How to purchase property in New Zealand as an overseas buyer?

 

1. Check if you are eligible to buy property.

The New Zealand government restricts foreign ownership of residential property. Who can buy:

• New Zealand citizens or residents.
• Australian and Singaporean citizens/residents have special rights under free trade agreements.
• Other overseas persons generally cannot buy existing residential property unless:

      -  The property is not residential (e.g., commercial, industrial, or farm land)
      -  They apply and get approval under the Overseas Investment Act
      -  They are developing the property (e.g., building new housing for resale)

 

2. Understand the Overseas Investment Act (OIA).

If you are not exempt (like Australians and Singaporeans), you will need to go through the Overseas Investment Office (OIO):

• You must apply to the OIO for consent before purchasing
• The OIO considers factors like:
      - Benefit to New Zealand
      - Your business experience
      - Financial commitment to the investment

 

Types of land requiring consent:

• Residential land
• Sensitive land (e.g., coastal land, farm land, or land near conservation areas)

 

3. Work with a licensed Real Estate Agent.

• Once you confirm eligibility or have approval, engage with a local real estate agent
• Ensure they understand foreign ownership rules

 

4. Engage legal and tax professionals.

• Hire a New Zealand-based solicitor experienced in property law and OIO processes
• Consult a tax advisor about obligations (e.g., income tax, capital gains tax, GST)
• Obtain a New Zealand IRD number

 

5. Get a pre-approval with a Mortgage Broker.

Different Banks have different LVR regulations and servicing structures for overseas buyers. Brokers can:

      - Advise you on what your options are, based on your plans and property goals in New Zealand
      - Approach the right lender for your situation and needs
      - Negotiate interest rates on your behalf, and structure the loan to suit your needs

 

6. Set up a New Zealand bank account and transfer funds.

• You will likely need to set up a New Zealand bank account to settle the transaction
• Comply with Anti-Money Laundering (AML) rules - proof of identity and source of funds required

 

7. Make an offer (conditional on OIO approval, if needed).

• You can make an offer on a property, but include a clause that makes the purchase conditional on getting OIO approval
• Once approval is obtained, you can move to settlement

 

8. Complete Due Diligence.

• Certificate of Title search
• LIM (Land Information Memorandum) report
• Building inspections

 

9. Settlement.

• Pay the balance of the purchase price
• Property is transferred into your name
• Lawyer will register the Certificate of Title with Land Information New Zealand (LINZ)

 

10. Understand tax obligations.

• No capital gains tax (yet), but income from renting must be declared
• Bright-line test may apply: if you sell within 2 years, you may owe tax on the profit
• Ensure compliance with residential property withholding tax (RPWT) if applicable

 

11. Maintain compliance.

You may need to meet ongoing reporting or development obligations, depending on OIO conditions.