Australian Expats & FIRB: Complete Guide for Citizens Buying Property from Overseas (2025)

Last Updated: January 2025

Are you an Australian citizen living in London, Singapore, New York, or anywhere else overseas? Wondering if you need FIRB approval to buy property back home? The short answer will come as a relief: Australian citizenship exempts you from virtually all foreign investment restrictions.

This guide addresses the most common question we receive from expats: "I've lived overseas for 20 years—can I still buy an existing house in Australia?" The answer is yes, and you're exempt from far more than you might expect.

Quick Answer: What Can Australian Expats Buy?

Requirement	Australian Citizen (Living Overseas)	Foreign National (Non-Citizen)
FIRB Approval	❌ Not required	✅ Required
FIRB Application Fees	❌ None	$15,100 to $1.2M+
April 2025 Established Dwelling Ban	❌ Does not apply	✅ Banned until March 2027
Can Buy Established Dwellings	✅ Yes (unlimited)	❌ No (banned)
Can Buy New Dwellings	✅ Yes (unlimited)	✅ Yes (with approval)
Can Buy Vacant Land	✅ Yes (no build conditions)	✅ Yes (must build within 4 years)
State Stamp Duty Surcharge	❌ Exempt	7-9% depending on state
State Land Tax Surcharge	❌ Exempt	2-5% annually
Federal Vacancy Fee	❌ Not liable	Up to $84,600/year

The bottom line: Australian citizenship acts as a master key, unlocking exemptions across the entire spectrum of foreign investment restrictions—regardless of how long you've lived overseas.

Why Australian Citizens Are Confused About FIRB

The confusion stems from a technical quirk in how the law defines "foreign person."

Under Section 4 of the Foreign Acquisitions and Takeovers Act 1975, a "foreign person" includes anyone who is not ordinarily resident in Australia. To be "ordinarily resident," you must have:

Been physically present in Australia for 200+ days in the preceding 12 months, AND
No time limitation on your right to remain (i.e., not on a visa)

If you're an Australian citizen who's lived in London for 20 years, you clearly fail this test. You haven't spent 200 days in Australia recently. Under a strict reading of the Act, you technically fall within the definition of "foreign person."

This is where the panic usually sets in. But here's what most people miss: the Regulations override this classification for Australian citizens.

The Section 35 Exemption: Your Get-Out-of-FIRB-Free Card

While the Act casts a wide net based on residency, the Foreign Acquisitions and Takeovers Regulation 2015 provides a critical carve-out.

Section 35(1) explicitly states that FIRB requirements do not apply to an acquisition of Australian land by:

"(a) an Australian citizen not ordinarily resident in Australia"

This single provision is dispositive. It functions as complete immunity from the FIRB regime for Australian citizens, regardless of where you live or how long you've been away.

What This Means in Practice

If you're an Australian citizen living overseas:

✅ No FIRB application required — You don't need to notify the Foreign Investment Review Board or the ATO before purchasing

✅ No application fees — You save $15,100 to $1.2M+ depending on property value (see our FIRB fees guide for current rates)

✅ No screening or approval process — The Treasurer has no power to object to your purchase

✅ No restrictions on property type — You can buy established dwellings, new dwellings, or vacant land

✅ No limit on number of properties — Buy as many as you want

✅ No conditions attached — Unlike foreign nationals who must sell established dwellings when leaving Australia, you have no such obligations

The key insight: citizenship trumps residency for FIRB purposes. It doesn't matter if you've lived in London for 2 years or 20 years—your Australian passport is your exemption.

The April 2025 Established Dwelling Ban: Why It Doesn't Affect You

On 1 April 2025, the Australian Government implemented a temporary two-year ban on foreign purchases of established dwellings, running until 31 March 2027.

This ban affects:

❌ Foreign nationals
❌ Temporary residents (including 482, 485, 500, and student visa holders)
❌ Foreign companies and trusts

But not Australian citizens.

Why the Ban Doesn't Apply to You

The ban operates within the FIRB approval system—it's essentially a directive to refuse approval for established dwelling applications from foreign persons.

Because Australian citizens using the Section 35 exemption don't need to apply for approval, you never enter the administrative gateway where the ban is enforced. You don't submit an application, so your application can't be refused.

Result: An Australian citizen living in London can continue to purchase Victorian-era terraces in Sydney or mid-century homes in Melbourne throughout the 2025-2027 ban period without any restriction.

