NSW foreign purchaser duty surcharge check
NSW imposes an 8% foreign purchaser duty surcharge and 4% land tax surcharge on foreign persons buying residential land. This checklist is for NSW conveyancers assessing foreign buyer liability.
This is a 12-step checklist for assessing NSW foreign purchaser duty surcharge on residential property purchases, including FIRB approval and land tax surcharge.
The checklist
Identify the foreign person test
Apply the foreign person test to each purchaser under the Duties Act definition.
Check citizenship and residency
Verify citizenship, permanent residency, and visa status for each purchaser.
Check corporate purchasers
For companies, apply the foreign person test — 20% substantial interest or 40% aggregate foreign interest.
Check trust purchasers
For trusts, examine beneficiaries and foreign interest thresholds under NSW rules.
Determine residential land classification
Confirm the property is residential land for the purposes of the surcharge.
Check FIRB approval requirement
Assess whether FIRB approval is required under the Foreign Acquisitions and Takeovers Act.
Calculate surcharge duty
Calculate 8% surcharge duty on the dutiable value in addition to standard transfer duty.
Assess land tax surcharge
Confirm the 4% land tax surcharge on residential land owned by foreign persons.
Prepare duty declaration
Prepare the duty declaration with foreign purchaser details and surcharge calculation.
Verify FIRB fee paid
If FIRB approval required, verify the application fee has been paid before settlement.
Obtain FIRB approval evidence
Obtain the FIRB no objection notification and place on file.
Advise client on ongoing obligations
Advise client on ongoing land tax surcharge, absentee owner rules, and any annual reporting.
When this checklist applies
Use on any NSW property purchase where any purchaser may be a foreign person.
Common pitfalls
- Missing corporate foreign interest threshold
- Not checking PR or temporary resident visa conditions
- Overlooking FIRB approval requirement
- Surcharge calculated on wrong dutiable value
- Missing ongoing land tax surcharge advice
Run this checklist on a real matter
Quillio can run the foreign person test and calculate NSW surcharge duty on a client matter. See /practice-areas/property-lawyers or start a free trial.
General guidance on NSW foreign purchaser duty. Always check current Revenue NSW and FIRB rules before settlement.
Use this checklist on your matter.
Quillio can run this checklist on a specific NSW conveyancing matter — confirm each item, calculate adjustments, and generate the supporting documents. The free trial requires no credit card.
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