NSW Treasurer Gladys Berejiklian has revealed that the upcoming NSW budget will include new taxes for foreign property investors.

Foreign investors will pay a 4% surcharge on residential real estate purchases and a 0.75% annual land tax under the new measures.

Berejiklian said the measures will “ensure NSW’s property market continues to be an attractive destination for international investors while making sure that we are able to fund vital services into the future.”

The new measures are expected to add an additional $1 billion to government coffers over four years.

Berejiklian said she is confident the charges will not slow foreign demand for property in NSW.

"It's been proven successful in Victoria, we also know that Queensland is moving in this direction, and we also know that most foreign investors are likely to absorb this cost and proceed with their transaction anyway," she said.

"We do not feel that this will in any way compromise the property market at all."

The Treasurer also announced the government will scrap three business taxes to reduce red tape: the government will abolish share transfer duty, non-real transfer duty, and business mortgage duty.

The tax hikes for foreign property investors will go some way to making up the shortfall.

See also:

Queensland increases surcharge on foreign buyers

Victorian government increases stamp duty for foreigners

Negative gearing debate ends Turnbull honeymoon

Shorten's housing tax plans revealed