New Zealand’s natural beauty is mesmerizing, with its long, rugged coastline, snow-capped mountains, and dense rainforests. As a result, it has become a popular destination for tourists looking to enjoy an idyllic experience. There’s another newer shift, too. Foreigners are now investing in New Zealand real estate to own a piece of paradise.
At Remitly, we know that our customers always seek to invest in promising opportunities. New Zealand is an emerging market with plenty of potential. Let’s discuss what it takes for foreigners to buy property there.
Overview of the New Zealand property market
The property market in New Zealand is valued at over $1 trillion NZD, with residential real estate being the most attractive sector. Foreigners are increasingly interested in this market, driving up demand and prices.
Why New Zealand attracts foreign investors
New Zealand’s allure is driven by its stunning landscape, thriving economy, and stable political climate. The country’s strategic position and immense cultural diversity make it a booming multicultural hub. Meanwhile, its high global livability scores prove a quality of living that’s hard to beat.
Other factors that contribute to its appeal include:
- Favorable government policies that support foreign investment in real estate, such as a lack of stamp duty
- Immigration policies that attract skilled workers and students, leading to housing shortages
- Population increases drive more housing demand, pushing house prices up and making for great returns on investment (ROI).
- A thriving tourism industry that creates demand for short-term rentals
- Government incentives for eco-conscious homes, such as tax credits
- Conducive financing environment
Can foreigners buy real estate in New Zealand?
The market is attractive, but can you invest in it as a foreigner? The short answer is yes—overseas buyers can technically acquire New Zealand real estate. However, you can’t purchase residential land or property without government approval.
How can you become eligible for approval? Let’s explore past and present regulations and restrictions to ensure you’re well-informed.
Understanding the current restrictions
The Overseas Investment Act (OIA) 2005 guides foreign investment in New Zealand’s sensitive lands and areas. These include:
- Non-urban land above five hectares (approximately 12 acres)
- Land next to the foreshore, seabed, and some lakes
- Land next to conservation areas like parks
- Business assets above $100 million NZD
- Businesses that develop, produce, maintain, and access sensitive information
- Residential or lifestyle property, as categorized by the District Valuation Roll (DVR)
Property transactions involving these sensitive assets generally require consent from the Overseas Investment Office (OIO). Currently, only four categories of people can buy homes in New Zealand.
- New Zealanders, also known as Kiwis
- Australian citizens
- Singaporean citizens
- Foreigners from other countries, as long as they are permanent residents
Impact of the Overseas Investment Act
The OIA has created a historically restrictive environment for foreign investment in the real estate market. Although intended to protect New Zealand’s national interests, these stringent policies affect the local economy.
As a result, government agencies are currently overhauling the OIA to streamline the regulatory process. The idea is that reducing restrictions will attract overseas buyers while still maintaining the necessary safeguards.
This new policy is expected to be ready by the end of 2025. Anticipated changes include the following:
- Foreign buyers must prove that their investments won’t be detrimental to New Zealand. With the new changes, property purchases can only continue if they don’t pose a risk to local interests or key assets.
- 15-day OIO consent process fast-tracking, except for residential land, farmland, and fishing quota investments. Approval currently takes up to 100 days for most applications, including residential properties. Fishing quota assessments take at least 200 working days.
- Empowering Land Information New Zealand (LINZ)—locally known as Toitū Te Whenua—to approve investments without involving the Minister, further reducing consent timelines
- Applying a cost-benefit approach to assess a foreign investment’s potential advantages for the national economy
Legal requirements and regulations for foreign buyers
Generally, as we’ve discussed, you must get consent from the Overseas Investment Office before investing in New Zealand’s property market. You’re also required to adhere to sensitive land and residential property considerations.
Consent requirements from the Overseas Investment Office
There are a few things to keep in mind about the OIO consent requirements:
- Overseas persons should get approval from the OIO to purchase residential or other investment property. New Zealand defines overseas persons as:
- Non-New Zealanders
- New Zealand non-residents
- Companies or businesses incorporated overseas
- New Zealand companies with overseas shareholding of over 25%.
- New Zealanders or New Zealand businesses investing on behalf of an overseas person.
