Migrating to Nelson New Zealand Buying NZ Real Estate
New Zealand Real Estates.com
Legal Information on owning property or investing in New Zealand property from overseas or non New Zealand Residents and Investments by Overseas Residents
There are no controls on the inflow and outflow of foreign currency or on the purchase of urban land and buildings or rural small holdings (under 5 hectares) by non-residents. However, if you are buying a business valued at over $10 million or rural (over 5 hectares), coastal, island or river/lake frontage land is involved, you will need to get Overseas Investments Commission consent.
If you fit New Zealand immigration criteria, you can obtain permanent resident status. That status then avoids the controls of the Overseas Investment Commission. Non-permanent residents have the same rights as residents except for the Overseas Investments Commission controls.
Legal excerpt from Glasgow & Harley Lawyers Nelson, New Zealand. Please feel free to contact them for advice.
New Zealand Real Estates.com - Legal Information & Useful Resources
Property Law professionals who can help you in your purchase of property in Nelson, New Zealand.
Property valuation Providers - these people can help you through the process of valuing your potential home / land.
Investments by Overseas Residents - click here for further information
These law firms specialise in buying and selling real estate in Nelson, New Zealand
Messrs. McFadden McMeeken Phillips
Solicitors
Tel +64 3 548 2154
Fax +64 3 548 2157
Email admin@mmp.co.nz
With the whole of the Nelson Region covered from The city and its surrounds to Richmond, Motueka and Golden Bay, whether you are looking at a cute cottage or a lifestyle section, Duke and Cooke - Nelson Valuers are long established, ethical and totally independent and the one to trust for the job.
Investments by Overseas Residents
Note: It is important to ensure that any agreement to purchase land within New Zealand is subject to the consent of the Overseas Investment Commission being obtained. Note also that Government policies can change, often quite quickly, and therefore it pays to obtain specialist advice from a qualified person when considering purchase.
Should you require any advice in this regard, contact can be made with Messrs. McFadden McMeeken Phillips, Solicitors, Telephone +64 3 548 2154 Fax +64 3 548 2157, email admin@mmp.co.nz
Here are some more frequently asked questions in relation to overseas investment provided by Messrs. McFadden McMeeken Phillips, Nelson Solicitors
1. In New Zealand, the Overseas Investment Commission administers the Overseas Investment Regulations 1995.
Under those Regulation an 'overseas person must obtain consent to acquire or take control of certain assets within New Zealand. The Overseas Investment Commission administers the Governments policies on overseas investment under powers delegated by the Minister of Finance, the Minister for Land Information and the Minister of Fisheries. The primary function of the Commission is to assess applications from overseas investors who intend making significant investments in New Zealand, and the Commissions determines under a delegated authority, usually within 10 working days:
(a) All applications not involving 'land'; and
(b) Land applications which do not involve freehold 'sensitive land' being land on specified islands, reserves and historic areas, the foreshore or lakes, except where the land is 'sensitive' solely because it includes or adjoins a marginal strip of land that extends along or rides beside any river or streams.
The Minister of Finance and the Minister for Land Information jointly determine, normally within 20 to 30 working days 'sensitive land' applications that are outside the Commissions delegated authority. The Minister of Finance and Minister of Fisheries also jointly determine applications relating to the Fisheries Act 1996.
2. When is an individual and overseas person?
An individual who is not a New Zealand Citizen and is not ordinarily resident in New Zealand is 'as overseas person'. An individual is ordinarily resident in New Zealand if he or she is:
· Domiciled in New Zealand; or
· Residing in New Zealand and his or her usual place of abode is and has for the last 12 months been New Zealand. A person still qualifies despite temporary absences from New Zealand;
· And is entitled under the Immigration Act 1997 to be in New Zealand indefinitely, ie the individual holds a permanent residence permit or is an Australian Citizen.
An individual obtains New Zealand domicile when they meet the tests set out in the Domicile Act 1976 (NZ) briefly they are:
· Over 16 years of age;
· Are currently in New Zealand;
· Intend to live indefinitely in New Zealand
3. When are Trusts overseas persons?
If:
· 25% or more of the trustees are overseas persons; or
· 25% or more of the persons having the power to appoint, or control the appointment of the trustees or amend the trust deed, are overseas persons; or
· any overseas person[s] is/are entitled to a beneficial interest in 25% or more of the trust property.
