At Ensure Legal, we assist foreign investors in navigating the increasingly regulated Australian property market. Buying residential property in Queensland — or anywhere in Australia — as a non-resident involves more than simply finding the right home. From regulatory approvals to tax compliance, each step must be carefully planned.
This guide outlines the legal and procedural requirements to help you comply with Australia’s foreign investment regime and avoid significant penalties.
Step 1: Determine If You Are a Foreign Person
Australian law defines a foreign person broadly. You may be classified as one if you are:
- Not an Australian citizen or permanent resident
- A New Zealand citizen not holding a special category visa
- A corporation, trust or partnership with at least 20% foreign ownership
- An Australian citizen living overseas may still be considered foreign in some circumstances
Legal tip: If in doubt, seek legal clarification early — FIRB non-compliance can result in forced property sales and hefty fines.
Step 2: Understand What Property You Can Buy
Foreign persons can usually apply to purchase:
- New dwellings, including off-the-plan apartments and townhouses
- Vacant land, provided construction begins within four years
- Established dwellings — only in limited circumstances (e.g., temporary residents intending to live in the property)
Note: Commercial properties and agricultural land fall under different FIRB rules. We can help assess your eligibility based on property type.
Step 3: Apply for FIRB Approval
Before entering into a contract, foreign buyers must obtain approval from the Australian Taxation Office (ATO), unless exempt.
✔ Apply via Online Services for Foreign Investors
Application fees (as at 2025):
- $14,700 for new dwellings up to $1 million
- $44,100 or more for established dwellings
Exemption note: Some developers hold a pre-approved exemption certificate for off-the-plan apartments — check before applying.
Step 4: Register the Property After Purchase
After settlement, you must register the asset within 30 days using the ATO’s online portal. This includes providing ownership and usage details.
At Ensure Legal, we handle this registration on behalf of our clients to ensure timely and accurate submission.
Step 5: Comply with Tax and Reporting Obligations
Foreign owners must meet ongoing tax and reporting obligations, including:
✔ Lodging Income Tax Returns
If your property is rented out, you must report the rental income and lodge a return with the ATO annually.
✔ Submitting a Vacancy Fee Return
Even if your property is unoccupied, you must lodge a vacancy fee return each year. You may incur a vacancy fee if:
- The home is not genuinely available for rent or lived in for at least 183 days, or
- The return is not lodged, regardless of occupancy
Vacancy fee = same amount as FIRB approval fee.
Step 6: Keep Ownership Records Updated
Foreign owners must update the ATO if any of the following occurs:
- You become an Australian citizen or permanent resident
- You sell the property
- Ownership structure or land use changes
Failure to update records can affect future investments and trigger compliance reviews.
Step 7: Understand Your Obligations Upon Sale
When you sell your Australian residential property:
- You may be subject to capital gains tax
- The purchaser may be required to withhold and remit 12.5% of the sale price under the Foreign Resident Capital Gains Withholding rules
- You’ll need to claim this withheld amount in your next Australian tax return
Why Work with Ensure Legal?
At Ensure Legal, we specialise in assisting foreign individuals, companies, and trusts to:
- Navigate FIRB approvals
- Ensure full legal compliance when acquiring property in Queensland
- Manage ongoing reporting and ownership obligations
- Minimise tax and regulatory risks
📞 Contact us today for tailored legal advice before you commit to any property purchase:
https://ensurelegal.com.au
📍 Based in Brisbane, advising clients globally
