Written by

Steven Lee

Mortgage Director, ODIN Mortgage & Tax

10+ years in Australian banking and mortgage lending

Last reviewed

Updated on: September 29, 2026 View profile →

Australian citizens living overseas are largely exempt from Foreign Investment Review Board (FIRB) approval requirements when purchasing residential property in Australia – but that exemption is not absolute, and misunderstanding where it ends can cost buyers serious money and time. The rules differ depending on your visa status, the type of property you are buying, and whether you are purchasing alone or jointly. Getting this wrong means potential fines, forced divestiture, and unnecessary delays on settlement. This article provides general information about what Australian expats need to know before signing a contract in 2026. It does not constitute personal credit advice.

1. Are Australian Citizens Actually Exempt from FIRB Approval?

The short answer is yes – with an important boundary. Australian citizens, permanent residents, and New Zealand citizens generally do not need FIRB approval to purchase residential property in Australia, even when they are living abroad. This is one of the most misunderstood points in the expat property conversation: the exemption is tied to citizenship, not to physical presence or tax residency.

So if you hold an Australian passport and you are buying a property in your name alone, you do not need to apply to the Foreign Investment Review Board regardless of whether you live in Dubai, London, or Singapore.

Where this changes:

• You are purchasing jointly with a spouse or partner who is not an Australian citizen or permanent resident
• You are purchasing through a foreign-owned company or trust structure
• Your co-purchaser holds only a temporary visa

In these scenarios, the non-citizen party is treated as a foreign person under Australian law, and the entire purchase may be subject to FIRB scrutiny. This catches a significant number of expat couples off guard – particularly those based in Hong Kong, Singapore, or the UAE who may have a foreign national spouse.

2. What Property Types Does FIRB Actually Restrict?

Building on the citizenship exemption above, the harder question for mixed-nationality couples and foreign co-purchasers is not whether approval is required, but what the FIRB will and will not permit.

The Foreign Investment Review Board’s framework is designed to channel foreign capital toward new housing supply, not compete with local buyers for established homes.

A practical note on vacant land: FIRB approval typically attaches a condition that construction must begin and be completed within a specific timeframe. If those conditions are not met, the FIRB may require the property to be sold. This is not a formality – it has real consequences for investors who acquire land speculatively.

3. How Much Do FIRB Fees Actually Cost?

A related but distinct question from eligibility is cost. FIRB application fees are tiered based on the purchase price and property type, and they are payable by the foreign person in the transaction. For Australian citizens purchasing alone, this is irrelevant. For those with a foreign co-purchaser, it is a real out-of-pocket cost that should be factored into purchase budgets from day one.

Specific fee figures are published by the Australian Treasury and are subject to change. Check the current schedule directly with your adviser or the official FIRB portal before budgeting.

Beyond FIRB fees, foreign co-purchasers in Queensland also face the Additional Foreign Acquirer Duty (AFAD) at the state level – a surcharge applied on top of standard stamp duty for foreign persons acquiring residential land. Each Australian state and territory has its own foreign buyer surcharge regime, so the total tax impost depends on where you are buying, not just what you are buying.

4. How Does FIRB Status Interact with Your Mortgage Application?

Stepping back from FIRB compliance itself, a separate and equally important concern is how your residency and income situation affects your ability to finance the purchase. Australian citizens living overseas can access an australian expat home loan – but lenders assess foreign income very differently from domestic income, and approval outcomes depend heavily on individual circumstances and lender policy.

Key considerations for expats seeking a non-resident mortgage in Australia:

• Foreign income shading: Most Australian lenders apply a discount (known as “shading”) to foreign-earned income when assessing borrowing capacity. The discount rate varies by lender and by currency – this is not publicly disclosed, which means broker intelligence matters.
• Currency acceptance: Not all lenders accept all currencies. USD, GBP, HKD, SGD, and AED are more widely accepted; less common currencies face additional scrutiny.
• Documentation requirements: Lenders typically require payslips, employment letters, and bank statements – often in the local language with certified translations. Requirements vary by lender.
• LVR structuring: Borrowing limits as a percentage of property value depend on individual borrower profile and lender policy, which is subject to change. Eligibility for higher LVRs is not guaranteed and varies case by case.

It is worth noting that if your purchase involves a foreign co-purchaser who requires FIRB approval, some lenders will not proceed until that approval is in hand. Timing FIRB and mortgage applications in parallel, rather than sequentially, is a practical step that experienced expat brokers consistently recommend.

ODIN Mortgage works exclusively with Australian expats and holds lender-by-lender data on how 40+ Australian lenders treat foreign income – including shading rates, acceptable currencies, and document requirements. This is the kind of detail that determines whether a loan gets approved or declined, and it is not information that is published anywhere publicly.

5. What Practical Steps Should You Take Before Signing a Contract?

Given everything covered above, the order of operations matters more than most buyers realise. Signing a contract before confirming your FIRB position or your financing capacity creates real legal and financial risk.

A sensible pre-purchase checklist for Australian expats in 2026:

1. Confirm your FIRB status. Establish whether you or any co-purchaser is a “foreign person” under the Foreign Acquisitions and Takeovers Act. Your citizenship is not the only factor if you are buying jointly.
2. If FIRB approval is required, apply before or condition on it. Make the contract conditional on FIRB approval, or apply before signing. Do not assume approval will follow automatically.
3. Assess your borrowing power using foreign income. Get a formal assessment from a specialist broker, not a generic borrowing calculator. The lender panel and income treatment matter enormously for non-resident mortgage applications in Australia.
4. Understand the state-level surcharges. If a co-purchaser is a foreign person, research the applicable foreign buyer duty surcharge in your target state before the purchase price is locked in.
5. Plan for remote settlement. As an expat, you will likely settle remotely via PEXA, remote signing, or a power of attorney. Make sure your legal and financial team has experience with this – it is not standard practice for domestic conveyancers.

Frequently Asked Questions

Disclaimer: This article contains general information only and does not constitute personal credit advice, legal advice, or financial advice. Borrowing power, LVR eligibility, and loan approval outcomes depend on individual circumstances and lender policy, which is subject to change. FIRB rules, fees, and state duty surcharges are also subject to legislative change – always verify current requirements with a qualified adviser before entering a contract. ODIN Mortgage is regulated under ASIC and the National Consumer Credit Protection Act (NCCP). Personal credit advice is only provided through formal client consultations.

References

1. FIRB Approval Guide for Australia: Fees & Requirements – The Executive Centre (www.executivecentre.com)
2. A guide to Foreigners buying property in Australia – Wise (wise.com)
3. AFAD and FIRB: What Foreign Buyers Pay in QLD (empirelegal.com.au)