- Foreign buyers can’t sign purchase agreements before obtaining OIO consent
- You must seek consent when increasing ownership or control beyond approved thresholds
- You must notify the OIO about certain types of transactions, such as acquisitions and asset transfers, even if consent isn‘t required
- You risk the OIO seizing the property if you don’t obtain the required consent
Luckily, the OIO consent process is straightforward. Just fill out the right OIO application form, provide the required information, submit statutory declarations, and pay the application fees.
Active Investor Plus Visa: residential property considerations
The revised Active Investor Plus (AIP) Visa, operational since April 1, 2025, eases barriers foreign investors have previously faced in the country. It allows immigrants to study, work, invest, and live in New Zealand. You can apply for this visa under two categories:
- Growth category, for those with at least $5 million NZD
- Balanced category, which requires a minimum of $10 million NZD to apply
But even with more favorable entry requirements, the AIP visa still limits certain types of foreign investments, including property ownership.
| Acceptable investments for Active Investor Plus visa holders | |
| Growth category | Direct investments |
| Managed funds | |
| Balanced category | Direct investments |
| Managed funds | |
| Listed equities | |
| Philanthropy | |
| Bonds | |
Property developments
|
|
(Source)
Consider these issues before investing in New Zealand’s sensitive lands and residential property.
Steps to purchasing property in New Zealand
Now that you understand how to become legally eligible to make property purchases in New Zealand as a foreigner, what’s the next step?
Key stages of the buying process
Step 1: Secure financing
Set a budget, depending on the area you want to invest in. For example, the average residential house costs $1 million NZD in Wellington, New Zealand’s capital.
You can fully finance the project or save a deposit and explore mortgage options to complete your purchase.
Step 2: Find a property
Begin your search by settling on a specific island or region. Then, while not mandatory, it’s advisable to work with a real estate agent licensed by the Real Estate Authority (REA). They can help you find the best properties, arrange viewings, and conduct due diligence to avoid sham listings. Remember, property scams are on the rise in New Zealand.
Step 3: Make an offer
Inform your real estate agent when you’re ready to make an offer. Then, submit it in writing with details like terms and conditions, as well as the purchase price.
Negotiate the offer with the seller before signing a sale and purchase agreement—a legally binding contract between a seller and buyer—when they accept your offer.
Complete the purchase
Find a practicing lawyer or conveyancer licensed by the New Zealand Law Society to ensure you’re legally permitted to purchase said property. They will also handle all the paperwork confirming you’re the new, rightful owner once the transaction and transfer process is complete.
Preparing a purchase agreement
The purchase agreement is a crucial document when buying property. It’s the final contract used to transfer property from the seller to the buyer.
Purchase agreements contain important information like:
- The buyer’s and seller’s names
- The property address
- Type of title, such as leasehold
- Final buying price
- Terms and conditions, including the down payment, mortgage or cash price, and interest rates on late payments
Financing options and obtaining a mortgage
New Zealand’s credit environment is complex and expensive for foreign buyers.
Banks charge high interest rates and hesitate to accept income earned outside the country due to income verification challenges, especially for self-employed individuals. You must also meet specific criteria, like depositing 30% of the property value, before obtaining a mortgage.
However, you have several options. Consider approaching these financiers:
- Non-bank lenders
- International banks
- Mortgage brokers
- Friends and family
Important things to remember about the purchase process
As you buy property in New Zealand, do your due diligence by keeping these vital facts in mind:
- Confirm that the seller is the legal owner of the property
- Your real estate agent must give you a copy of the REA New Zealand Residential Property Sale and Purchase Agreement Guide. There should be written confirmation that you’ve received it.
- You must sign a sales and purchase agreement to complete a property purchase. The agreement should include important clauses such as financing and Land Information Memorandum (LIM) reports prepared by the relevant local authority.
- Before signing, engage a lawyer or conveyancer to help you understand the sales and purchase agreement. Ask questions to clarify all matters.
- Involve a lawyer throughout the buying process
- Remember, it’s okay to negotiate the price and the terms and conditions
- The seller must declare all defects and legal issues affecting the property. Demand transparency throughout the process.
