A new law passed in December 2025 carves out a narrow exception to New Zealand’s foreign buyer restrictions. Holders of certain investor-residency visas will soon be able to buy or build residential property in New Zealand – but only high-end homes and only under strict conditions.
The key points are:
- Who qualifies: Only Active Investor Plus (AIP), Investor 1 and Investor 2 visa holders (and people on those paths, including current PR visa holders who previously held one of those visas) are eligible. These visas require capital investments in New Zealand businesses. Other foreign buyers remain subject to the restriction.
- Property threshold: The property must be valued (including land and build costs) at more than NZ$5 million. In practice, this means an eligible investor can buy an existing home or raw land and build a home, as long as the total price exceeds NZ$5 million. This NZ$ 5million+ threshold keeps the exemption narrow (affecting well under 1% of New Zealand houses).
- Type of land allowed: Only residential or lifestyle land (as classified on the local valuation roll) is eligible. All other “sensitive” land remains off-limits. For example, farmland, large rural blocks (over 5 ha), coastal or lakefront areas, and land on special islands are still subject to the normal overseas investment controls. In short, you can buy a high-end house or build one in a residential area, but you cannot buy farms or other sensitive property under this exception.
- Consent process: Eligible investors must still apply to the Overseas Investment Office (OIO) for consent before purchase, but through a new streamlined process. We expect the specialised pathway for these investor-visa buyers will be fast – typically decided in about 5 working days. (OIO application fees are NZ$2,040 for an existing home over NZ$5 million and NZ$3,500 for a new-build project.) All the usual checks still apply: the investor must meet good character and health requirements of their visa. The OIO will also assess that the purchase is not contrary to NZ’s national interest.
- Effective date: The amendment received Royal Assent on 19 Dec 2025 and will come into force by Order in Council in early 2026 (if not set sooner, the law automatically takes effect by May 2026 at the latest). In practical terms, eligible investors can begin applying for consent once the commencement date is announced – likely in the first quarter of 2026.
What else has changed
In addition to the changes set out above, the amendment also brings into force other changes previously floated by the Government to streamline consents for “significant business assets” and sensitive land other than farmland or residential land. These welcome changes are canvassed in our previous article and are expected to speed up decision-making time for these types of consents.
What hasn’t changed
Crucially, the broad foreign buyer restriction remains in place for everyone else. All other overseas persons cannot buy existing New Zealand homes, and any purchase of farmland or other sensitive land still requires a separate OIO application (subject to the standard scrutiny). In other words, unless you qualify under this new investor-visa pathway, the prohibition on buying residential / lifestyle properties still applies.
These changes are deliberately narrow. They open the door only for high-end residential purchases by visa holders who are committed to investing in New Zealand. It is not a general relaxation of the prohibition. Investor visa holders who meet the criteria (AIP, Investor 1 or 2, NZ$5 million+ property) must still obtain OIO consent and pass the national interest screening, but they will now be allowed to acquire one New Zealand residential property at that scale.
If you have any questions about this article, please get in touch with the contacts listed or your usual Bell Gully adviser.
Disclaimer: This publication is necessarily brief and general in nature. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.
