On Friday 12 December 2025, the New Zealand Government passed, under urgency, an amendment to the Overseas Investment Act 2005 (Act), opening a new pathway for investor resident visa holders—including Active Investor Plus (AI+), Investor 1, and Investor 2 visa holders to purchase or build a home in New Zealand, even if they do not intend to become tax resident and/or live here permanently.
These rules are expected to come into force in early 2026, with an exact date yet to be confirmed. Conservatively this means the law should be in force by 1 April 2026, but it is likely to be earlier than that.
This is a significant refinement to the “foreign buyer ban” and is expected to bring positive outcomes for New Zealand, its communities, and committed investors.
The Government announced these proposed changes earlier in the year and our article following that announcement covers the background to the foreign buyer ban and other impacts that are likely to result from this pivotal shift in the country’s approach to foreign investment in residential property. With the legislation now passed (subject to royal assent), we can now be definitive on the final settings.
Overview of the New Rules
Investor migrants with an AI+, Investor 1, or Investor 2 visa will be permitted to buy property or build a house in New Zealand, provided the property is valued at more than NZ$5 million and is designated residential or lifestyle, but not otherwise sensitive. The property can be lived in, simply used as a holiday home, or used to operate a business (subject to local planning rules).
Investors will still be required to apply for consent from the regulator – the Overseas Investment Office (OIO). The process is expected to be streamlined, with applications generally decided within five working days and fees set at NZ$2,040 for existing homes and NZ$3,500 for new builds. This process will be very similar to the existing consent process that typically issues consents within 2 to 3 days of submission.
Key Requirements and Conditions
The Government has now released details on the new rules, which include likely content on the regulations that will apply under the main legislative instrument that was passed on Friday (but not yet officially released).
Eligible visas:
- AI+, Investor 1, and Investor 2 resident visa holders (including Permanent Resident Visa holders who previously held one of these visas). Note this property purchase or build will not be considered an acceptable investment for AI+ applications, it is in addition to those investments.
- Applicants will also be able to purchase property through a company or trust, provided that the person has a certain level of ownership and control in the company or trust. This is a sensible setting that applies the principle of demonstrating beneficial ownership, rather than strict personal ownership for privacy and other reasons.
Property requirements:
- The property must be categorised as “residential” or “lifestyle” on the district valuation roll and not be otherwise “sensitive land” for any other reason.
- Property that is not otherwise sensitive land for reasons other than being residential (e.g. non-urban land over 5 hectares, land adjoining the foreshore or seabed, or land on certain islands). This likely means that applicants wishing to purchase sensitive land, such as coastal or some larger properties on Waiheke Island (for example) and high-country stations, will still be required to obtain OIO consent under a different pathway. They cannot be transacted under this new law.
- The purchase price (or combined price and build cost for new builds) must exceed NZ$5 million (including GST, if any).
Other conditions:
- Only one property may be owned under this new pathway. To buy another, the previous property consented under this new pathway must be sold first. However, this condition does not apply to property bought under different rules or bought without the need for consent under the OIA. This means a person who acquired a residential or lifestyle property prior to the implementation of the current foreign buyer ban, is not required to sell that property, they can buy another under this new setting.
- Consent under the Act is required before buying the land in question through a sale and purchase agreement, submitting a tender, or bidding at auction. Note however agreements to purchase can be entered into now, provided they are conditional on consent being granted after the rules come into force; so the agreement is not rendered unconditional or transacted (settled) prior to the law coming into force and a consent being held on settlement.
- The purchase must not be contrary to New Zealand’s national interest. Note however it is unlikely that a purchase of residential or lifestyle property that is not otherwise sensitive will be considered a national security risk.
- When granting consent, the OIO can impose and will issue conditions, such as reporting to the OIO once the transaction has closed. For new builds, reporting on the build process and costs is required, and the OIO may require the property to be sold if the build is not completed or if costs fall short of NZ$5 million.
Conclusion
These changes represent a significant refinement of New Zealand’s foreign buyer ban, balancing the need for economic stimulus with the protection of local interests.
By adding new builds into the equation, this opens a lot of property outside Auckland and the Southern Lakes regions for purchase, where 90% of existing homes over NZ$5 million in value are located.
Investor migrants will soon have a clear, streamlined pathway to home ownership, subject to robust regulatory oversight and targeted conditions, yet we expect many investors and New Zealanders who own homes that are deemed otherwise sensitive will be disappointed with where the final setting has landed. Coastal or large land holdings (over 4,000sqm) on Waiheke Island in particular because we believe such property on islands like Waiheke would be much sought after.
Investor migrants wanting to purchase property in New Zealand should ensure they undertake thorough due diligence to confirm the property meets the eligibility criteria for consent under this pathway before entering any binding (unconditional) property agreement.
Lane Neave’s immigration and property teams have been following the Government’s reforms to the Act and are constantly engaging with the OIO. Reach out to our experts for more information or assistance.
