Residential property application for foreign investors

Before you purchase property

If you’re a foreign person planning on investing in Australian residential property (an asset) you need to apply for approval unless an exemption applies. You will need to wait to be approved before you enter into a binding contract or make a purchase.

When we say:

• 'residential application' – this is your application for approval to purchase Australian residential property
• 'property' or an 'asset' – this is the residential property for example a new dwelling, established dwelling or vacant land
• 'the Register' – this is the Register of Foreign Ownership of Australian Assets, you will add your asset using Online services for foreign investors.

You need to apply:

• for approval to purchase a specific residential property (that is, obtain a no-objection notice)
• for an exemption certificate to purchase a residential property
• to vary the conditions of an existing foreign investment approval or exemption certificate.

Property developers will use the residential application to apply for a new or near-new dwelling exemption certificate.

Residential property includes:

• a new or near new dwelling
• an established dwelling to live in as your main residence where you are a temporary resident
• an established dwelling for redevelopment
• an off-the-plan property
• vacant residential land
• an established dwelling for a foreign company to use to house its Australian based employees.

You need to pay a fee when you submit your residential application.

Some property types can only be purchased if you hold a relevant visaOpens in a new window.

We recommend you seek independent legal advice before applying for foreign investment approval.

For more information, see:

• Foreign investment in Australia
• Foreign investment in Australia guidanceOpens in a new window – guidance on key concepts and residential land.

Before you apply

Before you apply to purchase residential property, consider:

• whether a specific approval or exemption certificate better suits your needs
• the property type you want to purchase and the associated eligibility requirements
• the approval conditions and your obligations for the property type you want to purchase.

You can apply for approval even if you have already signed a contract, provided the contract is still conditional.

If you don't have a specific property you are planning to purchase, an exemption certificate may suit your needs. An exemption certificate will allow you to bid or make offers on multiple properties within a nominated state or territory, provided you only purchase one property.

You can apply for an exemption certificate for most property types, except an established dwelling for redevelopment.

The type of property you are eligible to purchase depends on whether you hold a visa. If you hold a visa, you may have more options.

If you are unsure if your visa allows you to purchase an existing dwelling, contact us before you apply.

Generally, you can apply to purchase:

• a new or near new dwelling or apply for an exemption certificate
• vacant land or apply for an exemption certificate
• an established dwelling for redevelopment with 2 or more newly constructed dwellings. You can't apply for an exemption certificate for this type of property.

If you have an eligible visa you can apply to purchase one established dwelling to live in as a principal place of residence or an exemption certificate.

Eligible visas include a current:

• temporary resident visa
• bridging visa and you have applied for a permanent resident visa (you can't apply for an established dwelling if you have a bridging visa and have applied for a temporary visa).

You will be required to provide your visa detailsOpens in a new window when you submit your application.

We collect data on purchases, sales and transfers of properties by foreign persons through the Register. The information you provide in your application may be used for this purpose.

Exemption certificate

An exemption certificate allows a foreign person to:

• make multiple attempts to acquire one property
• in a nominated state or territory
• without having to seek individual approval for each property they are interested in.

You can only purchase one property under the exemption certificate.

Foreign persons can use an exemption certificate to purchase a new or near-new dwelling, or a single block of vacant land for development.

Temporary residents can also use an exemption certificate to purchase an established dwelling to live in while residing in Australia.

If you are approved for an exemption certificate, you won't need to seek individual approval for each property you attempt to purchase. You will avoid the need for variations or new applications after an unsuccessful bid.

You can apply for an exemption certificate even if you have already signed a contract, provided the contract is still conditional.

Your exemption certificate will:

• be valid for 12 months from the date of approval
• specify
  • a limit on the property value
  • the state or territory in which the property may be purchased
  • the types of property that may be purchased.

An exemption certificate will normally be approved subject to the same standard approval conditions for a specific property type, including:

• an established dwelling
• a new dwelling
• vacant residential land title.

Once approved, if you need to increase the property value limit on the exemption certificate you will need to submit a new residential application.

Approval conditions

We consider residential applications, exemption certificates and variations on a case-by-case basis to ensure the application is in Australia's national interest.

Conditions may be imposed on the approval to ensure that the purchase is within national interest. The conditions depend on whether you have applied to purchase an:

• established dwelling
  • as principal place of residence
  • for redevelopment
  • to house Australian-based staff
• new dwelling
• near new dwelling
• vacant land.

Established dwellings

An established dwelling is an existing dwelling on residential land and is not a new dwelling.

Principal place of residence

An application to purchase an established dwelling to use as a principal place of residence will generally be approved subject to the following conditions:

• The property is vacant at settlement.
• You use the property as your principal place of residence whilst in Australia.
• You don't rent out any part of the property.
• If the property ceases to be your principal place of residence in Australia, or you are no longer a temporary resident, you dispose of the property within 6 months.

For redevelopment

Approval may be granted if a proposal to redevelop an established dwelling will genuinely increase Australia’s housing stock. This could include proposals to:

• retain an established dwelling
• demolish and established dwelling
• build multiple dwellings on vacant land.

