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Land Purchases by Non Residents.

Land Purchases by Non Residents.

Non residents should be free to buy NZ land as they currently are, with one major addition. In buying land here a non resident will become a resident for tax purposes, and pay tax on their world wide income as NZ tax residents do. There would need to be look through provisions to counter avoidance, but this is doable. Failure to file a tax return in NZ after a period of time would result in a caveat being placed on the land as a start with increasing penalties from there.

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    • Philip Wilkinson
      tagged this with important 2016-12-07 13:31:24 +1300
    • Dennis Ingram
      commented 2016-12-03 17:38:48 +1300
      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.
    • Dennis Ingram
      tagged this with interesting 2016-12-03 17:38:47 +1300
    • Tim O'Donnell
      commented 2016-12-02 21:27:45 +1300
      I would prefer restrictions, as in it’s not possible to foreign people & entities to purchases land
    • Robert Murray
      commented 2016-12-02 16:38:48 +1300
      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.
    • Bruce Thomas
      commented 2016-12-02 08:22:00 +1300
      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.
    • Robert Murray
      commented 2016-11-30 22:40:32 +1300
      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.
    • Gene Dalefield
      tagged this with dislike 2016-11-30 15:38:00 +1300
    • Luka Love
      tagged this with important 2016-11-30 14:54:04 +1300
    • Alexandra Hallatt
      commented 2016-11-30 06:57:24 +1300
      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.
    • Alexandra Hallatt
      tagged this with interesting 2016-11-30 06:57:23 +1300
    • Bruce Thomas
      commented 2016-11-30 04:53:35 +1300
      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.
    • Alan Barraclough
      commented 2016-11-29 21:22:52 +1300
      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
    • Alan Barraclough
      tagged this with essential 2016-11-29 21:22:52 +1300
    • Sue Rine
      commented 2016-11-29 18:52:02 +1300
      Would favour just banning land sales to non-resident foreigners. The above suggestion seems too complicated to police.
    • Sue Rine
      commented 2016-11-29 18:52:02 +1300
      Would favour just banning land sales to non-resident foreigners. The above suggestion seems too complicated to police.
    • Nathan Rattray
      tagged this with dislike 2016-11-29 11:43:50 +1300
    • Graeme Kiyoto-Ward
      commented 2016-11-28 23:07:57 +1300
      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?
    • Graeme Kiyoto-Ward
      tagged this with dislike 2016-11-28 23:07:57 +1300
    • Tim O'Donnell
      tagged this with dislike 2016-11-28 21:18:57 +1300
    • Bruce Thomas
      published this page in Suggestions 2016-11-28 17:30:43 +1300