Strategic Advantage

The ban may actually create a more favourable market for expat citizens:

Reduced competition: Before April 2025, wealthy temporary residents (holders of significant investor visas, skilled work visas) could buy established homes for their residence. They're now excluded from this market.

Market segregation: The established dwelling market is now almost exclusively the domain of Australian citizens, permanent residents, and New Zealand citizens. This may reduce upward price pressure in certain premium markets previously favoured by temporary residents.

State Stamp Duty Surcharges: Also Exempt

Most Australian states impose significant stamp duty surcharges on "foreign purchasers"—ranging from 7% to 9% on top of standard stamp duty. However, all states exempt Australian citizens from these surcharges, regardless of residency.

State-by-State Breakdown for Australian Citizens

State	Foreign Buyer Surcharge	Australian Citizen (Overseas)	Foreign National
NSW	9% stamp duty + 5% land tax	❌ Exempt	✅ Pays both
VIC	8% stamp duty + 4% land tax	❌ Exempt	✅ Pays both
QLD	8% AFAD + 3% land tax	❌ Exempt	✅ Pays both
WA	7% stamp duty	❌ Exempt	✅ Pays
SA	7% stamp duty	❌ Exempt	✅ Pays
TAS	8% stamp duty	❌ Exempt	✅ Pays
ACT	0% stamp duty surcharge	N/A	N/A
NT	0% stamp duty surcharge	N/A	N/A

Real Savings Example

$1,000,000 property in NSW:

Cost	Foreign National	Australian Citizen (Overseas)
Standard stamp duty	$40,490	$40,490
Foreign buyer surcharge (9%)	$90,000	$0
FIRB application fee	$45,300	$0
Total upfront government costs	$175,790	$40,490
Savings as citizen	—	$135,300

That's not a typo. Australian citizenship saves you over $135,000 in government charges on a $1 million established property purchase.

For a detailed breakdown of surcharges in each state, see our complete state-by-state foreign buyer stamp duty guide.

Important Distinction: Citizens vs Permanent Residents

Don't confuse citizens with permanent residents. In NSW, for example:

Australian citizen overseas: Exempt from surcharges (no residency test)
Permanent resident overseas: Must have been in Australia for 200+ days in the past 12 months to be exempt

A permanent resident who's lived in London for years would likely pay the full surcharges. An Australian citizen in the same situation would not.

Federal Vacancy Fee: Not Your Problem

The Federal Vacancy Fee (sometimes called the "Ghost Tax") applies to foreign owners who leave residential properties unoccupied for more than 183 days per year. This fee equals the original FIRB application fee and can double for non-compliance—potentially exceeding $84,600 annually for a $1 million property.

Why Citizens Don't Pay

The vacancy fee is triggered by making a FIRB application. Under the Foreign Acquisitions and Takeovers Fees Imposition Act 2015, the liability arises only for "foreign persons" who:

Made a foreign investment application for residential property after 9 May 2017, OR
Purchased under a developer's New Dwelling Exemption Certificate

Because Australian citizens using the Section 35 exemption don't make a FIRB application, you don't trigger the precondition for the vacancy fee.

Practical implication: An Australian citizen living in London can purchase a holiday home in Sydney, use it for 2 weeks per year, and leave it vacant for the remaining 50 weeks without incurring the Federal Vacancy Fee.

Victoria's Vacant Residential Land Tax: The Exception

One genuine restriction applies to Australian citizens: Victoria's Vacant Residential Land Tax (VRLT).

This is not a foreign purchaser surcharge—it's a vacancy tax that applies to everyone, including citizens. It charges 1% of the capital improved value on residential properties in specified council areas (mostly inner and middle Melbourne) that are vacant for more than six months per year.

If you buy a home in Toorak and leave it empty, you'll pay VRLT despite being exempt from all foreign purchaser surcharges and the federal vacancy fee.

Buying with a Non-Citizen Spouse

A common scenario for long-term expats: you want to purchase jointly with a spouse who isn't an Australian citizen. The framework accommodates this through specific exemptions.

The Joint Tenants Exemption

The Regulation extends the Section 35 exemption to foreign persons who purchase residential real estate as joint tenants with their Australian citizen spouse.

