The total cost of buying property in Australia as a foreign buyer

The stack of costs

A foreign buyer's costs fall into three groups.

At purchase

• The FIRB application fee, paid to the ATO when you lodge. See the fees page and the worked examples.
• Ordinary stamp duty (transfer duty), the same tax any buyer pays in that state.
• The state surcharge on duty for foreign purchasers. Rates differ by state, as set out on the stamp duty surcharge page.
• Legal and conveyancing costs, searches and inspections. No official figure exists for these. They vary by firm and state, so a written quote is the way to find yours.
• Loan costs, if you borrow. See home loans for foreign buyers.

While you own it

• Ordinary council rates, insurance and any strata levies.
• Land tax, plus a surcharge on top in some states.
• The annual vacancy fee if the home sits empty.
• Income tax on rent, at foreign resident rates.

When you sell

• If you sell while a foreign resident for tax purposes, the buyer withholds 15% of the price (for contracts signed from 1 January 2025) and pays it to the ATO at settlement, unless the ATO has issued a variation notice with a lower rate. The amount is credited against your tax when you lodge a return.

Worked example: $750,000 and $1 million, NSW and Victoria

Assumptions: a new apartment bought as an investment in New South Wales, price equal to market value and including GST, a foreign buyer with no exemption or concession, and 2026-27 rates.

How each figure is worked out:

• NSW transfer duty for 2026-27 on a dutiable value from $387,001 to $1,290,000 is $11,602 plus $4.50 for every $100 over $387,000. At $750,000 that is $11,602 + ($363,000 x 4.5%) = $27,937. At $1 million it is $11,602 + ($613,000 x 4.5%) = $39,187, which matches Revenue NSW's own example.
• NSW surcharge purchaser duty is 9% of the dutiable value, so $67,500 and $90,000.

Victoria. The foreign purchaser additional duty is 8% of the dutiable value, so $60,000 on $750,000 and $80,000 on $1,000,000. To reach a Victorian total, add that to the $15,600 FIRB fee and to ordinary Victorian transfer duty for the same value. On the State Revenue Office's rates for property that is not a principal place of residence, duty on $1,000,000 is 5.5% of the value, which is $55,000, so the three charges total $150,600 ($15,600 + $55,000 + $80,000). Duty depends on whether the home is a principal place of residence, so take your own figure from the State Revenue Office's rate table or calculator.

What can change these totals

• Dutiable value is not always the price. Revenue NSW uses the higher of the price you agreed and the market value. The State Revenue Office Victoria does the same and says GST is included where payable.
• Concessions. Victoria says its additional duty is calculated on the dutiable value before any concession is applied. Its own example is a $500,000 off-the-plan purchase that qualifies for both the off-the-plan and principal residence concessions: the additional duty is still 8% of $500,000, which is $40,000.
• Principal residence. The Victorian duty figure above uses the rates for property that is not a principal place of residence. Different rates apply for a principal place of residence.
• Shares. Surcharge duty is charged on the foreign person's share. If you buy with a partner who is not foreign, the amounts above change. Victoria's example of three buyers shows the additional duty applying only to the foreign buyer's third.
• Other states and territories. Each has its own foreign buyer rules and rates. The state pages set out each one.

Costs after you buy

Land tax surcharges. Revenue NSW charges surcharge land tax of 5% of land value from the 2025 land tax year, with no tax-free threshold. Its own example is residential land valued at $500,000, which gives a $25,000 surcharge for the year. Victoria's absentee owner surcharge is 4% of taxable value from the 2024 land tax year, on top of general land tax and not payable where the total taxable value of your land is below $50,000. As an illustration, a $400,000 taxable value would add $16,000 a year (4% x $400,000). Both are for owners who count as foreign or absentee under each state's definition. See land tax surcharges by state.

Vacancy fee. If the home is not occupied or available for rent for at least 183 days in the vacancy year, the fee is double the original application fee. With a $15,600 application fee, that is $31,200. See the vacancy fee guide.

Income tax on rent. Foreign residents have no tax-free threshold. The ATO's published foreign resident rates for 2025-26, the most recent shown on its page, start at 30 cents per dollar on the first $135,000. A sister guide covers tax on Australian property from overseas.

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.