4. When is consent required?
An overseas person requires consent to acquire or take control of 25% or more if:
· Businesses or property in New Zealand worth more than 50 million dollars (NZD);
· Land over 5 hectares and/or worth more than 10 million dollars (NZD);
· Any land on most off-shore islands;
· Land over 0.4 hectares which includes or adjoins certain sensitive areas (for example, on specified islands, reserves, historic or heritage areas, or lakes);
· Land over 0.2 hectares which includes or adjoins the foreshore.
5. Is there a specific application form for consent?
No there is not, although a schedule if information required can be obtained which sets out the information applicants need to provide the Commission when making an application.
6. Will the Commission consider draft applications?
Yes the Commission will review draft applications to assess whether it adequately covers the matters required for application. However such a review will not evaluate the material supplied in terms of what a likely decision would be if the application was made. That evaluation will only take place once an application is received. If however a final application is not submitted, it is the Commission's policy to undertake enquiries to ensure that the transactions outlined in the draft application did not go ahead without consent.
7. Can my application be kept confidential?
If for reasons provided in the Official Information Act there is good reason to withhold the existence of an application from the public domain, then the existence of the application will not be disclosed while it is being considered. However, once an application is determined, the Commission will issue a public decision sheet. The Commission will consult with the applicant and their representatives before releasing any information and if and applicant is able to show that good reason (see above) exists for withholding some or all information in respect of the application, then the Commission may agree to withhold that information.
8. Who will decide my application?
The Commission determines applications not involving 'land' and land applications which do not involve 'freehold sensitive' land (see above).
The Ministers jointly determine all 'land' applications outside the Commission's delegated authority.
9. How long will an application take to be processed?
The Commission will normally request any further information that it requires within 5 working days of receipt of an application. Applications considered by the Commission are normally determined within 10 working days once all information required is to hand. Applications considered by the Ministers are normally determined within 25 working days once the Commission has received all the information it requires, but that time frame may vary depending on Ministerial availability. There is no statutory time frame for when a decision must be conveyed.
10. What is the policy in relation to lifestyle applications?
Lifestyle acquisitions will normally be viewed favourably where an applicant:
· Intends to undertake significant developments on the property and convert it from a lifestyle block to a viable investment block; or
· Has or is proposing to make other significant investments in New Zealand.
If these factors are not present, lifestyle applications will normally be viewed favourably on where the applicant has an intention to reside permanently in New Zealand. The applicant having obtained New Zealand permanent residency status can demonstrate such an intention.
11. What is the criteria for the approval of non-land applications?
The applicant must meet an investor test:
· The applicant must have business experience and acumen relevant to the investment;
· The applicant must demonstrate financial commitment to the investment; and
· Every person who will have not less than a 25% beneficial interest in the overseas investment, or if the applicant is a corporate entity, the directors of the applicant, are of good character and not the kind of persons who fall foul of New Zealand immigration legislation.
12. What is the criteria for the approval of land applications?
The Ministers (or the Commission if the land falls within its delegated authority) must be satisfied that the applicant meets the investor test (as set out above) and that the investment is in the National interest.
In determining whether investment involving 'farmland' is in the National interest, Ministers (or the Commission where it has been delegated authority) must consider whether the overseas investment will, or is likely to, result in substantial and identifiable benefits to New Zealand, or to a region, district or locality or other part of New Zealand. In considering whether the investment will or is likely to result in substantial and identifiable benefits to New Zealand or to a region, district or locality or other part of New Zealand, Ministers or the Commission must have regard only to the following matters:
· Whether experimental or research work will be carried on the land;
· The proposed use of the land by the applicant;
· If the overseas person is an individual, whether the overseas person intends to farm the land for his or her own use and benefit and is capable of doing so;
· Whether the overseas investment will or is likely to result in:
- the creation of new opportunities in New Zealand or the retention of existing jobs in New Zealand that would or might otherwise be lost;
- the introduction into New Zealand of new technology or business skills;
- the development of new export markets or increased export market access for New Zealand exporters;
- added market competition, greater efficiency or productivity, or enhanced domestic services in New Zealand;
- the introduction into New Zealand of additional investment for development purposes;
- increased processing in New Zealand or New Zealand's primary products
· Whether the overseas person or any individual who exercises control over the overseas person intends to reside permanently in New Zealand;
· Such other matters as thought fit having regard to the circumstances of the particular overseas investment.
