Page 39 - English-DBINZ brochure-2019

Buddle Findlay 36

Overseas persons from Australia and Singapore are subject to some exemptions regarding residential
land, relationship property, and, for Australia only, regulated profits à prendre. In those cases, the
consent requirements for overseas investors will not apply.
Associates
The Overseas Investment Act also covers “associates” of an overseas person. In broad terms, an
associate is any person who acts for or on behalf of, or is a “front” for, an overseas person. For example,
any person that an overseas person appoints to conduct business in New Zealand on its behalf or any
person who acts under the direction of or jointly with an overseas person is an associate.

CONSENT PROCESS
The Overseas Investment Office handles the consent process. Consent decisions are made by the
Minister of Finance (for sensitive land decisions and significant business assets decisions), and the
Minister for Land Information (for sensitive land decisions only). Decisions may be delegated to the
Overseas Investment Office depending on the nature and complexity of the application.
Each overseas person (or associate) making the investment must apply to the Overseas Investment Office
for consent. Consent must be obtained before a legal or equitable interest in the sensitive New Zealand
assets is acquired.

However, an overseas person can enter into an agreement to purchase sensitive New Zealand assets
without breaching the Act, provided that the agreement is conditional on obtaining consent (and consent
is obtained before the transaction is completed).
The Overseas Investment Office aims to have all applications for consent relating to the commitment to
reside pathway decided within 10 working days. For most other Overseas Investment Office applications,
the Overseas Investment Office aims to have decided within 50 working days (except for standing
consents). “Working days” only encompasses days of active consideration, which excludes time spent
waiting for information from the applicant and time spent waiting for Ministers to make decisions.

CRITERIA FOR CONSENT
Investor test
The investor test applies to nearly all overseas persons. An overseas person meets the investor test
(or in the case of an overseas person that is not an individual (for example, a company), each of the
individuals with control of the overseas person) if the person:
ə Has (or collectively have, in the case of a non-individual overseas person) business experience and
acumen relevant to the investment
ə Has demonstrated financial commitment to the investment
ə Is of good character
ə Is not a person prohibited by section 15 or section 16 of the Immigration Act 2009 (which lists certain
persons that are not eligible for visas or entry permission under that Act).
The investor test does not need to be met if an applicant is applying under the “commitment to reside in
New Zealand” test or, in very limited circumstances involving large apartment developments. These are
discussed further below.

There are additional criteria that only apply to investments in sensitive land on page 37.
Consent will only be granted if all of the relevant criteria are met.