The Overseas Investment Act is important not only for overseas investors, but for all of the legal and property sectors and the New Zealand economy as a whole. Among the key changes to the act, that came into force on 6th of March 2026, were changes to the Investment Visa pathways to overseas investors. Certain investor visa holders are allowed to buy certain residential land for more than 5 million dollars. These are sensitive matters involving a lot of money, but we are here to help!
To better understand these changes, let’s answer some important questions:
Who can buy in New Zealand?
The changes state that holders of the Investor 1 and Investor 2 visas (enforced from July 2009-2022) and the holders of an Active Investor Plus visa (from July 2022) have a right to purchase and invest in New Zealand. They don’t have to invest personally and can instead invest via companies, trusts, and other entities. The limitation with these entities is that the visa holder must control at least 25% of the entity and an overseas person (who also have some control in the same entity but not holding any of the mentioned investor visas) cannot control more than 25%. For trust properties only the investor visa holders and their families may have a beneficial interest.
These are crucial criteria, if you need help or are at all unsure talk to us first!
What kind of residential land can you buy?
Residential / Lifestyle but not Sensitive
Anything categorised as “residential” and “lifestyle” for the purposes of the District Valuation Roll (a dataset prepared by local authorities). It is not based on the zoning of the land; this is very crucial. A property located in an area zoned as “residential” does not mean it is a residential property, investors all have to refer to the District Valuation Roll. There are various free services online, such as a QV website, that can provide the information normally found in a District Valuation Roll. If in doubt, we’re here to help!
Besides being “residential” or “lifestyle”, the land must not be “sensitive land”. “Sensitive land” includes non-urban land of greater than five hectares, land great than 0.2 hectares adjoining the seabed or foreshore, land including the seabed or foreshore, land greater than 0.4 hectares on certain islands. As before the changes, you can get confirmation as to whether the land is sensitive by applying for a Sensitive Land Certificate. If in doubt seek advice from a lawyer! If the land has a share in common over a land that is sensitive, for example a shared driveway, then the land is also considered sensitive land.
Dwellings – Land purchased must either have a habitable dwelling on it or have a dwelling built on it within three years of the purchase (without a valid reason for extension). This means no shed or dilapidated houses!
What does the 5 million dollar minimum mean?
This means the property’s purchase price must be over $5 million. This is either the price of the land and an existing dwelling or the price of the bare land plus the cost to build a dwelling on it.
If an investor gets approval from the Overseas Investment Office to build with plans that are estimated to cost more than $5 million, then reduce the build enough to place the value of the transaction under $5 million, the OIO reserves the right to reverse it’s consent and force the investor to cease ownership of the property. Contact us if you’re worried about this issue, it’s a tricky one!
The Purchase Price Allocation rules come in for the sale and purchase of such properties where vendors and purchasers must agree on the portion of purchase price that’s attributable solely land and buildings. Legal and tax advice will need to be sought when determining the purchase price of these properties.
Purpose of Purchase – Unless there are previous rulings, the purchase of property under the investor visa pathway does not restrict the use or intended use of the property. This means that the purchaser does not need to permanently reside there, it can be used as a holiday home or subdivided and developed, for example. Of course, we can help with any property development you do!
What about the ‘national interest’?
Purchases must follow a National Interest Assessment to ensure that they are not contrary to the national interests of New Zealand. An example of this could be a purchase of a property next to a national defence site, which would be regarded as potentially endangering the national interests of New Zealand. This is a crucial aspect to keep in mind!
If I fulfil all these criteria, can I go ahead and purchase the property?
If the above criteria all met by investor, it is not an automatic qualification to go ahead and purchase the property. OIO consent application still needs to be submitted to formally receive OIO consent prior to proceeding to go unconditional on a purchase of property. Consulting a lawyer experienced in the OIO consent application such as ourselves is crucial to ensure timely application to increase your chances of having the OIO consent approved.
Are there any other things to consider?
There are further amendments to the qualification to purchase residential land as a NZ resident. The requirements are:
- Hold a residence class Visa
- Reside in NZ for at least the preceding 12 months
- Be a tax resident (be present in NZ for 184 days or more in total in the immediately preceding 12 months)
There are many technical parts of these changes, such as the rules around spouses and individuals purchasing within entities.
For more information and advice, please feel free to contact Adelina Ong, Partner at Meridian Partners and expert property lawyer.