Updated September 6, 2026.
For an international homebuyer, there are two completely different questions.
First: are you legally allowed to buy the property?
Second: if you are allowed to buy it, what does your foreign-buyer status add to the real entry cost?
The second question is easy to underestimate. In some markets the foreign-buyer surcharge can be larger than the deposit a buyer had planned to use. In others, it is smaller but still material once ordinary transfer taxes, legal costs and financing are added.
This article is deliberately narrow. It assumes the buyer and property are legally eligible for the transaction. For the eligibility rules themselves, start with our guide Can Foreigners Still Buy a Home in 2026?.
The 2026 foreign-buyer tax comparison
| Market | Foreign-buyer-specific charge used here | Worked example |
|---|---|---|
| New South Wales | 9% surcharge purchaser duty, where the foreign-person rules apply | On A$1,000,000: A$90,000 surcharge, before ordinary transfer duty |
| Toronto | 25% Ontario NRST + 10% Toronto MNRST, where both apply | On C$1,000,000: C$350,000 in foreign-buyer-specific taxes, before ordinary provincial and municipal land transfer taxes |
| Singapore | 60% ABSD for foreigners buying residential property, subject to applicable remission or treaty rules | On S$1,000,000: S$600,000 ABSD; with S$24,600 BSD, total stamp duties in this simplified example are S$624,600 |
| England | 2 percentage-point SDLT surcharge for qualifying non-UK-resident transactions | On a £500,000 single-property purchase in this example: £25,000 SDLT versus £15,000 for a comparable resident transaction, an extra £10,000 |
These figures are not meant to compare which city is “cheapest.” They use different currencies and different legal systems. The useful comparison is the foreign-buyer entry friction: how much extra tax foreign status can add before the buyer even starts counting the normal closing costs.
My practical lesson from buying property in Australia
Having gone through Australian residential property purchases as both an owner-occupier and an investor, I have learned to treat the advertised price as only the first line of the transaction. The number that matters at settlement is the amount of cash the entire deal requires after duty, legal costs, settlement adjustments and loan funding are brought together.
That experience is why I would never compare two international properties on listing price alone. Before I became emotionally attached to a property, I would want a one-page settlement estimate showing the purchase price, the buyer classification, every transfer or stamp duty, the foreign-buyer surcharge, the deposit, financing and the cash still required on completion. A property can look affordable on a portal and become a very different purchase once those lines are added.
This is not a claim that Australian rules apply elsewhere. They do not. It is simply the practical habit I carry into every international property comparison: calculate the entry price before judging the house price.
New South Wales: 9% is paid on top of normal transfer duty
Revenue NSW states that the current surcharge purchaser duty rate is 9% of the dutiable value for relevant foreign-person acquisitions of residential-related property. The surcharge is paid in addition to ordinary transfer duty.
For a A$1,000,000 residential purchase, Revenue NSW itself gives a current example using 2026/27 transfer-duty rates: A$90,000 surcharge purchaser duty plus A$39,187 transfer duty. That produces A$129,187 in state duties before legal fees, financing costs or other settlement adjustments.
That calculation immediately changes the way a buyer should think about a deposit. Someone who had mentally budgeted A$100,000 as a 10% deposit would face a foreign-buyer surcharge almost as large as the deposit itself.
Buyer classification matters. Australian citizens are not treated as foreign persons for this surcharge, and some permanent residents or other buyers may fall outside the foreign-person definition or qualify for an exemption depending on the rules and facts.
Official source: Revenue NSW — surcharge purchaser duty
Toronto: provincial and city foreign-buyer taxes can stack
Ontario’s Non-Resident Speculation Tax applies at 25% to applicable purchases or acquisitions of residential property by foreign nationals, foreign corporations or taxable trustees. Ontario confirms that NRST is payable in addition to the province’s general Land Transfer Tax.
Toronto adds another layer. Since January 1, 2025, the city’s Municipal Non-Resident Speculation Tax applies at 10% to applicable foreign-buyer purchases of certain residential properties in Toronto, in addition to Municipal Land Transfer Tax.
For a C$1,000,000 transaction subject to both foreign-buyer taxes:
Ontario NRST: C$250,000
Toronto MNRST: C$100,000
Combined foreign-buyer-specific taxes: C$350,000
That is a 35% foreign-buyer tax load before ordinary provincial and Toronto land-transfer taxes are added.
The exemptions and rebate rules matter. Ontario publishes exemptions for certain nominees, protected persons and qualifying spouses, as well as a permanent-resident rebate in specified circumstances. Toronto also provides rebate rules that can apply to certain buyers who later become permanent residents. A buyer should therefore classify the transaction before multiplying the purchase price by 35%.
