Can foreigners buy farmland in New Zealand?

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BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in New Zealand. If you'd like to learn more about us, you can check our presentation page.

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Can foreigners buy farmland in New Zealand?

Yes, foreigners can legally purchase farmland in New Zealand, but the process is heavily regulated and requires government approval for most agricultural properties.

Nearly all farmland over 5 hectares is classified as "sensitive land" under New Zealand law and requires consent from the Overseas Investment Office (OIO) before any foreign buyer can complete a purchase. This regulation applies to most commercial farming operations including dairy farms, sheep stations, orchards, and vineyards.

The government introduced these restrictions to ensure that foreign investment in agricultural land benefits New Zealand's economy and communities. As of September 2025, the approval process has become more streamlined but remains strict in its requirements for demonstrating value to the country.

Properties under 5 hectares may still require approval depending on their location and use, particularly if they're adjacent to sensitive areas or have strategic importance.

Foreign buyers must prove their investment will bring tangible benefits to New Zealand, such as job creation, technology transfer, or environmental improvements.

What types of farmland are foreigners allowed to purchase?

Foreigners can purchase various types of agricultural land in New Zealand, including dairy farms, sheep and cattle stations, orchards, vineyards, and mixed farming operations.

Eligible farmland includes properties primarily used for commercial agriculture such as dairy farming, livestock grazing, horticulture, viticulture, and crop production. The classification depends on the primary use of the land at the time of purchase rather than its zoning or potential uses.

Specialty agricultural operations like organic farms, aquaculture facilities on land, and large-scale nurseries also fall under farmland regulations if they exceed the 5-hectare threshold. Lifestyle blocks that are primarily residential with some farming activities may face different rules depending on their size and commercial farming component.

Land used for forestry, mining, or purely residential purposes is subject to different overseas investment rules and may be prohibited for most foreign buyers unless specific exceptions apply.

It's something we develop in our New Zealand property pack.

Are there any restrictions on the amount of land that can be bought by foreigners?

New Zealand does not impose an absolute cap on the total area of farmland that foreigners can purchase, but each application is assessed individually based on the benefit to New Zealand test.

While there's no legal limit on acreage, larger purchases face more scrutiny from the OIO. Properties over 5 hectares require approval, and the complexity of the application process increases with the size and value of the land. Very large agricultural investments may require additional economic impact assessments and longer processing times.

The government evaluates each proposal based on factors including the buyer's experience in agriculture, proposed improvements to the land, job creation potential, and environmental benefits. Multiple property purchases by the same foreign investor are cumulative and may trigger enhanced due diligence requirements.

Regional considerations also apply, with some areas having strategic importance for food security or environmental protection that may influence approval decisions regardless of size.

Foreign investors planning large-scale agricultural investments often benefit from early consultation with the OIO to understand specific requirements for their proposed purchase.

What is the process for foreign buyers to acquire farmland in New Zealand?

Step	Requirement	Timeline
1. Market Testing	Farm must be offered to New Zealanders first	Before OIO application
2. Application Preparation	Complete OIO forms and gather documentation	2-4 weeks
3. Background Checks	Financial verification and benefit assessment	4-12 weeks
4. OIO Review	Government assessment of application	6-16 weeks
5. Decision	Approval or decline with conditions	1-2 weeks notification
6. Settlement	Complete purchase under approved conditions	As per agreement
7. Ongoing Compliance	Annual reporting if required	Throughout ownership

Do foreign buyers need to be in the country to buy farmland, or can they do it remotely?

Foreign buyers can complete the entire farmland purchase process remotely without needing to be physically present in New Zealand.

All OIO applications, documentation submission, and approval processes can be handled through online portals, email, and postal services. Buyers can work with New Zealand-based lawyers, real estate agents, and accountants to manage the transaction from overseas.

However, remote buyers must establish certain local connections including opening a New Zealand bank account, obtaining an IRD (tax) number, and appointing a local legal representative. These requirements can typically be fulfilled through power of attorney arrangements with New Zealand professionals.

Many foreign buyers choose to visit the property before purchase for due diligence purposes, but this is not legally required. Virtual inspections, professional property reports, and local representatives can provide adequate information for investment decisions.

Remote buyers must comply with anti-money laundering regulations, which may require additional documentation and verification processes compared to local purchases.

What specific documents do foreigners need to provide when purchasing farmland?

Foreign buyers must provide comprehensive documentation including identity verification, financial records, and detailed investment plans as part of the OIO application process.

