Buying property in Queensland as a foreign person is straightforward in some ways and tightly regulated in others. The rules are clear, the bodies that enforce them are well-resourced, and getting the sequence right before you sign a contract matters.
Two separate frameworks apply at the same time. The Queensland Revenue Office charges additional foreign acquirer duty on top of ordinary transfer duty for foreign persons acquiring residential land. Separately, the Australian Government requires most foreign persons to obtain approval before entering any contract to buy Australian real property. The first is a state tax; the second is a federal condition. Both apply regardless of the purchase price, and each has its own definitions of who counts as a foreign person.
The Brookwater Legal team helps clients across Greater Springfield and Ipswich with property purchases, including transactions that involve foreign buyer duty and federal approval requirements.
Here is how the two frameworks work in Queensland and what buyers need to know before contracts are exchanged.
Key takeaways
- Foreign persons generally pay an additional 8% duty on residential land in Queensland.
- Most foreign buyers need federal approval before signing a contract to buy property.
- Established homes are generally off-limits to foreign investors until 30 June 2029.
This article is general information only and is not legal advice. Every situation is different, and you should speak with a solicitor about your own circumstances.
What extra duty do foreign buyers pay in Queensland?
Foreign persons acquiring residential land in Queensland pay an additional foreign acquirer duty of 8%, charged on top of the ordinary transfer duty rate, according to the Queensland Revenue Office. The 8% applies to the dutiable value of the residential land being acquired and is assessed separately from the general duty calculation.
The general transfer duty rates, as at 25 June 2026, start at nil for values up to $5,000 and rise to $38,025 plus $5.75 for each $100 over $1,000,000 at the top end, according to the Queensland Revenue Office. The additional foreign acquirer duty sits on top of whichever general rate applies to the transaction. So a foreign person buying at a price that attracts the standard rate also pays the 8% additional amount calculated on the same dutiable value.
Home concessions, including the first home concession and the home concession, are generally available only to owner-occupiers, and investment properties and holiday homes do not qualify. From 1 August 2026, buyers claiming any home, first home or first home vacant land concession must also be Australian citizens, permanent residents or specified foreign retirees, according to the Queensland Revenue Office. Additional foreign acquirer duty is a separate charge from the concession calculation: the home concession applies to the transfer duty, not to the additional duty.
Only one transfer duty concession can be claimed per transaction.
Who counts as a foreign person for Queensland duty purposes?
The Queensland Revenue Office applies its own definition of foreign person for additional foreign acquirer duty. A foreign individual is a person who is not an Australian citizen or permanent resident. A permanent resident is someone who holds a permanent visa or is a New Zealand citizen with a special category visa.
The definition extends beyond individuals. A foreign corporation is one that is incorporated outside Australia, or in which foreign persons or their related persons hold a controlling interest of at least 50%. A trust is foreign where foreign persons hold at least 50% of its interests.
Where a purchase involves multiple buyers, additional foreign acquirer duty applies only to the interests of the foreign acquirers among them, according to the Queensland Revenue Office. A co-purchase by one Australian citizen and one foreign person results in duty being assessed on the foreign person's share only.
Importantly, the Queensland Revenue Office states that additional foreign acquirer duty continues to apply even if the buyer later becomes an Australian citizen or permanent resident. Becoming a citizen after settlement does not reduce or remove the duty that was assessed at the time of the transaction.
What federal approval rules apply before buying?
Separate from Queensland duty, the Australian Government requires most foreign persons to obtain approval before acquiring Australian real property, including residential and commercial land in Queensland, according to the Australian Taxation Office.
The approval is sought through the Australian Taxation Office. A fee must be paid when the application is submitted, and the Australian Taxation Office says it can take up to 30 days to consider an application after full payment is received. There are penalties for acquiring property without first obtaining approval or an exemption certificate where one was required.
Treasury's guidance on foreign investment in residential land, at version 5 of June 2026, sets out the policy framework. Investment is generally channelled toward new dwellings. Approvals for vacant land are usually conditional on construction within four years and no sale before completion. New or near-new dwellings typically carry no conditions on use.
Developers may hold an exemption certificate covering their foreign buyers, which can remove the need for each buyer to obtain individual approval. A buyer dealing with a developer should ask whether such a certificate exists for the project.
Foreign persons who acquire or dispose of residential land must also notify the Register of Foreign Ownership of Australian Assets. An annual vacancy fee applies where the property is not occupied or genuinely available for rent for more than 183 days in a year, according to Treasury's foreign investment guidance.
Can foreign buyers purchase established homes in Queensland?
Generally, no. From 1 April 2025, foreign investors are prohibited from buying established dwellings in Australia, with limited exceptions, according to the Australian Taxation Office. That ban has been extended to 30 June 2029 under the 2026-27 Budget, as confirmed in Treasury's Guidance Note 6 at version 5 of June 2026.
Established homes are homes that have previously been occupied or sold as a place of residence. The ban applies across Australia, including Queensland.
Limited exceptions exist. Investments that significantly increase or support housing supply are exempt. Permanent residents and New Zealand citizens with a special category visa remain exempt from the ban on established dwellings.
The practical effect for most foreign buyers in Queensland is that purchases are limited to newly built homes that have not been previously occupied, substantially renovated homes meeting the new dwelling definition, and vacant land for construction. Each of these may require federal approval on the terms Treasury sets.
Who does not count as a foreign person for approval purposes?
The federal definition of foreign person for approval purposes is not identical to the Queensland definition for duty. A person buying Australian real property who is not an Australian citizen, a permanent resident or a New Zealand citizen with a special category visa is a foreign person for approval purposes, according to the Australian Taxation Office.
