Page 40 - English-DBINZ brochure-2019

37 Doing business in New Zealand

Additional criteria for investment in sensitive land

There are additional criteria that only apply to investments in sensitive land. The criteria depends on
the consent pathway used. Which pathway is available depends on the type of sensitive land that is the
subject of the Overseas Investment Office application, as set out below:

CONSENT PATHWAYS
Ordinarily Commitment Increased Non- Incidental Benefit to
resident/ to reside housing residential residential New Zealand
intention to use use
reside
Residential but not
otherwise sensitive X X X X X
TYPE OF LAND Sensitive, but not X X X
residential
Sensitive, but not
X
covered above
Sensitive, but not
covered above X

Only one of the pathways needs to be met in respect of the relevant land. For example, a person may
be granted consent based on the commitment to reside pathway. If so, it is not necessary to satisfy the
benefit to New Zealand test.
The Act provides for a standing consent to be granted in some circumstances – eg if an investor was
applying under the increased housing pathway. This allows an applicant to obtain consent even if they
have not yet identified the particular land they intend to acquire.
A summary of the key requirements for each pathway is set out below.

COMMITMENT TO RESIDE

This pathway is for overseas investors that are committed to residing in New Zealand and are acquiring
the residential land as their main home and residence.

INCREASED HOUSING
This pathway is for overseas investors that want to buy residential land and develop it in such a way as
to increase New Zealand’s housing stock. It requires that the relevant Ministers are satisfied that certain
outcomes (eg increasing housing, on-sale, and non-occupation) are likely to occur.

NON-RESIDENTIAL USE

This pathway is for overseas investors that want to buy residential land for a non residential use – eg the
acquisition of a residential home that will be used as a dental surgery.

It requires that the relevant Ministers are satisfied that the land will be, or is likely to be, used for non-
residential purposes in the ordinary course of business for the relevant business, and will not be held for
future residential use.