Commercial Property Loans for Immigrants & Expats in Australia

Guide information. Written by Ben. Published: 2 December 2025. Reviewed: 15 May 2026.

Australia’s commercial property market is a global magnet for investment, offering stability, transparency, and strong long-term returns. For immigrants, expatriates, and non-residents, acquiring commercial real estate can be a strategic move to build wealth or establish a business foothold in a thriving economy. However, securing finance as a non-resident or temporary visa holder is significantly more complex than for an Australian citizen. The regulatory landscape, led by the Foreign Investment Review Board (FIRB), combined with the risk-averse nature of Australian banks, creates a series of hurdles that must be navigated with precision.

Despite these challenges, financing is available. The key lies in understanding the specific lending criteria that apply to your visa status and knowing which lenders have an appetite for foreign borrower risk. While major banks have tightened their policies, a vibrant sector of non-bank and private lenders has emerged to fill the void, offering tailored solutions for expats and new arrivals. This guide provides a comprehensive roadmap for immigrants and expats looking to secure commercial property loans in Australia, covering everything from FIRB approval and loan structuring to finding the right lender for your investment journey.

📖 Series Context: This guide is part of our Construction & Development Finance series. For a complete overview, see our Complete Construction Finance Guide.

At a Glance


Who this guide is for	Non-residents and expats seeking Australian commercial property
What it addresses	Visa requirements, foreign ownership rules, and specialist lenders
When this is appropriate	When you're a non-citizen purchasing Australian commercial property
When it's NOT appropriate	For Australian citizens and permanent residents

Can Non-Residents Buy Commercial Property in Australia?

The short answer is yes, non-residents and temporary visa holders can buy commercial property in Australia, but it is a regulated privilege rather than an automatic right. Unlike residential property, which has strict limitations to prevent speculation and housing shortages, the commercial sector is generally more open to foreign investment. The Australian government recognises that commercial investment drives economic activity, creates jobs, and develops infrastructure. Therefore, the pathway for purchasing offices, retail spaces, industrial warehouses, and development sites is well-trodden.

However, "can buy" does not mean "can buy anything, anywhere." The ability to purchase is contingent upon obtaining approval from the Foreign Investment Review Board (FIRB). This federal body assesses whether the investment is contrary to Australia's national interest. For most standard commercial acquisitions, approval is routine, but it is a mandatory legal step that must be completed before the purchase becomes unconditional. Failure to do so can result in severe penalties, including forced divestment of the asset and criminal charges.

Furthermore, the definition of "foreign person" is broad. It includes individuals who are not ordinarily resident in Australia, corporations where a foreign person holds a substantial interest (generally 20% or more), and trustees of trusts where foreign persons hold a substantial interest. Even Australian expats living abroad may be subject to certain checks depending on their tax residency status, although citizens generally face fewer hurdles than foreign nationals. Understanding your classification under the Foreign Acquisitions and Takeovers Act is the foundational step of your investment strategy.

FIRB Approval: The Essential First Step

For any non-resident or temporary resident looking to buy commercial land, applying for FIRB approval is the critical first step. The application process involves submitting details of the proposed purchase, the investor's identity, and the intended use of the property. A fee is payable upon application, which varies based on the value of the property. It is crucial to factor this fee into your acquisition costs, as it can be substantial for high-value assets.

There are exemptions. For example, developed commercial land valued below a certain monetary threshold (which is indexed annually and varies by country of origin due to Free Trade Agreements) may not require approval. However, "vacant commercial land" almost always requires approval, and usually comes with conditions, such as a requirement to commence development within five years. This is to prevent land banking and ensure that foreign capital contributes to construction activity.

Timing is everything. FIRB decisions typically take 30 days, but can take longer. Therefore, any Contract of Sale entered into by a foreign purchaser must be made "subject to FIRB approval." This clause protects you from being legally bound to complete a purchase that the government subsequently blocks. Experienced commercial property lawyers and finance brokers will ensure this condition is drafted correctly to protect your deposit and your legal standing.

Lending Criteria for Expats and Temporary Residents

When it comes to financing the purchase, lenders view non-residents and temporary visa holders as higher-risk borrowers. This is primarily due to the difficulty in enforcing debt recovery across international borders and the potential for visa cancellation (for temporary residents). As a result, the lending criteria are stricter than for local borrowers. The most significant difference is the Loan-to-Value Ratio (LVR).

While a local borrower might secure 70% or even 80% LVR for a commercial property, non-residents are typically capped at 60% to 65% LVR. This means you will need a larger deposit—often 35% to 40% of the purchase price, plus costs (stamp duty, FIRB fees, legal fees). Lenders want to see significant "skin in the game" to mitigate the flight risk.

Income verification is another hurdle. Lenders will assess your foreign income, but they will often shade it (discount it) by 10% to 20% to account for currency exchange rate fluctuations and foreign tax obligations. You will need to provide translated tax returns, employment contracts, and bank statements. For self-employed expats, the scrutiny is even higher, requiring detailed accountant letters and business financials. A strong, demonstrable connection to Australia—such as family residing here or other assets in the country—can strengthen your application.

Bank vs. Private Lending Options for Non-Residents

The lending landscape for foreign borrowers is bifurcated. Major Australian Banks have largely retreated from non-resident lending in recent years due to compliance costs and risk appetite. They may still lend to Australian citizens living abroad (Expats) with strong incomes, but for foreign nationals, the door is often closed unless the borrower is a high-net-worth private banking client with significant assets under management with the bank.

