Recent changes allowing AIP visa holders to purchase residential property have made the programme even more attractive to high-net-worth individuals looking to diversify their investments and establish a presence in New Zealand.

Our Meritas colleague in New Zealand, Lee Harris, Trust and Estate Practitioner, Martelli McKegg, has prepared an overview of the current AIP visa settings, key considerations for investors and why timing may be important for those considering this opportunity.

Most countries are making it harder for wealthy investors to secure residency. New Zealand is doing the opposite. Our Active Investor Plus (AIP) visa offers one of the most accessible pathways to permanent residency available anywhere in the world. And since March 2026, AIP visa holders can also purchase a New Zealand home.

I have worked with foreign investors and their advisers for many years. I have not seen a window like this before. A New Zealand general election is scheduled for November 2026. The current programme is a government initiative. If the government changes, the rules may change too. Applicants who lodge before any change are protected. Those who wait may not be.

What the AIP Visa offers

The AIP visa grants permanent residency for life to the main applicant and their family. The main applicant needs just 21 days in New Zealand over the three-year investment period if the Growth Category is selected. Family members need only visit once within 12 months of the visa being granted. There is no age limit and no English language requirement.

The visa has two categories:

1. Growth Category: NZ$5 million into approved New Zealand private equity funds for three years, with 21 days of presence. Lower threshold, shorter commitment, strong flexibility.

2. Balance Category: NZ$10 million over five years, with 105 days of presence. A broader investment range including government bonds, listed equities, and philanthropy.

Around 80% of applicants choose the Growth Category. Since the programme relaunched in April 2025 up until 24 May 2026, 734 applications have been received – representing at minimum NZ$4.29 billion in committed capital. The previous government’s settings attracted just 116 applications and NZ$70 million over two and a half years.

For investors based in the US, Singapore, Hong Kong, or China, the figures are more accessible than they first appear. NZ$5 million in investment capital is considerably less in US dollars, Singapore dollars, Hong Kong dollars, or Chinese yuan.

The new Property Exemption

On 6 March 2026, AIP visa holders gained the right to purchase one residential property in New Zealand. This is a significant policy change. New Zealand has long restricted foreign ownership of residential real estate. There is no requirement to live in the property and no restriction on rental. You can buy an existing home or purchase land and build. The minimum spend is NZ$5 million.

Approval from the Overseas Investment Office currently takes as little as five working days

What you need to get right

The rules governing eligible properties are specific. Getting them wrong can result in loss of the AIP visa itself. Here is what matters most.

• Property size: Most residential properties must be no larger than 0.4 hectares. Properties adjoining the foreshore are limited to 0.2 hectares. Common ownership interests in shared land count toward the total. A 2,000 sqm apartment with a 5,000 sqm common proprietary interest in surrounding land would exceed the limit.
• Location: Waiheke Island – accessible from Auckland CBD by ferry or helicopter – is a permitted location and among the most sought-after addresses in New Zealand. Coastal and island properties require careful due diligence. Land that includes marine or coastal area is off limits.
• Couples and associated persons: While both partners may in principle each purchase a property, New Zealand relationship property law is quickly triggered. Each investor is limited to one beneficial interest arising from the AIP visa. Structures such as companies, trusts and limited partnerships for ownership are permitted provided control and ownership requirements are not breached.
• Penalties for non-compliance: A breach of the Overseas Investment Act carries penalties of up to NZ$500,000 or three times the capital gain, plus loss of the property and potential cancellation of the AIP visa and criminal penalties. The Overseas Investment Office notifies its decisions publicly.
• My strong recommendation: do the due diligence before you identify a property, not after. Certainty early saves significant time and cost.

Tax Residency: getting certainty before you commit

Owning a New Zealand home may trigger tax residency here, even with minimal time spent in the country. New Zealand applies two tests: days present, and whether you have a permanent place of abode available to you. Owning a property you are entitled to live in is likely to satisfy the second test.

You can apply to Inland Revenue for a binding ruling confirming your tax status before you commit. New Zealand currently has no capital gains tax, no death duty, and no gift duty, and has double tax agreements with many countries. For most international clients, the tax picture is manageable – but only with early, specific advice.

Good news for Australian citizens

Australian citizens already benefit from an exemption to be able to purchase New Zealand residential land (subject to it not being sensitive for another reason), so the good news is that the $5 million minimum spend that is required to enable an AIP visa holder to purchase NZ residential land doesn’t apply for Australian citizens.

How the timeline works

Documentation preparation: one to four months (police clearances, medical checks, investment decisions).

Immigration processing: currently a few months, fast by global standards.

After approval in principle: up to 12 months to transfer and invest funds, residence visas secured.

Property purchase and tax residency ruling: can run in parallel with immigration.

Permanent residency: secured at the end of the three- or five-years.

The November 2026 election means the timeline is real. Starting now gives you the most options.

Why New Zealand, and why now

New Zealand consistently ranks as one of the world’s safest and least corrupt countries. We are a stable common law jurisdiction with a respected judiciary – qualities that carry real weight for investors from the US, Singapore, Hong Kong, and China, particularly in the current global climate.

The AIP visa does not ask you to relocate. It asks you to invest, spend a relatively short period here, and secure a legal right to live in New Zealand whenever you choose. Since March 2026, that right can include owning a home. That combination – permanent residency, minimal presence, property ownership – is genuinely rare.

Frequently Asked Questions

For Australian businesses and individuals with cross-border interests, investment and migration decisions often involve legal, tax and commercial considerations across multiple jurisdictions. Through our membership of Meritas, Madgwicks can connect clients with trusted legal advisers around the world, including New Zealand, to ensure they receive coordinated advice tailored to their circumstances.

If you are considering investing in New Zealand or would like to understand the Australian legal implications of a cross-border investment or residency strategy, please contact Rick Goldberg, Meritas Primary Contact rick.goldberg@madgwicks.com.au

The information provided in this article is general in nature and cannot be relied on as legal advice, nor does it create an engagement. Please contact one our lawyers listed above for advice about your specific situation.