Foreign clients looking to purchase real estate in Australia may need to consider whether a Foreign Investment Exemption Certificate is relevant to their circumstances. An exemption certificate allows a foreign person to purchase one property under the Foreign Acquisitions Takeovers Act 1975. It also permits foreign investors to make offers on multiple properties within a state or territory, conditional upon the fact that they only purchase one property. As a result, a foreign investor is afforded increased flexibility, in that they are not required to seek approval for each property they attempt to purchase.
The exemption certifies are valid for 12 months from the date of approval. Temporary Australian Residents are able to use the exemption certificate to purchase: an established dwelling to live in, a new dwelling or a single block of vacant land for development. Foreign non-residents are only able to use an exemption certification to purchase: a new dwelling or a single block of vacant land for development. More information about exemption certificates can be found here.