Australian citizens are not foreign persons for either the duty or the approval framework, regardless of where they live. Permanent residents are not subject to the approval requirement and are not subject to the ban on established dwellings, though they may still face Queensland additional foreign acquirer duty depending on their visa status at the time of acquisition.
The two definitions are tested separately. A buyer may be exempt from the federal approval requirement but still subject to Queensland additional duty, or may need approval and be exempt from additional duty. A solicitor can work through which framework applies to a particular buyer's circumstances.
"Foreign buyers in Queensland are dealing with two separate regulatory frameworks at the same time. Getting the sequencing right, approval before contract where it applies, and understanding how duty is assessed, makes the process significantly smoother."
Jade Kickbusch, Principal, Brookwater Legal
How does a solicitor help a foreign buyer through the process in Queensland?
Step 1: Talk to us
Get in touch and we will walk you through which frameworks apply to your situation and what the sequence of steps looks like before you commit to a contract.
Step 2: Identify what approval and duty apply
We work through both the Queensland Revenue Office definition of foreign person and the federal definition, confirm whether federal approval is needed before a contract is signed, and identify the correct duty treatment for the transaction.
Step 3: Review the contract and the approval conditions
We review the contract of sale, check whether any developer exemption certificate is in place, and confirm whether the property is a new dwelling, vacant land or an established home, which affects both the federal approval pathway and the duty outcome.
Step 4: Manage settlement and compliance
We handle the conveyancing through to settlement, ensure the duty assessment is correct, and confirm all federal notification obligations, including any register notification, are met in the correct timeframe.
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What do foreign buyers commonly misunderstand about the Queensland rules?
The most common misunderstanding is treating the Queensland duty rules and the federal approval rules as a single system. They are not. They are administered by different bodies, apply different definitions of foreign person, and have different consequences for non-compliance. A buyer who satisfies one test may not satisfy the other.
A second common misunderstanding concerns timing. The Australian Taxation Office states that approval or an exemption certificate is generally needed before entering any contract. Treasury's guidance adds that a contract can be entered as long as it is conditional on receiving that approval. The distinction matters: entering an unconditional contract before approval issues can trigger penalties. A solicitor reviews the contract structure before exchange.
A third misunderstanding is that becoming an Australian citizen or permanent resident after settlement removes the Queensland additional duty obligation. The Queensland Revenue Office states clearly that additional foreign acquirer duty continues to apply even if the buyer later acquires citizenship or permanent residence. The duty is assessed at the time of the transaction.
Frequently Asked Questions
What is the additional foreign acquirer duty rate in Queensland?
The Queensland Revenue Office sets the additional foreign acquirer duty rate at 8% of the dutiable value of the residential land acquired. It applies on top of ordinary transfer duty.
Do foreign buyers need approval before signing a contract in Queensland?
The Australian Taxation Office states that approval or an exemption certificate is generally needed before entering a contract, though Treasury's guidance allows a conditional contract. Entering an unconditional contract without approval can trigger penalties.
Can a foreign person buy an established home in Queensland?
Generally, no. The ban on foreign purchases of established dwellings, confirmed by the Australian Taxation Office and Treasury's Guidance Note 6 of June 2026, runs until 30 June 2029. Limited exceptions apply, including for investments that significantly increase housing supply.
Does additional foreign acquirer duty still apply if the buyer becomes an Australian citizen after settlement?
Yes. The Queensland Revenue Office states that additional foreign acquirer duty continues to apply even if the buyer later becomes an Australian citizen or permanent resident. Duty is assessed at the time of the transaction, not afterwards.
What types of property can a foreign buyer purchase in Queensland?
Treasury's foreign investment guidance channels most foreign investment toward new dwellings, substantially renovated homes, and vacant land for construction. Established dwellings are generally off-limits until 30 June 2029, according to the Australian Taxation Office.
Do you need a conveyancing solicitor for a foreign property purchase in Springfield or Ipswich QLD?
A solicitor identifies which approval pathway and duty rules apply before a contract is signed, reviews the contract structure and handles settlement. Our conveyancing team acts for buyers in Springfield, Ipswich and across Greater Springfield on property transactions including those involving foreign buyer rules.
Does the ban on established home purchases apply to permanent residents in Queensland?
No. Permanent residents and New Zealand citizens with a special category visa remain exempt from the ban on established dwellings, according to the Australian Taxation Office. Whether additional foreign acquirer duty applies to a permanent resident's purchase depends on their specific visa status, which the Queensland Revenue Office assesses separately.
Your Next Steps
Foreign buyer duty and federal approval requirements sit across two regulatory systems that operate independently. Getting the sequence right before a contract is signed, understanding how the Queensland Revenue Office and the Australian Taxation Office define foreign person differently, and confirming which property types are available to a particular buyer are all things a solicitor works through before exchange. For buyers in Springfield, Ipswich and across Greater Springfield, getting that advice early avoids the complications that come from a contract that does not account for one of the frameworks.
Every foreign buyer matter is different, and that's exactly why it's worth a conversation. Make an appointment with the Brookwater Legal team or call (07) 3437 8555.
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External Resources
- Queensland Revenue Office - Types of foreign persons for AFAD
- Queensland Revenue Office - Assessing and calculating AFAD
- Australian Taxation Office - Are you a foreign person buying property in Australia?
- Australian Taxation Office - Apply to buy residential property as a foreign person
- Treasury - Guidance Note 6: Residential Land, version 5 (June 2026)
- Treasury (foreigninvestment.gov.au) - Residential land
Brookwater Legal · This article contains general information only and does not constitute legal advice. It does not take into account your individual circumstances. You should obtain legal advice about your own situation before acting on anything in this article. Liability limited by a scheme approved under Professional Standards Legislation.
