Foreign Investment Guide in Sydney, Australia

Why Invest in Sydney?

Sydney is Australia's largest city and an important centre for financial services, technology, professional services, international business and innovation.

NSW Government investment information describes Sydney as a global city with major finance, research and innovation sectors and highlights its international connections, infrastructure and skilled workforce.

For an international investor, Sydney can therefore be relevant both as a destination market and as a base for operating in Australia and the wider Asia-Pacific region.

Major reasons investors consider Sydney

• Financial services: Sydney has a large concentration of banks, fund managers, insurers, superannuation organisations and other financial businesses.
• Technology: NSW has a large technology workforce and a significant startup and innovation ecosystem.
• International connections: Sydney provides access to Australia's domestic market and connections with Asia-Pacific markets.
• Skilled workforce: Sydney attracts professionals across technology, finance, engineering, health, research and business services.
• Innovation: Sydney and NSW have established technology, research, university and startup ecosystems.
• Diverse economy: Investment opportunities extend beyond finance and property into technology, health, manufacturing, clean economy, education, logistics and other sectors.
• Government investment support: Investment NSW provides information, connections and assistance for eligible businesses considering investment and expansion in NSW.

Investment Opportunities in Sydney

Foreign investors can consider many different sectors in Sydney and NSW. Investment NSW identifies technology, clean economy, advanced manufacturing, health and life sciences and other industries as important areas for investment.

Foreign Investment Rules in Australia

Foreign investment in Australia is governed by a federal framework administered through the Australian Government's foreign investment system. The framework gives the Treasurer powers to approve investments, impose conditions, prohibit certain investments or require an investment to be unwound where the applicable legal tests are met.

Different rules apply depending on the type of investment. Relevant categories can include:

• Business acquisitions
• Commercial land
• Residential land
• Agricultural land
• Mining investments
• National security businesses and assets
• Interests in Australian entities
• Other investments covered by the legislation

Australia's foreign investment framework includes both national-interest and national-security tests for different categories of investment.

Australian Government – Foreign Investment Framework →

Foreign Investment – Types of Reviewable Investments →

Investing in a Business in Sydney

Foreign investors may invest in an existing Australian company, acquire a business, establish a new Australian operation, form a joint venture or invest in an Australian startup.

The correct structure depends on the investment, ownership arrangements, business activity, tax considerations and regulatory requirements.

Possible Investment Structures

• Investment in an Australian company
• Acquisition of an Australian business
• Australian subsidiary
• Australian branch of a foreign company
• Joint venture
• Partnership
• Trust structure
• Startup or venture investment

Buying an Existing Sydney Business

Buying an existing business can provide an investor with an established customer base, employees, contracts, equipment and operating history.

However, the transaction should be investigated carefully before completion. Due diligence can cover financial statements, debts, contracts, employees, intellectual property, licences, tax obligations, leases, litigation and regulatory requirements.

Starting a New Business

International entrepreneurs can establish businesses in Sydney subject to Australian company, tax, employment, immigration and industry-specific requirements.

Setting Up a Company in Sydney

A foreign investor establishing an Australian company will generally need to consider company registration, directors, taxation, business-name registration where applicable, employment obligations and industry-specific licences.

Australian companies are registered through the Australian Securities and Investments Commission (ASIC).

ASIC explains that a company is registered on the Australian companies register and that company officeholders have ongoing legal obligations.

ASIC – Register a Company →

Foreign Company Operating in Australia

A foreign company that carries on business in Australia generally needs to register with ASIC as a foreign company.

Registered foreign companies have ongoing obligations, including maintaining an Australian registered office and lodging required documents with ASIC.

ASIC – Obligations of Foreign Companies →

Foreign Investment in Sydney Property

Sydney property is an important consideration for international investors, but Australian residential property rules for foreign persons are significantly different from ordinary business investment.

Foreign investors should not assume that they can freely purchase any residential property in Sydney.

