Overseas investment glossary

This reference is provided as a guide to website content only. For detailed interpretation see section 6 of the Overseas Investment Act 2005 and section 3 of the Overseas Investment Regulations 2005.

A  |  B  |  C  |  D  |  E  |  F  |  G  |  H  |  I  |  J  |  K  |  L  |  M  |  N  |  O  |  P  |  Q  |  R  |  S  |  T  |  U  |  V  |  W  |  X  |  Y  |  Z

A

Access - public and walking

New Zealand legislation encourages landowners to provide walking access to areas of significance and public interest.
Read the Overseas Investment Office's resource on the walking access factor.

Applications

The Overseas Investment Office handles applications for consent, exemption and variation by overseas persons. It also handles notifications under the notification regime. Check application assessment and timeframes or about the application fees. Find out about presenting a consent application & suggested format for sensitive land applications and how to make a notification.

Assets - significant business assets

An overseas investment in significant business assets is the acquisition of assets which are worth more than $100 million.
Find out about significant business assets.

Associated land

Associated land adjoins land owned or controlled by the applicant or an associate.
Find out about aggregating associated land.

Associates

Associates are persons who intend making investments in New Zealand and who are indirectly owned or controlled by an overseas person.
Check the associate provisions.

B

Benefit to New Zealand

The Overseas Investment Office assesses benefit to New Zealand against a number of factors. (See Benefit to New Zealand Factors).

C

Certificate of incorporation

Evidence of a company's registration. The New Zealand Companies Office can show you how to register an overseas company.

Certificate for the purposes of Schedule 1 of the Overseas Investment Act 2005

Use this certificate to attest whether land is sensitive and whether it includes any marine and coastal area, or the bed of a river or lake.

Certificate for the purposes of Schedule 1 of the Overseas Investment Act 2005

DOC

86.5 KB

Confidentiality

The Overseas Investment Office may withhold the existence of an application from the public, or withhold the details of an application.
Find out more in privacy/confidentiality.

Consent

Consent means a consent granted under the Overseas Investment Act for an overseas investment transaction. Consent is required before overseas persons can acquire more than 25% ownership or control interests in sensitive New Zealand assets, i.e. sensitive New Zealand land, significant business assets, or fishing quota. If an overseas person has an existing more-than-25% ownership or control interest in sensitive New Zealand assets, consent is required before they increase their interest to, or above, an ownership or control limit.
Find out if you need consent

Conservation land

Land may be sensitive if it adjoins conservation land. The Department of Conservation administers scientific, scenic, historic, and nature reserves. Local authorities also administer reserves and regional parks. Land may also be sensitive if it includes or adjoins land held for conservation purposes.
Check the sensitive land tables.

Critically direct supplier

A critical direct supplier is a person who has been notified by the Minister of their status as a critical direct supplier.

D

Decisions/​determinations

LINZ generally makes decisions under the delegation from the Ministers, who have the discretion to 'call in' delegated decisions and make it themselves. LINZ publicly releases a short summary of every consent granted or declined. Find out about timeframes.

Delegations

The Ministers have delegated all consent, variation and exemption decisions to LINZ. However, Ministers have the discretion to 'call in' a delegated decision and make it themselves.

Disproportionate access to or control of

Overseas Investment Act 2005, s6 (as amended by section 4 of the Overseas Amendment Act 2021)

E

Excluded accommodation facility

Overseas Investment Act 2005, s6 (as amended by section 4 of the Overseas Amendment Act 2021)

Exemptions

Applicants may apply for discretionary exemptions from the requirement for consent under section 61D, or may fall within exemptions in the Overseas Investment Regulations 2005.
Discretionary exemptions

F

Farm land

Farm land is land that is used, exclusively or principally, for agricultural, horticultural or pastoral purposes, or for the keeping of bees, poultry or livestock.

Farm land securities

Farm land securities are securities to which the overseas investment in farm land relates. This is a broader definition than just shares in a company owning farm land.

Fees

Check the schedule of application fees, which include fees for administrative and information services.

Fishing (quota, sports fish)

Consent is required for overseas persons acquiring an interest in New Zealand fishing quota (provisional catch history, quota, or annual catch entitlement). Separately, applications for consent for sensitive land areas may need to consider the ongoing management and sustainability of New Zealand's populations of sports fish and wildlife.

G

Gross area

Gross area represents the total land area proposed to be acquired under consents granted. The figure includes:

• land that is proposed to be acquired under the consent by overseas person from an existing overseas person. For example, if an entity being an overseas person acquires 10 hectares from existing overseas person, the full 10 hectares is shown; and
• land that is proposed to be acquired under the consent by New Zealand interests as well as overseas interests (for example, under a New Zealand/Australian joint venture). For example, if a company (being an overseas person) that is 50% New Zealand owned and 50% overseas owned acquires 10 hectares, the full 10 hectares is shown; and
• land that is owned by an entity where overseas persons acquire an interest in the entity. For example, if an overseas person acquires 10% of the shares in a company and that company owns 10 hectares of land, the full 10 hectares is shown.

Gross investment

Gross investment represents the total consideration including GST (if any) to be paid for the acquisition of the assets, or the value attributed to those assets, under consents granted during the relevant period. The total figure includes consideration paid by New Zealanders (for example, an acquisition of a business by a New Zealand/Australian joint venture), and will not reflect the net change in ownership of New Zealand assets.

H

Holiday homes

Overseas investors purchasing holiday homes and lifestyle properties may require consent if the property includes sensitive land. Find out more about acquiring lifestyle properties.

I

Islands

Land is sensitive if it is one of the islands specified in the legislation or above the area threshold on other islands (other than North or South Island, but including the islands adjacent to the North or South Island). Check the sensitive land tables.

