While foreigners and temporary residents must seek FIRB approval before purchasing property in Australia, there’s an exception: Foreigners purchasing property jointly with an Australian citizen, a permanent Australian visa holder, or a New Zealand citizen are exempt from requiring FIRB approval.

Non-residents who acquire Australian residential property but do not inhabit or rent it out for at least six months each year are subject to an annual vacancy charge. The Australian Taxation Office (ATO) determines the charge amount, often done when non-resident owners submit their annual vacancy fee returns.

You must declare the income earned from any investment property in Australia by filing an Australian tax return. Costs related to property maintenance can be claimed as a tax deduction.

Upon selling the property, you might be liable for capital gains tax (CGT) if the property’s value increases during your ownership.

Foreign investors typically can acquire ‘new dwellings,’ which encompass newly constructed properties or vacant land intended for construction. Following receipt of FIRB approval, vacant land must have a home constructed on it within the first four years. Once construction is complete, evidence must be submitted to FIRB within 30 days. An exception exists wherein FIRB might grant permission to foreign investors to purchase existing or established dwellings with plans for redevelopment to accommodate more residents. For instance, replacing one dwelling with plans to build two in its place. 

FIRB approval involves an application fee, contingent on the property’s cost. Typically, this fee is higher for more expensive properties or land. Properties valued under $75,000 incur a fee of $2,000. However, properties exceeding $9 million carry a fee of $114,300. Fees can reach a maximum of $503,000 for a residential property worth $40 million. Additionally, foreign citizens must pay a stamp duty charge, similar to other standard home-purchasing fees. 

You will need permission from the Foreign Investment Review Board to buy a house or land if you are not a permanent resident currently living in Australia.

Temporary visa options while applying for permanent residency. The Investor Stream (subclass 188A) and Significant Investor Stream (subclass 188C) are two potential visa options for those seeking permanent residency in Australia through property investment.

How much do I need to invest in Australia to get PR / citizenship? Investors who want to obtain the Australia PR can apply for the Subclass 891 Investor Visa. For obtaining this Visa, they must be ready to invest AUD 1.5 million and must have stayed in Australia for a minimum of 2 out of the last 4 years.