Residential Property Rules

Under the current federal framework, foreign investors generally need to notify the Australian Taxation Office before acquiring an interest in residential land, regardless of value, subject to applicable exemptions and exceptions.

The Australian Government's policy generally directs foreign investment in residential property toward increasing Australia's housing supply.

For the period beginning 1 April 2025, foreign persons are generally prohibited from purchasing established dwellings until 30 June 2027, subject to limited exceptions and specific circumstances.

Rules can differ for new or near-new dwellings, vacant residential land and certain redevelopment or commercial-scale housing projects.

NSW Surcharge Purchaser Duty

Foreign persons acquiring certain residential-related property in NSW may also be liable for surcharge purchaser duty in addition to ordinary transfer duty. The exact rules depend on the purchaser, property and transaction.

Revenue NSW – Surcharge Purchaser Duty →

Commercial Property

Commercial property is governed by a different set of foreign-investment rules from residential property. Depending on the transaction, commercial land may be subject to notification or review requirements and monetary thresholds.

Commercial property can include:

• Office buildings
• Industrial property
• Warehouses
• Retail property
• Hotels and tourism assets
• Development land
• Logistics property
• Specialised commercial facilities

Taxes and Foreign Investment in Sydney

Tax treatment depends on the type of investment, ownership structure, investor residency, source of income and the nature of the transaction.

Potential Australian tax considerations can include:

• Income tax
• Company tax
• Goods and Services Tax (GST)
• Capital gains tax (CGT)
• Withholding taxes
• Payroll tax
• Stamp duty and transfer duty
• NSW land-related taxes
• Foreign-owner property taxes where applicable

Foreign residents may also be affected by Australia's tax treaties and by specific rules concerning Australian-source income and taxable Australian property.

The Australian Taxation Office explains that foreign residents can have Australian tax obligations depending on their Australian business activities, income and assets.

Australian Taxation Office – International Tax for Business →

Fintech Investment in Sydney

Fintech is one of Sydney's significant technology and financial-services sectors. Investment NSW describes Sydney as Australia's financial capital and reports a large concentration of Australian fintech companies in the city.

Sydney fintech businesses operate across areas including:

• Payments
• Digital banking
• Online lending
• Wealth technology
• Insurtech
• RegTech
• Financial data
• Blockchain and digital assets
• Financial cybersecurity
• Artificial intelligence

The combination of financial institutions, technology companies, investors, regulators and skilled professionals creates opportunities for fintech entrepreneurs and investors.

Investment NSW – Fintech in NSW →

Startup Investment in Sydney

Sydney has an established startup ecosystem involving universities, investors, accelerators, technology companies, research institutions and government programs.

Foreign investors can participate in the startup ecosystem through different structures, including:

• Angel investment
• Venture capital
• Corporate investment
• Startup acquisitions
• Technology partnerships
• Joint ventures
• Australian subsidiaries

Investment decisions should include due diligence covering ownership, intellectual property, financial position, shareholder agreements, regulatory requirements, commercial contracts and the company's growth assumptions.

Technology Startup Opportunities

Investment NSW identifies areas such as fintech, artificial intelligence, cybersecurity, enterprise software, quantum technology and other digital technologies as important parts of the NSW technology ecosystem.

Health and Life Sciences Investment

NSW has a substantial health and life sciences ecosystem involving universities, hospitals, research institutions, biotechnology companies, medical-device businesses and pharmaceutical organisations.

Investment opportunities can include:

• Biotechnology
• Medical devices
• Digital health
• Pharmaceutical research
• Clinical trials
• Diagnostics
• Health technology
• Advanced medical manufacturing

Sydney's major health and research precincts include locations such as Westmead, Randwick, Macquarie Park, Liverpool, St Leonards and Darlinghurst.

Investment NSW – Health & Life Sciences →

Clean Economy and Sustainable Investment

NSW is also developing investment opportunities around the transition to a lower-emissions economy.

