Buying NSW Property as a Foreign Person: FIRB & Surcharges
Foreign buyers of NSW residential property face FIRB approval, 9% surcharge purchaser duty, 5% additional land tax surcharge, and tight property type restrictions. Get the full 2026 picture before you sign.
Quick Answer
Foreign persons buying residential property in NSW must (1) obtain FIRB approval before exchange (application fee from $14,700 for property up to $1m), (2) generally pay 9% surcharge purchaser duty on top of standard NSW transfer duty (around 4–5.5%), and (3) pay 5% surcharge land tax annually on the unimproved land value. New dwellings and off-the-plan apartments are generally permitted; established dwellings are restricted to temporary residents who must sell on departure. NZ citizens, Australian PRs, and spouses of Australian citizens (where the title is held jointly) are exempt from FIRB and surcharges. Total acquisition cost for a foreign buyer of a $1m NSW home is typically around $1.18m once FIRB, surcharges, duty, and conveyancing are added.
Who is a 'foreign person' under NSW law?
NSW law treats you as a foreign person if you are not an Australian citizen, not a permanent resident, and not a NZ citizen on a Special Category Visa (SCV 444). You may also be foreign if you are an Australian PR but ordinarily not present in Australia for 200 days in the previous 12 months (NSW Land Tax surcharge test). Foreign corporations and foreign trusts (any trust with a foreign beneficiary) are also treated as foreign persons — this catches many family trusts.
FIRB approval — what you need before exchange
Under the Foreign Acquisitions and Takeovers Act 1975 (Cth), most residential property purchases by foreign persons require Foreign Investment Review Board approval before contracts are exchanged. Application fees are tiered:
- Property up to $1 million — application fee around $14,700.
- Property $1 million to $2 million — application fee around $29,500.
- Property $2 million to $3 million — application fee around $59,100.
- Property over $3 million — fee scales rapidly higher.
- Vacant land — typically lower fees but with conditions to commence construction within 4 years.
- Established dwellings (for temporary residents only) — same fee scale, must sell when leaving Australia.
What property can foreigners buy in NSW?
FIRB rules restrict the type of NSW residential property foreign buyers can purchase:
- New dwellings (never previously occupied) — generally allowed, no quota.
- Off-the-plan apartments in pre-approved developments — generally allowed.
- Vacant residential land — allowed with FIRB approval and condition to build within 4 years.
- Established dwellings — only allowed for temporary residents (student visa, work visa, partner visa) and must be sold within 6 months of leaving Australia.
- Commercial and industrial property — generally allowed but FIRB approval may apply for high-value transactions.
- Rural land — restrictions apply for foreign government investors and large parcels.
NSW surcharges for foreign buyers
On top of FIRB fees, NSW Revenue NSW imposes two state-based surcharges on foreign buyers: 1. Surcharge purchaser duty — 9% of the dutiable value, payable in addition to standard NSW transfer duty. So for a $1m NSW residential purchase, a foreign buyer pays ~$40,090 standard duty plus $90,000 surcharge = $130,090 total transfer duty. 2. Surcharge land tax — 5% of the unimproved land value, payable annually in addition to standard land tax (which kicks in above ~$969,000 land value). Combined with standard land tax, foreign owners can pay 6–7% of the land value per year. Note: NSW had previously refunded surcharges to citizens of NZ, Finland, Germany, and South Africa under double-tax treaties, but this practice was discontinued in 2024 following federal legislative clarification.
Foreign vs Domestic Buyer — $1m NSW Property Cost Comparison
Indicative all-in acquisition costs for a $1 million NSW residential property purchase, comparing a foreign buyer with FIRB requirements vs an Australian PR / citizen buyer.
| Cost Item | Foreign Buyer | Australian Citizen / PR |
|---|---|---|
| Purchase price | $1,000,000 | $1,000,000 |
| NSW transfer duty (standard) | $40,090 | $40,090 |
| NSW surcharge purchaser duty (9%) | $90,000 | Nil |
| FIRB application fee | $14,700 | Nil |
| Conveyancing (Elyment fixed fee) | $1,850 + GST | $1,850 + GST |
| PEXA, search & registration fees | ~$700 | ~$700 |
| Total acquisition cost | ~$1,148,475 | ~$1,044,475 |
| Annual land tax surcharge (5% on land value) | ~$25,000+ p.a. | Nil (below threshold) |
Estimates only. Actual figures depend on property value, FIRB application class, and exemptions. Confirm with Revenue NSW and FIRB before exchange.
How a Foreign Buyer Acquires NSW Property
Confirm foreign person status
Determine whether you, the buying entity, or any beneficiary of a buying trust is a foreign person under FIRB and NSW Revenue NSW definitions.
Lodge FIRB application
Apply through the FIRB online portal before contract exchange. Application fees are non-refundable. Approval typically takes 30 days for residential applications.
Identify allowed property type
Confirm the property is FIRB-eligible: new dwelling, off-the-plan, vacant land, or (for temporary residents only) established dwelling.
Calculate full cost including surcharges
Add 9% surcharge purchaser duty to standard duty. Plan for 5% annual land tax surcharge if the land value exceeds $969,000.
Exchange contracts conditional on FIRB
If FIRB approval is not yet received, exchange contracts with a special condition making completion subject to FIRB approval.
Settle via PEXA & lodge surcharge return
At PEXA settlement, the buyer's conveyancer pays standard duty and surcharge purchaser duty to Revenue NSW. The buyer registers for surcharge land tax.
Comply with FIRB conditions post-settlement
Some FIRB approvals carry conditions (e.g. build within 4 years on vacant land, sell established dwelling on departure). Non-compliance can lead to forced disposal and penalties.
Frequently Asked Questions
Common NSW questions answered by Elyment Conveyancing — written for buyers, sellers, and investors.
If you are not an Australian citizen, not a permanent resident, and not a NZ SCV 444 visa holder, you generally need FIRB approval before exchange. Some exemptions apply for spouses purchasing jointly with Australian citizens.
9% surcharge purchaser duty applies to foreign persons buying NSW residential property, on top of standard NSW transfer duty (4–5.5%). For a $1m property, that's $90,000 in surcharge duty alone.
Yes. Foreign persons pay an additional 5% surcharge land tax on the unimproved land value, annually. There is no tax-free threshold for the surcharge — it applies from the first dollar of land value.
Generally no. Foreign persons can only buy new dwellings, off-the-plan apartments, or vacant land in NSW. Temporary residents (student, work, partner visa holders) can buy ONE established dwelling to live in but must sell within 6 months of leaving Australia.
NZ citizens on a Special Category Visa (SCV 444) are not treated as foreign persons under FIRB or NSW Revenue NSW rules. They can buy any NSW property without FIRB approval and without paying surcharge duty or land tax.
If you and your Australian citizen / PR spouse buy jointly as joint tenants, you may be exempt from FIRB. The interpretation depends on whether the property is treated as your principal place of residence and the structure of the title. Always confirm with FIRB before relying on this exemption.
Most residential FIRB applications are decided within 30 days. Complex commercial or rural applications can take 40–90 days. Express decisions are not available — plan timing well in advance.
No. The NSW First Home Owner Grant ($10,000 for new homes up to $750,000) and First Home Buyer Assistance Scheme (stamp duty exemption) are only available to Australian citizens and permanent residents who occupy as principal place of residence.
Related NSW Guides & Tools
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