Foreign Buyers in Australia 2026: Surcharges, FIRB Rules & Stamp Duty by State

Foreign Buyers in Australia 2026: Surcharges, FIRB Rules & Stamp Duty by State HEHomeLoanAI Editorial·5 July 2026 Foreign buyers and Australian stamp duty in 2026: the surcharge that can double your bill If you are a foreign buyer purchasing residential property in Australia in 2026, the stamp duty bill is not just the standard rate — it includes a foreign purchaser surcharge that ranges from 0% to 9% of the property's value, depending on the state. On a $1,000,000 property, this surcharge alone adds $0 to $90,000 to your upfront costs. Here is the data: exactly what you pay in each state, how FIRB fees work, and what non-resident tax rates mean for your net return. Foreign stamp duty surcharges by state (2026-27) Every state and territory except the ACT and NT imposes an additional surcharge on foreign purchasers of residential property: NSW: 9% foreign purchaser surcharge VIC: 8% foreign purchaser additional duty QLD: 8% Additional Foreign Acquirer Duty (AFAD) WA: 7% foreign buyer surcharge SA: 7% foreign purchaser surcharge TAS: 8% Foreign Investor Duty Surcharge (FIDS) ACT: 0% — no foreign stamp duty surcharge (0.75% annual land tax surcharge instead) NT: 0% — no foreign stamp duty surcharge These surcharges are calculated on the full dutiable value and are in addition to the standard transfer duty, not instead of it. For example, a foreign buyer purchasing a $750,000 property in Sydney pays approximately $28,000 in standard NSW transfer duty plus $67,500 in foreign surcharge — a total of $95,500 in duty alone. Total stamp duty for foreign buyers at common price points Here is the total stamp duty (standard + surcharge) a foreign buyer pays on a $750,000 residential property in each jurisdiction: NSW: $27,937 (standard) + $67,500 (9%) = $95,437 VIC: $40,070 (standard) + $60,000 (8%) = $100,070 QLD: $24,975 (standard) + $60,000 (8%) = $84,975 WA: $29,741 (standard) + $52,500 (7%) = $82,241 SA: $34,830 (standard) + $52,500 (7%) = $87,330 TAS: $28,935 (standard) + $60,000 (8%) = $88,935 ACT: approximately $10,000–$15,000 (standard only, no surcharge) NT: approximately $32,000–$37,000 (standard only, no surcharge) The total duty burden for a foreign buyer ranges from approximately $10,000 in the ACT to over $100,000 in Victoria. The ACT and NT — being the only jurisdictions without a foreign surcharge — offer a materially lower upfront cost, though the ACT's annual 0.75% land tax surcharge on foreign owners partially offsets this advantage over a long holding period. FIRB application fees: a separate national cost In addition to state-level stamp duty, foreign buyers must obtain approval from the Foreign Investment Review Board (FIRB) before purchasing residential property in Australia. FIRB application fees are national — they apply regardless of the state — and are scaled by property value. For residential property purchases in 2026, FIRB fees are approximately: Property value up to $1,000,000: $14,100 Property value $1,000,001–$2,000,000: $28,200 Property value $2,000,001–$3,000,000: $56,400 Above $3,000,000: higher tiers apply, scaling with value FIRB fees are non-refundable, even if the purchase does not proceed. They are a sunk cost at the application stage. Temporary residents (such as those on a 482 or 491 visa) who are purchasing a principal place of residence may be exempt from FIRB approval for certain property types, but they must still check their specific visa conditions and FIRB guidance. Non-resident income tax on Australian rental income Foreign buyers who purchase investment property in Australia and earn rental income are taxed as non-residents for Australian tax purposes. The 2026-27 non-resident tax rates are: $0–$135,000: 30% (no tax-free threshold) $135,001–$190,000: $40,500 plus 37% of the excess over $135,000 Above $190,000: $60,850 plus 45% of the excess over $190,000 Non-residents do not pay the Medicare Levy (2%), but they also do not receive the $18,200 tax-free threshold or the reduced 15% resident rate on the first $45,000. This means rental income is taxed at a starting rate of 30% from the first dollar, which significantly reduces net rental returns compared to Australian-resident investors. Capital gains tax also applies on the sale of Australian property by foreign residents, and from 1 July 2025, the CGT withholding rate for foreign residents selling Australian property increased — foreign sellers should factor a 15% withholding on the sale price into their exit calculations. Restrictions on what foreign buyers can purchase FIRB rules restrict foreign buyers to certain categories of residential property: New dwellings and off-the-plan purchases: generally permitted, subject to FIRB approval Vacant land for development: permitted, with conditions requiring construction to commence within a specified timeframe Established dwellings: generally not permitted for foreign non-residents, with limited exceptions for temporary residents buying a principal place of residence (which must be sold when the visa expires or the resident leaves Australia) Established dwellings for redevelopment: may be permitted if the existing dwelling is demolished and replaced with multiple new dwellings, subject to conditions Foreign buyers cannot simply purchase any residential property on the open market. The new-dwelling restriction channels foreign investment into new construction, which is the policy intent.