Retain an established dwelling and build one (or more) new dwellings

Proposals to retain an established dwelling and build one or more new dwellings (of a comparable size on the land alongside the established dwelling) will generally be approved subject to the following conditions:

• The property is vacant at settlement.
• At least one dwelling, of a comparable size to the existing dwelling, is being built on the land.
• No part of the existing dwelling is occupied from the date of settlement until construction of the additional dwelling(s) is complete.
• Construction of all dwellings is completed within 4 years from the date of approval.
• You submit evidence of completion of construction to us within 30 days of receiving it (that is, a certificate of fitness for occupancy or use, final occupancy or builder’s completion certificate).
• You do not sell, transfer or otherwise dispose of your interest in the property before construction is complete.
• Once construction of the new dwelling(s) is complete, you make one or more of the dwellings on the land available for use by independent third parties (for example, by renting out or selling the dwelling).

Demolish an established dwelling and build multiple new dwellings

Proposals to demolish an established dwelling and build multiple new dwellings in place of it, will generally be approved subject to the following conditions:

• The property is vacant at settlement, and no part of the existing dwelling is occupied from the date of settlement to the commencement of demolition.
• The demolished dwelling is replaced with multiple dwellings, each of a comparable size and value to each other.
• You submit evidence of completion of construction to us within 30 days of receiving it (that is, a certificate of fitness for occupancy or use, final occupancy or builder’s completion certificate).
• You do not sell, transfer or otherwise dispose of your interest in the property before construction is complete.

Build multiple dwellings on land that is currently vacant but previously had a dwelling on it

An application to purchase an established dwelling for redevelopment will generally be approved subject to the following conditions:

• Multiple dwellings, each of a comparable size and value to each other, are built on the land.
• Construction of all dwellings is complete within 4 years from the date of approval.
• You submit the evidence of completion of construction to us within 30 days of receiving it (that is, a certificate of fitness for occupancy or use, final occupancy or builder’s completion certificate).
• You do not sell, transfer or otherwise dispose of your interest in the property before construction is complete.

New dwelling

A new residential dwelling is a dwelling that:

• will be, is being, or has been, built on residential land
• has not been previously sold as a dwelling
• has not been previously occupied or was not occupied for more than 12 months if it was sold in a development.

An application to purchase a new dwelling will generally be approved subject to the condition that you do not purchase a dwelling where a single dwelling has been built to replace one or more demolished dwellings.

Vacant land

Land is vacant if there’s no substantive permanent building on it that can be lawfully occupied by persons, goods, or livestock. Land that previously had an established dwelling on it is generally not considered to be vacant land.

An application to purchase vacant land will generally be approved subject to the following conditions:

• At least one residential dwelling is built on the land.
• You do not sell, transfer or otherwise dispose of your interest in the land before completing construction.
• Construction of all dwelling(s) is completed within 4 years from the date of approval.
• You submit evidence of completion of construction to us within 30 days of receiving it (that is, a certificate of fitness for occupancy or use, final occupancy or builder’s completion certificate).

Varying your approval

You must apply for a variation if you have foreign investment approval and want to make a correction or change the conditions of the approval.

However, if you need to substantially change the original approval or increase the property limit on an exemption certificate, you will need to submit a new residential application instead of a variation.

A fee is payable for a variation application.

There are 2 types of variations, simple and complex. You would use a:

• simple variation for a correction of a spelling error or errors to the name of the purchaser or property being purchased
• complex variation to:
  • change or remove a condition, unless it is a substantial change
  • extend the validity period of a no-objection notification
  • add a new wholly-owned subsidiary as an applicant.

For example, you may want to vary a residential application or exemption certificate when you've received approval for vacant land to develop. You need more time to construct or want to sell without developing. You will be required to apply for a complex variation to the conditions of your approval.

Mortgagee interest

A mortgagee interest is when a foreign person lends money and repayment is secured or enforced, by granting the foreign person an interest in Australian residential land by way of a security interest over the land.

The mortgagee (lender) must lodge a residential application, if a security interest is held over Australian residential land, before they enter the lending arrangement.

Paying a fee

Where you are required to pay a fee, you must pay the fee in full before we can consider your request.

The fee relates to reviewing your application or variation and is relevant to each application. For fee amounts and how to pay, see Fees for foreign residential investors.

Vacancy fee return

When you purchase a property, you have a requirement to lodge an annual vacancy fee return.

How to apply for a residential application

To apply and pay for a residential application, log in to Online services for foreign investors.

Select either:

• Lodgment menu then Residential application
• Lodge or pay residential application quick link.

You can apply:

• for an approval or exemption certificate to purchase a residential property
• to vary the conditions of an existing residential approval or exemption certificate.

You must complete a separate application for each property you intend to purchase unless you are applying for an exemption certificate. We can't consider your application until you have paid the fee. Use the correct payment reference number (PRN) to reduce any delays in processing your application.

It can take up to 30 days to consider an application, after we have received full payment of the fee.

For further details on how to apply see residential application.

Online services for foreign investors

Penalties and reporting breaches

If you do not comply with your obligations to give a register notice or keep your details up to date, you may face an infringement notice or civil penalties.

If you have information about someone you think may be deliberately breaking our foreign investment rules, you can confidentially report a breach to us.

We use our compliance approach to ensure foreign investors comply with their obligations.

If you are having difficulties meeting your obligations, contact us.