Overseas Investment Act 2005

Schedule 3: Exemptions from requirement for consent

You could also call this:

"When You Don't Need Permission to Invest in New Zealand Land"

The Overseas Investment Act 2005 has rules about when you need consent to invest in sensitive land in New Zealand. But there are some exceptions. You might not need consent if you are a Māori person investing in Māori freehold land, or if you have a periodic lease. A periodic lease is a type of lease that can be ended by either the landlord or the tenant at any time, and it does not give you a fixed period of time to stay in the property.

You also might not need consent if you are buying a residential property off the plans, as long as the development has a certain number of units and you are not going to live in the property. In some cases, you might not need consent if you are investing in forestry or other profits from land, as long as the area of land is small enough.

There are other exceptions too, such as if you are converting a Crown forestry licence into a forestry right, or if you have a regulated profit à prendre that is not a forestry right and the area is less than 5 hectares. You should check the Act and the regulations to see if any of these exceptions apply to you, and to find out about other exemptions that might be available.

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This page was last updated on 18 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS111248.

Topics:

Housing and property > Land useHousing and property > RentingBusiness > Industry rulesImmigration and citizenship > Border controlMāori affairs > Māori land

Schedule 2: Sensitive land that is residential land, or

"Rules for overseas buyers of homes and land in New Zealand"

Schedule 4: Standing consents, or

"Permissions to make multiple investments in New Zealand without needing to apply each time"

3Exemptions from requirement for consent Empowered by s 11A

1Māori freehold land

A transaction does not require consent for the purposes of section 10(1)(a) to the extent that it will result in an overseas investment in sensitive land by a Māori person where the relevant land is Māori freehold land for which the person is a member of the preferred classes of alienees (where those terms have the same meaning as in Te Ture Whenua Maori Act 1993).

2Periodic lease

A transaction does not require consent for the purposes of section 10(1)(a) to the extent that it will result in an overseas investment in sensitive land if the estate or interest in land described in section 12(1)(a) is a periodic lease.
In this clause, periodic lease means a lease that—
is terminable at will, whether by the grantor or the grantee (including a periodic tenancy within the meaning of section 2(1) of the Residential Tenancies Act 1986); and
offers no certainty of term of 4 months or more (including rights of renewal, whether of the grantor or the grantee).

Notes

Schedule 3 clause 2(1): replaced, on 16 June 2020, by section 56(2) of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).
Schedule 3 clause 2(2)(b): amended, on 5 July 2021, by section 35(1) of the Overseas Investment Amendment Act 2021 (2021 No 17).

3Residential tenancy for less than 5 years

A transaction does not require consent for the purposes of section 10(1)(a) to the extent that it will result in an overseas investment in sensitive land if—
the estate or interest in land described in section 12(1)(a) is a residential tenancy for a term of less than 5 years (including rights of renewal, whether of the grantor or grantee); and
the relevant land is residential (but not otherwise sensitive) land.

In this clause, residential tenancy means a tenancy to which the Residential Tenancies Act 1986 applies (including a periodic tenancy within the meaning of section 2(1) of that Act).

Notes

Schedule 3 clause 3(1)(a): amended, on 16 June 2020, by section 56(3) of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).

4Dwellings in large apartment developments that are purchased off plans

This clause applies in respect of land that is being used, or intended to be used, for 1 (or more) of the following (a development):
in the construction of 1 or more multi-storey buildings as 1 development, where each building consists, or will consist, of at least 20 residential dwellings; or
to increase the number of residential dwellings in 1 or more multi-storey buildings, where the number of residential dwellings in each building will be increased by 20 or more.

A person involved in the development (the developer) may apply for an exemption certificate if regulations are in force under section 61(1)(jb).
The relevant Minister or Ministers may grant an exemption certificate if they are satisfied that the development is likely to be completed, having regard to factors such as—
whether the development has appropriate resource consent, building consent, and any other relevant authorisations; and
the developer’s financial strength; and
the previous activity of the developer (or its associates or individuals with control) regarding use of residential land; and
the previous record of the developer (or its associates or individuals with control) in complying with consent conditions or applying for consent conditions to be varied.

An exemption certificate may be applied to up to the maximum percentage, as prescribed in the regulations made under section 61(1)(jb), of the residential dwellings in the development.
A transaction does not require consent for the purposes of section 10(1)(a) to the extent that it will result in an overseas investment in sensitive land in respect of a residential dwelling in the development if—
the relevant land is residential (but not otherwise sensitive) land; and
an exemption certificate applies to the dwelling under subclause (4); and
the person (the purchaser) makes the investment before the construction of the dwelling is complete.

Example

OP1 buys off the plans an apartment to which an exemption certificate applies, using the exemption in subclause (5). So the on-sale outcome does not apply to OP1 (but see subclause (6)(b) for the non-occupation outcome).

