Overseas Investment Regulations 2005

Reprint as at 28 July 2020

Coat of Arms of New Zealand

Overseas Investment Regulations 2005

(SR 2005/220)

Silvia Cartwright, Governor-General

Order in Council

At Wellington this 1st day of August 2005

Present:
Her Excellency the Governor-General in Council

Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

These regulations are administered by the Treasury.

Pursuant to section 61 of the Overseas Investment Act 2005, Her Excellency the Governor-General, acting on the advice and with the consent of the Executive Council and on the recommendation of the Minister of Finance, makes the following regulations.

Contents

1Title
2Commencement
3Interpretation
3ATransitional, savings, and related provisions
Part 1AA
Matters relating to terms defined in Act
3BSensitive information
3CStrategically important businesses
3DTransactions of national interest
3EOverseas investments covered by emergency notification regime
Part 1
Consent
Procedure for offering farm land or farm land securities for acquisition on open market
4Purpose of regulations 5 to 10
5Procedure for offering farm land or farm land securities for acquisition on open market
6Obligation of owner to advertise that farm land or farm land securities available for acquisition
7Content of advertisement
8Form of advertisement
9Farm land or farm land securities must be on open market for minimum period
10Advertisement must be published within previous 12 months
11Effect of regulations 5 to 10
Procedure for offering foreshore, seabed, riverbed, or lakebed to the Crown
12Procedure for offering foreshore, seabed, riverbed, or lakebed to the Crown
13Obligation of owner to give notice to relevant Ministers and regulator
14Content of notice
15The Crown may waive right to acquire special land
16Procedure if the Crown does not waive right to acquire special land at outset
17Valuation of special land
18Costs of valuation
19Appointment of valuer is not an arbitration
20Valuer may determine market value of special land with reference to market value of relevant land
21Valuer must give notice to parties on determining market value of special land
22Relevant Ministers and owner must negotiate in good faith
23Effect of offering special land to the Crown
24Relevant Ministers must decide on whether to accept offer to acquire special land
25Agreement for acquisition of special land by the Crown must be conditional on overseas investment receiving consent and being given effect to
26What happens if there is material change to terms and conditions of overseas investment transaction
27Minister may delegate functions and powers to regulator [Revoked]
Other factors for assessing benefit of overseas investment in sensitive land
28Other factors for assessing benefit of overseas investment in sensitive land
Benefit test: special test relating to forestry activities
29Special test may be applied and requirements to be met
Matters relating to sensitive land that is residential land
30Types of overseas persons specified to be qualifying individuals
31Factors for considering whether person remains committed to residing in New Zealand
32Maximum percentage: dwellings in large apartment developments that are purchased off plans
Fees and charges
33Fees and charges
34When fees and charges are payable
Administrative penalties
35Administrative penalty for late filing
36Administrative penalty for retrospective consent
Part 2
Exemptions
Exemptions from requirement for consent
37Exemptions for corporate dealing
38Exemptions for shareholding creep by consent holder
38AExemptions for shareholding creep by persons other than consent holder
39Exemption for redeemable preference shares
40Exemptions for trusts
41Exemptions for permitted security arrangements
42Further exemption for permitted security arrangements
43Exemption for life insurance
44Exemption for retirement schemes
45Exemptions for relationship property
46Exemption for underwriting
47Exemption for overseas custodians acquiring certain rights and interests in custodial property
Exemptions from requirement for consent provisions of Act
48Exemption for persons connected to portfolio investors or New Zealand controlled persons
49Exemption for New Zealand controlled persons
50Consequential exemption for other transactions
Exemptions from requirement for consent in respect of overseas investments in sensitive land
51Exemption for certain land transactions commonly known as re-grants
52Exemption for certain transactions where relevant land of certain type and area is already in overseas ownership or control
53Exemption for transactions consequential on certain actions under Public Works Act 1981
54Exemption for replacement of forestry right with new forestry right
55Exemption for replacement of regulated profit à prendre with new regulated profit à prendre
56Exemption for freeholder who acquires another interest in land included in freehold
Exemptions from requirement for consent in respect of overseas investments in residential land
57Exemptions for network utility operators
58Exemptions relating to relationship property where spouse or partner granted consent under commitment to reside in New Zealand test
