Written by Justin Chua, Lawyer and Mediator, Chua Tan Associates · Last reviewed November 2026
A foreign person buying residential property in Victoria generally needs approval from the Foreign Investment Review Board (FIRB) first. From 1 April 2025 to 30 June 2029, foreign persons are generally banned from buying established dwellings, so they can usually only consider new dwellings or vacant land. In Victoria, a foreign purchaser also pays the 8% Foreign Purchaser Additional Duty (FPAD) on residential property, and an absentee owner may pay a 4% absentee owner surcharge on land tax while holding it. Australian citizens, permanent residents and New Zealand citizens on a Special Category Visa are generally not caught by these foreign buyer rules.
Who is a "foreign person" when buying a home?
According to the Australian Taxation Office (ATO), if you are not an Australian citizen, a permanent resident or a New Zealand citizen holding a Special Category Visa, you will generally be treated as a "foreign person" when buying Australian residential property.
People living in Australia on temporary visas, including student and work visa holders, and people who have applied for permanent residency and are on a bridging visa, are usually still foreign persons. A permanent resident who is not ordinarily resident in Australia may also be a foreign person in some circumstances. Status depends on the facts, so confirm it before you sign a contract.
Can a foreign person buy an established home in Victoria now?
Generally, no. The federal government banned foreign persons from buying established dwellings from 1 April 2025, initially for two years. The 2026–27 federal Budget announced an extension, and the currently announced end date is 30 June 2029. The ban also applies to temporary residents.
There are limited exceptions, such as redevelopments that significantly increase housing supply (for example, adding at least 20 dwellings, including build-to-rent projects), housing at commercial scale (such as retirement villages, aged care and student accommodation), and foreign-owned employers housing workers from Pacific island countries and Timor-Leste. These exceptions still require foreign investment approval and are assessed case by case.
Important: if you buy an established dwelling without approval and apply afterwards, the application may be refused under current policy, and you may be required to sell the property and pay penalties.
What can a foreign person buy, and what does FIRB approval involve?
- New dwellings: Approval is generally required. Once approved, you can usually live in or rent out the property, and there is no limit on the number of dwellings.
- Vacant land: Approval is generally required and usually comes with conditions, such as building at least one dwelling and completing it within a set time.
- Application fees: Foreign investment applications attract an application fee. The fee schedule is indexed by the government periodically, so check the latest official figures. Residential applications are currently generally lodged through the ATO's foreign investment portal.
- Vacancy fee: If a foreign-owned dwelling is not occupied or genuinely available for rent for at least 183 days in each 12-month vacancy year, an annual vacancy fee may be payable, and a return must be lodged within 30 days after each vacancy year ends.
Breaching foreign investment laws can lead to serious penalties, including infringement notices and civil and criminal penalties.
How much is Victoria's Foreign Purchaser Additional Duty (FPAD)?
According to the State Revenue Office (SRO), for contracts entered into on or after 1 July 2019, a foreign purchaser of Victorian residential property pays an extra 8% duty on top of general stamp duty. This duty is separate from federal FIRB approval: getting FIRB approval does not exempt you from FPAD.
Where a foreign purchaser buys together with a non-foreign purchaser, the additional duty is generally charged only on the share acquired by the foreign purchaser.
What other taxes apply while you own the property?
Victoria charges an Absentee Owner Surcharge on land held by absentee owners. The SRO has announced the surcharge rate increased from 2% to 4% (from the 2024 land tax year). Generally, an individual who is neither an Australian citizen nor a permanent resident, does not ordinarily reside in Australia, and was absent from Australia at the relevant time or for more than six months in the previous year may be an absentee individual. Whether the surcharge applies, and which exemptions are available, depends on your circumstances.
What changes if a temporary visa holder buys with a spouse who is an Australian citizen or permanent resident?
Under federal foreign investment rules, a foreign person who is the spouse or de facto partner of an Australian citizen, permanent resident or Special Category Visa holder generally does not need FIRB approval if they buy the home together as joint tenants. Note that holding the property as tenants in common does not qualify for this exemption.
For Victorian duty, a foreign purchaser who buys a principal place of residence with an eligible spouse or domestic partner, and lives there continuously for 12 months, may be able to claim an FPAD exemption. Check the conditions and how to apply before signing.
Practical steps for a foreign buyer in Victoria
- Confirm whether you are a foreign person or foreign purchaser under the federal and Victorian rules.
- Confirm the property type: established home, new dwelling, off-the-plan or vacant land.
- Get FIRB approval before signing, or make the contract conditional on approval.
- Estimate the costs: general stamp duty, FPAD, land tax and the absentee owner surcharge.
- After settlement, meet ongoing obligations such as vacancy fee returns, and keep good records.
Frequently asked questions
Can I buy a home in Melbourne to live in on a student visa?
During the ban you generally cannot buy an established home. You may be able to apply to buy a new dwelling or vacant land, but you need FIRB approval first and must pay Victorian FPAD.
Do I still pay FPAD once I become a permanent resident?
Under the SRO's definitions, a permanent visa holder is not a foreign natural person and generally does not pay FPAD. What matters is your visa status at the time of signing and the other relevant dates.
Can I avoid these rules by buying through a company or trust?
Not necessarily. A company or trust controlled by foreign persons may itself be a foreign person or foreign purchaser and pay the additional duty.
When does the ban on buying established homes end?
According to what the federal government has currently announced, the ban runs until 30 June 2029. Policy may change again, so check the latest rules before you sign.
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Book a consultation with a lawyer
Buying property in Australia as a foreign person involves both federal and state rules, and mistakes can lead to a forced sale or heavy penalties. Chua Tan Associates has practised in Melbourne since 1990, works in Mandarin and Cantonese, and offers video consultations Australia-wide. If you are thinking of buying in Victoria, or need to time a purchase around your visa status, you are welcome to Book a 30-minute consultation for paid advice. If you instruct us, the consultation fee is credited to your first invoice. For visa status questions, see our Australian immigration law services.
Address: Level 2, 262 Queen Street, Melbourne VIC 3000 | Phone: +61 3 9602 3988 | WhatsApp: +61 490 369 102 | WeChat: chuatan262
This article is general information only and is not legal advice. Do not rely on it to make any decision; please consult a lawyer about your circumstances. Information current as at November 2026.
Related services: Melbourne property lawyers— overseas buyers, FIRB, off-the-plan, commercial property and property disputes.
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