This has created a thriving market for Non-Bank and Private Lenders. These lenders are far more flexible. They focus on the quality of the Australian asset rather than the residency of the borrower. If the commercial property is in a good location and has a strong tenant, a private lender will often fund the deal regardless of where the borrower lives. They are less concerned with foreign income verification, often relying on the rental income of the property itself (lease-doc loans) to service the debt.

The trade-off is cost. Private lenders charge higher interest rates than banks—typically 2% to 4% higher. However, for many foreign investors, this is a cost of doing business. The speed and certainty of private funding allow them to secure the asset, and they can often refinance to a lower-rate lender once they establish a credit history in Australia or gain permanent residency. Private lenders can also settle deals quickly, which is vital if FIRB approval delays have eaten into the settlement period.

Structuring Your Loan: LVRs and Interest Rates

Structuring a loan for a non-resident requires a strategic approach to balance risk and cost. As mentioned, LVRs are generally lower. To maximise your borrowing power, consider cross-collateralising with other Australian assets if you have them. For example, if you own a residential investment property in Sydney with equity, you might be able to use that to top up the deposit for your commercial purchase, reducing the cash contribution required.

Interest rates for non-resident commercial loans in 2025 typically range from 7.5% to 9.5% with non-bank lenders, and 9.0% to 12.0% with private lenders. These rates are often variable. Fixed rates may be available but can come with high break costs. It is also common for private loans to be interest-only, which improves cash flow and simplifies the servicing requirement, as you are not paying down principal with foreign income.

Currency risk is a major factor in loan structuring. If your income is in USD or GBP but your loan is in AUD, a shift in the exchange rate can drastically change your repayment burden. Some sophisticated borrowers use multi-currency loan facilities (offered by some international banks) or hedging strategies to manage this. However, for most individual investors, the simplest hedge is to ensure the rental income from the Australian property covers the mortgage repayments in AUD, creating a "natural hedge."

Tax and Legal Considerations for Foreign Buyers

Investing in Australia brings you into the Australian tax net. Non-residents are generally taxed on Australian-sourced income (like rent) from the first dollar earned—there is no tax-free threshold. You will likely need to file an annual Australian tax return. Additionally, when you sell the property, you may be subject to Capital Gains Tax (CGT). The 50% CGT discount that applies to Australian residents is generally not available to foreign and temporary residents, which can significantly impact the net return on investment.

State taxes also apply. Most Australian states charge a Foreign Buyer Surcharge on stamp duty (often an extra 7-8% of the purchase price) and an annual Absentee Owner Surcharge on land tax. These surcharges can erode the yield of a commercial investment. It is absolutely critical to obtain advice from a qualified Australian tax accountant before purchasing to understand the full tax liability.

Legally, you must appoint a local agent (such as a solicitor or property manager) to handle notices and documents. Using a local nominee director for a purchasing company can sometimes simplify administrative matters, but it does not avoid the underlying foreign person rules if the beneficial owner is foreign. Strict compliance with FIRB conditions is monitored, and breaches are prosecuted.

Frequently Asked Questions

Do I need an Australian bank account to get a loan?

Yes, you will generally need an Australian bank account to settle the loan and manage direct debit repayments. Most lenders require this to be set up prior to settlement.

Can I use a foreign company to buy the property?

Yes, you can purchase in the name of a foreign corporation, but it will be subject to FIRB approval and foreign buyer surcharges. Many investors choose to register an Australian company (Pty Ltd) for ease of administration.

What happens if my visa expires?

If you are a temporary resident and your visa expires, you are generally not forced to sell commercial property (unlike residential). However, you will become a non-resident for tax purposes.

Can I get a loan if I am self-employed overseas?

Yes, but it is harder. You will need to provide extensive proof of business income, usually verified by an accountant. Private lenders are often the best solution for self-employed expats.

How much is the FIRB application fee?

Fees are tiered based on the value of the property. For a commercial property worth $2 million, the fee could be over 4,000. Always check the current fee schedule on the FIRB website.

Can I refinance once I get Permanent Residency?

Absolutely. Once you become a Permanent Resident, you are treated as a local borrower. You can refinance to a major bank at standard rates and access higher LVRs, releasing equity.

Conclusion

Securing a commercial property loan as an immigrant or expat in Australia is a challenging but rewarding endeavour. While the regulatory environment is strict and the costs are higher, the underlying strength of the Australian commercial property market makes it a compelling destination for global capital. The key to success is preparation: understanding the FIRB rules, budgeting for the higher deposit and surcharges, and choosing the right finance partner.

By looking beyond the major banks to the diverse world of non-bank and private lenders, foreign borrowers can access the funds they need to build a robust property portfolio Down Under. Whether you are a returning expat or a foreign investor, professional advice is non-negotiable. Partnering with experienced finance brokers who specialise in non-resident lending will ensure you navigate the maze of regulations and secure a loan that aligns with your investment goals.

Emet Capital offers private lending solutions for non-resident and expat borrowers seeking flexible commercial finance.

This article provides general information only and should not be considered financial advice. Consult with a licensed finance professional for advice specific to your circumstances.

Written by the expert team at Emet Capital, experienced finance brokers specialising in commercial property and business lending across Australia.