Definition of a foreign person
The definition of a 'foreign person' is complex and may apply to individuals, corporations, trusts and other entities, in ways that are not immediately obvious.
The legal definition of a foreign person is in Guidance Note 2 – Key Concepts published on the Foreign investment websiteExternal Link.
The term is defined in Part 1, Section 4 of the Foreign Acquisitions and Takeovers Act 1975.
If you are unsure if you are a foreign person, you should seek independent legal advice for help.
Individuals considered foreign persons
You are a foreign person if you intend to buy Australian residential or commercial property, and you are not a:
- citizen of Australia
- permanent resident of Australia, or
- New Zealand citizen with a special category visa.
A permanent resident who is not ordinarily a resident in Australia may be a foreign person in some circumstances.
Temporary residents considered foreign persons
From 1 April 2025 to 31 March 2027, foreign persons are banned from purchasing established dwellings in Australia (limited exceptions apply). This includes temporary residents purchasing an established dwelling for use as a principal place of residence. Temporary residents can still apply for approval to purchase vacant land or new dwellings.
You are a foreign person in the Australian foreign investment legislation if you are a:
- temporary resident in Australia, or
- New Zealand citizen who is non-resident in Australia.
Special rules apply to temporary residents who purchased an established dwelling (or received foreign investment approval to buy an established dwelling) before 1 April 2025.
A temporary resident is an individual who:
- holds a temporary visa that allows them to stay in Australia for a continuous period of 12 months or more (regardless of the time remaining on the visa), or
- resides in Australia, has submitted an application for a permanent visa and holds a bridging visa that allows them to stay in Australia until their application is finalised.
Business or non-individuals considered foreign persons
Generally, the following are considered foreign persons:
- the corporation in which an individual not ordinarily resident in Australia, a foreign corporation or a foreign government holds a substantial interest
- a corporation in which 2 or more persons hold an aggregate substantial interest, each of whom is one of the following
- an individual not an ordinarily resident in Australia
- a foreign corporation
- a foreign government
- the trustee of a trust in which an individual not ordinarily resident in Australia, a foreign corporation or a foreign government holds a substantial interest
- the trustee of a trust in which 2 or more persons hold an aggregate substantial interest, each of whom is one of the following
- an individual not ordinarily resident in Australia
- a foreign corporation
- a foreign government
- a foreign government
- any other person that meets the conditions, prescribed by the Foreign Acquisitions and Takeovers Regulation 2015.