Last reviewed: 31 October 2026
Quick answer
A Thai citizen who is not an Australian permanent resident is generally a “foreign person” under Australia’s foreign investment rules. Foreign persons usually need approval before buying residential land, and from 1 April 2025 they are generally banned from buying established (existing) homes, a ban the Government has announced will run until 30 June 2029. New apartments, off-the-plan purchases and vacant land for building can still be bought with approval. In Victoria, foreign buyers also pay additional stamp duty and an annual land tax surcharge.
The rules are only the start. For Thai and Thai-Chinese families, the harder questions are usually whose name the property should be in, how it is funded, and what happens when a child graduates, marries, separates or a parent dies.
Who counts as a foreign buyer?
The Commonwealth and Victoria each have their own test, and they are not identical. In broad terms, a person who is not an Australian citizen, permanent resident or New Zealand citizen is usually a foreign person or foreign purchaser. A company or trust can also be foreign if foreign persons hold or control enough of it. A student visa holder buying a home to live in while studying is still generally a foreign person.
Buying through a company, a family trust or in a child’s name does not avoid these rules. It often adds to them, because the structure itself may be treated as foreign, and trust deeds may need specific clauses to manage Victorian surcharges.
What Thai buyers can and cannot buy
- Established homes: generally banned for foreign persons during the ban period, with limited exceptions.
- New dwellings and off-the-plan apartments: generally possible with approval, or under a developer’s exemption certificate where one applies.
- Vacant residential land: generally possible with approval, usually on condition that construction is completed within a set time.
- Commercial property: different thresholds and conditions apply, depending on the property and the buyer.
Approval comes with conditions, including reporting and, for residential property, rules about leaving a dwelling vacant. Breaches can lead to penalties and, in serious cases, an order to sell.
Victorian taxes on foreign buyers
Victoria charges foreign purchaser additional duty on top of ordinary stamp duty when a foreign purchaser buys residential property. Absentee owners also pay an annual absentee owner surcharge on land tax, and a home left vacant for more than six months in a year may attract vacant residential land tax. Together these costs can be significant over the life of an investment, so they should be modelled before signing, not after.
Whose name should the property be in?
Thai families commonly buy a Melbourne apartment for a child at university, funded by the parents. Each option has different consequences:
- In the parent’s name: the parent stays in control, but the property is in the parent’s estate and may need an Australian grant of probate if the parent dies.
- In the child’s name: it can look simpler, but the property may become part of the child’s property pool if the child later separates from a partner, and the parents’ contribution may need to be documented as a loan or gift.
- In a company or family trust: can help with control and succession, but brings extra duty, land tax and tax-residency issues for a foreign family, and must be set up carefully.
The right answer depends on the family’s plans, the child’s visa and future residency, and how the property fits into the family’s wider wealth in Thailand.
Paying for the property and signing from Thailand
Lenders, conveyancers and lawyers in Australia must now verify identity and, increasingly, the source of funds. Money sent from Thailand should be traceable to its source. Contracts and transfer documents can often be signed electronically, but some documents must be signed before an authorised witness overseas, and Thai documents may need translation and authentication.
Plan for the end as well as the start
Before buying, think about how the property will eventually be sold or passed on. A foreign seller faces withholding at settlement and Australian capital gains tax, and a Thai resident may face Thai tax when the proceeds are brought home. A Victorian will that deals with Australian assets can save the family months if something happens.
Frequently asked questions
Can a Thai citizen buy a house in Melbourne?
Generally not an established home during the current ban, unless an exception applies. New dwellings, off-the-plan apartments and vacant land can usually be bought with foreign investment approval.
Does buying in my child's name avoid the foreign buyer rules?
Usually not. If the child is also a foreign person, the same rules apply, and holding property in a child's name raises its own family law and estate issues.
Are there extra taxes for foreign buyers in Victoria?
Yes. Victoria charges foreign purchaser additional duty on residential purchases and an annual absentee owner surcharge on land tax, and vacant homes may attract vacant residential land tax.
Can I sign the contract from Bangkok?
Often yes, but some documents need to be witnessed by an authorised person, and identity and source-of-funds checks will apply. Arrange this before exchange.
How we help
Chua Tan Associates has practised in Melbourne since 1990 and advises Thai and Thai-Chinese families on Australian legal matters. We work by video and alongside your lawyers, accountants and private bankers in Thailand. We help with:
- advising before you sign on whether and how you can buy;
- structuring ownership for parents and children;
- contracts, approvals and settlement for overseas buyers;
- Victorian wills and powers of attorney for property owners in Thailand.
The first step is a paid 30-minute consultation by video or in Melbourne. Contact us to book.
This article is general information only and is not legal, tax or financial advice. Do not rely on it for your own situation: the law and practice change, and the right answer depends on your facts. Points about Thai law and Thai tax are a general overview only; obtain advice from a Thai lawyer or tax adviser for matters in Thailand.
Official sources
More guides for Thai and Thai-Chinese families
Related reading
Chua Tan Associates acts for families and their professional advisers on Australian legal matters with a cross-border dimension, working alongside lawyers overseas. To arrange a confidential consultation, please contact our Melbourne office on +61 3 9602 3988 or submit an enquiry. Advice is available in English, Mandarin and Cantonese.
Justin Chua (蔡智勋), lawyer and mediator, Chua Tan Associates, Melbourne. General information only, not legal advice.
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