Buying Property in Australia: What Happens When You Get PR?

Moving from a temporary visa to permanent residency? Here's how your property buying rights and foreign purchaser surcharges change in Australia.

Gaining Australian permanent residency (PR) changes your status under the Foreign Acquisitions and Takeovers Act 1975 — and can significantly reduce your property costs.

Before PR: You're a "Foreign Person"

If you hold a temporary visa, the ATO considers you a foreign person for residential property. This means:

• You must apply for approval through the ATO before you buy.
• You can only buy certain property types (e.g. new dwellings, vacant land with build requirements).
• Foreign purchaser surcharges and land tax surcharges apply.

After PR: You're No Longer Foreign

Once you become a permanent resident, you are not a foreign person and can buy property without ATO approval. Foreign purchaser surcharges and land tax surcharges no longer apply.

For example:

• In NSW, surcharge purchaser duty and surcharge land tax apply only if you are a foreign person at the time of the transaction.
• In Victoria, permanent residents are specifically excluded from the Foreign Purchaser Additional Duty (FPAD).

Timing Matters

If your residency status changes before settlement, you may be able to avoid foreign surcharges. But if you were assessed as a foreign purchaser at the time of signing and duty has been paid, you may need to apply for a reassessment or refund. Each state has its own process.

Key Takeaways

• Temporary visa = foreign person rules and surcharges apply.
• Permanent residency = treated the same as an Australian citizen for property purposes.
• Check the timing of your PR grant relative to exchange and settlement — this can save tens of thousands in surcharges.

Confirm your residency status with the ATO's definition and contact your state revenue office before you sign a contract.