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 available at the foreign investmentExternal Link website.
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
- a 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
You are a foreign person in the Australian foreign investment legislation if you are a:
- temporary resident in Australia
- New Zealand citizen who is non-resident in Australia.
Special rules apply to temporary residents who wish to buy residential property.
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)
- 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.
The type of visa you hold determines what property types you can apply for. For example, if you hold a bridging visa that will not lead to a permanent resident visa, then you cannot apply for an established dwelling – unless you intend to redevelop the property.
Business or non-individuals considered foreign persons
Generally, the following are considered foreign persons:
- a corporation in which 2 or more persons hold an aggregate substantial interest, each of whom is
- 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
- 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 regulations.
The term 'foreign person' is defined in Part 1, Section 4 of the Foreign Acquisitions and Takeovers Act 1975.
More information about who is considered a foreign person is available at the foreigninvestment.gov.auExternal Link website.