New Zealand: New restrictions for foreigners purchasing property

New Zealand: New restrictions for foreigners purchasing property

On 22 October 2018, the Overseas Investment Amendment Act 2018 came into force in New Zealand which prohibits anyone from purchasing residential property in New Zealand without government consent unless that person is a New Zealand citizen or long-term resident.

There have long been restrictions of this nature in New Zealand for certain types of land, but the recent change drastically enlarges the types of land which require consent by including all residential property.

This has implications not only for those looking to invest in residential land in New Zealand, but for those who already own land there.

If someone who does not meet the requirements above (“an overseas person”) already owns land in New Zealand, their position does not change and they need take no action about this new law.

If an overseas person inherits land from a deceased estate, in most situations they are exempted from requiring consent and are able to inherit and retain the land.  The will of the deceased land owner must specifically leave the land to this overseas person, however, and not just leave them a share in the proceeds of the sale of that land.

Transferring New Zealand land (as a gift or otherwise) to an overseas person while you are still alive, however, is likely to require consent in the same way as if that overseas person were purchasing the land.

As with all laws, there are a exceptions and means available to work with this new law, so, if you have any questions, don’t hesitate to contact us.

Further Information:

You can read more on this act at: https://www.linz.govt.nz/overseas-investment/about-overseas-investment-office/legislation-ministers-delegated-powers/overseas-investment-amendment-act-2018


and you can read the act itself at: http://www.legislation.govt.nz/act/public/2018/0025/33.0/DLM7512906.html

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