Foreign Buyers in NSW — 9% Surcharge Duty and 5% Surcharge Land Tax

Foreign-investment approval is not the only extra cost

A foreign buyer can face both federal foreign-investment rules and separate NSW state taxes. These are different systems and should be checked separately before committing to a property.

Surcharge purchaser duty — current rate 9%

Revenue NSW says surcharge purchaser duty applies to foreign persons acquiring residential-related property in NSW unless an exemption or concession applies.

The current surcharge purchaser duty rate is 9% of the dutiable value and is paid in addition to normal transfer duty.

Surcharge land tax — current rate 5%

A foreign person who owns residential land in NSW may also pay surcharge land tax in addition to ordinary land tax.

The surcharge land tax rate is 5% of the relevant residential land value and there is no tax-free threshold for the surcharge.

Permanent residency can still require careful checking

Revenue NSW uses its own foreign-person and ordinary-residence tests for state surcharges. A permanent resident living overseas for enough of the year can still be treated as foreign for surcharge land-tax purposes in some circumstances.

Do not assume federal FIRB status and NSW tax status are identical.

Before buying

Ask your solicitor/conveyancer and tax adviser to confirm your exact federal and NSW position before exchange.

Australia Buyer Roadmap: https://www.eltnetwork.com/post/buy-property-australia-2026-buyer-roadmap

Message FOREIGN with buyer status + property price + suburb if you want help organising the questions and professionals to speak with.

Thao Pham | 0452 526 888 | info@eltnetwork.com | Class 1 Licensed Real Estate Agent — Licence No. 20375265

General information only; not legal or tax advice.

Sources

Revenue NSW — Surcharge purchaser duty, updated 20 August 2026.

Revenue NSW — Surcharge land tax, updated 8 April 2026.