Relevant areas include:

• Renewable energy
• Energy storage
• Green hydrogen
• Critical minerals
• Battery industries
• Circular economy
• Recycling technology
• Sustainable transport
• Energy efficiency
• Sustainable finance

Investment NSW identifies Sydney as an emerging sustainable-finance hub and highlights opportunities associated with the broader NSW clean-economy transition.

Investment NSW – Clean Economy Investment →

Advanced Manufacturing Investment in NSW

Advanced manufacturing is another investment area promoted by the NSW Government. The sector includes high-value manufacturing connected with technology, health, defence, aerospace, food, clean energy and other industries.

Investment opportunities can include:

• Automation
• Robotics
• Medical manufacturing
• Defence manufacturing
• Aerospace
• Food manufacturing
• Advanced materials
• Clean manufacturing
• Industrial technology

Western Sydney is particularly relevant to future industrial and advanced manufacturing development, including the Western Sydney Aerotropolis.

Investment NSW – Manufacturing →

Investment Opportunities in Western Sydney

Investment in Sydney is not limited to the traditional central business district. Western Sydney is undergoing major infrastructure, aviation, manufacturing, technology and urban-development investment.

The Western Sydney Aerotropolis and Bradfield City Centre are particularly important areas of long-term development.

Investment opportunities can involve:

• Advanced manufacturing
• Logistics
• Technology
• Aerospace
• Defence
• Research and development
• Industrial property
• Infrastructure-related businesses
• Construction
• Supply-chain businesses

The development of Western Sydney International Airport and surrounding economic precincts is contributing to a major long-term development program in Western Sydney.

Financial Services Investment and ASIC Regulation

Foreign investors considering financial-services businesses need to pay particular attention to Australian regulation.

ASIC regulates companies, financial markets and financial-services businesses in Australia.

A business carrying on a financial-services business generally needs an Australian Financial Services (AFS) licence unless an exemption applies or the business is authorised to provide services as a representative of another AFS licensee.

Potentially regulated activities can include:

• Providing financial product advice
• Dealing in financial products
• Operating certain registered schemes
• Providing custodial services
• Operating certain crowdfunding services
• Providing certain superannuation trustee services
• Other regulated financial services

The requirements depend on the exact business model and services provided.

ASIC – AFS Licensing →

Foreign Financial Services Providers

Foreign financial-services providers can be subject to specific Australian requirements. ASIC states that businesses carrying on a financial-services business in Australia generally need an AFS licence unless relief or an exemption applies.

ASIC – Foreign Financial Services Providers →

Foreign Investors Starting a Business in Sydney

International entrepreneurs and companies can establish operations in Sydney, but investment and business establishment are separate issues from immigration.

A person may need to consider:

• Australian business structure
• Foreign investment approval
• Australian company registration
• Australian tax registration
• Business licences
• Employment obligations
• Visa and work rights
• Industry-specific regulation
• Intellectual property protection
• Insurance
• Accounting and reporting

Owning or investing in an Australian business does not automatically provide a person with the right to live or work in Australia. Immigration and business requirements should therefore be assessed separately.

How to Start Investing in Sydney

The exact process depends on the investment, but the following sequence can help an international investor organise the initial assessment.

1. Define the Investment

Decide whether you are considering a business, startup, commercial property, residential property, financial-services business, technology company or another investment.

2. Check Whether You Are a Foreign Person

Australia's foreign investment rules contain specific definitions of foreign persons and different rules can apply depending on ownership and control.

3. Check the Foreign Investment Rules

Determine whether the proposed investment requires notification, approval, an exemption certificate or another form of compliance.

4. Check the Current Monetary Thresholds

Many foreign investment screening thresholds depend on the investment type and are updated periodically.

5. Obtain Professional Advice

For a significant investment, consider obtaining advice from an Australian lawyer, tax adviser and accountant with experience in international investment.

6. Choose the Business Structure

Depending on the project, possible structures include an Australian company, branch, partnership, trust, joint venture or investment through another appropriate structure.

