WHY NEW ZEALAND?
STRAIGHT FORWARD LAND TITLE SYSTEM
New Zealand has an easily understood land title system based on the Torrens system of Land Registration. The Land Transfer Act 1952 provides for a public register of land and transactions may be conducted in reliance on the register.
With its well-developed legal and trading systems, New Zealand provides a strong diversification option for property investors internationally in a balanced service, rural and manufacturing economy, in which many major international corporates are already invested.
New Zealand is a constitutional monarchy with a stable, democratically elected parliamentary government.
STABLE BANKING SECTOR
New Zealand’s financial system remains robust in the context of significant global economic challenges. The combination of a global pandemic and war is unprecedented in recent times. Lockdowns, border restrictions, supply chain disruptions, and economic sanctions have posed challenges around the world. Global inflation has increased to its highest level in decades, leading to a removal of the monetary stimulus used to support the COVID-19 response. In the face of this environment, New Zealand banks and insurers are in a strong position to support their customers and provide the financial services we all rely on.
Reserve Bank of New Zealand, Financial Stability Report, May 2022
OVERSEAS INVESTMENT OFFICE
The Overseas Investment Office administers New Zealand’s overseas investment laws. Overseas investors will require consent to acquire sensitive New Zealand assets. Overseas investors must get consent when New Zealand’s overseas investment rules require them to and must keep the commitments they make when they apply for consent. For more information go to https://www.linz.govt.nz/overseas-investment
CORRUPTION-FREE, CLEAN GREEN IMAGE
New Zealand has a legal system like Great Britain, Australia, and Canada. It does not have the added complication of separate state and federal laws. The judiciary is completely independent of Parliament. The political and legal systems are free from corruption and there is no civil unrest. The attractiveness of New Zealand as a place to live and work is becoming a key factor in sparking international investor interest. As many countries experience internal economic strife and uncertainty, investors are looking to New Zealand as a safe haven for both investment and lifestyle.
NO STAMP DUTY OR CAPITAL GAINS TAX
A passive offshore investor does not pay any stamp duty on purchase or capital gains tax in New Zealand on any profit made on the sale of a property.
At the time of writing, the New Zealand dollar was trading at approximately 61 cents against the United States dollar, slightly below the ten-year average of 74 cents. Against the Australian Dollar the local currency is trading at approximately 91 cents which is ahead of its ten-year average of 86 cents. On a Trade Weighted Index (TWI) basis, the New Zealand dollar is around 70.2.