On 6 March 2026, the much-anticipated reforms to the Overseas Investment Act 2005 (Act) officially came into force. These reforms, which we summarised in our earlier article, are now operational and represent a significant shift in New Zealand’s approach to providing investment visa holders with access to property. The changes are part of the Government’s broader “Going for Growth” programme and are designed to make New Zealand a more attractive destination for foreign investment and high-net-worth individuals.
Overseas persons generally cannot buy New Zealand property unless the Overseas Investment Office (OIO) grants consent.
Lane Neave’s immigration and property law teams have been closely following these reforms and are actively engaging with the OIO on behalf of clients. We have already completed several successful applications and have clients holding properties under all available property purchase pathways described below.
If you are considering an investment in New Zealand or wish to take advantage of the new residential property pathway, please reach out to our experts for tailored advice.
The new residential property pathway – now open
As we outlined in our previous article, the reforms include a new, targeted consent pathway for investor visa holders to purchase or build residential property in New Zealand – the $5 million plus house pathway. That pathway is now live, and we have already completed several successful transactions for overseas investors.
Holders of an Active Investor Plus (AI+), Investor 1, or Investor 2 Resident Visa (including Permanent Resident Visa (PRV) holders who previously held one of these visas) can purchase one residential or lifestyle property valued at more than NZ$5 million, provided the property is not otherwise classified as sensitive land under the Act.
If the property is residential and sensitive for another reason (e.g. coastal, on Waiheke Island and over 0.4ha, over 0.4ha adjoining conservation and reserve land or non-urban land over 5ha) the overseas investor will need to consider other pathways to acquire that property.
OIO consent is still required, but the process is streamlined, with applications typically being processed in fewer than five working days. (We have had examples where consent was approved within 48 hours).
Agreements for sale and purchase can be entered into before consent is granted, provided they are conditional on obtaining OIO consent.
Standing consents (without an identified property) cannot be obtained because the OIO needs to know the sensitivity of the property and ensure the purchase price exceeds NZ$5 million.
Application fees are NZ$2,040 for property with existing houses and NZ$3,500 for bare land with houses to be built.
Bare land
This pathway allows relevant visa holders to purchase bare land, provided they build a house on the land. The cost of the land does not need to exceed NZ$5 million, provided the total cost of the land and build will exceed NZ$5 million (e.g. land purchased for NZ$2 million with a planned NZ$4 million build).
Applications to purchase bare land must include details of the building project, including the current stage of the project and the anticipated project cost (to ensure the NZ$5 million threshold is met). This does not need to include plans or costing sheets, and applications can be made at the preliminary stage, prior to formally engaging an architect or builder.
Once consent is granted, the OIO requires a house to be built within timeframes to be determined on a case-by-case basis. Usually, the OIO requires six-monthly updates and are flexible to extending the timeframe for completion depending on the complexity of the project.
Ownership structures
Relevant visa holders can acquire property using their respective company or trust, provided those entities meet the relevant criteria. At a high-level:
- For companies: the investor and their spouse must have more than 25% ownership and control of the company, and the company must not have overseas persons (other than the investor and their spouse) owning and controlling more than 25% of the company.
- For trusts: No-one other than the investor and their immediate family can have a beneficial interest in the trust, have the right to amend the trust or have the right to appoint and remove trustees.
One property per visa holder can be purchased under this pathway. This allows for married and de-facto couples both holding the relevant visas to purchase two properties jointly owned by that couple. The same applies to families where each member holds the relevant visa.
Property use
There are no restrictions on how the property may be used. It can serve as a primary residence, a holiday home, or be used for commercial purposes (subject to local planning rules). This allows greater flexibility for overseas investors, where previously under the One home to live in pathway – outlined below – the property had to be used as their main home.
Relevant visa holders who have previously purchased property under the One home to live in pathway, and do not want to use the property as their main home, can apply for consent under this pathway to give them greater flexibility and have unrestricted use of their property.
Existing pathway – One home to live in
The existing One home to live in pathway that was in place before the new pathway is still in place, allowing resident class visa holders to purchase one residential or lifestyle property to live in. The property may be sensitive for a reason other than being residential. However, the property must be used for residential purposes, and the resident class visa holder must make a commitment to reside in New Zealand.
Applications under this consent pathway require the investor to sign a declaration stating they will be in New Zealand for at least 183 days in every 12-month period beginning on the date consent is given, and that they will become and remain a tax resident in New Zealand. These requirements stop applying to the resident class visa holder once they become a New Zealand citizen, or “ordinarily resident in New Zealand” – as outlined below.
Resident class visa holders do not need to be present in New Zealand for more than 183 days in the last 12 months or be tax residents in New Zealand to purchase under this pathway. This is a common misconception we encounter; a consent can be acquired prior to that 12-month period, including straight after the resident class visa is issued.
Unlike the $5 million plus house pathway, investors can obtain a standing consent to purchase a property before selecting the property to buy. This allows resident class visa holders to already have consent to buy when searching the market. This standing consent lasts one year from the date of issue. However, in some instances, depending on the property selected, a slightly different consent may be necessary, and if so, that would mean a new consent application would be required. For this reason, and given the speed of securing these consents, we only recommend securing a consent once a property is identified and the class of consent required can be determined.
