Can a foreigner own a property in Australia?
This is one of the most frequently asked question. Short answer is yes. But there are some limitations.
​
Melbourne is a pro-property investment state. Not only does it have one of the lowest property investment taxes, fees and stamp duties, the property investment rules are generally more investor-friendly than any other states and territories in Australia.
​
There are, however, some restrictions on the types of properties a non-resident can buy in Melbourne. More information on what these restrictions are in our Foreign Property Investor page..
​
A non-resident buying properties in Australia is subject to approvals from the Foreign Investment Review Board (FIRB). And approved non-resident buyers buying properties in Victoria, might also be subjected to additional stamp duties on their share of the property being acquired.
​
When do additional stamp duties apply?
Additional stamp duties apply to any arrangement or transaction involving the transfer of an interest in residential property to a foreign purchaser, including:
Buying a residential property at, for example, auction or by private sale.
Buying a non-residential property with the intention of converting it to residential property.
Being given a residential property as a gift.
Certain leasing arrangements in respect of residential property.
​
Additional Stamp Duties in Victoria
For contracts, transactions, agreements and arrangements entered into on or after:
1 July 2015 but before 1 July 2016 (even if the settlement date is on or after 1 July 2016), the additional duty rate is 3 per cent.
1 July 2016, the additional duty rate is 7 per cent.
1 July 2019, the additional duty rate is 8 per cent.
​
More information can be found on the Victoria State Revenue Office website
Comments