Requirements:

Must be in a genuine spousal or de facto relationship
Must purchase as joint tenants (equal 50/50 ownership with right of survivorship)
Both parties must intend to occupy as primary residence (for the spousal exemption to fully apply)

What this means:

The foreign spouse doesn't need FIRB approval
No application fees apply
The April 2025 ban doesn't affect the purchase
Full exemption from state surcharges in most jurisdictions

The Tenants in Common Trap

If you purchase as tenants in common instead (where each holds a distinct share, e.g., 50/50), the exemption doesn't apply to the foreign spouse's share.

Example:

Australian citizen and UK spouse buy a house as tenants in common (50% each)
Australian citizen: Exempt for their 50% share
UK spouse: Is a "foreign person" acquiring a 50% interest—must apply for FIRB approval
April 2025 ban impact: Because the UK spouse must apply for approval, they'll be subject to the ban. If it's an established dwelling, the application will likely be rejected, potentially derailing the entire purchase.

Strategic recommendation: If purchasing with a non-citizen spouse, always use joint tenancy to ensure the foreign spouse is shielded by the citizen's exemption.

The Real Restrictions: Tax and Finance

While the FIRB and state revenue barriers are lifted for citizens, some genuine constraints exist in the tax and lending space.

Capital Gains Tax: The Main Residence Exemption Loss

This is the most significant "restriction" for expat property owners.

Historically, Australian citizens living abroad could claim the Main Residence Exemption (MRE) on their Australian family home when selling, provided they met certain occupancy conditions (such as the 6-year absence rule).

Legislation passed in 2019/2020 changed this: Foreign tax residents are no longer entitled to the Main Residence Exemption for Capital Gains Tax purposes.

What this means:

If you purchase an existing dwelling while living overseas and later sell it while still a foreign tax resident, you'll be liable for CGT on the entire capital gain
The 50% CGT discount is generally not available to non-residents
You may need to re-establish Australian tax residency before selling to access the MRE

Example: You buy a $1.5M house in Sydney while living in London. Ten years later, it's worth $2.5M and you sell while still residing in London. You could face CGT on the full $1M gain at up to 45%—potentially $450,000 in tax that a resident citizen would avoid entirely.

This doesn't prevent you from purchasing, but it significantly impacts the exit strategy. Plan carefully and consider whether you might return to Australia before selling.

Non-Resident Lending Constraints

Australian banks apply stricter criteria to non-resident borrowers:

Income shading: Banks typically recognise only 60-80% of foreign currency income for loan serviceability, accounting for exchange rate volatility

Lower LVR caps: Maximum Loan-to-Value Ratios often capped at 70-80% for non-residents, requiring larger deposits

Higher interest rates: Some lenders apply premium rates to non-resident loans

Fewer lender options: Not all banks will lend to non-residents, limiting competition

These are commercial constraints, not regulatory prohibitions. You can still purchase—you just may need a larger deposit and face higher borrowing costs.

How to Execute the Purchase: Practical Steps

To complete your purchase smoothly, follow this procedural workflow.

Step 1: Gather Citizenship Documentation

Before signing any contract, ensure you have valid proof of Australian citizenship:

Current Australian passport (preferred)
Recently expired Australian passport (most state revenue offices accept passports expired within 2 years)
Australian Citizenship Certificate

Note: Birth certificates alone are generally insufficient, as they don't prove current citizenship (which could have been renounced).

If you've lived overseas for 20+ years, your passport may have expired. Renew it before starting your property search, or obtain a Citizenship Certificate from the Department of Home Affairs.

Step 2: Handle the Contract "Foreign Person" Question

Real estate contracts typically contain a "Foreign Person" warranty or checkbox.

Best practice:

Indicate you are not a foreign person for contract purposes (you're exempt under Section 35)
Add a special condition or note: "The Purchaser is an Australian Citizen resident overseas and is exempt from notification under Section 35 of the Foreign Acquisitions and Takeovers Regulation 2015"
This prevents confusion with the vendor, who may fear the contract is voidable without FIRB approval

Step 3: Prove Citizenship During Stamping

The critical operational step occurs when paying stamp duty (during the "stamping" of the contract).

For NSW/VIC and other states:

Digital duties forms will ask for your purchaser status
Upload a certified copy of your Australian passport or Citizenship Certificate
Failure to provide evidence results in the system defaulting you to "Foreign," automatically triggering surcharge liability

Work with your conveyancer to ensure this documentation is submitted correctly before settlement.