Kaitiakitanga

For the purposes of the Overseas Investment Act 2005, means the exercise of guardianship by the tangata whenua of an area in accordance with tikanga Māori in relation to natural and physical resources; and includes the ethic of stewardship.

L

 

Legislation

Check the Overseas Investment Office's Legislation, Ministers and Delegated Powers.

Lifestyle properties

Overseas investors purchasing holiday homes and lifestyle properties may require consent if the property includes sensitive land. Find out more about acquiring lifestyle properties.

M

Māori reservations (wāhi tapu)

Heritage New Zealand Pouhere Taonga maintains a register of wāhi tapu (sites of special significance according to tikanga Māori) and wāhi tapu areas (groups of wāhi tapu). Check the Overseas Investment Office guides for identifying special land, historic places & conservation land and for the historic heritage factor.

Marine and Coastal Area, foreshore, seabed

Marine and Coastal Area has the meaning set out in section 9(1) of the Marine and Coastal Area (Takutai Moana) Act 2011, however any reference to land adjoining the marine and coastal area is to land that adjoins this land on the landward side only.
Foreshore and seabed have the same meaning.

Minister

The relevant Ministers under the Overseas Investment Act are the Minister of Finance, the Minister for Oceans and Fisheries, and/or the Minister for Land Information. 

N

Natural environment

Land, water, air, soil, all forms of plants and animals (whether native to New Zealand or introduced), and ecosystems and their constituent parts.

Net area

Net area represents the total land area proposed to be transferred into foreign ownership under consents granted during the relevant period. For example, if a New Zealander sells 10 hectares to someone from overseas, the whole 10 hectares is shown. However, if the seller was a company that was 50% New Zealand owned and 50% foreign owned then only five hectares would show in that column. Five hectares represents the "net" change in foreign ownership of New Zealand land.

Net investment

Net investment represents the total dollar value invested in New Zealand. For example, if a New Zealander sells a $100 million business to an Australian, then the whole $100 million is added to the net investment total. However, if for instance the asset was 100% Japanese owned, then $0 would be added to the net investment total. Thus, the net change in ownership of New Zealand assets is captured in the "total" net investment figure.

New Zealand-listed issuer

A listed issuer that is incorporated in New Zealand or, in the case of a managed investment scheme, established under New Zealand law. Note: ‘Listed issuer’ does not include issuers who have debt securities approved for trading on a licensed market.

Non-urban land

Find out how to determine non-urban land status.

O

Overseas investment

An overseas investment is the sale or transfer of property, issuing of securities or other transaction by an overseas person of sensitive New Zealand assets.

Overseas Investment Office

Toitū Te Whenua Land Information New Zealand is the regulatory department for the Overseas Investment Act. The team undertaking this work was previously referred to as the Overseas Investment Office. It was formally undertaken by the Overseas Investment Commission, operating out of the Reserve Bank. See Regulator

Overseas person

a person who is both:

• not a New Zealand citizen, and
• not ordinarily resident in New Zealand

or

an entity that is either or both:

• incorporated overseas
• more than 25% owned or controlled by an overseas person

or

a New Zealand individual or entity investing on behalf of an overseas person.

Trusts, body corporates, partnerships and other corporate entities may be overseas persons if they are incorporated overseas, more than 25% owned or controlled by an overseas person. A New Zealand individual or entity investing on behalf of an overseas person is also an overseas person.

Overseas Investment Act 2005, s7 (as amended by section 5 of the Overseas Amendment Act 2021)

Ownership / control

Find out about body corporates as overseas persons and calculating a more than 25% ownership or control interest.

R

Relevant government enterprise

Overseas Investment Act 2005, s6 (as amended by section 4 of the Overseas Amendment Act 2021)

Regulator

The regulator refers to the Chief Executive of Toitū Te Whenua Land Information New Zealand (LINZ). The regulating department is LINZ. If context requires, any reference on this website to ‘Office Investment Office’ or ‘OIO’ means the Regulator.

Residency

Individuals ordinarily resident in New Zealand are not overseas persons. Overseas persons applying for consent are not required to show that their investment is likely to benefit New Zealand if they intend to reside in New Zealand indefinitely.

Retrospective consent

Find out about retrospective consent.

S

Securities of the same class

Securities that have attached to them identical rights, privileges, limitations, and conditions. Securities of a different class has a corresponding meaning.

Sensitive land

Land is sensitive if it is, or includes, land of a particular type, adjoins land of a particular type, or is on islands specified in the Act. Area thresholds apply.
Identifying sensitive land

 

Sensitive New Zealand assets

Sensitive New Zealand assets are sensitive New Zealand land, significant business assets, or fishing quota.

Special land

Special land is foreshore, seabed, riverbed or lakebed as defined in the Overseas Investment Act 2005.

Statutory declarations

The Overseas Investment Office requires statutory declarations for a number of purposes, such as verifying information contained in the application or verifying compliance with the conditions of consent.
Prepare a statutory declaration for the Overseas Investment Office.

Strategically important business

Strategically important businesses are businesses operating in a range of areas that are considered to be strategically important, including businesses involved in military or dual-use technology, ports or airports, electricity, water, telecommunications, and financial market infrastructure.

T

Trusts

The Act treats a trust as a person rather than a relationship between trustee and beneficiary. Find out more about discretionary trust beneficiaries. In limited circumstances a change of trustees involving an overseas person may be exempt from the consent requirement.

Tikanga Māori

Māori customary values and traditions.

W

Wāhi tapu

Wāhi tapu are sites of special significance according to Māori customary values and traditions.

Wāhi tūpuna

A place important to Māori for its ancestral significance and associated cultural and traditional values.