FIRB: citizens and permanent residents are exempt
Regulation 35 exempts Australian citizens who are not ordinarily resident in Australia from needing approval to buy Australian land, including residential land. Permanent visa holders are exempt under regulation 38(2). The exemption does not stretch to a foreign-incorporated company owned by an Australian citizen abroad: Treasury’s guidance says an Australian subsidiary of a Cayman company buying residential land still needs approval.
Permanent residents living overseas
The ATO says a permanent resident who is not ordinarily resident may be a foreign person “in some circumstances”. If you are a permanent resident rather than a citizen, and you spend most of the year overseas, check your position before you sign. See our FIRB guide.
State surcharges
Australian citizens are not foreign persons for state surcharges in any state, wherever they live. Permanent residents are generally not foreign, with one important catch in New South Wales:
- NSW surcharge purchaser duty: a permanent resident is not foreign only if they were in Australia for 200 or more days in the 12 months before the contract, or meet the exempt permanent resident test.
- NSW surcharge land tax: a permanent resident who is overseas for 165 days or more in a calendar year (166 in a leap year) is considered foreign and may owe the surcharge.
- Victoria’s absentee owner surcharge does not apply to Australian citizens and permanent residents who live overseas.
See the state-by-state surcharge guide.
Tax: foreign resident rules
If you are a foreign resident for tax purposes, these apply whether or not you are a citizen:
- Rental income is taxed at foreign-resident rates: 30c in the dollar on the first $135,000 (the 2025–26 rates, the latest the ATO has published), with no tax-free threshold and no Medicare levy.
- No main residence exemption from capital gains tax for foreign residents who sell after 30 June 2020, except in narrow life-event cases.
- 15% withholding applies when you sell as a foreign resident: from 1 January 2025 the buyer withholds 15% of the price unless you hold a variation notice from the ATO. Clearance certificates are only available to Australian tax residents.
Tax residency turns on facts such as where you live and where your home is. A registered tax agent who works with expats can advise.
Getting a loan from overseas
Broker pages report that Australian expats can often borrow up to 80% of a property’s value with selected lenders, and up to 90% or 95% with lenders mortgage insurance. Lenders count only part of foreign income, typically 60% to 90% depending on the lender, and some count 100% for top-tier currencies such as US dollars, pounds, euros, Singapore dollars and Hong Kong dollars. Expect to provide employment contracts, six months of payslips and bank statements and two years of tax returns from your country of residence. Our home loans guide has the detail.
Frequently asked questions
Do Australian citizens living overseas need FIRB approval?
No. Regulation 35 exempts Australian citizens who are not ordinarily resident in Australia from approval for Australian land, including residential land.
Can an Australian expat buy an established home?
Yes. The ban applies to foreign persons, and an Australian citizen is exempt from needing approval.
Do expats pay the foreign buyer stamp duty surcharge?
Citizens do not. Permanent residents generally do not either, except in New South Wales where days spent in Australia matter.
Is an expat a foreign resident for tax?
Often yes, and foreign residents face different rates on rent, no main residence exemption and 15% withholding on sale. The tax test is separate from the FIRB test.
Can I get a mortgage while living overseas?
Yes, with lenders that accept foreign income. Typical limits are 80% of value, and more with insurance. Broker pages report that big banks have restrictive policies, so brokers use a wider panel of lenders.
Sources
- Treasury — Guidance Note 2: Key concepts (v5, 12 December 2025)
- ATO — Are you a foreign person buying property in Australia?
- Foreign Investment — Residential property: who needs approval
- ATO — Tax rates for foreign residents
- ATO — Foreign resident capital gains withholding overview
- ATO — Main residence exemption for foreign residents
- ATO — Foreign and temporary residents
- Revenue NSW — Surcharge purchaser duty
- Revenue NSW — Surcharge land tax
- SRO Victoria — Foreign purchaser additional duty
- SRO Victoria — Absentee owner surcharge
Checked 5 October 2026.
firbapproval.com.au is an independent guide. It is not affiliated with, endorsed by or connected to the Foreign Investment Review Board, the Australian Treasury or the Australian Taxation Office. We do not lodge or process applications. Applications are made to the ATO. General information only, not legal, tax, migration or financial advice.