Buying property on residence visas
OIO approval needed before purchasing your first NZ home
If you have recently received a resident visa to live in New Zealand, but are not yet a NZ citizen, it is important to understand the rules around purchasing property in this country.
With the exception of citizens or permanent residents of Australia or Singapore, anyone who is not a NZ citizen and is intending to buy residential property must either be “ordinarily resident in NZ”, or be purchasing property with a spouse or partner who is ordinarily resident in NZ, or first obtain consent from the Overseas Investment Office
(OIO).
So what does it mean to be an ordinary resident in NZ?
The OIO sets out four requirements that each must be met if you are to be considered ordinarily resident.
You must:
Hold a residence class visa.
Have been residing in New Zealand for at least the past year.
Be a New Zealand tax resident. Have been in NZ for 183 days or more in the preceding 12 months. The requirement to have been residing in NZ for the past year mentioned above does not require you to have been holding a residence visa for that whole time.
If you have been living in NZ on a student or work visa, and only recently have obtained a residence class visa, you may still qualify as ordinarily resident.
Therefore you may not need to obtain consent from the OIO to purchase property in NZ. Note that time spent on a visitor visa does not count as residing in NZ.
If you do not yet meet all of the requirements to be ordinarily resident, but you do hold a residence class visa, you may still be able to purchase one property if it is for you to live in.
But you will need approval from the OIO first. The OIO will only provide consent if you meet the “commitment to reside in NZ” test.
You will need to hold a residence class visa and complete a statutory declaration that you will be present in NZ for at least 183 days in the following 12-month period and become tax resident in NZ. The OIO monitors compliance of these rules and can impose penalties if you do not comply with the declarations.
The process may take 10 working days. But you can be proactive and obtain consent up to a year in advance to ensure you have it, before searching for your first NZ home.