Do foreign buyers need FIRB approval in Queensland?
Foreign persons must obtain FIRB approval before purchasing residential real estate in Queensland, regardless of property value. Application fees are non-refundable if the contract does not settle. The FIRB test turns on ordinary residence, so a New Zealand citizen who is not ordinarily resident in Australia can be a foreign person for FIRB, even though a subclass 444 visa holder is exempt from Queensland's AFAD.
Are you a foreign person in Queensland?
Queensland treats you as a foreign person unless you are an Australian citizen, hold a permanent visa, or are a New Zealand citizen holding a subclass 444 special category visa. If you hold a temporary visa, you are still foreign on the day you sign, even while a permanent residency application is being processed. Queensland looks at your status at the contract date, not how long you have lived here, so unlike New South Wales there is no 200-day residence test that changes the outcome.
What about foreign companies and trusts?
Companies and trusts can be foreign too. A company is a foreign corporation if it is incorporated outside Australia, or if foreign persons and their related parties hold a controlling interest of at least 50%. A trust is a foreign trust if at least 50% of its interests are held by foreign persons or their related parties. A single foreign shareholder or beneficiary can be enough to make an otherwise local entity foreign, which brings AFAD and the land tax surcharge into play, so get advice before you buy through a company or trust.
What property can foreign buyers purchase?
Approvals typically cover only vacant land for development, residential development, or newly constructed dwellings. Since 1 April 2025, foreign persons, including temporary residents, have been banned from purchasing established dwellings unless a limited exception applies. This is a Federal measure administered by the ATO, in place until at least 30 June 2029 (2026–27 Budget extension), so confirm the current rules before you sign.
How much is Additional Foreign Acquirer Duty (AFAD)?
Foreign buyers in Queensland pay an extra 8% transfer duty (from 1 July 2024) on the purchase price, in addition to standard transfer duty. AFAD applies to foreign acquirers purchasing AFAD residential property and is charged on the transaction's dutiable value.
Is there a land tax surcharge for foreign owners?
Foreign companies and trustees of foreign trusts pay a 3% land tax surcharge, and foreign individuals who don't usually live in Australia pay a 3% absentee surcharge, each on taxable land of $350,000 or more. These are charged annually on top of any standard land tax.
Why does your contract need a subject to FIRB approval condition?
The standard REIQ contract does not include a FIRB condition. Nothing in it automatically protects you if your approval is late or refused. Your conveyancer has to insert a special condition that lets you end the contract, with your deposit returned, if FIRB approval is not granted in time. Sign without that condition and, if FIRB then delays or refuses you, you can be in default. The seller can terminate, keep your deposit, resell the property, and pursue you for any shortfall on the resale. Because FIRB assessment takes time, it is also sensible to allow a longer settlement period so approval can come through before you are due to complete.
What happens if your residency status changes?
If your status changes within three years, the Commissioner must assess and impose AFAD, with notification required within 28 days to avoid penalty duty and interest.
Do you need to register with the ATO?
Foreign property owners must register their acquisition with the ATO's Register of Foreign Ownership of Australian Assets within 30 days of settlement.
What are vacancy fees?
If the property is not occupied or available for rent at least half the year, the ATO may charge an annual vacancy fee. For vacancy years starting on or after 9 April 2024, the fee is double the foreign investment application fee.
Residency status: what applies to you
| Your status at contract date | FIRB approval | AFAD (8% duty) | Land tax surcharge (3%) |
|---|---|---|---|
| Australian citizen | Not required | No | No |
| Permanent visa holder | Not required | No | No |
| New Zealand citizen with subclass 444 special category visa | Not required | No | No |
| Temporary visa holder, including while awaiting permanent residency | Required | Yes | Depends on where you live (assessed separately) |
| Foreign person living overseas | Required | Yes | Yes |
The land tax surcharge means the absentee surcharge on individuals who do not ordinarily reside in Australia, and the foreign surcharge on foreign companies and trusts. Your land tax position depends on where you actually live, which can differ from your FIRB and AFAD status, so it is assessed on its own facts.
QLD foreign-buyer costs at a glance
| Item | Rate / requirement | Timing |
|---|---|---|
| FIRB approval | Required to purchase | Before you sign unconditionally, use a FIRB special condition |
| Standard transfer duty | Normal QLD rates | At/near settlement |
| Additional foreign acquirer duty (AFAD) | 8% (from 1 July 2024) | On top of standard duty |
| Foreign owner land tax surcharge | 3% | Annual, while foreign-owned |
| Titles Queensland | Foreign ownership notification lodged with the transfer | At settlement |
These foreign-buyer costs sit on top of your ordinary conveyancing costs. For the professional fee and third-party searches, see conveyancing disbursements and what conveyancing costs in Queensland, NSW and Victoria.
General information only, not legal advice; rates change. Confirm current figures with the Queensland Revenue Office and your conveyancer.