59Exemption for diplomatic premises
60Exemption for charitable entities
Exemptions for Australian investors from requirement for consent in respect of certain overseas investments in significant business assets
[Revoked]
61Exemptions in Schedule 5 apply [Revoked]
Exemption from definition of overseas person
62Exemption for certain bodies corporate who are overseas persons only because overseas custodians have custodial securities
63Further exemption for retirement schemes
Applications for exemptions
37Application for exemption [Revoked]
64Requirements for application for exemption
Part 2A
National security and public order risks management regime
64AOverseas investment covered by the emergency notification regime
64BExemption from requirements under emergency notification regime
64CInterim direction orders
Part 3
Miscellaneous
Subpart 1—When person who relies on exemption to acquire property becomes subject to existing consent or exemption conditions
65Application of, and interpretation for, subpart
66B treated as subject to existing conditions that are continuing conditions
67A ceases to be subject to existing conditions to extent B becomes subject
Subpart 2—Notices
Notices
68Relevant Minister or Ministers or regulator may give notice of exercise of powers
Service of notices
69Service of notices
Subpart 3—Miscellaneous provisions
69ATime frame for taking risk management action
69BLand owned or managed by governance entity of collective group of Māori
Part 4
Exemptions in respect of overseas investments in sensitive land to implement obligations under international agreements
Subpart 1—Introduction and definitions
70Introduction to this Part
71Definitions
72Definition of ownership and control test
Subpart 2—Implementation of Australian CER Investment Protocol
Introduction and definitions
73Introduction to subpart 2
74Definitions for subpart 2
Exemptions for Australian investors
75Exemption for Australian investors in respect of residential (but not otherwise sensitive) land
76Exemption for Australian investors in respect of regulated profit à prendre
77Exemption for Australian investors in respect of relationship property
78Definition of Australian investor
Subpart 3—Implementation of Singapore CEP
Introduction and definitions
79Introduction to subpart 3
80Definitions for subpart 3
Exemptions for Singaporean investors
81Exemption for Singaporean investors in respect of residential (but not otherwise sensitive) land
82Exemption for Singaporean investors in respect of relationship property
83Definition of Singaporean investor
Part 5
Alternative monetary thresholds for overseas investments in significant business assets
Subpart 1—Introduction and definitions
84Introduction to Part 5
85Definitions
86Definition of ownership and control test
87Definition of relevant government enterprise [Revoked]
Subpart 2—Implementation of CPTPP Agreement, Korea FTA, ANZTEC, Hong Kong CEP, China FTA, and P4 Agreement
88Introduction to subpart 2 and interaction between regulations in Part 5
Type 1 investors
89Alternative monetary thresholds for overseas investments in significant business assets by type 1 investors
90Definition of type 1 investor
Type 2 investors
91Alternative monetary thresholds for overseas investments in significant business assets by type 2 investors
92Definition of type 2 investor
Type 3 investors
93Alternative monetary thresholds for overseas investments in significant business assets by type 3 investors
94Definition of type 3 investor
Type 4 investors
95Alternative monetary thresholds for overseas investments in significant business assets by type 4 investors
96Definition of type 4 investor
Subpart 3—Implementation of Australian CER Investment Protocol
97Introduction to subpart 3 and interaction between regulations in Part 5
98Definitions for subpart 3
Australian non-government investors
99Alternative monetary thresholds for overseas investments in significant business assets by Australian non-government investors
100Definition of Australian non-government investor
Australian government investors
101Alternative monetary thresholds for overseas investments in significant business assets by Australian government investors
102Definition of Australian government investor
Supplementary provision
103Supplementary provision relating to Australian investments
Part 3
Miscellaneous
[Revoked]
Notices
[Revoked]
39Relevant Minister or Ministers may give notice of exercise of powers [Revoked]
Service of notices
[Revoked]
40Service of notices [Revoked]
Schedule 1AA
Transitional, savings, and related provisions
Schedule 1
Form of advertisement
Schedule 2
Fees and charges
Schedule 3
Portfolio investors
Schedule 4
New Zealand controlled persons
Schedule 5
Exemptions for Australian investors from requirement for consent in respect of certain overseas investments in significant business assets
[Revoked]
Gazette Information
Overseas Investment Amendment Regulations (No 2) 2006
Overseas Investment Amendment Regulations 2008
Overseas Investment Amendment Regulations (No 2) 2009
Overseas Investment Amendment Regulations 2010
Reprint notes