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New Zealand is opening the door to wealthy investors in a controlled way, with the goal of allowing them to bring significant capital into the country’s economy without affecting the broader housing market. This targeted move signals the government’s focus on attracting international investment while keeping residential property accessible for local buyers.
The New Zealand Government has announced that holders of the Active Investor Plus residence visa, who invest at least $5 million in the local economy, will now be allowed to buy or build one home, valued at a minimum of $5 million. This exemption to the foreign buyer ban aims to attract high-net-worth investors while maintaining limits on foreign property ownership. The policy applies to over 300 current applicants, with the potential to bring in at least $1.8 billion in new investment.
Since 2018, New Zealand has enforced a broad ban on foreign buyers acquiring residential property, aiming to curb speculation and improve housing affordability for New Zealand residents. Under the Overseas Investment Act 2005 ("OIA"), a person must have been physically present in New Zealand for at least 183 days in the past 12 months to qualify as a "resident" and purchase property.
The Government has since recognised the importance of attracting significant foreign capital, expertise, and international business connections to support economic growth. The Active Investor Plus ("AIP") visa, re-launched in April 2025, requires a minimum $5 million investment into New Zealand businesses or approved projects over a three-year period. Because AIP visa holders are not required to reside in New Zealand for 183 days each year, they previously did not meet the OIA's residency test, which prevented them from purchasing residential property despite their significant investment in the country.
To resolve this, the Government has carved out an exemption allowing Active Investor Plus visa holders, and those with previous Investor 1 and 2 visas, to purchase or build a single home, with a minimum value of $5 million.
First introduced on 18 June 2025, the Bill seeks to enable significant investors to deepen their ties to New Zealand. The Bill forms part of the Government’s economic strategy “Going for Growth”, aimed to increase business expertise, employment opportunities and enhanced international connections. It also forms part of the Government's goal to increase international visitors back to pre-COVID numbers. As at November 2024, New Zealand reached 86% of pre-COVID visitor arrivals.
The $5 million threshold corresponds to less than 1% of New Zealand’s housing market by value, ensuring the reform targets only the upper end of the property spectrum. The policy is unlikely to materially impact housing affordability, given the high minimum price point and the small number of eligible buyers.
Owners of residential properties valued over $5 million may benefit from increased demand as a small pool of overseas buyers enters the market. This could increase liquidity and support market activity in premium areas like Auckland and Queenstown.
With over 300 applications already lodged for the Active Investor Plus visa, the Government anticipates at least $1.8 billion in new capital investment, potentially bolstering economic growth, job creation and innovation. By incentivising wealthy migrants to commit significant resources, the reform aligns with broader national goals of attracting investment that contributes to sustainable development. The purpose of the OIA will also be revised to reflect this.
This reform ensures minimal impact on housing affordability and competition while signalling New Zealand’s openness to serious investment. It suggests a willingness to refine and adjust foreign investment rules in response to changing economic realities and stakeholder feedback. For legal practitioners, it highlights opportunities for overseas clients seeking to invest in New Zealand at the highest levels.
However, important details of the reform are still uncertain, including whether there will be a minimum holding period before reselling properties bought under the exemption, and how the rules will apply to properties that are later subdivided. It is also unclear if the government may adjust the minimum investment threshold in response to market activity. A report from the Select Committee is due on 31 October 2025 but it is unclear when exactly the change will come into effect.
The Government’s decision to permit Active Investor Plus visa holders to purchase high-value residential property represents a nuanced step toward welcoming foreign investment while maintaining protections for the wider housing market. As New Zealand continues to navigate the challenges of balancing economic growth with housing affordability, further reforms may emerge, and it is critical that clients stay informed about this evolving landscape.
New Zealand is opening the door to wealthy investors in a controlled way, with the goal of allowing them to bring significant capital into the country’s economy without affecting the broader housing market. This targeted move signals the government’s focus on attracting international investment while keeping residential property accessible for local buyers.
The New Zealand Government has announced that holders of the Active Investor Plus residence visa, who invest at least $5 million in the local economy, will now be allowed to buy or build one home, valued at a minimum of $5 million. This exemption to the foreign buyer ban aims to attract high-net-worth investors while maintaining limits on foreign property ownership. The policy applies to over 300 current applicants, with the potential to bring in at least $1.8 billion in new investment.
Since 2018, New Zealand has enforced a broad ban on foreign buyers acquiring residential property, aiming to curb speculation and improve housing affordability for New Zealand residents. Under the Overseas Investment Act 2005 ("OIA"), a person must have been physically present in New Zealand for at least 183 days in the past 12 months to qualify as a "resident" and purchase property.
The Government has since recognised the importance of attracting significant foreign capital, expertise, and international business connections to support economic growth. The Active Investor Plus ("AIP") visa, re-launched in April 2025, requires a minimum $5 million investment into New Zealand businesses or approved projects over a three-year period. Because AIP visa holders are not required to reside in New Zealand for 183 days each year, they previously did not meet the OIA's residency test, which prevented them from purchasing residential property despite their significant investment in the country.
To resolve this, the Government has carved out an exemption allowing Active Investor Plus visa holders, and those with previous Investor 1 and 2 visas, to purchase or build a single home, with a minimum value of $5 million.
First introduced on 18 June 2025, the Bill seeks to enable significant investors to deepen their ties to New Zealand. The Bill forms part of the Government’s economic strategy “Going for Growth”, aimed to increase business expertise, employment opportunities and enhanced international connections. It also forms part of the Government's goal to increase international visitors back to pre-COVID numbers. As at November 2024, New Zealand reached 86% of pre-COVID visitor arrivals.
The $5 million threshold corresponds to less than 1% of New Zealand’s housing market by value, ensuring the reform targets only the upper end of the property spectrum. The policy is unlikely to materially impact housing affordability, given the high minimum price point and the small number of eligible buyers.
Owners of residential properties valued over $5 million may benefit from increased demand as a small pool of overseas buyers enters the market. This could increase liquidity and support market activity in premium areas like Auckland and Queenstown.
With over 300 applications already lodged for the Active Investor Plus visa, the Government anticipates at least $1.8 billion in new capital investment, potentially bolstering economic growth, job creation and innovation. By incentivising wealthy migrants to commit significant resources, the reform aligns with broader national goals of attracting investment that contributes to sustainable development. The purpose of the OIA will also be revised to reflect this.
This reform ensures minimal impact on housing affordability and competition while signalling New Zealand’s openness to serious investment. It suggests a willingness to refine and adjust foreign investment rules in response to changing economic realities and stakeholder feedback. For legal practitioners, it highlights opportunities for overseas clients seeking to invest in New Zealand at the highest levels.
However, important details of the reform are still uncertain, including whether there will be a minimum holding period before reselling properties bought under the exemption, and how the rules will apply to properties that are later subdivided. It is also unclear if the government may adjust the minimum investment threshold in response to market activity. A report from the Select Committee is due on 31 October 2025 but it is unclear when exactly the change will come into effect.
The Government’s decision to permit Active Investor Plus visa holders to purchase high-value residential property represents a nuanced step toward welcoming foreign investment while maintaining protections for the wider housing market. As New Zealand continues to navigate the challenges of balancing economic growth with housing affordability, further reforms may emerge, and it is critical that clients stay informed about this evolving landscape.
