FIRB Approval for Foreign Investors in Australia: Who Needs It, What It Costs, and How Long It Takes

FIRB Approval for Foreign Investors in Australia: Who Needs It, What It Costs, and How Long It Takes

Foreign Investment Review Board approval is mandatory for most non-resident purchases of Australian residential property. Here is a plain-language overview of who is affected, what the fees look like, and what the process involves.

The Foreign Investment Review Board — FIRB — administers Australia's foreign investment framework. For property investors who are not Australian citizens or permanent residents, understanding FIRB requirements is not optional. Purchasing without required approval is a criminal offence under the Foreign Acquisitions and Takeovers Act 1975, and the penalties include forced divestiture.

Who needs FIRB approval?

The framework applies primarily to 'foreign persons' — a defined term that includes non-residents who are not Australian citizens, temporary visa holders for most residential property purchases, and foreign-controlled companies and trusts. Australian citizens living overseas and New Zealand citizens are generally exempt from residential property FIRB requirements.

What can foreign investors buy?

The permitted categories for foreign residential purchasers are more limited than many assume:

  • New dwellings: Foreign persons may generally purchase newly constructed residential property from a developer, subject to approval. This is the primary pathway for foreign investors and the reason most foreign buyer-oriented developments are structured as new stock.
  • Vacant land for development: Foreign persons may purchase vacant residential land subject to conditions, including that construction must commence within a specified period.
  • Established dwellings: Temporary visa holders may purchase one established dwelling as their principal place of residence, subject to conditions including that the property must be sold when they cease to reside in Australia or their visa expires.

Foreign persons who are non-residents generally cannot purchase established residential property as an investment — a constraint that significantly limits the choices available to offshore investors.

Application fees

FIRB application fees are payable at time of application and are not refunded if approval is declined. As of the 2025-26 financial year, fees for residential property start at $14,100 for properties valued up to $1 million and increase substantially at higher price points.

In addition to FIRB fees, most states and territories levy foreign purchaser surcharges on stamp duty and ongoing land tax. According to publicly available state revenue authority schedules, foreign purchaser stamp duty surcharges currently range from 7% to 8% of the purchase price across the major states, applied in addition to standard stamp duty.

Approval timelines

The legislated review period is 30 days, though FIRB may issue a stop-the-clock notice requesting additional information. Straightforward applications for new residential property are often processed within 30 days. Complex applications can take considerably longer. Approvals typically include conditions — common ones include that the property must be used as a residence, and development conditions where vacant land is being acquired.

Practical implications

For foreign investors, the FIRB framework has two primary practical implications. First, the universe of available assets is substantially narrower than for domestic investors — new and off-the-plan stock is the primary available pathway, which makes developer selection and due diligence more important, not less. Second, the fee and surcharge structure adds meaningfully to acquisition costs. Modelling the true acquisition cost — including all duties, fees, and holding cost surcharges — before committing to a purchase is essential.

Steinhardt Property & Business works with foreign investors navigating the Australian market. Our Property Concierge service includes guidance on FIRB requirements as they apply to a client's specific visa status and intended purchase structure, alongside qualified Australian solicitors.

General information only. Foreign investment law is complex and subject to change. This article reflects publicly available information as at the date of publication and does not constitute legal advice. Foreign investors must obtain advice from a qualified Australian solicitor before proceeding with any property acquisition.