Foreign buyers — non-citizens and non-permanent-residents — face a substantially different Victorian property purchase process than Australian citizens. Foreign Investment Review Board (FIRB) approval is mandatory for most acquisitions, additional foreign-buyer duty of 8% sits on top of standard stamp duty, and existing dwellings are almost entirely off-limits. Get any of this wrong and the penalties run from $19,800 to forced disposal of the property.
This guide explains who needs FIRB approval, what you can and can’t buy, the application costs, the additional taxes, and the most common compliance pitfalls.
Who needs FIRB approval?
Under the Foreign Acquisitions and Takeovers Act 1975 (Cth), you need FIRB approval if you are:
- A non-resident foreign citizen (most common case)
- A temporary resident (e.g. on a 482 work visa, 500 student visa)
- A foreign-controlled entity (company or trust where foreign persons hold 20%+ interest)
- A buyer holding the property in trust for a foreign person
You do not need FIRB approval if you are:
- An Australian citizen (regardless of residence)
- An Australian permanent resident
- A New Zealand citizen with a Special Category Visa (subclass 444)
- The spouse of an Australian citizen or permanent resident, buying jointly as joint tenants
What can foreign buyers actually buy?
Foreign buyer property restrictions are stricter than most realise:
| Property type | Non-resident | Temporary resident |
|---|---|---|
| Vacant land for residential development | Allowed (must build within 4 years) | Allowed (must build within 4 years) |
| New dwelling (off-the-plan, never occupied) | Allowed | Allowed |
| Existing dwelling — for own residence | Prohibited (Apr 2025–Mar 2027 ban) | Prohibited (Apr 2025–Mar 2027 ban) |
| Existing dwelling — for redevelopment | Allowed (must increase dwellings by 1+) | Allowed (must increase dwellings by 1+) |
| Existing dwelling — investment | Prohibited | Prohibited |
| Commercial property under $80m | Generally allowed | Generally allowed |
From April 2025 to March 2027, the federal government has imposed a general ban on foreign buyers purchasing existing dwellings for any purpose other than redevelopment that increases the number of dwellings. This ban applies to non-residents and temporary residents equally.
The application — costs and timing
| Property value | FIRB fee (vacant land / new dwelling) | FIRB fee (existing — redevelop) |
|---|---|---|
| Up to $1m | $14,700 | $44,100 |
| $1m–$2m | $29,500 | $88,500 |
| $2m–$3m | $59,000 | $177,000 |
| $3m+ | $88,500+ | $265,500+ |
Application timing: 30 days standard, can be extended to 90 days for complex matters. Most simple applications complete in 14 days. Apply before bidding or signing — the contract should always be conditional on FIRB approval.
The Victorian foreign buyer additional duty
On top of standard stamp duty, foreign buyers pay an additional 8% duty under the Duties Act 2000 (Vic). This is in addition to the FIRB application fee:
| Cost component | Example: $1.5m new apartment |
|---|---|
| Standard stamp duty | $87,070 |
| Foreign buyer additional duty (8%) | $120,000 |
| FIRB application fee | $29,500 |
| Annual vacancy fee (if not occupied 6+ months/yr) | $29,500/yr |
| Total upfront duty + FIRB | $236,570 |
Compliance — the long tail
- Vacant land must be developed within 4 years. Failure can result in forced sale and divestment orders.
- Annual vacancy fee. Foreign-owned dwellings not occupied or available for rent for at least 6 months per year pay an annual vacancy fee equal to the original FIRB application fee.
- Notification of disposal. When you sell, you must notify the ATO within 30 days.
- Penalties for non-compliance. Penalties under section 90 of the Foreign Acquisitions Act range from $19,800 to $312,500 for individuals and substantially more for entities.
Special conditions for foreign buyer contracts
- Contract conditional on FIRB approval being granted within X days
- Right to rescind and recover deposit if FIRB approval is not granted
- Long-stop settlement extension if FIRB approval is delayed
- Vendor warranty that the property is permitted under FIRB rules (especially redevelopment paths)
Ready to check your contract? Upload your Section 32 or Contract of Sale at precontractreview.com for a pre-contract check — typically in just a few minutes.