The common misconception — and why it matters
A lot of Australian expats assume they need Foreign Investment Review Board (FIRB) approval to buy property in Australia because they live overseas. This is wrong.
Australian citizens are exempt from FIRB requirements regardless of where they live. You can buy residential property in Australia — new build or established — without any FIRB application, as long as you're a citizen.
Where it gets more complicated is if you're buying with a partner who is neither an Australian citizen nor an Australian permanent resident.
Who actually needs FIRB approval
FIRB applies to foreign persons acquiring interests in Australian residential real estate. The key definition is "foreign person" — which includes:
- Individuals who are not ordinarily resident in Australia, including temporary visa holders
- Foreign corporations
- Foreign trusts
An Australian citizen living overseas can technically fall within the definition of "foreign person" under the Foreign Acquisitions and Takeovers Act 1975, but the Foreign Acquisitions and Takeovers Regulation 2015 (section 35) exempts land purchases by Australian citizens who are not ordinarily resident in Australia. So citizenship is what matters, not where you live or how long you've been overseas.
Australian permanent residents are in the same position. Holders of an Australian permanent visa don't need to apply for FIRB approval before buying residential property, including an established home, wherever they live (Foreign Acquisitions and Takeovers Regulation 2015, section 38(2); FIRB Guidance Note 6, Example 13). Temporary residents generally do need approval. State stamp duty and land tax surcharges are a separate test from FIRB, so check the state rules with your conveyancer.
If you're unsure of your status, check your visa and passport combination. If you hold an Australian passport, you're almost certainly a citizen and FIRB doesn't apply.
The joint purchase situation
This is where things can get complicated — and where a lot of couples in Singapore, Hong Kong, and Dubai need to pay close attention.
If you're an Australian citizen buying with a spouse who is not an Australian citizen or permanent resident (for example, a Singaporean or Chinese national who holds a Singapore PR), the rule turns on how the two of you hold the title.
A foreign person buying residential property with their Australian citizen or permanent resident spouse does not need FIRB approval if they buy as joint tenants. The exemption does not cover buying as tenants in common (Foreign Acquisitions and Takeovers Regulation 2015, section 38(3); FIRB Guidance Note 2, Key Concepts). Where the exemption doesn't apply, your spouse's interest needs approval, and from 1 April 2025 to 30 June 2029 foreign persons are generally banned from buying established dwellings, with limited exceptions (FIRB Guidance Note 6, version 5).
How you hold title has legal and estate consequences well beyond FIRB, so it isn't something to choose just to fit an exemption. Take that decision to a property lawyer before you sign a contract.
Where approval is needed, allow time for the application, and the fee is not trivial.
FIRB application fees are based on the property value. For a $1 million property, the fee as of 2026 is $14,100. For a $2 million property, it's $28,200. These are government fees — not broker or legal fees — and they're non-refundable if the purchase doesn't proceed.
New builds versus established property
For expats who do require FIRB approval (or whose joint purchase triggers it), the type of property matters for how FIRB treats the application.
Foreign persons are generally permitted to buy new dwellings (off-the-plan, newly constructed, or significantly renovated properties) more freely than established residential property. FIRB policy prioritises adding housing supply rather than buying existing stock.
If you're buying a new apartment in Melbourne or a house-and-land package in Brisbane, the approval process tends to be more straightforward. Established homes are a different matter: from 1 April 2025 to 30 June 2029, foreign persons are generally banned from buying established dwellings, with limited exceptions (FIRB Guidance Note 6, version 5).
For Australian citizens and permanent residents: this distinction doesn't apply at all. You can buy established property without any FIRB process.
The application process
If you do need FIRB approval — or your purchase structure requires it — the application is made through the ATO's Foreign Investment Register. Your conveyancer or solicitor typically handles this, though the buyer pays the fee.
Processing times vary. In most cases, FIRB decisions come back within 30 days. Complex applications or those involving larger properties can take longer. In some cases, applications may be approved with conditions.
One thing to plan for: your contract of sale will typically include a special condition making the purchase subject to FIRB approval if required. Make sure this is in place before you exchange contracts.
How FIRB affects your loan timeline
If your purchase requires FIRB approval, you'll need to factor it into your settlement timeline. Most contracts allow 30 days for FIRB approval, but you'll want to discuss the specific conditions with your solicitor upfront.
For Australian citizens buying on their own: FIRB adds zero time to your process. There's no application to make.
For joint purchasers where FIRB applies: you want to start the FIRB process early, ideally at the time you're getting pre-approval organised. Waiting until you've found a property and exchanged contracts puts pressure on the timeline unnecessarily.
We work through the FIRB question early with every client — it's part of understanding your purchase structure before we get into lender selection. If you're buying with a non-Australian partner, we'll flag it and make sure your solicitor is across it.
Frequently asked questions
I'm an Australian citizen but I've lived overseas for 10 years. Do I need FIRB?
No. Length of time overseas has no bearing on FIRB requirements for Australian citizens. Your citizenship exempts you, regardless of how long you've been away.
My partner has an Australian permanent resident visa. Do we need FIRB?
Generally no. Holders of an Australian permanent visa don't need FIRB approval to buy residential property, including an established home (Foreign Acquisitions and Takeovers Regulation 2015, section 38(2)). If you're a citizen and your partner is a permanent resident, neither of you needs approval. State stamp duty and land tax surcharges are a separate test, so confirm the state rules with your conveyancer.
We want to buy a property in trust for asset protection. Does FIRB apply?
Trust structures can trigger FIRB requirements depending on how the trust is structured and who the beneficial owners are. If the trust has foreign beneficiaries or is classified as a "foreign trust" under the legislation, FIRB may apply. Get legal advice before setting up a structure for an overseas purchase.
Does FIRB affect what I can borrow?
FIRB approval (or the requirement for it) doesn't directly change your borrowing capacity — that's determined by income, expenses, and lender policy. But it does affect your timeline, and some lenders' expat policies are structured around Australian citizen purchases specifically. If your purchase structure is more complex, lender selection matters.
What happens if we proceed without FIRB when it was required?
Proceeding without required FIRB approval is a serious breach. Penalties include forced divestment of the property and significant financial penalties. This isn't a risk worth taking — if there's any doubt, get the application in early.
If you're an Australian citizen buying in your own name, you don't need to worry about any of this. If your situation is more complex — joint purchase, trust structure, or any non-citizen involvement — raise it with your solicitor at the outset.
We're happy to talk through the purchase structure as part of working out your borrowing capacity. Get in touch or check your borrowing capacity to get started.
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