Official source: Ontario — Non-Resident Speculation Tax
Official source: City of Toronto — MNRST and MLTT
Singapore: a 60% ABSD changes the meaning of affordability
Singapore’s Inland Revenue Authority publishes an Additional Buyer’s Stamp Duty rate of 60% for foreigners buying residential property on or after April 27, 2023, subject to applicable remission or treaty treatment. ABSD is calculated on the higher of the purchase price or market value.
On a S$1,000,000 residential property, the simplified calculation is:
ABSD: S$600,000
Buyer’s Stamp Duty uses progressive residential rates. On S$1,000,000, the current bands produce:
1% of first S$180,000 = S$1,800
2% of next S$180,000 = S$3,600
3% of next S$640,000 = S$19,200
Total BSD: S$24,600
ABSD + BSD: S$624,600
That is why a Singapore property search for a foreign buyer should begin with buyer status, not listings. A S$1 million property is not a S$1 million entry decision when the applicable stamp-duty structure adds more than S$600,000 before financing and legal costs.
Official source: IRAS — Additional Buyer’s Stamp Duty
Official source: IRAS — Buyer’s Stamp Duty
England: a smaller surcharge, but residence status still changes the bill
England uses a different structure. Qualifying non-UK-resident residential transactions generally pay SDLT rates that are 2 percentage points higher than the corresponding resident rates.
For a £500,000 purchase where the higher rates for additional dwellings do not apply, the current standard residential bands produce £15,000 of SDLT for a resident buyer:
0% on first £125,000 = £0
2% on next £125,000 = £2,500
5% on remaining £250,000 = £12,500
Total: £15,000
Adding two percentage points to each band produces £25,000 for the equivalent qualifying non-resident transaction:
2% on first £125,000 = £2,500
4% on next £125,000 = £5,000
7% on remaining £250,000 = £17,500
Total: £25,000
The foreign-residence effect in this example is therefore £10,000, or 2% of the purchase price. HMRC also provides a route for individual buyers to claim a refund of the non-resident surcharge if the required UK-presence test is subsequently satisfied within the specified period.
Official source: HMRC — SDLT rates for non-UK residents
Official source: GOV.UK — residential SDLT rates
The Better Places Life foreign-buyer entry-price test
Before comparing mortgage repayments or neighbourhoods, I would put every international property through five gates.
- Legal eligibility. Can you legally buy this property type today? Start with our 2026 foreign-buyer eligibility comparison.
- Buyer classification. Are you treated as a citizen, permanent resident, ordinarily resident, treaty-protected buyer, exempt buyer or foreign buyer for the tax being applied?
- Foreign-buyer tax. Calculate the foreign-specific surcharge before looking at monthly mortgage payments.
- Ordinary transaction taxes. Add normal transfer duty, stamp duty, land-transfer tax and mandatory closing costs.
- Cash required at completion. Add the deposit and costs, then subtract confirmed loan funding. This—not the listing price—is the number that can stop a transaction at settlement.
A simple ratio that makes countries easier to compare
One useful screening metric is:
Foreign-buyer entry friction = foreign-buyer-specific tax ÷ purchase price
Using the simplified examples in this article:
England: about 2%
NSW: 9%
Toronto: 35%
Singapore: 60%
This ratio does not tell you which market is best. It tells you how much of your capital can disappear into a buyer-status tax before you own a single extra square metre of property.
Do not confuse a cheaper market with a cheaper entry
Our Global Homebuyer Reset 2026 shows that real house-price momentum is diverging sharply across countries. But even a market with falling prices can be expensive to enter if the buyer faces a large foreign-purchaser tax.
That is the larger decision rule: house-price direction and transaction friction are separate variables. A 5% fall in the property price does not compensate for a 25%, 35% or 60% foreign-buyer tax.
And if the purchase is part of a move abroad rather than a pure investment, tax residence is another separate question. Our guide The 183-Day Rule Is Not One Rule explains why owning or occupying a home can sit alongside entirely different residence tests.
Bottom line
International buyers should stop asking only, “Can I afford the mortgage?”
The better first question is:
“What is the full entry price for someone with my exact buyer status?”
Get that answer before booking inspections, paying a reservation fee or becoming emotionally attached to a property. In several global markets, the tax classification can change the transaction more than a modest change in the property price ever will.
This article provides general information only and is not personal tax, legal or property advice. Rates, exemptions, buyer definitions and refund rules can change, and individual transactions may be treated differently.
Featured photo: Fons Heijnsbroek via Unsplash.
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