Can a foreigner buy property in Melbourne Australia?

Australia is one of the few countries that welcome foreign property investors. According to a research by Australian Bank, ANZ, foreigners buy up to 25% of new properties in Australia.

As a foreign resident investing in Melbourne and Australia, the type of property you can buy is dependant on your residency status. By default, you are a non-permanent resident or a temporary resident, if you do not hold either a permanent Skilled Migrant or permanent Business Migrant visa.

Here's what a foreigner can buy in Melbourne.

Temporary Residents

Temporary residents will normally be allowed to purchase only one established dwelling to live in as their residence (home) in Australia. They are, however, subject to the conditions that they:

• Use the property as their principal place of residence in Australia;

• Do not rent any part of the property, included ensuring that the property is vacant at settlement; and

• Sell the property within three months from when it ceases to be their principal place of residence.

Temporary residents are not permitted to purchase established dwellings as investment properties, or rent out, or as holiday homes.

Non-Resident Foreigner

FIRB Application Fees

You will also need to pay an application fee as per the table below:

From 29 July 2022 to 30 June 2023

​Purchase Price	Fee Payable
Less than $75,000	$4,000
$1 million or less	$13,200
$2 million or less	$26,400
$3 million or less	$52,800
$4 million or less	$79,200
$5 million or less	$105,600
Over $5 million	Refer to FIRB

From 1 July 2023 to 30 June 2024

​Purchase Price	Fee Payable
Less than $75,000	$4,200
$1 million or less	$14,100
$2 million or less	$28,200
$3 million or less	$56,400
$4 million or less	$84,600
$5 million or less	$112,800
Over $5 million	Refer to FIRB

Note: the FIRB fee is now indexed to inflation and will be updated annually. Refer to the FIRB website for the latest FIRB application fee.

Tax Implications

There are tax implications for investing in Australian property. Any rental income received from the investment will need to be declared on an Australian tax return, and, you’ll need to pay Capital Gains Tax on any profit made when selling the property.

*Source: FIRB.gov.au

Melbourne Buyers Agents

If you are a non resident planning to invest in Melbourne properties, have a chat with us. Our Melbourne based Buyers Agent service helps property buyers understand the Melbourne property market, outsmart the other buyers and avoid the inflated pricing.