The ACT and NT: the no-surcharge jurisdictions

The ACT and NT are the only Australian jurisdictions that do not impose a foreign purchaser stamp duty surcharge. This creates a meaningful cost advantage for foreign buyers: On a $750,000 property, a foreign buyer in the ACT pays approximately $10,000–$15,000 in total stamp duty, compared to $84,975–$100,070 in the eastern states. The saving at this price point is $70,000–$90,000 on stamp duty alone. However, the ACT imposes an annual 0.75% foreign land tax surcharge on the property's unimproved land value each year. Over a 10-year holding period, this could add approximately $30,000–$50,000 depending on the land value component. The NT has no equivalent annual surcharge. For foreign buyers comparing jurisdictions, the ACT is the cheapest upfront, but the NT may be cheaper over a long holding period if the property has a high land value. Data sources All foreign surcharge rates above are verified against the respective state and territory revenue offices as at July 2026. FIRB fee tiers are published by the Australian Taxation Office (ATO) on behalf of the Foreign Investment Review Board. Non-resident income tax rates are verified against ATO guidance for 2026-27. Always confirm FIRB requirements, fees, and surcharge rates with professional advice before making a purchase. Frequently Asked Questions Q: Does the foreign surcharge apply to permanent residents? A: No. Australian permanent residents are generally treated the same as citizens for stamp duty purposes and do not pay the foreign surcharge. The surcharge applies to foreign persons as defined by each state's legislation — typically non-residents, temporary visa holders, and foreign corporations or trusts. Q: If I buy with an Australian citizen spouse, do we still pay the surcharge? A: This depends on the state's rules and how the property is held. In some states, if the property is held as joint tenants and one buyer is an Australian citizen, the surcharge may not apply or may apply to a reduced portion. In others, the surcharge applies if any purchaser is a foreign person. This is a complex area that varies by jurisdiction — get specific advice from your conveyancer. Q: Can a foreign buyer get a mortgage in Australia? A: Yes, but with restrictions. Most Australian lenders will lend to foreign buyers, but they typically require a larger deposit (often 30%–40%) and may impose higher interest rates. Lending policies for foreign buyers tightened significantly after APRA's 2017 investor lending curbs, and the current environment — with the 3% serviceability buffer and 6x DTI cap — makes foreign borrower applications challenging. Some non-bank and specialist lenders focus on this segment. Q: Is the FIRB fee refundable if my application is rejected? A: No. FIRB application fees are non-refundable regardless of the outcome. Before lodging a FIRB application, ensure you meet the eligibility criteria and have legal advice confirming your eligibility to purchase the specific property. Next steps The total upfront cost for a foreign buyer in Australia includes standard stamp duty, the foreign purchaser surcharge (up to 9%), and FIRB application fees — which together can exceed 15% of the property's value before you have paid a dollar in deposit. An Arrivau licensed adviser can provide a complete cost breakdown for your target state, property type, and personal circumstances, including an assessment of mortgage options for foreign buyers. An adviser will respond within one business day. Disclaimer: This article provides general information only and does not constitute financial, legal, migration, or tax advice. Stamp duty surcharges, FIRB rules, immigration requirements, and tax rates change frequently. Foreign buyers should obtain independent legal and tax advice in Australia and their home jurisdiction before purchasing Australian property. #foreign-buyer#stamp-duty#firb#2026 Not sure what rate you'd get? Ask the AI — free, unbiased, and no sign-up required. It knows current Australian lending rules and can run the numbers for you. Ask the AI assistant → Keep reading First Home Buyers First home buyer grants and concessions in 2026, state by state