Yes, foreigners can buy property in Australia through a company, but there are specific rules and considerations to keep in mind. Here’s a detailed guide on how this process works and the important factors involved:

1. Foreign Investment Review Board (FIRB) Approval:

Foreign companies must obtain approval from the Foreign Investment Review Board (FIRB) before purchasing property in Australia. The rules and approval process are similar to those for individual foreign investors.

2. Types of Companies:

A. Australian-Registered Companies:

• Local Companies: A company registered in Australia with foreign shareholders must still comply with FIRB requirements if the majority of shareholders are foreign.
• Compliance: The company must comply with Australian corporate laws, including registration with the Australian Securities and Investments Commission (ASIC) and adherence to reporting and tax obligations.

B. Foreign-Registered Companies:

• Direct Investment: Foreign-registered companies can directly invest in Australian property, subject to FIRB approval.
• Local Entity Establishment: Some foreign companies choose to establish a local subsidiary in Australia to facilitate property purchases and manage investments more effectively.

3. Types of Properties:

A. New Dwellings:

Foreign companies can buy new dwellings, which generally receive FIRB approval more easily.

B. Established Dwellings:

Generally, foreign companies are not allowed to purchase established dwellings unless the property is to be redeveloped and the redevelopment will increase the housing stock.

C. Commercial Property:

Foreign companies can purchase commercial property, but FIRB approval is required for investments above certain thresholds.

4. FIRB Application Process:

• Application: Submit an FIRB application detailing the property and the company’s structure.
• Fees: Pay the application fee, which varies based on the property value.
• Approval: Wait for FIRB approval before proceeding with the purchase.

5. Tax Implications:

• Stamp Duty: Foreign companies are subject to stamp duty, including any applicable foreign buyer surcharges, which vary by state.
• Land Tax: Additional land tax surcharges may apply to foreign-owned properties.
• Capital Gains Tax (CGT): If the property is sold, the company may be liable for CGT on any profit made from the sale.

6. Legal and Financial Considerations:

A. Legal Structure:

• Company Setup: Ensure the company is properly established and registered in accordance with Australian laws if it is a local entity.
• Legal Advice: Seek legal advice to navigate the complexities of corporate property ownership and ensure compliance with all regulations.

B. Financing:

• Loan Options: Financing options may be more limited for foreign companies, and lenders may require higher deposits and impose stricter conditions.
• Financial Planning: Develop a robust financial plan to cover the purchase and ongoing costs associated with property ownership.

7. Advantages and Disadvantages:

Advantages:

• Access to Australian property market and potential for high returns.
• Ability to manage and develop property as part of a broader investment strategy.
• The company structure can provide limited liability protection for investors.

Disadvantages:

• Need to navigate complex regulations and obtain FIRB approval.
• Potentially higher costs due to stamp duty surcharges, FIRB fees, and legal expenses.
• More stringent financing requirements and potentially higher interest rates.

Steps to Buy Property Through a Company:

1. Establish the Company: Register the company with ASIC if it’s an Australian entity or ensure the foreign company is compliant with local regulations.
2. Apply for FIRB Approval: Submit an application for FIRB approval and pay the required fee.
3. Secure Financing: Arrange financing if needed, understanding that terms may be stricter for foreign companies.
4. Find Property: Identify suitable properties that comply with FIRB rules (e.g., new dwellings or properties for redevelopment).
5. Make an Offer: Make an offer on the property, conditional on FIRB approval.
6. Legal and Financial Review: Engage legal and financial professionals to review the transaction.
7. Settlement: Complete the purchase and ensure all legal and tax obligations are met.

Recommendations:

• Consult Professionals: Work with legal, financial, and real estate professionals to ensure compliance and make informed decisions.
• Understand Costs: Be aware of all costs involved, including FIRB fees, stamp duty, and ongoing taxes.
• Plan Strategically: Consider the long-term strategy for your investment and how property ownership fits into your overall business objectives.

If you have further questions or need more specific advice, feel free to ask!