How much is the foreign buyer surcharge in Queensland?

The additional foreign acquirer duty (AFAD) is 8% of the higher of the consideration or the unimproved value, on top of normal transfer duty - on a $1 million purchase, $80,000 extra. It applies to residential land acquisitions from 1 October 2016.

Who counts as a 'foreign person'?

Foreign nationals (not permanent residents or Australian citizens), and entities - companies or trusts - with 50% or more foreign ownership. Permanent residents are generally exempt; temporary residents and visa holders are not, which catches many buyers on employer-sponsored visas.

Can a trust or company structure avoid the surcharge?

No - the rules look through structures. A company or trust is foreign if foreign persons hold 50% or more of the ownership (potentially across two tiers). Using an Australian company with foreign shareholders, or a trust with foreign beneficiaries, generally still triggers AFAD.

Foreign Buyer Surcharge QLD

Buying Queensland residential property as (or through) a foreign interest attracts the additional foreign acquirer duty (AFAD) - currently 8%, stacked on top of ordinary transfer duty. On a $1 million apartment that is $80,000 extra, payable at settlement. The rules look through structures, and the definitions catch people who genuinely did not expect it.

Who pays AFAD

An acquirer who is a foreign person, or an acquisition by an entity that is close:

Foreign individuals - not Australian citizens or permanent residents. Temporary visa holders (employer-sponsored, student, bridging) are generally not exempt
Foreign companies - 50%+ foreign ownership
Foreign trusts - 50%+ foreign potential beneficiaries can make a trust foreign, a trap because “potential” beneficiaries are counted broadly (including default beneficiaries and some charities’ foreign connections)
Two-tier look-through - a foreign company holding units in a trust can taint the trust

What land it applies to

Residential land - houses, units, and land zoned or intended for residential use - including off-the-plan acquisitions. Commercial, industrial and primary production land are outside AFAD (but check foreign investment review requirements separately).

Exemptions worth knowing

Australian permanent residents (the visa class, not just “has PR application”)
Certain acquisitions by foreign governments under agreements
Some new dwelling exemptions/reductions have come and gone with policy settings - check the current position at contract time
Nominee and reconstruction relief in limited circumstances

Practical planning points

Test the structure before the contract - a 45% foreign shareholder today can become 50% at the next capital raise, and the trust’s beneficiary list matters more than the settlor’s passport
Contract clauses - foreign buyers should include AFAD-allocation and termination protections; vendors should disclose the duty regime in disclosure documents
FIRB separately - most foreign acquisitions also need Foreign Investment Review Board approval before contracting, with its own fees and conditions; AFAD and FIRB are different systems that both apply
Timing - AFAD is assessed with transfer duty at settlement; there is no deferral for foreign buyers

We act for overseas-based buyers and vendors of Gold Coast property - structuring, FIRB referrals and contract drafting around AFAD.

Foreign buyer surcharge in Queensland: the additional foreign acquirer duty explained

Who pays AFAD

What land it applies to

Exemptions worth knowing

Practical planning points

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