Update: Ban on foreign buyers purchasing homes in New Zealand | Pitt & Moore, Lawyers in Nelson

Update: Ban on foreign buyers purchasing homes in New Zealand

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Yesterday, the NZ Government introduced into Parliament legislation proposing an amendment to the Overseas Investment Act 2015.

The legislation will mean that foreign buyers will not be able to buy residential property unless they are either increasing the number of residences and then selling, or converting the land to another use and are able to show that this will have wider benefits to the country.

New Zealand and Australian citizens will be exempt from the regime, irrespective of where they live.

In addition, holders of New Zealand permanent resident visas will be exempt if they have been living here for at least 12 months, and have been present in the country for at least 183 days in the past 12 months.

Geoff Caradus

Position: Partner
Email: geoff.caradus@pittandmoore.co.nz
DDI: +64 3 545 6717
Mobile: +64 27 246 2211

The Bill will be sent to a Select Committee who will consider it early next year, which gives New Zealanders an opportunity to comment on the details of the Bill.

The government is aiming to pass this legislation in the new year and for the new rules to take effect in early 2018.

What is difference between a resident visa and a permanent resident visa?

Both resident and permanent resident visa give the visa holder a right to live and work in New Zealand indefinitely. The fundamental difference is that a resident visa holder who leaves New Zealand may only travel to and be granted entry permission as a resident if the conditions of the visa allow, known as travel conditions. Most resident visas are initially granted with two years of travel conditions, which may be extended.

A permanent resident visa, on the other hand, entitles the holder to travel to and be granted entry permission as a resident indefinitely.

When and how can I apply for a permanent resident visa?

You can apply for a permanent resident visa after you have held a resident visa for 2 years without interruption. You must have also met any conditions imposed on your Resident Visa which can include a sponsorship period of up to 5 years.  

The government is aiming to pass this legislation in the new year and for the new rules to take effect in early 2018.

What is the difference between a resident visa and a permanent resident visa?

Both resident and permanent resident visa give the visa holder a right to live and work in New Zealand indefinitely. The fundamental difference is that a resident visa holder who leaves New Zealand may only travel to and be granted entry permission as a resident if the conditions of the visa allow, known as travel conditions. Most resident visas are initially granted with two years of travel conditions, which may be extended.

A permanent resident visa, on the other hand, entitles the holder to travel to and be granted entry permission as a resident indefinitely.

When and how can I apply for a permanent resident visa?

You can apply for a permanent resident visa after you have held a resident visa for 2 years without interruption.

You must have also met any conditions imposed on your Resident Visa which can include a sponsorship period of up to 5 years. 

Talk to us

We understand the needs of foreign investors. We can help with all aspects of your New Zealand investment, including purchasing property, obtaining Overseas Investment Office consent, forming a company and assisting you to purchase shares in a company or its business and assets.

We can also assist with residence and permanent residence visas, including investment and business visas for those seeking to migrate to New Zealand.

We don’t just advise on the visa requirements, we can ensure that you receive comprehensive legal advice as to all aspects, including asset protection, trusts, corporate governance, compliance and employment.

If you have any questions about foreign investment in New Zealand or investment and business visas, please contact us for professional legal advice that will give you peace of mind.