Step 4: Settlement and Registration

Once citizenship is verified:

Standard stamp duty applies (no foreign surcharges)
No FIRB fees or approvals needed
Settlement proceeds like any resident purchase
Register title in your name

Frequently Asked Questions

I've been in London for 20 years. Do I really not need FIRB approval?

Correct. Length of time overseas is irrelevant. If you hold Australian citizenship, you're exempt under Section 35 of the Regulation—whether you've been away for 2 years or 20 years.

What if I have dual citizenship?

Your Australian citizenship is what matters. You can hold UK, US, or any other citizenship alongside Australian citizenship and still claim the Section 35 exemption. Your other citizenship is irrelevant for FIRB purposes.

My Australian passport expired 5 years ago. Am I still a citizen?

Yes. Passport expiry doesn't affect citizenship status—you remain an Australian citizen until you formally renounce. However, you'll need to renew your passport or obtain a Citizenship Certificate to prove your citizenship for stamp duty purposes.

Can I buy multiple investment properties?

Yes. There's no limit on the number of properties Australian citizens can purchase, regardless of residency status. Each purchase proceeds without FIRB approval or foreign buyer surcharges.

Do I have to live in the property?

No. Unlike temporary residents (who historically could only buy established dwellings for their own residence), Australian citizens face no occupancy requirements. You can purchase investment properties, holiday homes, or properties to rent out.

What about the vacancy fee for empty properties?

The Federal Vacancy Fee doesn't apply to you because you don't make a FIRB application. However, Victoria's Vacant Residential Land Tax (VRLT) does apply to all owners—including citizens—in specified areas if the property is vacant for more than six months.

I'm buying with my partner who isn't Australian. What do we do?

Purchase as joint tenants (not tenants in common). This extends your exemption to your non-citizen spouse, avoiding FIRB requirements, the April 2025 ban, and state surcharges.

Will I pay more tax as a non-resident owner?

You'll pay the same rental income tax rates as any investor. The main tax difference is the loss of the Main Residence Exemption for CGT—if you sell while still a foreign tax resident, you'll pay CGT on the full gain without the exemption. Consider your exit strategy carefully.

Can I get an Australian mortgage while living overseas?

Yes, but with constraints. Non-resident lending typically requires 20-40% deposit, and banks may "shade" foreign income by 20-40%. Fewer lenders participate in this market. Work with a mortgage broker experienced in non-resident lending.

Does this apply to Australian permanent residents living overseas?

No. Permanent residents face different rules. In most states, PRs must meet the 200-day residency test to avoid foreign buyer surcharges. If you're a PR living in London, you may pay full surcharges. This guide specifically covers Australian citizens.

Summary: The Expat Advantage

Australian citizenship provides a privileged position in the property market—one that's legally distinct from other non-residents:

Restriction	Applies to Australian Citizens Overseas?
FIRB approval required	❌ No
FIRB application fees	❌ No
April 2025 established dwelling ban	❌ No
Federal vacancy fee	❌ No
State stamp duty surcharges	❌ No
State land tax surcharges	❌ No
Restrictions on established dwellings	❌ No
Limit on number of properties	❌ No
Conditions on vacant land (build timeline)	❌ No
CGT Main Residence Exemption	⚠️ Lost if foreign tax resident
Non-resident lending constraints	⚠️ Yes (commercial, not regulatory)

The "London 20 years" factor is legally irrelevant to the Section 35 exemption. Citizenship is the sole determinant. You may proceed with acquiring existing residential stock with the same freedom as a Sydney or Melbourne resident—provided you correctly evidence your citizenship during settlement.

Calculate Your Complete Property Costs

Even without FIRB fees and foreign surcharges, purchasing Australian property involves significant costs: standard stamp duty, legal fees, inspections, and ongoing expenses.

Use our comprehensive property cost calculator to understand your complete investment including:

Standard stamp duty in your target state
Legal and conveyancing fees
Ongoing land tax calculations
Rental yield projections
10-year cost analysis

Calculate your property costs →

Additional Resources

Disclaimer: This article provides general information only and should not be relied upon as legal, tax, or financial advice. While Australian citizens are exempt from FIRB requirements, individual circumstances vary—particularly regarding tax residency status and CGT implications. Always verify your citizenship documentation is current and seek professional advice specific to your circumstances before making property investment decisions.

Last updated: January 22, 2025. FIRB rules and state surcharges current as of this date.