1. **Identity and Legal Documents** - Valid passport or equivalent identification - Proof of current residential address - Corporate documents if buying through a company - Power of attorney documents if using representatives2. **Financial Documentation** - Bank statements showing source of funds (typically 6-12 months) - Financial statements or tax returns - Evidence of how purchase funds were acquired - Anti-money laundering compliance documentation3. **Property-Related Documents** - Sale and purchase agreement (conditional on OIO consent) - Land Information Memorandum (LIM) report - Property valuation and survey reports - Environmental assessments if applicable4. **Investment and Benefit Plans** - Detailed business plan for the farm operation - Evidence of agricultural experience or expertise - Proposed improvements and investments - Job creation and economic benefit projections5. **New Zealand Requirements** - IRD (tax) number application - New Zealand bank account details - Insurance arrangements for the property - Local legal representation confirmation

Is there a path to residency or citizenship through purchasing farmland?

Purchasing farmland in New Zealand does not automatically provide a pathway to residency or citizenship, as property ownership alone is not a qualification for immigration status.

While buying farmland doesn't grant residency rights, some investor and entrepreneur visa categories may consider significant agricultural investments as part of the overall application assessment. The Investor 1 and Investor 2 visa categories require substantial investments in New Zealand, but farmland purchases must meet specific criteria and be combined with other requirements.

Foreign buyers who operate farming businesses in New Zealand may qualify for work visas or business immigration categories, but these depend on factors like job creation, business revenue, and meeting immigration points requirements rather than just property ownership.

Some buyers pursue residency through other channels while owning farmland, such as skilled migration categories, family sponsorship, or entrepreneurial activities that extend beyond simple property investment.

Prospective buyers should consult with immigration advisers to understand how farmland investment might fit into broader residency strategies, but should not rely on property ownership as a guaranteed immigration pathway.

Where do foreigners typically buy farmland in New Zealand?

Foreign buyers typically concentrate their farmland purchases in Canterbury, Waikato, Otago, and Hawke's Bay regions, which offer the best combination of agricultural productivity and investment potential.

Canterbury attracts foreign investment primarily for dairy farming operations, with its flat terrain, reliable water access, and proximity to processing facilities. The region's established irrigation infrastructure and strong dairy cooperative network make it attractive for large-scale commercial farming operations.

Waikato remains popular for dairy farming investments due to its fertile soils, consistent rainfall, and well-developed farming infrastructure. Foreign buyers often target established dairy farms with existing milking facilities and stock.

Otago draws foreign investment in viticulture and lifestyle farming, particularly in areas like Central Otago where premium wine production offers higher returns per hectare. The scenic landscapes also attract buyers seeking lifestyle blocks with commercial farming components.

Hawke's Bay appeals to foreign buyers interested in horticulture, orchards, and wine production. The region's climate and established export networks for apples, stone fruits, and wine make it attractive for agricultural investments with international market access.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in New Zealand versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are the most common uses of farmland by foreigners?

Foreign buyers most commonly purchase farmland in New Zealand for dairy farming, viticulture, horticulture, and livestock operations, with dairy farming representing the largest category of foreign agricultural investment.

Dairy farming attracts the highest foreign investment due to New Zealand's reputation for efficient milk production and strong export markets. Foreign buyers often purchase established dairy farms with existing infrastructure including milking sheds, stock, and water rights.

Viticulture operations draw significant foreign investment, particularly in premium wine regions like Central Otago, Marlborough, and Hawke's Bay. These investments often combine vineyard operations with winery facilities and tourism components.

Horticulture investments focus on high-value crops including kiwifruit, apples, avocados, and berries. Foreign buyers are attracted to New Zealand's reputation for producing premium fruit for export markets, particularly to Asia.

Livestock operations including sheep farming, beef cattle, and deer farming attract foreign buyers seeking exposure to meat and wool export markets. These operations often require larger land areas but lower capital investment per hectare compared to intensive farming.

It's something we develop in our New Zealand property pack.

What are the average prices of farmland in New Zealand, and how do they vary by region?

Region/Type	Price per Hectare (NZ$)	Primary Use
Canterbury Dairy	25,000-40,000	Intensive dairy farming
Waikato Dairy	30,000-45,000	Prime dairy operations
Otago Lifestyle	50,000+	Scenic/viticulture blocks
Hawke's Bay Horticulture	60,000-100,000+	Premium orchards/vineyards
National Grazing	12,000	Sheep/beef operations
National Median	28,000	All farm types
Premium Horticulture	240,000+	Small intensive blocks

What taxes, fees, and other costs should foreign buyers be aware of when purchasing farmland?

Foreign buyers face significant upfront costs and ongoing obligations when purchasing farmland in New Zealand, with total transaction costs typically ranging from 5-8% of the property value.

