Why international buyers are focusing on New Zealand
New Zealand property attracts very strong international investment for a variety of reasons:
STRAIGHTFORWARD LAND TITLE SYSTEM
New Zealand has an easily understood land title system based on the Torrens system of Land Registration. The Land Transfer Act 1952 provides for a public register of land and transactions may be conducted in reliance on the register.
With its well-developed legal and trading systems, New Zealand provides a strong diversification option for property investors internationally in a balanced service, rural and manufacturing economy, in which many major international corporates are already invested.
New Zealand is a constitutional monarchy with a stable, democratically elected parliamentary government.
STABLE BANKING SECTOR
The financial system remains sound and financial institutions are robust. The global economy continues to face challenges from the COVID-19 pandemic the economic outlook is uncertain. In this environment, New Zealand’s financial system has been resilient and continues to support households and businesses as they manage their way through the pandemic.
The banking system’s earnings have increased over the past year. Coupled with dividend restrictions and lower risk-weighted asset growth, this has contributed to banks’ capital ratios increasing to their highest levels since the current riskbased approach to capital regulations was introduced. Banks are well placed to meet the higher requirements coming as a result of the Capital Review, and to absorb any impacts from Alert Level restrictions that have been in place since August.
Reserve Bank of New Zealand: Financial Stability Report, July 2021
OVERSEAS INVESTMENT OFFICE
The Overseas Investment Office administers New Zealand’s overseas investment laws. Overseas investors will require consent to acquire sensitive New Zealand assets. Overseas investors must get consent when New Zealand’s overseas investment rules require them to and must keep the commitments they make when they apply for consent. For more information go to linz.govt.nz/overseas-investment
CORRUPTION-FREE, ‘CLEAN GREEN’ IMAGE
New Zealand has a legal system like Great Britain, Australia, and Canada. It does not have the added complication of separate state and federal laws. The judiciary is completely independent of Parliament. The political and legal systems are free from corruption and there is no civil unrest. The attractiveness of New Zealand as a place to live and work is becoming a key factor in sparking international investor interest. As many countries experience internal economic strife and uncertainty, investors are looking to New Zealand as a safe haven for both investment and lifestyle.
NO STAMP DUTY OR CAPITAL GAINS TAX
A passive offshore investor does not pay any stamp duty on purchase or capital gains tax in New Zealand on any profit made on the sale of a property.