Investment opportunities for foreign buyers
Buying residential and commercial real estate isn’t the only option for foreign investors in New Zealand. Consider applying for Investor 1 or 2 Resident Visas to purchase bonds and equity or establish companies and trusts.
Best areas to consider for investments
Every region in New Zealand is open to foreign investment. However, some of the most popular areas include:
- Wellington
- Tauranga
- Auckland
- Waimakariri
- Christchurch
- Queenstown
- Selwyn
Comparing opportunities in residential and commercial properties
You can invest in residential and commercial property, but your choice depends on your needs and investment strategy.
Generally, commercial properties:
- Fetch better returns than residential ones
- Have a higher capital yield, so you’ll recoup your investment faster
- Offer more stable and reliable income
- Have longer lease periods of three and five years, but some property leases run for five to 10 years
- Are more sensitive to economic downturns
On the other hand, residential lease agreements are shorter, commonly ending at 12 months. If you intend to tap into the tourism industry via short-term rentals, you could get into a cycle of looking for customers, especially during low seasons.
But you’ll pay lower insurance premiums for residential properties. Investing in one also requires lower capital outlays.
Understanding tax and financial implications for foreigners
The New Zealand government taxes foreigners differently from citizens and permanent residents. When you invest locally, you’ll be charged a non-resident withholding tax (NRWT), as well as property taxes and stamp duty.
Property tax and stamp duty considerations
Once you become a property owner in New Zealand, you’re subject to some minimum requirements:
- You must open a New Zealand bank account as an anti-money laundering measure
- Provide a New Zealand IRD number to track the taxes you pay
- You’ll provide the government with valid identification documents, such as your passport, and your tax identification number from your home country
- Foreign property buyers are subject to a bright-line test, which ensures property sold within two years of purchase is taxed correctly
- New Zealand doesn’t charge stamp duty. However, you’ll need to budget for valuation, a building inspection report, the Land Information Memorandum, transfer fees, and legal fees.
- New Zealand doesn’t charge goods and services tax (GST) on property. But this levy will apply if you’re GST-registered and the property purchase is part of your business’s taxable activities.
Navigating currency exchange and financial planning
Authorities prefer that foreigners invest in New Zealand dollars (NZD) to boost the economy. So, make all your investment calculations based on the local currency to avoid surprises.
Also, the Income Tax Act 2007 requires foreign currency conversion to determine a taxpayer’s income tax liability in New Zealand. With such clarity, you’ll plan your finances better.
Additional resources
In conclusion, foreign buyers must carefully navigate New Zealand’s regulatory landscape to own property legally. Our guide covers all the essentials you need to get started, but you can use these helpful resources to learn more:
- Quotable Value: See valuations of New Zealand properties
- Settled.govt.nz: Guides foreigners through the property buying and selling process
- New Zealand Law Society’s Property Law Section: Information about property law.
- Housing New Zealand: Guidance for both citizens and permanent residents
FAQs
Can foreigners buy real estate in New Zealand?
Yes. However, you can’t buy residential land or property without receiving the proper government consent through the Overseas Investment Office (OIO).
What is the foreign buyer ban in New Zealand?
The government restricts foreigners from buying existing homes in the country. Only New Zealanders, Australian nationals, Singaporean citizens, and foreigners from other countries who hold resident or permanent visas are allowed.
Is there property tax in New Zealand for foreigners?
No. New Zealand has no tax incentives, stamp duty, inheritance tax, or broad-based capital gains tax targeted at foreigners.
Can I get a mortgage in New Zealand while living overseas?
Yes, you can. However, you’ll face more restrictions and higher deposit requirements as a foreigner. You must also meet specific criteria, such as having a good credit history and providing current employment contracts.
What do you need to be a real estate agent in New Zealand?
To become a licensed property agent, you must be 18 years and older, have proven good conduct, and earn a New Zealand Certificate in Real Estate (Level 6) or a recognized property degree. You should also possess three years of supervised real estate agency experience and be licensed by the Real Estate Authority (REA).
Can foreigners rent property in New Zealand?
Yes. You can rent property in New Zealand as a foreigner, provided you have legal standing either through a temporary work, study or business visa, or as a permanent resident.