Buying an investment property in Australia from overseas: citizens abroad and foreign buyers

Which group you are in

A note on the citizen row. The Foreign Investment website's key concepts guidance (updated 12 December 2025) says an Australian citizen living overseas may be a foreign person under the Act. It adds that the Act has no specific rule on whether a citizen is ordinarily resident in Australia and that the answer depends on your circumstances. The residential page and the guidance are not worded the same way, so a citizen abroad should confirm the position with a lawyer or the Foreign Investment Review Board before signing a contract. Victoria's surcharge pages could not be read for this guide. Our guide to the foreign buyer surcharges covers the state side, including how a company or trust buyer is tested differently.

If you are a foreign national

The Foreign Investment guidance on residential land (updated 1 July 2026) says foreign investors are generally prohibited from buying established dwellings from 1 April 2025 to 30 June 2029. A new or near-new dwelling is not usually subject to conditions on how it is used. The guidance also says an annual vacancy fee is payable if the property is not residentially occupied or not available for rent, as the guidance defines those terms, for more than 183 days in a year. The sister site FIRB Approval explains who counts as a foreign person.

Lending for an investment loan from overseas

Published lender positions range widely:

• One major lender's target market determination, which covers investment as well as owner-occupier purchases, names Australian citizens and permanent residents living and working overseas.
• Other lenders say home lending is not available to non-resident borrowers, or to applicants who reside overseas, and one adds applicants who need foreign investment approval.
• One lender's broker guidelines treat an applicant with no current Australian residential address as outside guidelines.

Which lenders lend to expats names each one and links to its own page. A published position is not an assessment of your application, and the pages read do not set separate investor deposit rules for people overseas. Lenders also publish different rates for investor and owner-occupier loans; moving overseas with an Australian mortgage shows one lender's gap.

Moneysmart lists interest rate rises and gaps between tenants among the risks of an investment property, noting that you may have to cover costs yourself when there is no tenant.

What lenders ask for to count the rent

Lenders count only part of the expected rent. The published evidence differs:

Macquarie's guidelines add a rule for high expenses. If investment property expenses exceed 20% of gross rent, actual expenses are used. With an assumed rent of $600 a week:

1. Gross rent: $600 x 52 = $31,200 a year.
2. Standard treatment: 75% x $31,200 = $23,400.
3. With assumed expenses of $8,000, which is more than 20% x $31,200 = $6,240: $31,200 - 5% ($1,560) - $8,000 = $21,640.

These rules sit alongside the address requirement in our guide to Macquarie's published policy, so they show how rent is counted rather than who is eligible.

Land tax and holding costs

Land tax is a state tax, with its own thresholds, rates and assessment dates. The Victorian State Revenue Office says it may apply if you own property other than your home, and its land tax pages include an absentee owner surcharge section, whose test could not be read for this guide. The Queensland Revenue Office says land tax is levied on freehold land you own at midnight on 30 June each year, that a principal place of residence is generally exempt, and that if you own several properties or land above the tax-free threshold you pay on the value above it. Revenue NSW says foreign persons who own residential land may be liable for surcharge land tax. Moneysmart lists land tax among the ongoing costs of an investment property, alongside council and water rates, building and landlord insurance, body corporate fees, property management fees and maintenance.

The pages read do not give a land tax figure that suits every state, so check the revenue office for the state you are buying in.

Tax on the rent

Rent from an Australian property is taxed in Australia whether you live here or overseas, and the rate depends on tax residency under the ATO's four tests, not citizenship. The guides on tax on rental income for non-resident landlords, foreign resident tax rates for 2026-27 and deductions for non-resident landlords cover the rates, losses and what you can claim. Moneysmart says most property expenses, including interest on the loan used to buy the property, can be offset against rental income. See also double tax agreements if your country of residence taxes the rent too.

Property managers and being away

Moneysmart lists property management fees as a cost if you use an agent. The lender documents above refer to licensed agents for rental estimates and statements. This guide did not review state licensing or tenancy rules for landlords who live abroad, so the state fair trading or tenancy authority is the place to check them. Signing and settling from abroad are covered in the guides to signing a contract and settling from overseas and power of attorney.

Frequently asked questions

Expat Finance is an independent guide. It is not a lender, mortgage broker or credit provider, it does not hold an Australian credit licence, and it does not give credit, legal, tax or migration advice. It is not affiliated with any bank, the ATO or the Foreign Investment Review Board. General information only, not legal, tax, migration or financial advice.