How to buy a home if you're not an Australian resident
Buying property in Victoria as a non-resident or foreign purchaser involves contract review, FIRB issues, foreign purchaser duty, settlement logistics and legal checks. Here is what to look at before you sign.
Buying property in Australia as a non-resident or foreign purchaser involves more moving parts than a standard local purchase. Federal foreign investment rules, Victorian foreign purchaser duty, finance and settlement timing, identity verification, and overseas signing logistics all need to be handled in the right order. The work starts well before contract — and starting late is usually expensive.
This article explains, at a high level, what non-resident and foreign purchasers should think about before signing a contract for a Victorian property. It is general information only and is not migration, tax, finance or FIRB advice. Specific approvals, rates and thresholds can change and depend on individual circumstances.
Can non-residents buy property in Australia?
It depends on the buyer and the property. Australia's foreign investment regime, administered by the Australian Government (with the Treasurer advised by the Foreign Investment Review Board, and the Australian Taxation Office administering much of the residential framework), controls who can buy what kind of property and on what terms. From 1 April 2025 to 30 June 2029, foreign investors are generally prohibited from purchasing established dwellings, subject to limited exceptions. New dwellings, vacant residential land and eligible redevelopment proposals remain subject to their own approval rules and conditions. Permanent residents and Australian citizens living overseas are usually treated differently from temporary visa holders and other foreign persons.
The categories of property that can be purchased, the need for prior approval, and the fees and conditions attached differ between these groups. The first step is to identify which category the buyer is actually in. That is a FIRB and migration question, not just a conveyancing one.
Established dwellings are generally prohibited
For the period from 1 April 2025 to 30 June 2029, foreign investors are generally prohibited from buying established dwellings in Australia. Limited exceptions apply, including for certain investments that materially increase housing supply and for some personal circumstances recognised by the foreign investment rules. A buyer should not bid, sign or pay a deposit on an established dwelling unless their eligibility and any required approval or exemption have been confirmed in advance.
Why Victoria has extra issues for foreign purchasers
On top of the federal foreign investment rules, Victoria imposes its own additional taxes that apply to foreign purchasers of residential property. The two most relevant are foreign purchaser additional duty (a surcharge on top of standard transfer duty at acquisition) and the absentee owner surcharge (an annual land tax surcharge for absentee owners). These are separate from each other and from any federal obligations.
A non-resident or foreign purchaser is therefore often dealing with three layers of regulation at once: federal foreign investment rules, Victorian foreign purchaser duty, and the ordinary contract, title and settlement work that applies to every transaction.
FIRB approval at a high level
Where FIRB approval is required, it generally needs to be obtained before signing an unconditional contract — or the contract needs to be made conditional on approval. FIRB approval is property-specific in most categories, meaning a buyer cannot use one approval to buy any property; the approval is tied to the property being acquired.
Approval generally attracts an application fee. Fees depend on the type of property and the price, are indexed annually, and must be checked against the current official fee schedule on the Foreign Investment Review Board website at the time of application. Approval may also come with conditions — for example, around the use of the property or the timing of construction in new dwelling cases. These conditions can be ongoing and need to be tracked after settlement.
Foreign purchaser additional duty
Victoria imposes a foreign purchaser additional duty surcharge on transfers of residential property to foreign purchasers. It applies on top of standard transfer duty and is currently 8% of the dutiable value of the interest acquired by the foreign purchaser. The definition of 'foreign purchaser' includes individuals, corporations and trusts that meet the statutory test — which is broader than many buyers expect, especially in trust and corporate structures.
Because the surcharge is material, it needs to be factored into the financial picture from the outset. Where the structure of the buyer (individual, company, trust, partnership) is still being decided, a tax adviser should be involved before contracts are signed — restructuring after signing is generally too late.
Finance and settlement timing
Finance for non-resident buyers can be slower and more conditional than for local buyers, and not every Australian lender lends to overseas borrowers. Where finance is being arranged, the contract conditions and the settlement period need to be realistic about how long that takes. A standard 30 or 60 day settlement may not be enough if FIRB approval and offshore finance both need to land first.
Buyers should also factor in time-zone delays in document execution, currency movement, and the time required to verify identity through Australian-compliant processes from overseas.
Contract conditions before signing
The contract should reflect the real position of a non-resident buyer — not be signed in the same form a local cash buyer might sign. Conditions that often need consideration include:
- subject to FIRB approval, if approval is required and not yet obtained;
- subject to finance, with a realistic timeframe given offshore lending steps;
- settlement period long enough to accommodate FIRB, finance, identity verification and offshore signing;
- clear treatment of foreign purchaser additional duty in the special conditions if relevant;
- any conditions specific to off-the-plan, new dwelling or established dwelling categories under FIRB.
