New Zealand, a nation long known for its pristine landscapes and tight restrictions on foreign property ownership, is now poised to reconsider its stance. The coalition government is set to discuss a proposal on Monday, September 1, 2025, that could allow ultra-wealthy foreigners to purchase luxury homes—potentially marking a dramatic shift in the country’s approach to overseas investment.
At the heart of this debate is the prospect of creating an exemption to New Zealand’s ban on foreign buyers, which has been in place since 2018. According to Bloomberg, the proposed change would let holders of the so-called golden visa—officially known as the Active Investor Plus program—purchase properties valued at a minimum of NZ$5 million (around $3 million USD). This exemption, if approved, would be narrowly tailored, designed to attract high-net-worth individuals while keeping the bulk of the housing market off-limits to overseas buyers.
But don’t expect any immediate changes. Any reform would be tied to amendments in the Overseas Investment Act and would not take effect until the end of 2025 at the earliest. The government first needs to finalize and pass its new Overseas Investment Bill, and only after that will the exemption come into force. As Bloomberg reports, a spokesperson for Prime Minister Christopher Luxon declined to comment on the proposal, underscoring the political delicacy of the issue.
New Zealand’s golden visa program, relaunched in April 2025 and branded as Active Investor Plus, was introduced as a way to inject foreign capital into the country’s economy. The timing was no accident: global geopolitical tensions have seen a surge in interest from wealthy individuals seeking safe havens, and New Zealand—with its low population, low crime rates, and lack of gift or estate taxes—has become an increasingly attractive destination for affluent Americans and others looking to escape instability elsewhere.
Official figures from Immigration New Zealand, cited by Bloomberg, reveal that as of August 8, 2025, there had been 267 applications for the golden visa, covering 862 people and representing a minimum investment of approximately NZ$1.63 billion (about $950 million USD). Notably, around 40% of applicants hail from the United States. These numbers underscore the enormous financial stakes involved in the government’s deliberations.
The current ban on foreign home ownership has its roots in both economic and political concerns. Introduced by former Prime Minister Jacinda Ardern in 2018, the law was a response to soaring house prices and a controversial incident involving PayPal co-founder Peter Thiel, who acquired New Zealand citizenship and property amid allegations of a "passport-for-sale" scandal. Since then, only citizens, tax residents, and nationals from Australia and Singapore—thanks to trade agreements—have been able to buy homes freely in New Zealand.
But as the country’s coalition government weighs its options, the debate is anything but straightforward. Prime Minister Luxon’s National Party campaigned in 2023 on a promise to ease restrictions by allowing foreigners to buy homes worth more than NZ$2 million, subject to a 15% tax. However, this proposal was dropped during coalition negotiations with the New Zealand First Party, whose leader Winston Peters has built a reputation for nationalist and, at times, anti-immigration rhetoric. His campaign slogan for the 2023 election—“Let’s Take Back Our Country”—made his stance abundantly clear.
Despite this, Peters has signaled some openness to compromise. As he told Bloomberg News in March 2025, he would be willing to allow foreigners to purchase expensive houses if they also committed to investing in the local economy. Finance Minister Nicola Willis echoed the sense of urgency in an early August interview with Bloomberg Television, saying, “a decision would be made by our cabinet in the coming weeks.”
Negotiations between Luxon’s National Party and New Zealand First have centered on whether easing the property ban could help draw more foreign capital into the country. The stakes are high: New Zealand’s economy, like many others, has faced sluggish growth, and the government is eager to find ways to stimulate investment without reigniting fears of unaffordable housing for ordinary Kiwis.
Yet, the outcome is far from certain. Winston Peters is known as a shrewd political operator, often keeping coalition partners guessing. His blend of populist rhetoric and hard bargaining has made him a pivotal figure in New Zealand politics, and analysts remain cautious about predicting which way the decision will fall. The proposal’s narrow scope—limited to properties above NZ$5 million and to golden visa holders—may help assuage concerns about housing affordability, but it could also fuel criticism from those who see it as a loophole for the global elite.
Meanwhile, other changes are afoot that underscore New Zealand’s broader strategy to attract international capital. The government plans to introduce new fees for tourists visiting the country’s most popular natural attractions, such as Milford Track, Cathedral Cove, Tongariro, and Mount Cook. Visitors could soon pay up to NZ$40 (about $24 USD) to access these sites, with foreigners accounting for 80% of all visitors. The move is another sign that New Zealand is seeking new ways to bolster its economic status without compromising its unique character or the interests of its citizens.
For now, the eyes of both local residents and would-be investors are fixed on the outcome of Monday’s cabinet meeting. Will New Zealand open its doors—if only a crack—to the world’s wealthiest, or will it maintain its tradition of keeping the property market firmly in local hands? The decision, whenever it comes, will have far-reaching implications not just for the nation’s economy, but for its identity in an increasingly interconnected and competitive world.
As the debate continues, one thing is clear: New Zealand’s approach to foreign investment and property ownership is entering a new era—one that will test the country’s values, its politics, and its vision for the future.
