Are You Eligible?

Generally , any foreign or non resident person can make application to purchase residential property in Australia Residential real estate means all Australian urban land other than commercial properties (that is offices, factories, warehouses, restaurants, shops). Acquisitions of ‘hobby farms’ and ‘rural residential’ blocks by foreign interests are included in the residential real estate category.

Foreign purchasers intending to acquire real estate in Australia must seek prior approval from the Government through the Foreign Investment Review Board unless specifically exempted by the Foreign
Acquisitions and Takeovers Regulations.

Entering into a Contract

All contracts by foreign persons to acquire interests in Australian real estate must be made conditional upon foreign investment approval, unless approval was obtained prior to entering into the contract.

Who is Exempt?

Exemptions include:

  • a natural person not ordinarily resident in Australia;
  • a corporation in which a natural person not ordinarily resident in Australia or a foreign corporation holds a controlling interest (that is, a holding of 15 percent or more);
  • a corporation in which 2 or more persons, each of whom is either a natural person not ordinarily resident in Australia or a foreign corporation, hold an aggregate controlling interest (that is, a total holding of 40 percent or more);
  • the trustee of a trust estate in which a natural person not ordinarily resident in Australia or a foreign corporation holds a substantial interest; or
  • the trustee of a trust estate in which 2 or more persons, each of whom is either a natural person not ordinarily resident in Australia or a foreign corporation, hold an aggregate substantial interest.
  • acquisitions by Australian citizens resident abroad;
  • acquisitions of property zoned residential by foreign nationals who hold permanent resident visas or hold, or who are eligible to hold, a ‘special category visa’ (eg a New Zealand citizen); and foreign persons purchasing, as joint tenants, with their Australian citizen spouse, property that is zoned residential.

For full details, go to www.firb.gov.au