Investing in New Zealand

New Zealand welcomes and encourages foreign investment from all countries, without discrimination. The general policy is based on the premise that proposals should be approved unless good reason exists, in terms of the legislative criteria to decline an application.

Non-residents can participate in a wide range of economic activities in New Zealand, directly or indirectly, through various mechanisms including companies, partnerships and trusts. Non-residents are subject to New Zealand tax on all New Zealand sourced income.

Under this country's Overseas Investment Regulations (1995), an "overseas person" must obtain consent under the regulations to acquire or take "control" of "significant" assets in New Zealand. The significant assets relate to:

• business or property worth more than $10 million 
• land over 5 ha or worth more than $10 million 
• certain sensitive land over 0.4 ha (e.g. on islands; containing or next to reserves, historic or heritage areas, the foreshore or lakes).
• control is generally associated with an overseas person obtaining a 25% ownership or control interest in an asset.

The regulations are divided into parts. One part deals with significant non-land investment while a second deals with land investments.

The Overseas Investment Commission must be satisfied that the applicant has business experience and acumen relevant to that investment, and financial commitment and good character. Where land is concerned, the overseas investment must be shown to:

• have good potential for the creation of new job opportunities in New Zealand or retention of existing ones that might otherwise be lost
• introduce new technology or business skills 
• develop or increase new export markets for New Zealand exporters 
• enhance domestic services in New Zealand 
• introduce new investment for development purposes
• increase processing in New Zealand for New Zealand's primary products.

The New Zealand government promotes direct foreign investment primarily through two bodies - the Ministry of Foreign Affairs and Trade (MFAT), and the government's trade promotion agency, the New Zealand Trade Development Board (TRADENZ). Other government agencies, such as the New Zealand Tourism Board and the Ministry of Forestry, are also active in promoting foreign investment in their respective sectors.

Check out www.oic.govt.nz/invest/property.htm or www.oic.govt.nz/faq.htm to answer all your questions.

Other contacts

Ministry of Foreign Affairs and Trade
Private Bag 18 901
Wellington
www.mft.govt.nz

Tradenz Investment Services
PO Box 10341
Wellington
www.tradenz.govt.nz