Foreign buyer stamp duty in NSW: surcharge purchaser duty explained

What the surcharge applies to

Revenue NSW applies the surcharge when a foreign person acquires residential-related property in NSW through an agreement for sale, a property transfer or a declaration of trust. Residential-related property includes:

• a parcel of land with one or more dwellings on it, including dwellings under construction
• a strata lot that is lawfully occupied, or suitable for occupation, as a separate dwelling
• vacant land zoned for residential or mainly residential use
• a utility lot restricted to the owner or occupier of a strata lot
• a land use entitlement, such as company title or residential flats
• an interest in such property, an option to purchase residential land, and some partnership interests

Land used for primary production that is exempt from land tax is not residential land for this purpose. Residential premises that are not dwellings, such as hotels, motels, hostels, student accommodation, aged care facilities and short-term accommodation, may not attract the surcharge, but an application has to be assessed by Revenue NSW.

Who is a foreign person

Revenue NSW treats you as foreign unless you are:

• an Australian citizen
• ordinarily resident in Australia, meaning a permanent resident (or holder of a partner visa, subclass 309 or 820) who was in Australia for at least 200 days in the 12 months before the liability date, which is generally the contract date; days of entry and exit count
• an exempt permanent resident, meaning an individual buyer who is a permanent resident (or holds a partner visa, subclass 309 or 820) and lives in the property continuously for at least 200 days within 12 months of the contract, as their principal place of residence
• a New Zealand citizen with a Special Category visa (subclass 444) who was in Australia for at least 200 days in the 12 months before the liability date, or who lives in the property as their home for 200 continuous days within 12 months of the contract
• a holder of a retirement visa (subclass 405 or 410) who buys as an individual and meets the same residence requirement, for transactions from 1 July 2019

Revenue NSW says temporary visa holders and bridging visa holders are foreign persons, with the exceptions above for partner and retirement visas. That includes students and workers on temporary visas. Companies and trusts are tested separately: a corporation is foreign where a non-resident individual, foreign corporation or foreign government holds a substantial interest. Revenue NSW defines that as at least 20% for one person, or at least 40% for two or more persons together, and it traces through layers of ownership. The trusts guide covers how trusts are treated.

How it is calculated

Dutiable value is the higher of the price you agreed to pay and the market value. The surcharge is a flat 9% of that value at the liability date, in proportion to the share acquired by foreign persons. Ordinary transfer duty is calculated separately on the whole property using the sliding scale for the contract date.

Revenue NSW's own example uses the 2026-27 scale: on a $1 million residential purchase, a foreign person pays $90,000 in surcharge purchaser duty and $39,187 in transfer duty. That is $129,187 in total.

For a joint purchase the arithmetic changes. If two people buy a $1 million home in equal shares and only one is foreign, transfer duty is still $39,187 on the whole price, and the surcharge applies to the foreign buyer's $500,000 share: 9% x $500,000 = $45,000. The total is $84,187. For more price points across three states, see how foreign buyer stamp duty is calculated.

Exemptions

Revenue NSW lists exemptions for eligible build-to-rent developments and for certain Australian-based developers. It also notes that the Revenue and Other Legislation Amendment Act 2026, which received assent on 29 June 2026, changed rules for some build-to-rent transactions and retirement village acquisitions or transfers.

These exemptions and refunds are not automatic. The buyer's solicitor or conveyancer must lodge an application with Revenue NSW. A spouse or partner exemption is not among the exemptions it lists, and the surcharge applies to the foreign person's share. The residence tests in the foreign-person definition above are the main way individuals fall outside the surcharge.

Paying and declaring your status

Every purchaser or transferee must complete a declaration of foreign status, using the individual or non-individual form, and legal representatives usually gather the certified identity and residency documents. Passports, birth certificates, visas and international movement records are typical examples.

Duty is due by the earliest of the settlement date, or 3 months after the contract is signed (or the transfer date, or the deed date, where there is no contract). Revenue NSW charges daily interest on overdue duty. It is usually paid with the other settlement funds, using the Notice of Assessment.

Revenue NSW may investigate buyers over the past 5 years. If you find that you paid the wrong amount, or did not meet a condition that applied after your purchase, the office encourages a voluntary disclosure.

Refunds

A refund may be available if your foreign status changed so that you were no longer a foreign person on the date the property was transferred to you, or if the share acquired by a foreign person was reduced. It can also follow a cancelled agreement, an overpayment, or a surcharge exemption that was not applied.

The time limit is 5 years from the initial assessment. If an agreement is cancelled after that period, an application must be made within 12 months of the cancellation. For a "no longer foreign" refund, Revenue NSW asks for an Australian citizenship certificate, or certified proof of permanent residency, including the visa grant notice and international movement records. Refunds are not automatic and are usually lodged by the solicitor or conveyancer.

Frequently asked questions

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.