FDI in figures

Inbound FDI is highly internationalized by OECD standards. In the 1990s, only Belgium and Ireland had a higher GDP percentage stock of inbound FDI than New Zealand. New Zealand's FDI stock, in relation to the GDP, is nearly twice that of Australia and Canada and three times that of the Scandinavian countries. Most of New Zealand's inbound FDI stock comes from Australia, Great Britain, United States and the Netherlands. Japan, the APEC countries and the rest of Europe are small investors in New Zealand. FDI reached 8.1 billion dollars in 2007, a figure that put New Zealand on the 45th place in the global ranking of attractive countries in terms of FDI, with 0.34% of the global FDI. With the crisis, the FDI influx has petered out, mainly due to the decrease of import goods.

Why you should choose to invest in New-Zealand

Strong points

New Zealand’s efficient, market-driven economy delivers key benefits to investors, including company stability, numerous free-trade agreements and active government support for investment. The country's strong points are:

- An efficient market-oriented economy;

- A stable and secure environment with modern infrastructures, that supports robust and sophisticated telecommunications, roads, rail, sea and energy networks;

- A highly educated, flexible and multi-skilled workforce;
- Property costs that are amongst the most competitive in the Pacific;
- Free circulation of capital;

- A simple taxation system;

- 100% tax deductibility for corporate research and development;

- One of the world's lowest customs rate.

For further information on investments in New Zealand, refer to Invest New Zealand.

Weak points

The main weak points are its geographical isolation, climate hazards and a limited local market.

Government measures to motivate or restrict FDI

The government has put into place new tax incentives to promote FDI. The 2005 law on foreign investments was simplified and now facilitates foreign investgors' access to the domestic market. Nevertheless, the government amended the Overseas Investment Act so as to better protect "strategic infrastructures" in 2008.

Procedures relative to foreign investment

Freedom of establishment

Guaranteed.

Acquisition of holdings

A majority holding interest in a local company by a foreign investor is legal in New Zealand.

Obligation to declare

The Overseas Investment Act 2005 regulates the acquisitions by overseas persons of 25% or more ownership or control interests in sensitive New Zealand land and significant business assets (over 50 millions euros).For more information, go to Legislations of New Zealand.

Competent organization for the declaration

Land Information New Zealand

Requests for specific authorizations

Section 10 of the Overseas Investment Act 2005 states that a transaction requires consent if it will result in an overseas investment in sensitive land or an overseas investment in significant business assets. Section 57B of the Fisheries Act 1996 states that a transaction requires consent if it will result in an overseas investment in fishing quota.

Finding assistance for further information

Investment aid agency

Investment New Zealand
New Zealand Overseas Investment Commission

Other useful resources

NZ Investment Network.