Do I need OIO consent to buy sensitive land?

Short answer: If you're an overseas person buying sensitive New Zealand land, generally yes, unless an exemption applies. Since 6 March 2026, which consent test applies depends on whether the land is residential, farmland or another type of sensitive land.

The important question isn't simply "Am I buying land?" but:

Is the buyer an overseas person, and is this particular land sensitive under the Overseas Investment Act?

Toitū Te Whenua Land Information New Zealand (LINZ) defines an overseas person broadly. It includes an individual who is neither a New Zealand citizen nor ordinarily resident in New Zealand. Companies, trusts and other entities can also be overseas persons because of their ownership or control, for example a company more than 25% owned or controlled by overseas persons.

What is sensitive land?

All land with a residential or lifestyle category on the District Valuation Roll is residential land, and it is sensitive for Overseas Investment Act purposes whatever its size.

Other land may be sensitive because of its type, size or what it adjoins. Examples include:

  • non-urban land, such as farmland, over 5 hectares
  • land over 0.4 hectares that adjoins the bed of a lake
  • land over 0.4 hectares that adjoins conservation land, a national park or certain reserves
  • land over 0.4 hectares that a district plan sets aside as a reserve, park or open space
  • land over 0.2 hectares that adjoins the marine and coastal area
  • land on islands other than the North and South Islands

The full lists are in Schedule 1 of the Act. The rules are detailed, and the results aren't always obvious from looking at a property.

What about Queenstown?

The issue deserves particular attention in the Queenstown Lakes and Central Otago area.

Where a property sits in relation to lakes, reserves and conservation land, and whether it is non-urban land over 5 hectares, can affect its status under the Act. Lifestyle blocks, vineyards, lake-edge sections and land beside reserves can be sensitive for more than one reason.

The right approach is to investigate the particular title and the surrounding land, rather than assume a type of Queenstown property is or isn't sensitive.

What kinds of interest need consent?

It isn't only buying freehold land. Consent can also be needed for:

  • a lease of sensitive land for more than 10 years
  • buying more than 25% of a company or other entity that holds sensitive land
  • increasing an existing interest above 50% or 75%

Which consent test applies since 6 March 2026?

The reforms didn't change what is screened. They changed how some less sensitive assets are assessed.

  • Residential land that is not otherwise sensitive: one of the residential pathways, such as one home to live in, increasing housing, or the $5 million-plus house pathway for investor visa holders.
  • Residential land that is also otherwise sensitive: the commitment to reside in New Zealand test, or the benefit to New Zealand test.
  • Farmland: the buyer must be a New Zealand citizen, ordinarily resident or intending to live here indefinitely, or meet the benefit to New Zealand test. The farmland usually has to be advertised on the open market first.
  • Other sensitive land: the new national interest test, usually through LINZ's primary consent pathway. LINZ aims to assess most applications within 5 working days of its own time (15 maximum for the first stage). The fee is $22,800.

When should I check?

Before signing the agreement.

If OIO consent may be required, the sale and purchase agreement needs to be conditional on consent, so you aren't required to buy the property without it.

Buying sensitive land without the consent you need can lead to enforcement action:

  • a court order to sell the land
  • civil penalties of up to $500,000 for an individual and $10 million in other cases, or three times any gain
  • for serious or deliberate breaches, prosecution with up to 12 months' imprisonment or a fine of up to $300,000

LINZ recommends getting legal advice if you're in any doubt about the rules or the status of the land.

How Mactodd can help

Mactodd can review the buyer, the property and the transaction, and advise whether an Overseas Investment Office application needs to be part of the purchase. We work from Queenstown and Cromwell and have acted on Central Otago land since 1975.

Talk to us about your situation

If you're considering land in Queenstown or Central Otago and anyone involved is based overseas, talk to us before you sign.

Call 0800 228 110 or request a call back. You can also read more about our overseas investment work.

Related guides

Sources

This is general information only. Each purchase depends on the details of the property and the buyer.