Who can buy residential property in NZ?

Under the Overseas Investment Act, overseas persons are no longer permitted to purchase residential property in New Zealand.

Any overseas persons breaching this restriction may be liable for a penalty of up to $300,000 and ordered to sell the property.

An overseas person can purchase residential property only if:

1. that person holds a New Zealand residence class visa;
2. that person is a New Zealand tax resident; and
3. that person has lived in New Zealand at least 183 days in the last 12 months.

A residence class visa holder has not yet lived in New Zealand for at least 183 days can apply for consent to purchase a home to live in from the Overseas Investment Office. Upon grant of the consent, the applicant must promise to live in New Zealand for at least 183 days.

An exemption to these rules is in a scenario where a couple is buying the residential property as relationship property, and the partner of the overseas person is a New Zealand citizen or a resident who has lived in New Zealand for at least 183 days.

Speak to us at Capstone Law if you have any questions about your eligibility to purchase residential property, we would be happy to assist you.