Fees to increase for Overseas Investors

Monday 6 September, 2021

From 13 September 2021, overseas investors in ‘sensitive’ New Zealand land or businesses will face higher application fees. The Overseas Investment Office (OIO), which administers the Overseas Investment regime, is primarily funded through application fees.  A review in 2020 found that the existing fee levels were not covering the costs of the OIO administering the regime. The government has approved a new fees regime, which has resulted in a substantial increase in costs for most applications, particularly those which are more complex. Whether an application is complex depends on the number of people associated with, or having control of, the relevant overseas person or entity.

The new fees regime will charge fees for each stage of the application process, rather than the current system which charges a single fee per application. Applicants, with the exception of those buying ‘One Home to Live In’, will pay:

• A lodgment fee when they submit the application;
• An assessment fee once the application is accepted; and
• A compliance monitoring fee which must be paid before consent is approved.

Applications involving interests in sensitive land or requiring applicants to demonstrate benefits to New Zealand will face the biggest fee increases. Currently, fees vary between NZ$35,500 to NZ$54,000, but new applications will cost up to $146,200, depending on who is assessing the benefit to New Zealand (i.e. the OIO or relevant Ministers) and the applicant’s corporate structure. The complete list of fees under the new regime can be found here.

The new fee regime will apply to all applications submitted from Monday 13 September.

If you have any questions about how these changes may affect your transaction, or you need help with your application, our experts can help.