7. Complete Required Registrations

Depending on the structure and activity, this may involve ASIC, the Australian Taxation Office, business-name registration and industry-specific authorities.

8. Conduct Due Diligence

Review financial statements, contracts, ownership, liabilities, licences, employees, intellectual property, property rights, litigation and regulatory issues before completing an acquisition.

9. Review Tax Consequences

Understand Australian taxes as well as any applicable international tax treaty and taxation in the investor's home country.

10. Complete the Investment

Only proceed after the applicable regulatory, legal, financing and commercial conditions have been satisfied.

Frequently Asked Questions About Foreign Investment in Sydney

Can foreigners invest in Sydney?

Yes. Australia permits foreign investment, but specific investments may be subject to notification, approval, conditions or other regulatory requirements. The rules depend on the investor and the type of investment.

Do foreigners need approval to invest in Australia?

Not every foreign investment requires approval. Some investments are subject to notification or review, while others may fall outside the relevant requirements or qualify for an exemption. The current rules and thresholds must be checked for each transaction.

What is FIRB?

FIRB is commonly used to refer to Australia's Foreign Investment Review Board. The foreign investment framework gives the Treasurer powers to review certain foreign investment proposals. The current foreign investment system is administered through the Australian Government's foreign investment framework.

Can foreigners buy property in Sydney?

Foreign investors can purchase certain types of Australian property subject to the applicable rules, but residential property is heavily regulated. Foreign persons generally need to notify before acquiring residential land, and from 1 April 2025 foreign persons are generally prohibited from purchasing established dwellings until 30 June 2027, subject to limited exceptions.

Can foreigners buy new property in Sydney?

New and near-new dwellings are treated differently from established dwellings under Australia's foreign investment framework. Approval or notification requirements can still apply, so the specific property and investor status must be checked before purchase.

Can foreigners invest in commercial property in Sydney?

Foreign investors can invest in commercial property, but certain acquisitions can be subject to Australia's foreign investment framework and monetary thresholds. Commercial property rules are different from residential property rules.

Can a foreigner start a company in Sydney?

International investors can establish Australian business structures subject to Australian company, tax, immigration and industry requirements. Australian companies are registered through ASIC, while foreign companies carrying on business in Australia generally need to register with ASIC.

Do foreign companies need to register in Australia?

A foreign company that carries on business in Australia generally needs to register with ASIC and comply with ongoing reporting and other obligations.

Do financial-services companies need an Australian licence?

A business carrying on a financial-services business in Australia generally needs an Australian Financial Services licence unless an exemption or other authorisation applies.

Is Sydney good for fintech investment?

Sydney has a substantial fintech ecosystem and is a major Australian financial centre. Fintech opportunities include payments, lending, wealth technology, regtech, financial data, digital finance and related technologies.

What industries can foreigners invest in Sydney?

Potential sectors include technology, fintech, financial services, health and life sciences, clean economy, advanced manufacturing, commercial property, tourism, logistics, education and other industries. The suitability and regulatory requirements vary by investment.

Is there government support for foreign investors in Sydney?

Investment NSW provides information, introductions and assistance for businesses considering investment and expansion in NSW. The services available depend on the project and eligibility.

Do foreign investors pay tax in Australia?

Foreign investors can have Australian tax obligations depending on the type of investment, income, ownership structure, tax residency and applicable Australian tax rules. International tax treaties can also affect the outcome.

Is residential property the same as business investment for foreign investors?

No. Residential property has its own specific foreign-investment rules and should be assessed separately from business and commercial investments.

Does investing in Australia give me a visa?

Investment and immigration are separate areas of Australian law. An investment does not automatically give an investor the right to live or work in Australia. Any visa pathway should be checked against current Department of Home Affairs requirements.

Where can I check Australia's foreign investment rules?

The Australian Government's foreign investment website provides current guidance, investment categories, thresholds, application information and compliance information.

Australian Government – Foreign Investment in Australia →