OP2 later buys a different apartment to which the exemption certificate does not apply. OP2 must apply for consent (but see section 16(3)(b) for an exemption from the investor test if OP2 applies for consent under the increased housing test.) OP2 must comply with the conditions of that consent as to the on-sale outcome and the non-occupation outcome.

The relevant Ministers may grant an exemption certificate subject to the conditions that they think appropriate, and must impose conditions as follows:
conditions that enable the regulator to identify and monitor the dwellings to which the certificate is applied; and
conditions that impose the non-occupation outcome on purchasers who rely on the exemption certificate under subclause (5); and
conditions that enable the non-occupation outcome to be monitored by the regulator.

Those conditions may be conditions—
that apply to either the developer (as a condition of the exemption certificate) or the purchaser (as a condition of the exemption in subclause (5)), or both; and
that require both the developer and the purchaser to provide the regulator with the name, contact details, and other details of dwellings to which the certificate is applied and the purchasers of those dwellings.

5Certain units acquired and leased back

In this clause,—
TLtP participant means—
1. the person (A) that operates the TLtP premises or that will operate the TLtP premises after the TLtP premises are completed; or
2. any person involved in the development of the TLtP premises (the developer), provided that the developer has assigned its estate or interest in the land to A, or will assign it to A immediately after the TLtP premises are completed to the extent that it relates to the relevant unit
TLtP premises means premises used, or intended to be used, in the course of business principally for providing temporary lodging to the public.
A transaction does not require consent for the purposes of section 10(1)(a) to the extent that it will result in an overseas investment in sensitive land if—
the relevant land is residential (but not otherwise sensitive) land; and
the relevant land is being used, or is intended to be used,—
1. in the construction of TLtP premises that have 20 or more units, or to increase by 20 or more the number of units in TLtP premises; or
2. for the operation of TLtP premises that have 20 or more units; and
the estate or interest in land described in section 12(1)(a) is—
1. an estate or interest in 1 (or more) of those units that is acquired by a person (a purchaser) and that is immediately subject to a lease-back to the TLtP participant; or
2. a lease of 1 (or more) of those units by the purchaser to the TLtP participant (a lease-back).

The exemption is subject to the following conditions:
the lease-back must meet the following requirements at all times on and after the acquisition of the purchaser’s estate or interest:
1. the purchaser cannot occupy, reserve, or use the unit for more than 30 days in each year; and
2. for the rest of the year, the unit must be managed and used for the general purposes of operating the TLtP premises; and
when the lease-back period ends, the purchaser must either, within 12 months of that period ending,—
1. grant to the TLtP participant a new lease-back of the unit that complies with the matters in paragraph (a); or
2. dispose of its estate or interest in the unit; and
the purchaser must not occupy, reserve, or use the unit while it is not leased back to a TLtP participant.

Notes

Schedule 3 clause 5: replaced, on 5 July 2021, by section 35(2) of the Overseas Investment Amendment Act 2021 (2021 No 17).

6Area of forestry right less than 1 000 hectares

A transaction does not require consent for the purposes of section 10(1)(a) to the extent that it will result in an overseas investment in sensitive land (the relevant forestry investment) if—
the relevant forestry investment is the acquisition of a forestry right (the relevant forestry right); and
the area of the relevant forestry right is less than 1 000 hectares.

Subclause (3) applies to a transaction that will result in an overseas investment in sensitive land (the relevant forestry investment) if—
the relevant forestry investment is the acquisition of rights or interests in securities of a person who owns or controls (directly or indirectly) a forestry right that is an interest in land described in section 12(1)(a) (the relevant forestry right); and
the area of the relevant forestry right is less than 1 000 hectares.

To the extent that the transaction will result in the relevant forestry investment, it does not require consent for the purposes of section 10(1)(a) in relation to the relevant forestry right.
Subclause (1) or (3) (as the case may be) does not apply if, immediately after the relevant forestry investment is given effect to, the sum of the following areas is 1 000 hectares or more:
the area of the relevant forestry right:
the combined area of all unconsented forestry rights—
1. that related forestry investors acquire (or are treated as acquiring) in the same calendar year as that in which the relevant forestry investment is given effect to; and
2. that are for a total term (as calculated in accordance with Schedule 1A) of 10 years or more.

For the purposes of subclause (4)(b),—
related forestry investor means—
1. the person who makes the relevant forestry investment; or
2. any associate of that person; or
3. a body corporate related to that person or to any associate of that person (as determined in accordance with section 12(2) of the Financial Markets Conduct Act 2013); and
a related forestry investor (B) is treated as acquiring a forestry right if—
1. B acquires rights or interests in securities of a person (C) who owns or controls (directly or indirectly) the forestry right and, as a result of the acquisition, B has (either alone or together with B’s associates) a more than 25% ownership or control interest in C; or
2. the forestry right comes under the ownership or control (direct or indirect) of a person in whom B has (either alone or together with B’s associates) a more than 25% ownership or control interest; and
it does not matter if a forestry right is acquired (or treated as acquired) by a related forestry investor before the relevant forestry investment is given effect to.

