Do you need consent to purchase a residential property in New Zealand?
Under the Overseas Investment Amendment Act 2018 which came into force on 22 October 2018 greater restrictions were placed on who can buy a residential property in New Zealand.
The new regime applies to land that is categorised as ‘residential’ or ‘lifestyle’ under the District Valuation Roll and while this includes most houses, flats, and apartments, there are also fairly large lifestyle blocks that are considered residential.
One way to check is to use a property website, such as www.qv.co.nz(link is external) and look for the ‘Building Type’. Properties with the Building Type ‘residential’ or ‘lifestyle’ are captured by the new regime. Some councils also provide this information.
The changes prevent certain overseas people from buying residential property in New Zealand. With some exceptions for Australian and Singaporean citizens, anyone who is not a New Zealand citizen or is not ‘ordinarily resident’ in New Zealand, is an overseas person.
You do not need consent if:
You are a New Zealand, Australian or Singaporean citizen; or
You have a New Zealand, Australian or Singaporean Permanent Resident Visa and live in New Zealand; or
You have a New Zealand Resident Visa and live in New Zealand.
Ordinarily resident is a clear test of four parts – the person must have a Residence class visa, must have lived in New Zealand for the past 12 months, have been present in New Zealand for at least 183 days of the past 12 months, and be a tax resident.
Residence class visa holders as well as Australian and Singaporean permanent residents that are not ordinarily resident in NZ can apply to the OIO for consent to buy one home to live in.
You can do a quick eligibility check at: https://www.newzealandnow.govt.nz/living-in-nz/housing/buying-building.
If you meet the above criteria, you are required to sign a Residential Land Statement declaring your eligibility under the new OIO requirements. The statement is completed by the purchaser and provided to the conveyancer, who must retain a copy for at least seven years. There are significant penalties for both conveyancers who do not comply, and for purchasers who make false statements.
SPOUSE OR PARTNER EXEMPTION
If you are a couple, you don’t both need consent if you are buying the home as relationship property. This includes people who are married, in a civil union, or a de facto relationship.
If one of you is a New Zealand Citizen, then neither of you need to apply for consent.
If one of you holds a residence class visa, has been living here for the past 12 months, has been present in New Zealand for at least 183 days in the past 12 months, and is tax resident, then neither of you need to apply for consent.
If one of you is an Australian or Singaporean citizen, then neither of you needs to apply for consent.
If one of you is an Australian or Singaporean permanent resident who has been living here for at least the past 12 months, has been present in New Zealand for at least 183 days in the past 12 months, and is tax resident, then neither of you needs to apply for consent.
If at least one of you has a residence class visa, or is an Australian or Singaporean permanent resident, but has not been living here for at least six of the past 12 months, then only they will have to apply. The other one does not need to apply, regardless of their visa status.
But please note that Australian and Singaporean citizens and permanent residents who want to buy residential land that is also sensitive for other reasons always need to apply for OIO consent.