This pathway can also be used to purchase bare land provided a house is built on it, because the resident class visa holder will need to live in the property as their main home. The requirement to be present in New Zealand for at least 183 days in each 12-month period from the date consent is given still applies when purchasing bare land. This creates a practical issue, because resident class visa holders who intend to live in New Zealand may be compelled to rent accommodation while their home is being built.
Resident class visa holders who already own property in New Zealand can still purchase property under this pathway (if property was not purchased using this pathway). However, because this pathway requires the resident class visa holder to commit to residing in the new property as their main dwelling, the OIO will likely require the existing property to be sold if they have concerns the resident class visa holder will live in the existing property (and not the new property).
Unlike the $5 million plus house pathway, a married or de-facto couple, who both hold resident class visas, can only purchase one property under this pathway. This is because the couple cannot reside in two properties at the same time.
Like the $5 million plus house pathway, investors can acquire the property using their respective company or trust, provided those entities meet the relevant criteria.
Once consent under this pathway is granted, everyone who is named in the consent must move into the property and live in it as their main home within the time specified in the consent, which is usually within three months of taking ownership of the property (i.e. settlement) or, if building a house, within three months after construction is completed.
Application fees are NZ$2,040 for property that is residential but not otherwise sensitive, NZ$5,800 if buying through a company or trust and NZ$16,900 for property that is residential and sensitive for another reason. Timeframes are similar to the $5 million plus house pathway but are dependent on the sensitivity of the property.
Investor visa holders who have previously purchased property under this pathway but do not want to reside in the property full time, can now apply for consent under the $5 million plus house pathway. This consent replaces the existing consent, removes the existing conditions and allows the investor visa holder to freely live around the world. This is particularly beneficial for overseas investors who do not wish to become tax resident in New Zealand.
| Pathway | Investor requirements | Type of property | Restrictions on property | Tax residency? |
|---|---|---|---|---|
| $5 million plus house | Must hold an AI+, Investor 1, or Investor 2 Resident visa (or PRV sourced from these). | Must be purely residential or lifestyle. | No restriction on the use of the property. If bare land, house must be built on the property. | Will depend on whether the permanent place of abode test is met – refer below. No requirement to become tax resident. |
| One home to live in | Must hold any resident class visa. | Must be residential or lifestyle and can be sensitive for another reason. | Property must be used as your main home. If bare land, house must be built on the property. | Must commit to becoming a tax resident. |
Existing pathway – Intention to reside in New Zealand
Property that is sensitive under the Act but is not residential or lifestyle, can only be purchased by obtaining consent under the Intention to reside in New Zealand pathway.
This is available to resident class visa holders and entrepreneur work visa holders. The investor must intend to relocate to New Zealand and provide evidence showing their intention to live permanently in New Zealand.
Once consent is granted, the investor is required to move to New Zealand within 12 months of the date of consent and become “ordinarily resident in New Zealand” (discussed below) within two years of the date of consent.
The application fee for this is NZ$47,300 and is less common than the One home to live in pathway because most investors are purchasing property with a residential or lifestyle classification. Timeframes vary but can take up to 55 working days.
Ordinarily resident in New Zealand – no consent required
Once an overseas investor becomes ordinarily resident in New Zealand, they are then treated as a New Zealand citizen under the Act and are free to purchase sensitive land in New Zealand without OIO consent.
To be ordinarily resident in New Zealand, you must:
- have a resident class visa;
- have lived in New Zealand for at least the last 12 months; and
- be a tax resident of New Zealand.
We have encountered instances where overseas investors are not aware of this, and consent is not required.
Tax residency – a practical consideration
While the new residential property pathway is a welcome development, investor visa holders should be aware that owning property in New Zealand can increase the likelihood of becoming tax resident.
New Zealand tax residency can be triggered in two ways – by being physically present in New Zealand for more than 183 days in any 12-month period, or by having a permanent place of abode (PPOA) in New Zealand.
Purchasing a property in New Zealand does not mean the test for having a PPOA in New Zealand is automatically met, contrary to several articles we have seen circulating on this subject. The test is determined from a range of factors but is closely linked to having a New Zealand dwelling.
Some of the relevant factors include the investor’s frequency and pattern of visits to New Zealand, family circumstances, broader patterns of life indicating a degree of permanence in New Zealand and a focus on the New Zealand property. In many instances this means acquiring a property does not trigger the PPOA test.
Investors who have purchased property in New Zealand should consider how that ownership will interact with their activity in New Zealand, if they wish to avoid becoming tax resident. This may be less of a concern for investors from jurisdictions that have double tax agreements with New Zealand (such as the United States), although it will remain a relevant consideration for high-net-worth individuals with international business interests, before entering a transaction.
Whether a particular property triggers the PPOA test is ultimately fact-specific, and investors should seek tax advice at an early stage to allow informed decisions to be made.
