Foreign Buyers in 2025: Higher Taxes, Tougher Rules & What It Means for You

But that’s not all. The federal government has also increased FIRB application fees, particularly for high-value properties, adding yet another layer of costs for overseas investors.

Who Will Be Affected?

• Foreign buyers purchasing residential or commercial properties.
• Developers relying on offshore pre-sales for project funding.
• Investors holding property under corporate structures or trusts, which may trigger extra compliance obligations.

If you’re unsure how these changes affect your investment, a property lawyer in NSW, QLD, or VIC can help you understand the legal and tax implications.

2. FIRB Crackdown: Tougher Compliance & Higher Penalties

The Foreign Investment Review Board (FIRB) has ramped up enforcement, actively cracking down on non-compliant foreign property purchases.

Key Compliance Measures in 2025:

✅ Stronger penalties for non-compliance, including forced sales of properties bought without approval.
✅ Increased monitoring of temporary visa holders purchasing property.
✅ Stricter reporting requirements for foreign-owned properties, especially in high-demand markets.

In 2024, the government forced multiple foreign owners to sell properties due to non-compliance—expect this enforcement trend to continue in 2025.

💡 Key Takeaway: If you’re selling property to overseas buyers, FIRB compliance is non-negotiable. A property law firm with FIRB expertise can help investors avoid costly mistakes.

3. Could Foreign Investment Be Further Restricted?

Housing affordability remains a hot political topic, and foreign investment is often in the spotlight. While no major changes have been announced (yet), possible new restrictions include:

• Further increases in foreign buyer surcharges (Victoria set a precedent with its 2024 hike).
• Caps on foreign ownership in certain residential developments.
• More stringent FIRB scrutiny of purchases in Sydney, Melbourne, and Brisbane.

💡 Key Takeaway: If you’re a foreign investor, staying ahead of regulatory changes is crucial. A property lawyer in NSW, QLD, or VIC can help structure your investment to remain compliant.

4. Market Impact: What This Means for You

These changes will have ripple effects across the property market.

For Developers:

🚧 Higher surcharges may deter foreign pre-sales, making project funding harder.
📉 Stricter FIRB enforcement could slow approval processes, delaying transactions.

For Investors:

💰 Increased land tax = higher holding costs, especially in Victoria.
🏢 More investors may shift focus to commercial property, which has different rules.

For Property Professionals:

🔎 Agents and lawyers will need to educate clients on FIRB compliance and tax obligations.
📑 More transactions may involve complex ownership structures to reduce foreign buyer costs.

5. What Should You Do Next?

✅ If you’re a developer – Stay informed on foreign investment rules; off-the-plan sales could be affected.
✅ If you work with foreign buyers – Make sure they understand surcharges and compliance requirements.
✅ If you own foreign-held property – Review land tax obligations and upcoming regulatory changes.

With foreign investment laws evolving, having the right legal team is essential. If you need expert advice on buying, selling, or structuring property transactions, contact Jaide Law—your go-to firm for commercial and residential property matters.

Disclaimer:

We know most of you get this, but just to be clear—the information above is general and doesn’t consider your unique situation. Please don’t rely on it as a substitute for professional advice. We strongly encourage you to seek appropriate guidance for your specific needs.