The Overseas Investment Amendment Act comes into force on October 22nd 2018 and will impact every residential property transaction.
The bill amendments aim to ensure that investments made by overseas persons in New Zealand will have genuine benefits for the country.
Queenstown Law kindly answered some of the most asked questions regarding the new amendments.
What is included as “Residential Land”
Land that has a property category of residential or lifestyle.
Who can buy Residential Land and who needs consent?
- New Zealand, Australia and Singapore Citizens can purchase with no restrictions;
- Resident Visa and Permanent Resident Visa Holders of New Zealand, Australia and Singapore need to meet 183 days NZ residing test in the previous 12 months
- All others will need consent to purchase
Are there any exemptions?
Yes. The key ones for the purposes of overseas property investors are:
- Buying a dwelling in a large apartment block off the plans
- Buying a Hotel unit and leasing it back for hotel use
Transactions entered before October 22nd 2018, when the Act comes into force, will not be affected by the Act. Not sure if the new amendments affect you? Talk to us to find out.