Can I Buy a Property in Victoria as a Foreigner?

Yes, foreign investors can buy property in Victoria, but they must obtain approval from the Foreign Investment Review Board (FIRB) before making a purchase. The FIRB assesses applications from non-residents to ensure that foreign property investments align with Australia’s national interest.

What Types of Properties Can Foreigners Buy?

Foreigners are generally restricted in the types of properties they can purchase. Here are the main options:

1. New or Off-the-Plan Properties – Foreign buyers are encouraged to invest in new developments to boost housing supply. FIRB approval is typically granted for these types of properties.
2. Vacant Land – Foreign investors can buy vacant land, but they must commit to building a new residential dwelling within a specified timeframe.

Established Dwellings (Limited Cases) – Foreigners cannot usually buy existing residential properties, except in limited circumstances, such as if they are temporary residents living in Australia or if the property is being redeveloped.

FIRB Application Process and Fees

To buy a property in Victoria as a foreigner, you must:

1. Submit an Application to FIRB – This involves providing details about the property and your investment intentions.
2. Pay the FIRB Application Fee – The fee varies depending on the property price. As of 2024, fees start at around $12,000 for properties valued at $1 million or less, and increase for more expensive properties.
3. Await Approval – Processing times vary, but approval is typically granted within 30 to 60 days.

Additional Costs for Foreign Buyers

Foreign investors should be aware of extra costs, including:

• Foreign Purchaser Additional Duty (FPAD) – A surcharge of 8% applies to foreign buyers in Victoria, in addition to standard stamp duty.
• Annual Vacancy Fee – If the property is left vacant for more than six months in a year, a vacancy fee may be imposed.
• Legal and Conveyancing Fees – Hiring a conveyancer is recommended to navigate the legal process.

Foreigners can buy property in Victoria, but they must obtain FIRB approval and comply with restrictions on property types. Additional costs, such as FPAD and application fees, should be factored into the investment decision. If you’re a foreign buyer considering purchasing property in Victoria, consulting a property lawyer or conveyancer can help ensure compliance with Australian regulations.

For more details, visit the Foreign Investment Review Board (FIRB) website or speak to a conveyancer familiar with foreign investment rules. Contact us on 03 8456 6797 for more helpful tips and advice.