In determining whether an overseas investment involving land other than 'farmland' is in the National interest, Ministers (or the Commission where it has been delegated authority) must have regard only to the following matters:
· Whether the overseas investment will or is likely to result in:
- creation or retention of jobs in New Zealand; or
- the introduction into New Zealand of new technology or business skills; or
- the development of new export markets or increased export market access for New Zealand exporters; or
- added market competition, greater efficiency or productivity or enhanced domestic services in New Zealand; or
- the introduction into New Zealand of additional investment for development purposes; or
- increased processing in New Zealand of New Zealand's primary products
· Whether the overseas person or if the overseas person is not an individual, any individual who exercises control over the overseas person intends to reside permanently in New Zealand;
· Such other matters as thought fit having regard to the circumstances of the particular overseas investment.
13. Who must provide a good character certificate?
If the applicant is an individual or group of individuals, the Commission requires a good character certificate in respect of each overseas person who will have 25% or more beneficial interest in the investment.
If the applicant is a corporate entity the Commission requires a good character certificate in respect of all of the directors of the entity who are overseas persons. In addition, if the applicant is a wholly owned subsidiary, the Commission requires a good character certificate in respect of all the directors of the parent entity for overseas persons.
14. Who can provide a good character certificate?
The applicant, his solicitor (or Attorney) or in the case of a company, the company secretary.
15. What does 'adjoining' mean in relation to the legislation?
The Commission's present view is that 'adjoins' has its literal meaning of 'touching' or next to. Accordingly, if the subject property is separated from, for example, the foreshore/public road or any other land contained in the separate title, the land does not adjoin the foreshore.
16. How does New Zealand's foreign investment regime compare with other countries?
By international standards New Zealand belongs to a middle group of countries (including Australia, Canada and the United States of America) who place some regulatory constraint on overseas purchase of land, to safeguard the interests of their own citizens. New Zealand's foreign investment regime ranks in about the middle of the range from a study of 26 other countries. A review of other overseas regimes on foreign investment in land shows that few OECD AND OPEC countries prohibit or extensively restrict land sales. The United Kingdom has no restriction on land sales to foreigners at all.
17. Can consent be given to indicative land purchasing programmes?
The Commission and the Ministers can consider applications from overseas persons for consent to a land purchasing programme in New Zealand. This means that consent in principle may be granted to an overseas person acquiring land, the particular parcels of which have yet to be identified, typically within a specified region of New Zealand. The application for a purchasing programme will only be approved by the Ministers if they are satisfied that the overall programme fulfils the investment criteria outlined in the Overseas Investment Act 1973 and the Governments policies on foreign investment. The Commission also has the discretion for revoking any programme should the Overseas Investment policies or legislation change.
Purchasing programmes are commonly restricted to acquisitions of land within a certain region of New Zealand and to a maximum specified area. Further, the Ministers may grant consent in principle coupled with any conditions they think fit.
Note: It is important to ensure that any agreement to purchase land within New Zealand is subject to the consent of the Overseas Investment Commission being obtained. Note also that Government policies can change, often quite quickly, and therefore it pays to obtain specialist advice from a qualified person when considering purchase.
DISCLAIMER
Government policies can change, often quite quickly and so can legislation. The information contained herein was correct at the time of publication, but is subject to change without notice and it is advised that before you enter into any binding commitment, a specific check of your situation with the Overseas Investment Commission and its policies at the time should be made.
Should you require any advice in this regard, contact can be made with Messrs. McFadden McMeeken Phillips, Solicitors, Telephone 0064 3548 2154 Fax 0064 3548 2157, email admin@mmp.co.nz
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