AIP Visa Holders Can Buy Luxury Residential Property in NZ

18 Sep 2025

Recent legal reforms in New Zealand are transformational for Active Investor Plus (AIP) visa holders. For high-net-worth individuals, the changes now bring clearer pathways: owning high-value properties, flexible residency obligations, and stronger connections to NZ’s economy.

Although AIP visa-holders are granted residency, they are not required to spend six months per year in New Zealand. The policy acknowledges that these people tend to have international business interests, and travel – a lot.

Under the current Overseas Investment Act 2005, this means some investors do not meet the threshold to be treated as local buyers. Our firm identified this issue early on, and notified Immigration New Zealand by highlighting the potential problem for high-net-worth investors, who had no desire to stay in a hotel or Airbnb for over six months. Without careful planning, AIP clients faced:

• Uncertainty in property eligibility despite holding residency.
• Complications in negotiations, with sellers requiring extra conditions or proof of compliance.
• Sellers demanding an additional premium, on what is already a premium price.

Until now, the overseas investment law banned foreigners from buying residential housing. AIP visa holders are now an exception: they will be allowed to buy or build one house under certain conditions.

Key Facts & Criteria

• AIP visa requires minimum investment of NZ$5 million.
• Must pass good character and acceptable health checks.
• AIP holders do NOT have to reside in NZ for six months each year.
• Applicants who got residence visas under the former Investor 1 & Investor 2 categories are also eligible under the new change.
• AIP has two categories:
1. Growth — higher risk, direct investment in NZ businesses. Requires NZ$5 million over 3 years.
2. Balanced — mixed investments (can include lower-risk assets). Requires NZ$10 million over 5 years.

• This exemption was to come into effect at the end of 2025, but we believe that early 2026 is more realistic.

Observations from Recent Investor Cases

• Some AIP visa applicants in recent months attempted to negotiate house purchase agreements with conditions related to securing investment approvals, financing or the transfer of funds from overseas. Sellers often push back or favour domestic buyers who present unconditional offers.
• Investors who made offers with extra conditions sometimes had to raise their offer price, adjust settlement timelines, or lose the property altogether.
• Many luxury homes, even if residential, are considered “sensitive land” for other reasons under the Overseas Investment Act such as homes adjacent to the foreshore, rivers, or lakes, and these will still likely require consent.

Summary

For investors with or seeking AIP visas you will have the legal right to buy/build a NZ$5 million+ residence—once this major barrier has been removed. This will help you gain flexibility in how often you need to be in NZ.

To succeed, you will still need strong offers with fewer conditions, good financial proof, and fast decision capability. Real estate agents and buyers should also flag proximity to sensitive land early, like beaches, rivers, and lakes, as this may trigger consent requirements under the Overseas Investment Act despite this new exemption. A strong understanding of the interplay between residency and foreign buyer restrictions is crucial. By planning strategically and leveraging experienced legal guidance, AIP investors can secure prime properties while minimising risk and uncertainty.

To help navigate your obligations and home buying journey, please contact Steven Lee or our team at Martelli McKegg.