The Overseas Investment Act (OIA) 2019 affects residential property and non-urban land that is of more than 5 hectares owned or controlled by an overseas person. The OIA requires the overseas person to gain consent from the Overseas Investment Office for their ownership of the land or property before any sale or purchase is complete. This is to ensure that any land purchases benefit the overall economy of New Zealand.
The OIA puts certain restrictions on overseas investment in residential property and non-urban land, including the requirement to show significant economic value and interest in the New Zealand economy. Furthermore, any overseas person must pass a number of assessment criteria to obtain consent for their purchase, so for those wishing to purchase land or property, extensive due diligence is advised. In addition, the OIA also requires an overseas person to obtain consent from the Overseas Investment Office in order to transfer ownership of residential property or non-urban land in excess of 5 hectares.
The consent process will ensure that the recipient of the property is also of benefit to the New Zealand economy. All in all, the Overseas Investment Act of 2019 places significant restrictions on overseas investment in residential property and non-urban land in excess of 5 hectares in order to benefit New Zealand's economy.
Given the complexity of this Act, it is generally advised to liaise with a legal expert prior to purchasing any land.Let's chat