Identity verification and overseas signing
Australian conveyancing requires the buyer's identity to be verified to a defined standard. There are established processes for verification from overseas — for example through an Australian consular post or an accredited agent in the buyer's country — but they take longer than verification in person in Australia and should be planned for early.
Document signing for overseas buyers is also possible, but the logistics need to be set up well in advance of settlement. A signing chain that is left to the final week often delays settlement.
What sellers should know about foreign resident withholding
Australia operates a foreign resident capital gains withholding regime. For contracts entered into on or after 1 January 2025, a buyer must withhold 15% of the purchase price of Australian real property at settlement and pay it to the ATO, regardless of price, unless the seller provides an ATO clearance certificate. Because the rule applies to every sale, Australian-resident sellers should obtain a clearance certificate in advance.
If you are selling a Victorian property, your conveyancer will usually arrange the clearance certificate as part of the normal pre-settlement workflow. If you are buying, your conveyancer will make sure the certificate is in hand before settlement so the withholding is dealt with correctly.
Why legal, tax, finance and migration advice may all be needed
Non-resident purchases sit at the intersection of several specialist areas. A property lawyer can advise on the contract, the title and the conveyancing process. A tax adviser is needed for the surcharge duty position, CGT, structuring and ongoing land tax. A migration agent or lawyer is needed for visa-related questions. A mortgage broker or bank deals with finance. Conveyancing advice is not a substitute for any of those.
Key takeaways
- Whether a non-resident can buy depends on residency, visa status and the property category; foreign investors are generally prohibited from purchasing established dwellings from 1 April 2025 to 30 June 2029, subject to limited exceptions.
- FIRB approval is property-specific and is usually needed before — or as a condition of — signing an unconditional contract.
- Victoria charges foreign purchaser additional duty on top of standard transfer duty; the buyer structure can affect whether it applies.
- Finance, identity verification and overseas signing all take longer than locally; the contract timeline needs to allow for this.
- Sellers should arrange a foreign resident capital gains clearance certificate to avoid withholding at settlement.
- Conveyancing advice does not cover migration, tax or finance — those advisers should be engaged separately.
Frequently asked questions.
- Can a non-resident buy property in Victoria?
- It depends on the buyer and the property. From 1 April 2025 to 30 June 2029, foreign investors are generally prohibited from purchasing established dwellings, subject to limited exceptions. New dwellings, vacant residential land and eligible redevelopment proposals have separate approval rules. Victorian foreign purchaser taxes may also apply. Confirm the buyer category and property category before signing or bidding.
- Do I need FIRB approval before signing?
- Where FIRB approval is required, it generally needs to be obtained before signing an unconditional contract — or the contract needs to be made conditional on approval. Signing without approval, and without a proper FIRB condition, can put a buyer in a difficult legal position. Take advice on whether approval is needed before you sign.
- What is foreign purchaser additional duty?
- Foreign purchaser additional duty is a Victorian surcharge that applies on top of standard transfer duty when a foreign purchaser acquires residential property. The definition of 'foreign purchaser' covers individuals, corporations and trusts that meet the statutory test. The surcharge is material in dollar terms and should be factored into the financial picture before you sign.
- Can I sign property documents from overseas?
- Yes. There are established processes for executing Australian property documents from overseas — including verification of identity through approved channels and overseas signing arrangements. The logistics take time and need to be set up well in advance of settlement, particularly when there are FIRB approvals and offshore finance to coordinate.
- Can settlement happen while I am overseas?
- Yes. Most Victorian residential settlements now occur electronically through an approved electronic lodgment network such as PEXA, which removes the requirement for parties to attend in person. The buyer or seller still needs to sign the necessary documents and complete identity verification, but physical presence in Australia on the day of settlement is not generally required.
- Is conveyancing advice the same as tax or migration advice?
- No. Conveyancing advice deals with the contract, the title and the settlement. Tax advice — including on surcharge duty, CGT and land tax — comes from a tax adviser or accountant. Migration advice comes from a registered migration agent or lawyer. Foreign purchasers usually need all three in some combination.
- What should I check before paying a deposit?
- Confirm your FIRB position, confirm your finance position, understand the surcharge duty exposure, and have the contract reviewed by a property lawyer before signing. Once a deposit has been paid under a signed contract, the legal position is usually fixed, and unwinding the transaction can be expensive.
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