Laws that Govern Commercial Property Investment in New Zealand
Commercial Property Investment
Many laws govern commercial real estate in New Zealand many of which are not covered here comprehensively.
That’s why it is advisable to invest in a team of experts who have specialized in various aspects of commercial property investment such that you will be sure of complying with the local and state requirements.
We have listed some of the most important laws that govern commercial property investment in NZ below
Goods and Services Tax (GST)
Goods and Services Tax (GST): some commercial properties attract GST in the case where one party is registered while the other is not. The GST in New Zealand is currently at 15%.
Land Information Memorandum (LIM)
Land Information Memorandum (LIM): is a local council report that outlines information such as zoning requirements, restriction on land usage, etc., of the property you are about to purchase.
Resource Management Act 1991
Resource Management Act 1991: is the environmental legislation that regulates the use of natural resources in NZ such as land, minerals, air, and water. As part of your due diligence, obtaining the environmental state of property from an environmental engineer would be crucial.
Land Information New Zealand (LINZ)
Land Information New Zealand (LINZ): is a government-owned agency which maintains the electronic land registry. It includes the description of land, registered owner, etc. The information is available for surveyors, lawyers, etc
Residential Land Withholding Tax (RLWT)
Residential Land Withholding Tax (RLWT): Applicable to an offshore investor who sells the property within two years of ownership. This law was passed recently