In this clause, area, in relation to a forestry right, means the area of land covered by the forestry right (including any right, whether of the grantor or grantee, to have the original area increased).
In this clause, unconsented forestry right means a forestry right that is acquired otherwise than in reliance on any of the following:
a consent:
an exemption in, or an exemption granted under, this Act or the regulations (other than an exemption under this clause).

Notes

Schedule 3 clause 6(4)(b): amended, on 16 August 2022, by section 10(1) of the Overseas Investment (Forestry) Amendment Act 2022 (2022 No 42).
Schedule 3 clause 6(4)(b)(ii): replaced, on 5 July 2021, by section 35(3) of the Overseas Investment Amendment Act 2021 (2021 No 17).
Schedule 3 clause 6(5): amended, on 16 August 2022, by section 10(2) of the Overseas Investment (Forestry) Amendment Act 2022 (2022 No 42).
Schedule 3 clause 6(5)(b)(i): amended, on 16 June 2020, by section 56(4) of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).
Schedule 3 clause 6(5)(b)(ii): amended, on 16 June 2020, by section 56(4) of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).
Schedule 3 clause 6(7): inserted, on 16 August 2022, by section 10(3) of the Overseas Investment (Forestry) Amendment Act 2022 (2022 No 42).

7Crown forestry licence converted into forestry right

A transaction does not require consent for the purposes of section 10(1)(a) to the extent that it will result in an overseas investment in sensitive land if—
the overseas investment is the acquisition of a forestry right; and
immediately before the forestry right is acquired, the area of land covered by the forestry right (the covered land)—
1. is fully covered by a Crown forestry licence granted under section 14 of the Crown Forest Assets Act 1989 (whether or not the covered land is the only area of land covered by the Crown forestry licence); but
2. is no longer regarded as Crown forest land; and
the person who acquires the forestry right is the licensee of the Crown forestry licence immediately before the acquisition of the forestry right or is a person who is related to that licensee; and
the term of the forestry right (including rights of renewal, whether of the grantor or grantee) expires no later than 35 years after the date on which the covered land ceased to be regarded as Crown forest land.

For the purposes of subclause (1)(c), a person (A) is related to the licensee if—
the licensee owns and controls 95% of A; or
A owns and controls 95% of the licensee; or
a third person owns and controls 95% of the licensee and of A.

For the purposes of subclause (2), a person (X) owns and controls 95% of another person (Y) if X has—
a beneficial entitlement to, or a beneficial interest in, 95% or more of Y’s securities; and
the power to control the composition of 95% or more of the governing body of Y; and
the right to exercise, or control the exercise of, 95% or more of the voting power at a meeting of Y.

8Area of regulated profit à prendre less than 5 hectares

A transaction does not require consent for the purposes of section 10(1)(a) to the extent that it will result in an overseas investment in sensitive land (the relevant profit investment) if—
the relevant profit investment is the acquisition of a regulated profit à prendre that is not a forestry right (the relevant profit); and
the area of the relevant profit is less than 5 hectares.

Subclause (3) applies to a transaction that will result in an overseas investment in sensitive land (the relevant profit investment) if—
the relevant profit investment is the acquisition of rights or interests in securities of a person who owns or controls (directly or indirectly) a regulated profit à prendre that is an interest in land described in section 12(1)(a) but is not a forestry right (the relevant profit); and
the area of the relevant profit is less than 5 hectares.

To the extent that the transaction will result in the relevant profit investment, it does not require consent for the purposes of section 10(1)(a) in relation to the relevant profit.
Subclause (1) or (3) (as the case may be) does not apply if, immediately after the relevant profit investment is given effect to, the sum of the following areas is 5 hectares or more:
the area of the relevant profit:
the combined area of all other regulated profits à prendre—
1. that are not forestry rights; and
2. that are held (or treated as held) by related profit investors; and
3. the areas of which adjoin the area of the relevant profit; and
4. that are for a term of 3 years or more (including rights of renewal, whether of the grantor or grantee).

For the purposes of subclause (4)(b)(ii),—
related profit investor means—
1. the person who makes the relevant profit investment; or
2. any associate of that person; or
3. a body corporate related to that person or to any associate of that person (as determined in accordance with section 12(2) of the Financial Markets Conduct Act 2013); and
held includes owned or in the possession of by any means; and
a related profit investor (B) is treated as holding a regulated profit à prendre if the regulated profit à prendre is under the ownership or control (direct or indirect) of a person in whom B has (either alone or together with B’s associates) a more than 25% ownership or control interest; and
it does not matter if a regulated profit à prendre is first held (or treated as first held) by a related profit investor before the relevant profit investment is given effect to.

In this clause, area, in relation to a regulated profit à prendre, means the area of land covered by the regulated profit à prendre (including any right, whether of the grantor or grantee, to have the original area increased).

Notes

Schedule 3 clause 8(5)(c): amended, on 16 June 2020, by section 56(5) of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).

9Other exemptions

See the regulations for other exemptions.