On 12 December 2025, the New Zealand Government passed the Overseas Investment (National Interest Test and Other Matters) Amendment Act, amending the Overseas Investment Act 2005 to allow certain investor visa holders to purchase residential property in New Zealand with a value of NZ $5 million or greater.

The new law comes into effect on Friday, 6 March 2026.

Who Can Benefit from the Changes?

Under the amended regime, Active Investor Plus (AIP) visa holders, as well as former Investor 1 and Investor 2 visa holders, will be eligible to apply for consent to purchase residential land.

The Government considers these classes of investor visa holders to be a low-risk, strategically valuable group, as their immigration pathway requires substantial investment into the New Zealand economy. The changes to the law accommodate their desire and ability to purchase residential property in which to reside while living in New Zealand.

What Residential Property Can Be Purchased?

The new pathway allows eligible visa holders to acquire “residential (but not otherwise sensitive) land”, provided strict criteria are met:

• The purchaser may only acquire one residential property under the new regime.
• The property must include an existing residential dwelling, or the purchaser must intend to build a dwelling.
• The purchase price must be at least NZ $5 million (inclusive of GST if any); or
• Where the purchaser intends to build, the combined land purchase price and construction costs must exceed NZ $5 million (inclusive of GST if any).
• The transaction must not be contrary to New Zealand’s national interest.

Importantly, this pathway does not extend to land that is sensitive for other reasons, including:

• Non-urban land exceeding five hectares
• Land adjoining the foreshore, seabed, or certain lakes
• Certain island land

As a result, not all lifestyle or rural properties will qualify, and property-specific advice remains essential.

Overseas Investment Office (OIO) Consent Process

Although residential purchases will be permitted, OIO consent remains mandatory.

Key features of the new consent process include:

• Although the statutory timeframe is 15 working days, applications are expected to be determined within 5 working days.
• Application fees are relatively modest: NZ $2,040 where an existing dwelling is being acquired; and NZ $3,500 for all other cases, including build-to-occupy scenarios.
• Agreements to purchase property may be entered into now, provided they are expressly conditional on: OIO consent being granted; and the new legislative regime coming into force.

Where land is acquired for the purpose of building a new home, consent conditions will typically apply, for example:

• Completion of the dwelling;
• Confirmation that total costs exceed NZ $5 million;
• Ongoing reporting to the OIO; and
• A possible forced sale if consent conditions are not satisfied.

Use of the Property

There are no restrictions under the Overseas Investment Act on how the property may be used once acquired. The property may be:

• Occupied as a primary residence

• Used as a holiday home

• Used in connection with a business

However, it is important to note that purchasing a personal residence does not count as an acceptable investment for the purposes of meeting investor visa investment requirements.

Policy Rationale and Market Impact

The Government has stated that these changes are intended to make New Zealand more attractive to high-value investor migrants, while limiting broader housing market impacts.

It estimates that only around 1% of New Zealand homes exceed the NZ $5 million threshold, meaning the policy is unlikely to affect housing affordability for most New Zealanders.

Final Thoughts

For eligible investor visa holders, these reforms create a long-awaited opportunity to secure a high-value home in New Zealand while maintaining compliance with overseas investment rules. However, the regime remains technical, and errors in property selection, contract structure, or ownership arrangements can result in delays or enforcement risk.

Early legal advice is essential, particularly for those wishing to enter into conditional purchase agreements ahead of formal commencement. Additionally, in order to facilitate any consent requests, we would highly recommend getting in touch with us to arrange a consultation for the next steps.

Where immigration status and overseas investment regulation intersect, coordinated specialist advice is critical, and early planning can make the difference between approval and delay.

Speak with Queen City Law’s specialised team to ensure your $5M+ residential acquisition is executed seamlessly and in full compliance with the Overseas Investment Act.

Please contact the experts at Queen City Law for assistance. For more information about this article, you can contact Tina and Joseph. For more information about AIP Golden Visas, you can click here, or you can contact Marcus, Bradley or Tom by clicking the links.

Disclaimer:

This article is general information only and does not constitute legal advice. Please ensure you get professional legal advice before making any decisions.