Inheriting Property in Australia: What Foreign Heirs Need to Know About FIRB

If you own real estate in Australia and your heirs live overseas, the Foreign Investment Review Board (FIRB) rules can significantly affect how your assets are passed on. Since 2021, non‑resident beneficiaries may need FIRB approval before inheriting certain Australian assets — including real estate of any value.

This applies to heirs living in France, New Caledonia, French Polynesia, Wallis‑and‑Futuna, Canada, Singapore, and elsewhere.

And yes — even an Australian citizen living overseas can be treated as a foreign person if they are not ordinarily resident in Australia.

Why FIRB matters for international families

When a foreign person inherits Australian property through a will, they may need to:

• lodge a FIRB application within 30 days,

• pay significant fees (AUD 14,100 to AUD 28,200+),

• wait for approval,

• comply with conditions,

• and in some cases, sell the property if FIRB does not approve.

The executor does not need FIRB approval to administer the estate — but the beneficiary does, once the property is transferred to them.

The key exemption: inheritance “by operation of law”

There is one major exception that many families are unaware of.

If the property passes without a will, under the intestacy rules, the beneficiary receives the property automatically “by operation of law”. In this situation, no FIRB approval is required.

This exemption is based on section 29 of the Foreign Acquisitions and Takeovers Regulation (FATR), which covers involuntary acquisitions — those that do not arise from any choice or agreement between beneficiaries.

Since 2021, gifts under a will no longer fall within this exemption, but intestacy distributions remain expressly covered by section 29 FATR as acquisitions “by operation of law”.

In practice, this means that not including your Australian assets in a will can sometimes protect your non‑resident heirs… and save them thousands of dollars in FIRB fees.

It’s important to note that, even where the intestacy exemption applies, some ongoing obligations may still apply — for example, vacancy fee rules for foreign owners of residential property. These are separate from the FIRB approval requirement.

When the exemption does not apply

The exemption is lost if there is any voluntary element, such as:

• a will directing who receives the property,

• a deed of family arrangement,

• an agreement between beneficiaries,

• a choice between assets,

• any negotiated variation of the statutory distribution.

In these situations, the heir is treated as acquiring the property voluntarily — and FIRB approval may be required.

Why specialised advice is essential

Cross‑border estates are complex.

Families with assets in Australia and heirs overseas face unique challenges:

• FIRB compliance,

• intestacy planning,

• tax and succession rules across multiple jurisdictions,

• avoiding delays or forced sales,

• protecting beneficiaries from unnecessary costs.

At Prince Lawyers International, we regularly assist French‑speaking families with:

• structuring their Australian estate plan,

• relying on the intestacy exemption where appropriate,

• preparing statutory declarations for executors,

• ensuring compliance with FIRB rules,

• coordinating cross‑border succession strategies

Own property in Australia? Let’s secure your estate plan.

A simple decision — whether or not to include your Australian assets in your will — can have major consequences for your heirs.

For tailored advice, reach out to Prince Lawyers International

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