Buying Property in Queensland as a Foreign Person? The 8% Stamp Duty Surcharge Explained

Queensland: beautiful one day, perfect the next, and surprisingly expensive on tax the day you settle, if the taxman decides you’re “foreign”. The Sunshine State has long drawn buyers with its beaches, its lifestyle and its (relatively) friendlier prices. But foreign buyers cop an extra slug of duty that catches plenty of people who’d never think of themselves as foreign.

So let’s work through Queensland’s additional foreign acquirer duty: who pays it, what it costs now, who’s exempt, and the second surcharge that quietly follows you every year you hold.

This article focuses on Queensland specifically. For the national picture and how the other states compare, see our state-by-state guide to foreign purchaser surcharges.

What it is, and what it costs now

Queensland’s surcharge is called additional foreign acquirer duty, or AFAD. It’s an extra 8% of duty on top of ordinary transfer duty, applied when a foreign person acquires residential land in Queensland. It also reaches indirect acquisitions, like certain landholder and corporate trustee duty transactions, so buying through a company or trust doesn’t sidestep it.

The rate has climbed: AFAD started at 3%, and it now sits at 8%, having risen from 7% on 1 July 2024. To put that in dollars, on an $800,000 residential purchase the AFAD alone is $64,000, on top of the ordinary Queensland duty everyone pays. The Sunshine State is no longer the bargain it once was for foreign buyers.

Are you a “foreign person”?

This is where citizenship and residency part ways, and where Aussies overseas get caught out. For AFAD, you’re broadly a foreign person if you’re an individual who is not an Australian citizen and not “ordinarily resident” in Australia. Being ordinarily resident generally requires that you’ve actually been physically present in Australia for at least 200 days in the preceding 12 months, and that your presence isn’t subject to any time limit under the migration rules.

So an Australian permanent resident who’s been living and working overseas, and hasn’t clocked up those 200 days, can find themselves treated as a foreign person, AFAD and all. It’s not just individuals either: a foreign corporation (one incorporated overseas, or an Australian company with a foreign person holding a substantial interest) and a foreign trust (broadly, where foreign interests hold a substantial share) are caught too. Discretionary family trusts are a classic trap here, so if you’re buying through a trust, get the deed reviewed before you sign.

What counts as “residential land”

AFAD applies to AFAD residential land, broadly land that is or will be used solely or primarily for residential purposes: established houses, units and townhouses, vacant land where a home will be built, and land to be developed or refurbished for residential use. It generally doesn’t extend to hotels and motels, while things like retirement villages and student accommodation are considered case by case. Commercial property sits outside AFAD.

The second surcharge people forget: annual land tax

Here’s the one that’s easy to overlook, and it’s a recurring cost rather than a one-off. On top of AFAD at purchase, Queensland levies a land tax foreign surcharge on foreign owners, currently 3%, in addition to the ordinary land tax, every year you hold the land. Notably, this applies to foreign owners of land generally, not only residential land.

So the true cost of being a foreign owner in Queensland is two surcharges, not one: the 8% AFAD hit when you buy, and the 3% land tax surcharge that compounds quietly every year afterward. Budget for both. We cover the annual land tax surcharges across states in our land tax surcharge article.

Is there any relief or exemption?

Some, and the rules here were recently overhauled, so it pays to work from the current position rather than anything dated. A few avenues are worth knowing about.

There’s a home exemption: broadly, certain foreign individuals buying a property as their principal place of residence (on or after 1 January 2023) may be exempt from AFAD on that home, provided they actually move in and don’t sell or rent it out within the required period. There’s also relief aimed at foreign developers who genuinely add to Queensland’s housing supply. The “significant development” ex gratia relief that operated for years has been replaced: from 15 December 2025, the Queensland Revenue Office introduced new administrative arrangements (under fresh public rulings) that govern exemptions from both AFAD and the land tax foreign surcharge for residential land developers, with a more rules-based, evidence-driven process. There’s also a separate concession for eligible build-to-rent developments.

The practical message: relief exists but it’s conditional, it’s been redesigned recently, and it generally requires you to apply and substantiate your case to the Queensland Revenue Office rather than assume it. Get advice on whether you qualify under the rules as they stand today.

Don’t forget FIRB

Separate from the state duty question, if you’re a foreign person or a temporary resident, you’ll generally also need Foreign Investment Review Board approval before buying residential property or vacant residential land anywhere in Australia, Queensland included. FIRB approval and AFAD are two different things from two different governments (federal and state), and you may need to deal with both. Vacant land approvals typically come with conditions, such as completing construction within a set period.

The bottom line

Buying residential property in Queensland as a foreign person means AFAD at 8% of the dutiable value on top of ordinary duty, plus a 3% annual land tax foreign surcharge for as long as you hold. Whether you’re caught hinges on the “foreign person” definition and the strict 200-day test, not on your citizenship. Relief exists for genuine home buyers and developers but has been recently redesigned and must be applied for, and you’ll likely need FIRB approval on top. Work out your status and your full cost before you fall for that Queenslander with the wraparound verandah.

Tread your own path. Just check what the taxman thinks of it first.

Not sure if AFAD catches you? Let’s check before you sign.

Whether you’re a “foreign person”, whether the 200-day test saves you, whether your trust structure triggers AFAD, and whether any exemption or relief applies are all questions worth answering before you commit, because the difference can be tens of thousands of dollars up front and more again over the years you hold.

Our specialist expatriate tax team can assess your residency and surcharge position in Queensland and how it interacts with the federal rules, working remotely with Aussies and expats all over the world.

Book an appointment with our expat tax specialists today, ideally before you sign a contract. A short chat now can save a world of bother later.

General information only. This article doesn’t consider your personal circumstances and isn’t tax, financial or legal advice. State surcharge rules change frequently and are administered by the Queensland Revenue Office. Speak to our specialist expatriate tax team today, a Queensland conveyancer or solicitor, or another registered tax agent, before acting.

References

1. Queensland Revenue Office, “Additional foreign acquirer duty (AFAD)” (the extra 8% duty on transactions liable for transfer, landholder or corporate trustee duty): qro.qld.gov.au
2. Queensland Revenue Office, “Additional foreign acquirer duty: residential land” (what counts as AFAD residential land, the foreign person definition, and the home exemption from 1 January 2023): qro.qld.gov.au
3. Queensland Revenue Office, “Land tax foreign surcharge” (the additional 3% land tax surcharge on foreign owners): qro.qld.gov.au
4. Queensland Revenue Office, Public Rulings GEN012.1 and LTA000.6.1 (the administrative arrangements governing relief from AFAD and the land tax foreign surcharge for liabilities arising on or after 15 December 2025): qro.qld.gov.au
5. Foreign Investment Review Board, “Residential land” (FIRB approval requirements for foreign persons buying residential property): firb.gov.au