Page 37 - English-DBINZ brochure-2019

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Section 8
FOREIGN INVESTMENT CONTROLS

The Overseas Investment Act 2005 requires overseas persons and their associates to obtain consent
before investing in “significant business assets” or “sensitive land” in New Zealand. The Act provides for
conditions to be imposed on such investment and enables the regulator, the Overseas Investment Office,
to monitor compliance with those conditions.

INVESTMENTS THAT REQUIRE CONSENT: SIGNIFICANT BUSINESS ASSETS AND SENSITIVE
LAND (INCLUDING FORESTRY RIGHTS)
Significant business assets
Overseas persons, or their associates, must get regulatory consent to invest in significant business assets
in New Zealand. Consent will generally be required when:
ə Acquiring ownership or control of 25% or more of a person (for example, a company) where the value
of the shares or consideration provided or the value of the assets of the person and its 25% or more
subsidiaries exceeds NZ$100m
ə Increasing an existing 25% or more ownership or control of a person (for example, a company) where
the value of the shares or consideration provided or the value of the assets of the person and its 25%
or more subsidiaries exceeds NZ$100m
ə Establishing a business in New Zealand if the business is carried on for more than 90 days in any year
and the total expenditure to be incurred in establishing such business exceeds NZ$100m
ə Acquiring property (including goodwill and other intangible assets) in New Zealand to be used in
carrying on business in New Zealand (whether by one transaction or a series of linked transactions) if
the total value of the consideration provided for the property exceeds NZ$100m.
There are alternative monetary threshold for investments by certain Australian investors, and for
investors from countries with which New Zealand has certain trade or economic partnership agreements.