Foreign Direct Investment (FDI) & OIO Screening

New Zealand actively seeks foreign capital but strictly regulates the acquisition of "sensitive" assets through the Overseas Investment Office (OIO).

The Overseas Investment Act

If you are an "overseas person" (which includes companies where 25% or more ownership or control is held overseas), you must obtain consent from the OIO before acquiring certain assets.

Category	Threshold for OIO Consent
Significant Business Assets	Acquiring >25% of a business worth more than $100 million NZD (higher for certain FTA partners like Australia).
Sensitive Land	Non-urban land over 5 hectares; land on certain islands; land adjoining reserves or foreshores.
Residential Land	Almost all residential land is considered sensitive. Overseas buyers are effectively banned from buying existing homes unless they hold a resident visa and have lived in NZ for 12 months.
Fishing Quota	Any acquisition of fishing quota requires consent and meets a very high "national interest" threshold.

The "Benefit to New Zealand" Test

When assessing an application for sensitive land, the OIO applies the "Benefit to New Zealand" test. The investor must prove that the investment will result in substantial and identifiable benefits compared to a counterfactual (usually a well-funded New Zealand buyer).

Factors assessed include:

• Job creation or retention
• Introduction of new technology or business skills
• Increased export receipts
• Added market competition