New era for overseas investment: OIA reforms take effect 6 March 2026

New Zealand's investment landscape is about to change, and it represents a meaningful signal that New Zealand wants to reduce red tape and speed up the regulatory process to encourage investment. Overseas Investment Act reforms, which come into force on 6 March 2026, replace some of the previous screening pathways with a streamlined, national interest-focused regime.

The key headline: faster decisions, reduced application costs, and a clearer process. Some time lag remains however, particularly for non-New Zealand Government Investors (NNZGIs) and Strategically Important Businesses (SIBs). Despite the legislative timeframes, we are hopeful that, in practice, these will also be significantly reduced.

We know investors are ready for these changes. Results from our 2025 Expanding Horizons M&A survey showed that 89% of respondents said reform of the Overseas Investment Act would increase their desire to invest in New Zealand. That shift is now happening. These reforms represent a significant step toward a more open and investable economy.

Below, our experts break down exactly what investors and their advisers need to know, including the new three-stage National Interest Test, updated timeframes and fees, and the revived pathways for certain visa holders.

A new three-stage National Interest Test

The new regime replaces the previous screening pathways with a consolidated three-stage National Interest Test focused on risk identification and management. The regulator will determine at the outset whether an application can proceed on an expedited basis or requires further assessment.

Note that there is no statutory longstop date for any of the timeframes.

Stage	Timeframe	Fees	Key Features/Powers
Stage 1 - Risk identification	15 working days Directive target: 80% assessed within 5 working days	Application Fee: $22,800	Regulator assesses whether the investment may give rise to national interest risk. If no risk is assessed, consent can be granted (with or without conditions). No risk management conditions can be imposed at this stage.
Stage 2 - Risk assessment	55 working days	Additional fee: $83,700 investor fee reduction: $12,500	Applies where assessment is required as to whether the investment is contrary to the national interest. Regulator may grant consent (with or without conditions) or refer the matter to the Minister. Regulator cannot decline consent - only the Minister can decline (at Stage 3). Timeframes may be discounted in practice for repeat or low-risk investors, however 55 working days remains the key assumption for contractual timing purposes.
Stage 3 - Ministerial decision	55 working days (inclusive of Stage 2 timeframe), with potential 30 working day extension	No additional fees payable	Minister determines whether to decline consent (if referred).

Primary Consent Pathway

The Primary Consent Pathway will apply where the only substantive criterion is the national interest test (ie no separate benefit or investor test). The message from the OIO is clear: provide concise and targeted information and make the case where risk is identified. Applicants must positively identify and address potential risk factors. It is not sufficient to simply assert there is no risk. It is important to note that risk is not eliminated simply because NNZGI ownership drops below 25%, and SIB considerations remain highly relevant. Adjacency risks must be considered, for example neighbouring land to defence or space-related infrastructure.

Certain investors will not be eligible for the expedited Stage 1 and proceed directly to Stage 2. This includes:

Investments involving NNZGIs with 25% or more ownership; and
Investments in SIBs – for example critical infrastructure, media, telecommunications or defence.

Where these factors are present, the application proceeds directly to Stage 2. However, the statutory timeframe comprises both the 15 working day Stage 1 period and the 55 working day Stage 2 period (70 working days in total), and both the Stage 1 and Stage 2 fees are payable, notwithstanding that Stage 1 is effectively bypassed.

Key changes:

No Investor Test Questionnaires.
No Good Character statutory declarations.
No Vendor Information Forms, although limited vendor information will need to be uploaded with the application.

Standard conditions will apply to every transaction and any variation to these will need to be made upfront in the application. There will not be the same consultation over conditions as there is currently.

Production Forestry Pathway

The Special Forestry Test will be replaced by a Production Forestry Pathway within the national interest framework. Existing forestry standing consents will continue to apply for transactions entered into before their expiry dates, after which no new forestry standing consents will be available.

Key points to note are:

Timeframes and fees mirror the Stage 1 / Stage 2 structure;
Many existing forestry conditions will be re-applied via the forthcoming Ministerial Directive Letter;
Conditions are expected to apply as standard unless amendments are sought;
Applies to rotational forestry only but greater flexibility is anticipated for partial conversion from production to permanent forestry (e.g. following severe weather events); and
Will not otherwise apply to permanent/carbon forestry or farm land to forestry conversions.

Residential development and standing consents

The residential development regime will largely continue as is, with national interest considerations operating in the background. Residential standing consents will remain available.

Investor Visa holders – a renewed opportunity

The Government’s reforms also revive pathways for certain visa holders to acquire residential land.

Eligible applicants include holders (current or historic, going back 17 years) of:

Investor 1 visas;
Investor 2 visas; and
Active Investor Plus (AIP) (“golden”) visas.

The key points to be aware of are:

Applies to residential land only (not otherwise sensitive categories);
Property must have an existing liveable dwelling, or one must be built;
If acquired for under $5 million, a new dwelling must be constructed;
Chattels are excluded from the purchase price assessment; and
Trusts and companies may invest, but beneficiaries are limited to the visa holder and immediate family.

It is critical for visa holders to ensure that they are meeting these requirements, and they should obtain a Sensitive Land Certificate to confirm that the property they are considering meets the criteria.

Farm Land unchanged

The reforms do not alter the Benefit to New Zealand Test for farm land. Farm-to-forestry conversions will continue to require a benefit assessment.

Wrap-up

Application costs have reduced from the current Significant Business Assets and general land application costs (Stage 1 ($22,800) and Stage 2 ($83,700)) and the OIO is currently undertaking a fees review which is anticipated to reduce the Stage 2 fees.
Despite a directive target of 80% of applications to be assessed within five working days at Stage 1, 55 working days is the key planning benchmark where Stage 2 applies, with a potential 30 working day extension if escalated to Stage 3.
Automatic Stage 2 for NNZGIs and SIBs must be factored into deal structuring.
Early risk identification is crucial, particularly adjacency to defence, space or other sensitive infrastructure.
Sensitive land checks should be undertaken early and by someone experienced in the regime. Estate agents and advisers should always obtain a Sensitive Land Certificate to confirm land, adjacency or infrastructure sensitivities may arise.