K3 Insights

The New Zealand Government has recently announced policy changes for overseas-based investors and the purchase of residential property in New Zealand. The Overseas Investment Act 2005 (OIA) is being amended following the passage of the Overseas Investment (National Interest Test and Other Matters) Amendment legislation, which received royal assent on 19 December 2025. While it is currently unclear exactly when these changes will come into effect, the amendments are expected to come into force in 2026.

What is the AIP visa?

New Zealand currently offers the Active Investor Plus (AIP) visa programme, which allows overseas investors to apply for a residence class visa.The AIP has two categories:

- Growth category: Minimum investment of NZD $5 million into New Zealand for a minimum of 3 years. The physical presence requirement is 21 days over the three-year period. This investment plan focuses on managed funds and direct investments.

-  Balanced category: Minimum investment of NZD $10 million into New Zealand for a minimum of 5 years. The physical presence requirement is 105 days over the five-year period.. This investment plan focuses on a wider array of investment options, including managed funds, direct investments, listed equities, philanthropy, bonds, and property developments.

In addition to meeting the investment requirements, applicants must also satisfy good character and health requirements. The AIP visa provides eligible investors with a pathway to residence in New Zealand.

Current position under the OIA

Under the OIA, overseas persons are generally restricted from acquiring residential land unless they meet the “ordinarily resident” criteria or obtain Overseas Investment Office (OIO) consent.

In broad terms, “ordinarily resident” generally requires an investor to hold a residence class visa, have lived in New Zealand for at least the previous 12 months, be a New Zealand tax resident, and have been physically present in New Zealand for at least 183 days during that 12-month period.

In practice, AIP visa holders are generally unable to purchase residential land without obtaining OIO consent, unless they meet the ordinarily resident criteria.

What are the proposed updates?

With the recent announcement, the New Zealand Government has passed amendments intended to streamline aspects of the overseas investment regime. Under the proposed new pathway, AIP visa holders are intended to be able to obtain OIO consent to purchase residential property, subject to certain conditions, including:

-  AIP visa holders may be able to purchase a home/ land, or build a home in New Zealand

- The property must have a minimum value threshold of NZD $5 million.

- The investor may only purchase one home under this pathway.

- Existing restrictions will still apply, including restrictions on “sensitive land” (which can include rural and farmland)

It is important to note that at present any agreement to purchase residential land will remain conditional upon the AIP visa holder obtaining OIO consent because the proposed amendments have not come into play. However, the proposed pathway is expected to streamline the existing consent processes.

Additional insights:

While there has previously been controversy around foreign buyer restrictions, these changes will help attract high-net-worth investors and encourage investment to support economic growth. This policy also signals to overseas investors that New Zealand remains open for business and is welcoming overseas investment.

Additionally, the Government has indicated that the impact on the wider housing market is expected to be limited, as the minimum value threshold is set at NZD $5 million, which affects less than 1% of New Zealand’s homes.