Can Americans buy property in Australia?

Evidence tier: A1 Evidence type: Auto-discovered official publication Source: Wise Blog Official publication date: 2026-08-18 Captured: 2026-08-30T12:34:40.110Z

Yes, Americans can buy property in Australia.

You don't need residency or citizenship to own a home there, but you do need government approval first, and your residency status determines what kind of property you're allowed to buy.

US citizenship doesn't exempt you from government approval. The same review process applies whether the buyer is a US citizen, a foreign company, or another non-resident.

So, how does buying property in Australia as an American work? Here's everything you need to know.

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What are the rules for foreigners buying property in Australia?

The main rule is that foreign buyers almost always need approval before they buy, and that approval comes from the Foreign Investment Review Board, usually shortened to FIRB.¹

FIRB exists to keep foreign investment in line with Australia's national interest, and a big piece of that is protecting housing supply for locals.

The rules keep the market fair and make sure that there's enough housing for Australians, which is why the board steers foreign money toward property that adds new homes instead of competing for existing ones.

How do you know if you count as a foreign person in Australia?

Australian citizens and permanent residents who are ordinarily resident are generally exempt, but temporary visa holders and people buying from overseas are usually treated as foreign persons.

One test the board applies is the "200-day rule": to be considered ordinarily resident, you generally need to have spent at least 200 days in Australia over the past year on a visa with no time limit.¹

New dwellings vs. established dwellings

Australia sorts residential property into a few different categories. The category that a home falls into determines whether you can buy it as a foreigner.

Here's how it works:

• New or near-new dwellings are homes that have been built (or are being built) and haven't been lived in, and foreign buyers can purchase them
• Vacant residential land is open to foreign buyers too, usually with a condition that construction starts and finishes within a set window, often 4 years¹
• Established dwellings, meaning existing homes someone has already occupied, are banned for most foreign buyers from 1 April 2025 through 30 June 2029¹ ²

There is a narrow exception for established homes bought for redevelopment, but the bar is high. To qualify, your project generally needs to create at least 20 additional dwellings, so the exception typically only applies to developers, not ordinary Americans buying a single house.¹

The FIRB approval process

Almost all foreign buyers will need to get FIRB approval.

You apply through the Australian Taxation Office, which handles most residential applications, submitting details of the property along with an application fee that scales with the property's value.¹

Approval usually arrives with strings attached. For example, vacant land approvals typically come with a development condition, requiring you to build within FIRB's timeframes.

Approvals can also expire, so if a purchase drags on, an old approval may lapse before settlement, and you could need a fresh one before completing.

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How much does it cost to buy property in Australia?

What you pay depends a lot on where you buy.

Here's a snapshot of the average apartment prices by square foot country-wide and in some of the biggest cities:

<table><tbody><tr><td><strong>Location</strong></td><td><strong>Price per sq ft (city centre)</strong></td><td><strong>Price per sq ft (outside centre)</strong></td></tr><tr><td>Australia-wide³</td><td>757 USD</td><td>556 USD</td></tr><tr><td>Sydney⁴</td><td>1,205 USD</td><td>739 USD</td></tr><tr><td>Melbourne⁵</td><td>657 USD</td><td>591 USD</td></tr><tr><td>Brisbane⁶</td><td>765 USD</td><td>541 USD</td></tr></tbody></table>

The purchase price is only one part of what a property purchase in Australia costs.

As a foreign buyer, you'll also have to cover a handful of extra costs that local buyers often don't need to deal with.

Here's an overview of what they are:

<table><tbody><tr><td><strong>Cost</strong></td><td><strong>What it is</strong></td><td><strong>Typical amount </strong>¹<strong> ⁷</strong></td></tr><tr><td>FIRB application fee</td><td>Government fee for approval to buy, tiered by the property's value</td><td>From 4,600 AUD, rising to 1,245,500 AUD (established dwellings cost about 3x more)</td></tr><tr><td>Stamp duty + foreign purchaser surcharge</td><td>State tax on the purchase, plus an extra charge only foreign buyers pay</td><td>Ordinary transfer duty, plus 9% (NSW), 8% (VIC), or 8% (QLD)</td></tr><tr><td>Legal fees</td><td>Conveyancer or lawyer</td><td>2,000 AUD to 5,000 AUD</td></tr></tbody></table>

FIRB application fees⁷

Every foreign buyer pays a FIRB application fee.

The amount goes up with the property's value. For example, fees for 2026–2027 start at 4,600 AUD for residential land under 75,000 AUD and rise from there, reaching 1,245,500 AUD for a new dwelling or vacant land valued above 40 million AUD.

