Foreigners wishing to purchase non-urban land must obtain prior consent for the transaction. Consent is not required in case of an acquisition of a forestry right when the area of the relevant forestry right is less than 1 000 hectares.
"6 Interpretation
(1) In this Act, unless the context requires otherwise,—
acquisition includes obtaining ownership or coming into possession by any means [...]
forestry right means—
(a) a right created in accordance with the Forestry Rights Registration Act 1983; or
(b) any other profit à prendre that—
(i) relates to taking timber from a forest; and
(ii) to the extent (if any) that the profit à prendre relates to other things, would, were the profit à prendre to be treated as a separate profit à prendre in relation to those things, fall within paragraph (b) of the definition of regulated profit à prendre in this subsection [...]
non-urban land means—
(a) farm land; and
(b) any land other than land that is both—
(i) in an urban area; and
(ii) used for commercial, industrial, or residential purposes
[...]
7 Who are overseas persons
(1) The purpose of this definition is to provide that persons are overseas persons if they themselves are overseas persons (for example, not a New Zealand citizen or ordinarily resident in New Zealand or, for companies, incorporated overseas) or they are more than 25% owned or controlled by an overseas person or persons.
(2) In this Act, overseas person means—
(a) an individual who is neither a New Zealand citizen nor ordinarily resident in New Zealand; or
(b) a body corporate that is incorporated outside New Zealand or is a more than 25% subsidiary of a body corporate incorporated outside New Zealand; or
(c) a body corporate (A) if an overseas person or persons have—
(i) more than 25% of any class of A's securities; or
(ii) the power to control the composition of more than 25% of A's governing body; or
(iii) the right to exercise or control the exercise of more than 25% of the voting power at a meeting of A; or
(d) a partnership, unincorporated joint venture, or other unincorporated body of persons (other than a trust or unit trust) (A) if—
(i) more than 25% of A's partners or members are overseas persons; or
(ii) an overseas person or persons have a beneficial interest in or entitlement to more than 25% of A's profits or assets (including on A's winding up); or
(iii) an overseas person or persons have the right to exercise or control the exercise of more than 25% of the voting power at a meeting of A; or
(e) a trust (A) if—
(i) more than 25% of A's governing body are overseas persons; or
(ii) an overseas person or persons have a beneficial interest in or entitlement to more than 25% of A's trust property; or
(iii) more than 25% of the persons having the right to amend or control the amendment of A's trust deed are overseas persons; or
(iv) more than 25% of the persons having the right to control the composition of A's governing body are overseas persons; or
(f) a unit trust (A) if—
(i) the manager or trustee, or both, are overseas persons; or
(ii) an overseas person or persons have a beneficial interest in or entitlement to more than 25% of A's trust property.
[...]
10 Consent required for overseas investments in sensitive New Zealand assets
(1) A transaction requires consent under this Act if it will result in—
(a) an overseas investment in sensitive land (see section 12):
[...]
11 Consent must be obtained before overseas investment given effect
(1) Consent must be obtained for a transaction before the overseas investment is given effect under the transaction.
(2) The procedure for obtaining consent (including who must obtain consent) is set out in subpart 2.
12 What are overseas investments in sensitive land
An overseas investment in sensitive land is the acquisition by an overseas person, or an associate of an overseas person, of all or any of the following (a section 12 interest):
(a) an estate or interest in land if—
(i) the land that the estate or interest relates to is sensitive land under Part 1 of Schedule 1; and
(ii) the estate or interest acquired is a freehold estate or a lease, or any other estate or interest, for a term of 3 years or more (including rights of renewal, whether of the grantor or grantee), and is not an exempted interest; or
(b) rights or interests in securities of a person (A) if A owns or controls (directly or indirectly) an estate or interest in land described in paragraph (a) and, as a result of the acquisition,—
(i) the overseas person or the associate (either alone or together with its associates) has a more than 25% ownership or control interest in A; or
(ii) the overseas person or the associate (either alone or together with its associates) has an increase in an existing more than 25% ownership or control interest in A; or
(iii) A becomes an overseas person.
[...]
Schedule 1 - Sensitive land
Part 1 - What land is sensitive
Land is sensitive under this Act if—
(a) the land is or includes land of a type listed in table 1 and the area of that type of land exceeds the corresponding area threshold (either alone or together with any associated land of that type), if any; or
(b) the land (land A) adjoins land of a type listed in table 2 and the area of land A exceeds the corresponding area threshold (either alone or together with any associated land), if any.
[...]
Table 1
Land is sensitive if it is or includes this type of land / and that type exceeds this area threshold (if any) [...]
non-urban land / 5 hectares
[...]
Schedule 3 - Exemptions from requirement for consent
Exemptions in respect of overseas investments in sensitive land involving forestry rights
6 Area of forestry right less than 1 000 hectares
(1) 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—
(a) the relevant forestry investment is the acquisition of a forestry right (the relevant forestry right); and
(b) the area of the relevant forestry right is less than 1 000 hectares.
(2) Subclause (3) applies to a transaction that will result in an overseas investment in sensitive land (the relevant forestry investment) if—
(a) 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(a) (the relevant forestry right); and
(b) the area of the relevant forestry right is less than 1 000 hectares.
(3) 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.
(4) 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:
(a) the area of the relevant forestry right:
(b) the combined area of all other forestry rights—
(i) 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
(ii) that are for a term of 3 years or more (including rights of renewal, whether of the grantor or grantee).
(5) For the purposes of subclause (4)﻿(b)﻿(i),—
(a) related forestry investor means—
(i) the person who makes the relevant forestry investment; or
(ii) any associate of that person; or
(iii) 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
(b) a related forestry investor (B) is treated as acquiring a forestry right if—
(i) 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
(ii) 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
(c) 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.
(6) 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).[...]" (Overseas Investment Act (2005 No 82); last amended on 24 November 2021; Sections 6, 7, 10, 11 and 12; Schedule 1, Part 1; Schedule 3, Section 6)
Overseas Investment Act (2005 No 82); last amended on 24 November 2021; Sections 6, 7, 10, 11 and 12; Schedule 1, Part 1; Schedule 3, Section 6
[<a href="https://www.legislation.govt.nz/act/public/2005/0082/81.0/DLM356881.html">Act</a>]