The OIO application fee starts at NZ$2,040 but increases based on land value and application complexity, potentially reaching NZ$10,000 or more for large or complex purchases. Legal fees for foreign buyers typically cost around 1.5% of the property value, higher than for domestic purchases due to additional compliance requirements.

Real estate commission of 3.5-4% plus GST is usually paid by the seller but may be negotiated into the purchase price. Land Information Memorandum (LIM) reports cost NZ$200-400, while comprehensive property surveys and environmental assessments can add NZ$2,000-5,000 to transaction costs.

Foreign exchange and bank transfer fees typically cost 0.1-0.5% of the transfer amount, with currency conversion margins adding 1-3% to the total cost. Foreign buyers must budget for ongoing compliance costs including annual reporting requirements if imposed as OIO conditions.

New Zealand does not impose stamp duty or capital gains tax on property sales, but income from farming operations is subject to New Zealand tax rates. Council rates (annual property taxes) vary by region and property value, typically ranging from 0.5-2% of capital value annually.

Can foreigners buy farmland with cash, or are mortgages commonly available to them?

Foreign buyers can purchase farmland with cash or through limited mortgage options, though financing is significantly more challenging and expensive for non-residents compared to New Zealand citizens.

Cash purchases are common among foreign buyers and must comply with strict anti-money laundering documentation requirements. Buyers must provide detailed evidence of fund sources, often requiring bank statements spanning 6-12 months and explanation of how the money was acquired.

Mortgage access for foreign buyers is limited, with most major New Zealand banks requiring permanent residency or significant local ties. Non-bank lenders and specialist agricultural financiers may provide mortgages to foreigners, but typically charge interest rates of 7-11% compared to 5-7% for residents.

Foreign buyer mortgages typically require larger deposits of 30-50% of the property value, compared to 10-20% for residents. Additional security and guarantees may be required, and loan terms are often shorter than standard residential mortgages.

The mortgage application process for foreigners involves extensive documentation including proof of overseas income, assets, and business operations. Lenders may require New Zealand-based guarantors or additional security over other assets.

What are the most common mistakes or pitfalls foreign buyers make when purchasing farmland in New Zealand?

The most critical mistake foreign buyers make is attempting to purchase farmland without understanding or obtaining proper OIO approval, which can result in forced resale and significant financial penalties.

1. **Regulatory Compliance Failures** - Starting purchases without OIO approval - Misunderstanding land classification requirements - Inadequate benefit planning for OIO assessment - Failing to meet ongoing compliance obligations2. **Financial Documentation Issues** - Insufficient source of funds documentation - Underestimating total transaction costs - Poor foreign exchange planning - Inadequate budgeting for ongoing operational costs3. **Due Diligence Shortcomings** - Skipping professional property inspections - Inadequate soil and water testing - Insufficient research into local farming conditions - Overlooking environmental compliance requirements4. **Professional Support Gaps** - Not engaging qualified New Zealand legal representation - Using inexperienced real estate agents - Inadequate accounting and tax planning - Poor selection of local farming advisers5. **Timeline and Process Misunderstanding** - Underestimating OIO processing times - Inadequate preparation for market testing requirements - Poor coordination between different professional advisers - Assuming property ownership provides residency rights

It's something we develop in our New Zealand property pack.

What is the long-term forecast for the New Zealand farmland market, and is it considered a good investment?

The New Zealand farmland market is expected to remain stable with modest price appreciation through 2025-2027, supported by strong agricultural export demand but tempered by increasing regulatory oversight and compliance costs.

Price growth is projected to be 2-4% annually, slower than historical rates due to tighter overseas investment regulations and higher compliance costs. The market benefits from New Zealand's reputation for sustainable farming practices and growing demand for premium agricultural products in Asian markets.

Regulatory trends suggest continued scrutiny of foreign agricultural investment, with potential for additional compliance requirements and benefit tests. This regulatory environment favors well-capitalized, experienced agricultural investors over speculative buyers seeking quick returns.

Long-term investment quality remains strong for operational farms with sustainable agricultural businesses, particularly dairy, viticulture, and premium horticulture. However, returns are increasingly dependent on farming expertise rather than land value appreciation alone.

Climate change considerations and environmental regulations are likely to impact farmland values, with properties offering good water access, soil quality, and environmental compliance commanding premium prices. Foreign investors should focus on productive agricultural operations rather than speculative land banking for optimal returns.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. BambooRoutes - Foreigners Buy Farmland New Zealand
2. LINZ - Farm Land Investment Guidelines
3. REINZ - Rural Market Update February 2025
4. Rural Leaders - International Agriculture Investment
5. Dairy News - Foreign Ownership Analysis
6. Opes Partners - Overseas Investment Law
7. RNZ - Government Farm Land Policy
8. Bell Gully - Overseas Investment Rules