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Overseas Purchasers of New Zealand Land

The Overseas Investment Commission administers the Overseas Investment Regulations 1995. Under the Regulations an "overseas person" must obtain consent to acquire or take "control" of 25 percent or more of New Zealand:

1. businesses or property worth more than $50 million;
2. land over 5 hectares and/or worth more than $10 million;
3. land on most off-shore islands; and
4. land over 0.4 hectares that includes or adjoins "sensitive" land over 0.4 hectares (e.g. on specified islands, containing or next to reserves, historic or heritage areas, or lakes); and
5. land over 0.2 hectares that includes or adjoins the foreshore.

While 100 percent overseas ownership can be approved in all industry sectors some New Zealand based companies have restrictions relating to foreign ownership.

The Commission also administers sections 56 and 57 of the Fisheries Act 1996. An "overseas person" must obtain either an exemption under section 56 or a permission under section 57 to acquire or continue holding quota, an interest in quota, annual catch entitlement or provisional catch history.

The Treasurer is responsible for policy relating to controls over overseas investment in New Zealand. This responsibility is shared with the Minister for Land Information in respect of certain land and with the Minister of Fisheries in respect of fishing quota applications.

For "land" (refer below for the definition of "land") investments an overseas person must obtain consent under the Regulations to:

1. acquire any land or any estate or interest in land regardless of the land's value;
2. acquire securities in any person that owns or controls any land or any estate or interest in land, regardless of the dollar value involved, that will result in:
1. the land owning person becoming an overseas person;
2. the overseas person acquiring 25 percent or more of the ownership or control of the land owning person or increase their ownership or control if the overseas person already has 25 percent or more ownership or control.

Land
Land is defined in the Act and Regulations as:

1. Land over 5 hectares: Any land that, together with any associated land, exceeds 5 hectares in area.
2. Islands: Any land that is, or that forms part of, an island (other than an island listed below)

Any land that, together with any associated land, exceeds 0.4 hectares in area and that forms part of the following islands:

• Arapawa Island
• Best Island
• Great Barrier Island
• Great Mercury Island
• Jackett Island
• Kawau Island
• Matakana Island
• Mayor Island
• Motiti Island
• Motuhoa Island
• Rakino Island
• Rangiwaea Island
• Slipper Island
• Stewart Island
• Waiheke Island
• Whanganui Island

Any land that is, or that forms part of, an island of the Chatham Islands.

3. Foreshores, lakes, and reserves: Any land that, together with any associated land, that exceeds 0.2 hectares in area and that includes or adjoins the foreshore; or
   Any land that, together with any associated land, that exceeds 0.4 hectares in area and that includes or adjoins-
   Any lake bed of which exceeds 8 hectares in area; or
   Any land that exceeds 0.4 hectares in area and is:
   provided as a reserve;
   held for a conservation purposes;
   deemed a heritage or historic area.
4. Other land: Any land, other than land specified above if the consideration for the "unimproved" land exceeds $10,000,000.

Associated land means any land that is contiguous or adjacent to the land being acquired or, if on an island, any other land on the same island owned or controlled by that overseas person or any associated person.

Farm Land means land used exclusively or principally for agricultural, horticultural, or pastoral purposes, or for the keeping of bees, poultry or livestock. The definition of "farm land" does not include land used principally or exclusively for forestry. However, the acquisition of "farm land", intended for forestry purposes, is captured by the definition. Further, an "estate or interest in farm land" does not include an estate or interest the term or unexpired term of which is less than 21 years (including any rights of renewal).

Some important points to note about the land coverage are:

1. it covers both rural and urban land;
2. land is included no matter what purpose it is used for or whether it is purchased directly or through a body corporate;
3. consent will be needed where overseas landowners or persons associated with them purchase a piece of land adjoining land they already own and the combined area is greater than 5 hectares on the mainland or greater than 0.4 hectares and includes or adjoins "sensitive" land or greater than 0.2 hectares and includes or adjoins the foreshore or is located on some islands;
4. any subsequent purchase of land on an island whether adjoining the original land or not by an overseas landowner (or their associates) will require consent; and
5. purchases of urban land over 0.2 hectares adjoining or including the foreshore and purchases of urban land over 0.4 hectares adjoining or including "sensitive" land other than the foreshore require consent.

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