Land Purchases by Non Residents.

Maybe we can compromise. Allow foreign sales but put a limit on the total amount of land that can be sold to make sure NZ remains majority NZ-owned. Once we reach the limit, foreigners can only buy if another sells.

I would prefer restrictions, as in it’s not possible to foreign people & entities to purchases land

Here’s a scenario: Saudi Arabia has lots of money but very little arable land. They develop a plan to buy large tracts of arable land overseas to provide food for themselves. They purchase a large amount of NZ’s farmland, staff it with Saudis, grow whatever (including sheep for live export), also buy and staff the freezing works, and ship the product directly to Saudi. Eventually they own the majority of NZ’s arable land through foreign companies who repatriate profits back to their owners. Why is this beneficial to NZ or New Zealanders?
This seems to be what is already happening to our forests but at least we get to cut them down and cart them to the ports.
There is a very simple definition of foreigner: anyone who doesn’t hold a NZ passport. I’ve argued elsewhere for the abolition of the corporate structure – to be replaced by partnerships.

Robert, there will be benefits to NZ in foreign entities purchasing land here through their enterprises adding to economic activity…employment. Banning them totally may send a message that we are not open for business. An issue would arise in defining who is foreign as well. The lawyers would have a good time for sure. (If the Chinese own 50% of Synlait which is quoted on the NZX, is that " foreign", same with Fisher n Paykel, are Graeme Harts forests foreign owned..etc ). There would be many jobs lost and flow on effects if these companies had to sell their land.

What benefit does NZ get from allowing land sales to foreigners? Are there disadvantages? I like the idea of restricting all NZ land ownership to NZ natural citizens. If this was announced as being the law from, say, 1 June next year there would be a mass divestment from corporates and foreigners which may resolve both speculation and inflated values.

Land purchasers who are non-resident and not a citizen should pay more tax, but I’m not sure this is the way to do it. Perhaps worth looking at how other countries prevent the severe property value inflation we are seeing in New Zealand.

Actually New Zealanders do pay tax on their world wide income, or at least they are required to. A credit is allowed for tax paid overseas. The result is tax or world wide income at NZ rates. My suggestion would allow bona fide purchases to buy land here, but only if they paid tax here, as a resident. This would discourage the money launderers etc. I don’t agree that this would be hard to police. Its a relatively simple process. Either a tax return is filed, and the tax paid, or a caveat is placed on the land. thats for your feedback though.

I agree. We have seen a worldwide hunt for stolen funds from China. The largesse from corrupt and evil people simple goes into land in naive and unauspecting countries. Futher its a national security issue having our land owned by people from overseas with no hinest interest in the sustainability of NZ. At the extreme countries have been invaded on the pretence of prtecting their investment in that country. Afghanistan in the 80s was invaded on that basis by russian

Would favour just banning land sales to non-resident foreigners. The above suggestion seems too complicated to police.

Would favour just banning land sales to non-resident foreigners. The above suggestion seems too complicated to police.

One problem. NZ citizens don’t pay tax on income earns overseas . More problems. Enforcement would be hard to impossible. I suspect that without any way to prove income, tax evasion woukd become normalized. With such onerous provisions wouldn’t it be easier just to ban sales to foreigners?