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Checked 5 October 2026

Victoria: foreign buyer surcharge

A foreign buyer paying $1 million for a house in Melbourne pays $80,000 in additional duty on top of ordinary land transfer duty (SRO Victoria).

  • Duty surchargeForeign purchaser additional duty (FPAD): 8% since 1 July 2019
  • Earlier rates7% from 1 July 2016; 3% from 1 July 2015
  • Land tax surchargeAbsentee owner surcharge: 4% of taxable value (from the 2024 land tax year)
  • Land tax detailNil where total taxable land is under $50,000. Charged on top of general land tax.
  • Revenue officeState Revenue Office Victoria

Who is a foreign buyer in Victoria

Victoria sets its own definition, which is separate from the federal FIRB test.

  • Temporary residents: Foreign for the duty surcharge, including if you have applied for a visa that has not been granted. For the absentee owner surcharge, a temporary resident who ordinarily lives in Australia is not an absentee.
  • Permanent residents: Not foreign — no residency-day test.
  • New Zealand citizens: Not foreign if you ordinarily reside in Australia for 6 consecutive months within the 12 months before or after settlement (settlements from 26 November 2025). Before that date, holding a Special Category visa at settlement was the test.
  • Australian citizens: not foreign.

If your status changes

None stated. Status is fixed at settlement.

Buying with a spouse or partner

Exempt if you buy your home with a spouse or partner who is not foreign and you live in it for 12 months, starting within 12 months of settlement.

Land tax surcharge

Absentee owner surcharge: 4% of taxable value, from the 2024 land tax year. Nil where total taxable land is under $50,000. Charged on top of general land tax.

New homes in Victoria

Browse new homes for foreign buyers in Melbourne.

Check before you sign

State rules change often, and the surcharge is assessed on your own facts. Confirm with State Revenue Office Victoria or a conveyancer before you sign.

Frequently asked questions

How much is the foreign buyer surcharge in Victoria?

8% of the dutiable value of the foreign person’s share of residential property, on top of ordinary transfer duty. A foreign buyer paying $1 million for a house in Melbourne pays $80,000 in additional duty on top of ordinary land transfer duty (SRO Victoria).

Can I get the surcharge back in Victoria?

None stated. Status is fixed at settlement.

Does Victoria have a land tax surcharge for foreign owners?

Yes. Absentee owner surcharge: 4% of taxable value. Nil where total taxable land is under $50,000. Charged on top of general land tax.

Sources

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.