New Zealand's Overseas Investment Act in 2026: The Foreign Buyer Ban, the "Ordinarily Resident" Carve-Out, and the Active Investor Plus Path

Published on: May 22, 2026

Quick answer: New Zealand's 2018 foreign buyer ban remains in force, most overseas persons need Overseas Investment Office consent to buy residential or lifestyle land, and it is usually refused. The 6 March 2026 amendment opened a deliberately narrow window: Active Investor Plus (and legacy Investor 1/2) visa holders may buy one home valued at NZ$5 million or above, with OIO consent. Australian and Singaporean citizens remain fully exempt, and recent migrants on resident-class visas can use the "one home to live in" pathway. The "ordinarily resident" test is harder than tax residence, all four limbs (residence-class visa, 12 months residing, 183 days present, NZ tax resident) must be met, and the 10-year Bright-Line Test taxes gains for sellers who exit within the window despite NZ having no stamp duty.

May 2026, New Zealand has run one of the world's most restrictive foreign residential property regimes since the August 2018 amendment to the Overseas Investment Act 2005. The ban survived a change of government. On 6 March 2026, the same Act was amended again, opening a deliberately narrow window for Active Investor Plus visa holders to buy a single home at NZ$5 million or above. Australian and Singaporean citizens remain exempt. Everyone else is subject to the OIO consent regime. This is the country guide.

The Headline Position

The Overseas Investment Act 2005 (OIA), as amended in August 2018, makes residential land in New Zealand "sensitive land" for the purposes of overseas investment screening. The default rule is that an "overseas person" requires the consent of the Overseas Investment Office (OIO), or rather, of the relevant ministerial decision-maker, before acquiring residential or lifestyle land in New Zealand.

In practice, since 2018 the consent has been refused for most residential acquisitions. The 2018 amendment is colloquially called the "foreign buyer ban" and that is how it has operated for seven years.

Three primary carve-outs survive throughout that period:

  1. Australian and Singaporean citizens. Citizens of Australia (under the closer-economic-relations framework) and Singapore (under the NZ–Singapore Closer Economic Partnership) may purchase residential property without OIA consent.
  2. The "ordinarily resident" test. A natural person who is "ordinarily resident in New Zealand" is not an "overseas person" for OIA purposes. The test has multiple prongs and is materially more demanding than the test for tax residence.
  3. The "one home to live in" pathway. Holders of permanent or long-term residence visas (broadly, RV holders intending to live in New Zealand) may apply for consent to buy one home to live in, with a maximum dwelling and lot size, on a use-it-or-divest basis.

The March 2026 amendment added a fourth: a narrow window for Active Investor Plus (AIP), Investor 1, and Investor 2 visa holders to acquire one residential property valued at NZ$5 million or above.

The Definition That Determines Everything: "Overseas Person"

The OIA's definition of overseas person controls who is subject to consent. For natural persons:

  • A New Zealand citizen is not an overseas person.
  • A person who is ordinarily resident in New Zealand is not an overseas person.
  • All other natural persons (including holders of work visas, student visas, visitor visas, and most resident-class visas who do not meet the ordinarily-resident test) are overseas persons.

For companies, trusts, partnerships, and limited partnerships, the test cascades through ownership and control: more than 25% overseas ownership or control generally makes the entity an overseas person.

The "Ordinarily Resident" Test, All Four Limbs

To satisfy ordinarily resident status, a natural person must:

  1. Hold a residence-class visa (Resident Visa or Permanent Resident Visa);
  2. Have been residing in New Zealand for at least 12 months immediately before the relevant date;
  3. Have been present in New Zealand for at least 183 days in the previous 12 months;
  4. Be a tax resident of New Zealand under the Income Tax Act 2007.

All four must be satisfied. A holder of a Resident Visa who spent only 100 days in NZ in the past 12 months is not ordinarily resident, and is an overseas person for OIA purposes, no matter how genuine the intention to settle.

This is the most-misunderstood concept in the entire OIA regime. Foreign buyers regularly assume that a Resident Visa or a substantial NZ business connection is sufficient. It is not. Until all four limbs are satisfied, OIO consent is required.

Route 1: The Citizenship Carve-Outs (Australians and Singaporeans)

Citizens of Australia (whether holding an Australian passport or registered under another classification) and citizens of Singapore may purchase residential property in New Zealand without OIO consent. The carve-outs flow from international agreements, the NZ–Australia closer-economic-relations framework and the NZ–Singapore Closer Economic Partnership.

In practice, the Australian carve-out is the single largest source of "foreign" buyer activity in New Zealand, particularly in Auckland and Queenstown. Singaporean flows are smaller in volume but concentrated in luxury Queenstown lakefront stock.

Important caveats

  • The carve-out is citizenship-based, not residence-based. An Australian permanent resident who is not an Australian citizen does not qualify.
  • The carve-out exempts the buyer from OIA consent, not from any other applicable tax: the Bright-Line Test (10 years for properties acquired since 27 March 2024), the residential rental loss ring-fencing, and standard NZ income tax on rental income all apply.
  • Joint purchases with a non-Australian, non-Singaporean overseas-person spouse still trigger OIA consent unless the other spouse is independently exempt.

Route 2: The "One Home to Live In" Pathway

Resident-class visa holders who do not yet meet the ordinarily-resident test may apply to the OIO for consent to buy one home to live in, subject to:

  • Maximum lot size of 5,000 square metres (urban residential focus);
  • Genuine intention to use as principal place of residence;
  • Commitment to becoming ordinarily resident, with the OIO retaining the right to require the property be sold if the buyer does not meet the ordinarily-resident test within a reasonable period (typically 12 months);
  • OIO application fee (currently NZ$2,040 for an existing home; NZ$3,500 for a new build);
  • Standard decision timeline of 10 working days for straightforward applications.

This pathway is most-used by recent migrants on Skilled Migrant Resident Visas before the 12-month and 183-day clocks complete; returning New Zealand citizens whose long-absent partner is not a NZ citizen but holds a Resident Visa; and investor-visa holders who do not qualify for the AIP pathway (or whose property is below the NZ$5M threshold).

The OIO publishes decisions. Refusal rates on bona fide "one home to live in" applications are low, but the application requires a coherent file.

Route 3: The March 2026 Active Investor Plus Carve-Out

The most consequential 2026 development is the amendment to the OIA that took effect on 6 March 2026, opening a deliberately narrow pathway for holders of certain investor-class visas to buy one high-value home.

The AIP Visa in 2026

The Active Investor Plus (AIP) visa, restructured by the current government in 2025, requires:

  • Growth category: NZ$5 million invested for a minimum of three years in higher-risk, "active" investments (start-ups, direct equity, managed growth funds, NZ Trade & Enterprise-recognised vehicles);
  • Balanced category: NZ
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