Established dwellings, if you qualify for an exemption, carry FIRB fees that are generally 3 times the fee for a new dwelling or vacant land at the same value.¹ ⁷

For example, a purchase up to 1 million AUD would cost you 46,800 AUD instead of 15,600 AUD in FIRB application fees.¹ ⁷

Stamp duty and the foreign purchaser surcharge¹

Stamp duty is a state tax on property purchases, and every buyer pays it. However, as a foreign buyer, you also pay a foreign purchaser surcharge on top.

In 2026, the surcharge is 9% in New South Wales, 8% in Victoria, and 8% in Queensland, applied on top of the ordinary transfer duty. This is a big expense that foreign buyers should budget for.

Legal fees¹

You'll need a conveyancer or lawyer to handle the contracts, title searches, and settlement.

This commonly costs from 2,000 AUD to 5,000 AUD, depending on the state, the complexity of the contract, and your lender's requirements.

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Property tax in Australia: What foreign owners need to know

Owning property in Australia comes with yearly costs, and you'll also get a tax bill when you sell.

Here's what to expect:

<table><tbody><tr><td><strong>Tax or cost</strong></td><td><strong>When it applies</strong></td><td><strong>What to expect</strong></td></tr><tr><td>Foreign owner land tax surcharge⁸</td><td>Every year you own the land</td><td>5%, ongoing</td></tr><tr><td>Rental income tax¹</td><td>Every year, if you rent your property out</td><td>Taxed in Australia and reported to the US</td></tr><tr><td>Annual vacancy fee¹</td><td>Every year the home sits mostly empty</td><td>Double the FIRB application fee</td></tr><tr><td>Capital gains withholding¹</td><td>When you sell</td><td>15% of the sale price</td></tr></tbody></table>

Annual foreign owner land tax surcharges⁸

Several states charge foreign owners an extra land tax on top of the standard rate.

New South Wales now applies an ongoing 5% land tax surcharge for foreign owners, and Victoria's Vacant Residential Land Tax reaches undeveloped land held for more than 5 years in metro areas.

Rental income tax

If you rent out your Australian property, the rent you earn is taxable. Australian rental income is generally taxable in Australia and reportable on a US return, so you report the same income in both countries.

Annual vacancy fees¹

Australia charges foreign owners a fee if their home sits empty. The vacancy fee applies when a foreign-owned dwelling isn't lived in or available for rent for at least 183 days in the vacancy year.

Keep in mind that short-term stays under 30 days don't count toward the 183-day occupancy test.

Capital gains tax and the US-Australia tax treaty¹

When you sell your property at a profit, Australia taxes the gain, and so does the US, since American citizens report worldwide income no matter where they live.

Australia also collects some of that tax upfront at settlement.

From 1 January 2025, the Foreign Resident Capital Gains Withholding rate is 15% of the property value, and the previous 750,000 AUD threshold was removed, so the buyer generally withholds 15% at settlement.

If you're worried about double taxation, the US-Australia tax treaty may help reduce what you owe, but it doesn't remove your US filing duties like Form 1040, FBAR, or FATCA reporting.

How to buy property in Australia from the US

1. Get mortgage pre-approval

If you need financing, start by talking to lenders who work with overseas buyers, since not every Australian bank does. Expect to put down a larger deposit than a local would, and know that some lenders are cautious about foreign income.

Pre-approval will give you a clearer idea of your budget.

2. Hire an Australian conveyancer or lawyer

A conveyancer handles the legal side of the purchase, including reviewing contracts, running title searches, and managing settlement.

Getting one on board early is helpful when you're buying from another country, and they can also flag state-specific rules you might not know or miss as a foreigner.

3. Find property

Search within the categories open to foreign buyers, which usually means new dwellings, off-the-plan homes, or vacant land to build on. Established homes are off the table for most foreign buyers.

Many buyers work with a local real estate agent who can help them find suitable properties.

4. Submit FIRB application

Before you can complete the purchase, you need approval from the Foreign Investment Review Board, which you apply for through the Australian Taxation Office.

You'll pay an application fee based on the property's value.

5. Transfer funds & pay deposit

Once your offer is accepted and contracts are exchanged, you'll pay a small deposit to confirm that you're moving forward with the purchase.

At this point, you'll also need to move money from the US to Australia. Watch out for the currency exchange rate when converting from USD to AUD—it can make a big difference on a sum this large.

6. Settlement

On settlement day, the balance is paid, the title transfers to your name, and the property is officially yours. Your conveyancer coordinates the final paperwork and payments.

After this, you take on the ongoing costs like land tax and any vacancy fee that applies.

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Sources

1. Taxes for Expats - Buying property in Australia as a foreigner
2. Australian Government - Types of property a foreign person can buy
3. Numbeo - Cost of Living in Australia
4. Numbeo - Cost of Living in Sydney
5. Numbeo - Cost of Living in Melbourne
6. Numbeo - Cost of Living in Brisbane
7. Australian Government - Residential fees for a foreign person
8. Bright Tax - Real Estate in Australia

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