Summary
An Australian citizen living overseas is not considered a foreign person for NSW surcharge purchaser duty. This means an Australian expat buying a Sydney home in their own name will not pay the foreign purchaser surcharge merely because they live abroad. Ordinary transfer duty still applies, and a different result may arise for another purchaser, a permanent resident, a company or a trust.
Australian citizenship is the important starting point
Australians living in Singapore, Hong Kong, the United Kingdom or the United States may assume foreign buyer stamp duty applies to anyone purchasing from overseas.
That is not how the NSW rule works.
Revenue NSW guidance says an Australian citizen is not generally considered a foreign person for surcharge purchaser duty. Your overseas address does not remove that citizenship status.
The formal term is surcharge purchaser duty. It applies when a foreign person acquires an interest in residential property in NSW and no exemption applies.
Ordinary transfer duty still applies
Not paying the foreign purchaser surcharge does not mean the purchase is free of stamp duty.
Ordinary NSW transfer duty remains part of the acquisition cost. It is separate from surcharge purchaser duty and should be included when you calculate the funds required for exchange and settlement.
Revenue NSW currently charges surcharge purchaser duty at 9 per cent of the dutiable value for a liable foreign purchaser. It is paid in addition to ordinary transfer duty, so purchaser status should be confirmed before negotiations become urgent.
Check every purchaser, not only the Australian expat
The answer may be less straightforward if you are buying with a spouse or family member who is not an Australian citizen.
Permanent residence, visa status and recent time spent in Australia can affect whether an individual is considered a foreign person. Revenue NSW also provides conditional exemptions for some permanent residents who will occupy the property as their principal home and meet its residence requirements.
Do not assume that one Australian citizen automatically determines the position for everyone. Surcharge purchaser duty is calculated in proportion to the share acquired by a foreign person.
Give your property lawyer the citizenship and visa details of every proposed purchaser before deciding how ownership will be recorded. Our key partners page explains the professional support that may be useful for an overseas purchase.
A company or trust needs separate review
Buying through a company or trust can produce a different assessment from buying personally.
Revenue NSW applies specific foreign person tests to corporations and trustees. An Australian citizen should not assume that an entity receives the same treatment as the individual behind it.
If an entity forms part of your planning, have the structure reviewed before making an offer. Your lawyer and accountant should confirm the purchaser name and duty position together.
FIRB approval is a different question
Foreign investment approval is a Commonwealth issue. Surcharge purchaser duty is a NSW tax. An exemption from one does not automatically resolve the other.
This distinction matters for returning expats because the words foreign buyer are often used loosely. Confirm each question separately: who will buy, whether foreign investment approval is relevant, what NSW duty applies and how the purchase will be funded.
Once those foundations are clear, our Sydney buying service can focus on the search, local inspections, property assessment and negotiation.
Discuss your Sydney purchase with us
If you are planning to buy in Sydney while living overseas, chat with us about your property brief. We can coordinate the local buying process while your legal and tax advisers confirm the ownership structure and duty treatment.
Frequently asked questions
Is surcharge purchaser duty the same as FIRB approval?
No. Foreign investment approval is administered under Commonwealth rules, while surcharge purchaser duty is a NSW tax. Your advisers should consider each regime separately.
Do Australian citizens still pay ordinary transfer duty?
Yes. Australian citizenship means you are not treated as a foreign person for the surcharge, but ordinary NSW transfer duty can still apply to the purchase.
When should a mixed citizenship household obtain advice?
Before making an unconditional offer or exchanging contracts. Your lawyer will need the citizenship, visa status and intended ownership share of every purchaser to assess the duty position.
