The Overseas Investment Amendment Act 2018 comes into force on 22 October 2018.
This Act amends the existing legislation in relation to overseas investment so that residential land (including lifestyle land) will now be classed as “sensitive land”. The act is intended to substantially limit the ability of non-New Zealand citizens to purchase residential property.
If you are a New Zealand Citizen (based either in New Zealand or overseas), then the changes do not affect you.
If you are not a New Zealand citizen, please let us know immediately as there are certain rules and exemptions which may apply.
If you are an Australian or Singaporean citizen, please also let us know as there are some limited exemptions for these two countries.
An overseas person must be “ordinarily resident in New Zealand” to purchase residential land.
If you are not a New Zealand citizen, then you must hold either a New Zealand, Australian or Singaporean permanent resident visa – please note that this does not include work or student visas.
You must also meet all of the following criteria:
you must have been residing in New Zealand for at least the last 12 months;
- you must be a tax resident in New Zealand; and
- you must have been present in New Zealand for 183 days or more in the last 12 months.
These changes come into force on 22 October 2018. Any transactions entered into (meaning the Agreement for Sale and Purchase is fully-signed by all parties) before that date are not affected.
Please contact one of our lawyers if you have any questions.