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Yes, you can buy urban real estate. Sometimes there are restrictions and you may need government consent. Some land can’t be bought by foreigners. In this section I explain what is needed and what information you need to provide.
I’m not migrating, but I do want to buy property
A lot of people want to invest in New Zealand, but don’t want to live here. And that’s fine, but there are some conditions. I’m a specialist in this field and my aim with this website is to empower you with knowledge. I have the expertise to find you a property and to see the transaction through the consent procedure.
Buying land without restrictions
As in many countries, New Zealand does have limitations on what type of land overseas buyers can invest in, but there are still plenty of options.
Overseas investors can buy urban property (within the boundaries of cities and towns) used for commercial, industrial, or residential purposes, when it’s not used mainly, or exclusively, for any type of farming.
If you want more land but not quite a farm, you have to buy land that is less than 5 ha (12 acres).
When the property is next to a reserve or a lake, you can buy if it is less than 4000 square metres.
If you want land on the foreshore then the size is limited to less than 2000 square metres.
Do I need government consent to buy land in New Zealand?
Yes, there is some red tape, but the rules are pretty clear:
When you are NOT:
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A NZ citizen
- Ordinarily resident in NZ or
- If your company is incorporated overseas or/and
- It is a NZ company or a trust or a partnership or joint venture but 25% or more of its shares or voting power are held by overseas persons or
- Any nominee of an overseas person -
Then you will need consent from the Overseas Investment Commission.
You’ll also need consent if you want to buy:
- If it's more than NZ$100 million, you’ll need consent.
- If it's less than NZ$100 million, but the shares or voting power is 25% or more in the hands of foreigners, then consent is required.
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Land over 5 hectares: Farms must be marketed locally first, for at least 20 days, before overseas buyers can have the opportunity to buy.
- Sensitive land such as adjoining the foreshore, lakes and reserves over the limit specified or an historic or heritage area.
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Any size land on any islands.
Is there land I’m not allowed to buy?
While there are plenty of options for overseas investors, there are some types of property that you are not allowed to buy:
- Farms to be used as holiday accommodation.
- Lifestyle blocks over 5 hectares unless there is other substantial investment in New Zealand and the lifestyle block is just one of the assets.
What information do I need to apply for land purchase?
Your solicitor in New Zealand will draft the application. I can refer you to solicitors with experience in this field. There are other relevant issues but your solicitor will take care of it Land applications should include a business plan, which quantifies the benefits and sets out a likely timeframe for achieving the goals mentioned in the business plan. Include viability studies and reports of other professionals. The business plan should address the following:
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A quantified figure of how many NEW job opportunities will be created.
- Show how acquisition will increase production on the property. In both the aforementioned cases the test is “substantial increase”.
- Specify new export markets or increased market access.
- Outline the costs and timing for the “milestones” of establishing the investment.
- Specific description of the actual technology or business skills that will be introduced and when.
- Overseas investment should be in New Zealand’s national interest.
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The following personal information is required from the buyer:
- Full background details: details of the parties involved, nationality and place of residence of the persons who exercise control over the property/business.
- The financial details of the buyers and a copy of the latest available annual report and accounts must be submitted.
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