Foreigners are prohibited from purchasing residential real estate in New Zealand. However, New Zealand is allowing overseas-based investors with a New Zealand investor residence visa to buy a house in the country.
The new real estate investment rule for foreigners to purchase luxury properties aims to revive the sluggish economy of New Zealand. The permission to buy real estate properties in New Zealand is available only to those holding an Active Investor Plus Visa.
Active Investor Plus Visa
Active Investor Plus Visa allows foreigners to live, work and invest in New Zealand. Since April 1, there have been two options as investment categories: Growth and Balanced.
Active Investor Plus Visa holders can apply for permanent residence after 3 years of keeping their funds in New Zealand if they invest under the Growth category, or after 5 years if they invest under the Balanced category. An Active Investor Plus Visa lets you stay in New Zealand indefinitely.
“The Government has decided that people with an Active Investor Plus residency visa will be allowed to buy or build one home. The minimum value of the house that can be bought or built will be set at $5 million, which equates to less than 1 per cent of New Zealand houses,” says Prime Minister Christopher Luxon.
Individuals who received residence visas under the previous Investor 1 & 2 visas will also be eligible.
Minimum Investment
The Growth category focuses on high-risk investments, including direct investments in New Zealand companies, with a minimum commitment of NZD $5 million over three years. The Balanced category includes diversified investments with reduced risk possibilities, with a minimum commitment of NZD $10 million over five years.
New Business Investor Visa
Additionally, New Zealand has introduced a new Business Investor Visa offering a pathway to residency. Foreigners need to invest a capital of NZD $1 million in an existing business, for a 3-year work-to-residence pathway or NZD $2 million investment in an existing business, for a 12-month fast-track to residence pathway that can generate at least five jobs, will be offered a residency permit in New Zealand.
Applicants can purchase a business outright on either visa pathway or acquire at least 25% of the business, provided they meet the minimum $1 million or $2 million investment thresholds.