NEW ZEALAND Law and Practice Contributed by: Ashton Goatley, Henry Willis, Sarah Keene and Erin Hickey, Webb Henderson
Other sensitive land Applicants will be required to satisfy the “Investor Test” (see the following) and the “Benefit to New Zea - land Test” for acquisitions of sensitive land that do not involve residential land, forestry or farmland. To satisfy the Benefit to New Zealand Test, the appli - cant must show that the overseas investment will, or is likely to, benefit New Zealand (or any part of it or group of New Zealanders) to a degree that is propor - tionate to the sensitivity of the relevant land (includ - ing the features of the land and public interest) and the nature of the transaction (including whether the interest acquired is permanent or temporary). The fol - lowing factors must be considered in assessing the benefit of the transaction: • economic benefits; • benefits to New Zealand’s natural environment; • whether New Zealanders gain or retain access to the land; • whether historical sites are protected and acces - sible; • whether government policy is assisted; • oversight or participation of New Zealanders; and • any other consequential benefits. Farmland For an acquisition of farmland that exceeds five hec - tares, the applicant must also show a “substantial” benefit in relation to the factors of “economic benefits” and/or “oversight or participation of New Zealanders”. Farmland is also generally required to be offered to New Zealanders on the open market before it may be acquired by an overseas person. Forestry A streamlined alternative is available for certain invest - ments in land used principally for forestry (notably, this is not available for farmland-to-forestry conversions). To satisfy this alternative test, an applicant must use the land nearly exclusively for forestry activities, replant the land after harvesting and not live on the land. While the applicant does not need to show a benefit (as required under the Benefit to New Zea - land Test), certain arrangements may be required to be maintained, such as public access and protection of indigenous habitat and historical places.
• acquires New Zealand assets used in carrying on business in New Zealand, and the total value of the consideration provided exceeds NZD100 million; or • establishes a business in New Zealand for which the total expenditure expected to be incurred before commencing the business exceeds NZD100 million. Higher monetary thresholds are available for some investors from countries with free trade agreements with New Zealand. For example, qualifying Australian non-governmental investors have a higher threshold of NZD676 million, and qualifying EU and UK investors have a higher threshold of NZD200 million. To receive Significant Business Assets Consent, the relevant investors must satisfy the “Investor Test” (see the following). Some transactions may also be required to satisfy the “National Interest Test” (see the following). Sensitive Land Consent Sensitive Land Consent will be required where an overseas person or associate acquires (directly or indirectly) an interest in land that is “sensitive” under the OI Act, where that interest is a freehold estate, or a lease or other interest with a term of ten years or more (including any rights of renewal), or three years if the land is residential land. The criteria for receiving Sensitive Land Consent depend on the type of sensi - Overseas persons cannot usually acquire residential land unless they are a New Zealand citizen or have a residence class visa (Australian and Singaporean citi - zens may receive consent in certain circumstances). There are exceptions for new builds, “one home to live in” and land that is only incidentally residential (eg, acquiring a farm business that includes a farmhouse). In September 2025, the government announced a further proposed change to the OI Act, which, if the Bill is passed with this provision included, will allow overseas persons with specified classes of residency visa to buy or build a house valued at NZD5 million or more. tive land involved. Residential land
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