Can a foreigner buy a property in Victoria?

Can a foreigner own a property in Australia?  It is one of the frequently asked question.  Short answer is yes.  But..

There are some restrictions on the types of properties a non-resident can buy in Australia.  Refer to our Foreign Property Investor page for more information.

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In addition, a non-resident acquiring a property in Victoria, might be subjected to additional duty on the share of the property being acquired.

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When does additional duty apply?

Additional duty applies to any arrangement or transaction involving the transfer of an interest in residential property to a foreign purchaser, including:

• Buying a residential property at, for example, auction or by private sale.

• Buying a non-residential property with the intention of converting it to residential property.

• Being given a residential property as a gift.

• Certain leasing arrangements in respect of residential property.

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Rates of additional duty

For contracts, transactions, agreements and arrangements entered into on or after:

• 1 July 2015 but before 1 July 2016 (even if the settlement date is on or after 1 July 2016), the additional duty rate is 3 per cent.

• 1 July 2016, the additional duty rate is 7 per cent.

• 1 July 2019, the additional duty rate is 8 per cent.

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More information can be found on the Victoria State Revenue Office website