another apartment, and then another, gradually building a portfolio of properties.
Lakhwinder Singh: From $60,000 to a Multi-Million-Dollar Portfolio
Lakhwinder Singh, the founder of VBand, turned a humble $60,000 into a multi-million-dollar portfolio of eight properties in Melbourne. Singh initially purchased a small apartment in Melbourne for $60,000.
He then used the equity from this property to purchase another apartment, and then another, gradually building a portfolio of properties.
Sidana and Singh's strategy was to focus on high-growth areas, such as inner-city suburbs and coastal towns, where demand for housing was high.
These two case studies demonstrate the potential for high returns on investment and the feasibility of the process for non-resident property investors in Australia.
By focusing on high-growth areas, ensuring that properties are well-maintained and rented out, and using strategic investment strategies, non-resident investors can achieve significant returns on their investments.
Buying a house in Australia as a non-resident can be a lucrative investment opportunity, offering several key benefits:
Don't let the complexity of the regulations hold you back. We are here to guide you through the process and ensure that you make the most of your investment. Don't miss out on this opportunity to secure your financial future. Contact us today to schedule a consultation and take the first step towards achieving your financial goals in Australia.