Economic & Business Laws — New Zealand

Economic and Business Laws for Immigrants to New Zealand

*Note: New Zealand immigration and business law changes periodically. Always verify current details with Immigration New Zealand (INZ), the Overseas Investment Office (OIO), and Inland Revenue (IRD) before making decisions.*

1. Right to Work by Visa Type

Work Visas

• Accredited Employer Work Visa (AEWV): Tied to a specific employer and role; requires employer accreditation and job check approval. Typically valid 1–3 years depending on role and pay band.
• Essential Skills-type roles: Median wage threshold (updated periodically by INZ—check current figure, historically around NZ$29.66/hour as of 2023, subject to change) determines pathway and family work rights.
• Specific Purpose or Event Work Visa: Limited duration, tied to a defined purpose.
• Working Holiday Visa: Open work rights for eligible nationalities (typically ages 18–30/35), usually 12 months, some nationalities up to 23 months (e.g., UK).

Student Visas

• Generally permit up to 20 hours/week during academic terms and full-time during scheduled breaks.
• Some research-based postgraduate students may work full-time throughout.

Partner/Family Visas

• Partners of Accredited Employer Work Visa holders in higher-paid roles (above median wage) typically get open work rights.
• Partners of students or lower-paid workers may have more restricted or no automatic work rights—check current policy, as this has shifted (2023 changes limited some partner work rights).

Resident Visas / Permanent Resident Visas

• Full and unrestricted right to work in any job, for any employer, or self-employment.

Visitor Visas

• No work rights except narrow business-visitor activities (meetings, negotiations)—not hands-on employment.

2. Starting a Business as a Foreigner

Visa Pathways for Entrepreneurs

• Entrepreneur Work Visa: Requires a genuine, viable business plan; minimum investment of NZ$100,000 (waived for high-growth "premium" categories in some cases); points-based assessment (business experience, capital, job creation, innovation).
• Entrepreneur Resident Visa: After 2 years of successfully operating the business under the Entrepreneur Work Visa, with employment creation and business sustainability criteria.
• Active Investor Plus Visa: Introduced 2022, requires significant investment (categories with different thresholds, historically NZ$5m–15m NZD depending on investment type)—confirm current thresholds as these have been revised.

Company Registration Requirements

• Register with the Companies Office (companies.govt.nz)—straightforward online process, low cost (~NZ$150–170 registration fee).
• At least one director must either:
• Live in New Zealand, or
• Live in Australia and be a director of an Australian company (reciprocal arrangement).
• Non-resident directors alone are not permitted—this trips up many new immigrants.
• Need a New Zealand Business Number (NZBN) and IRD number for tax purposes.

Licensing and Sector-Specific Rules

• Certain sectors (financial services, immigration advice, real estate) require specific licensing.
• GST registration mandatory once turnover exceeds NZ$60,000/year.

3. Foreign Investment Restrictions

Overseas Investment Act 2005 (Overseas Investment Office - OIO)

Foreign persons (non-citizens/non-residents, or NZ entities with 25%+ overseas ownership) face screening for:

• Sensitive land: Includes farmland, land near reserves, coastline, islands—consent required from OIO.
• Farmland specifically: Must show benefit to New Zealand test; direct sales often require advertising to NZ buyers first.
• Significant business assets: Transactions exceeding NZ$100 million (threshold varies by country—free trade agreement partners like Australia have higher thresholds, ~NZ$618 million for Australian/Singapore/CPTPP investors, adjusted annually).
• Fishing quota: Special restrictions apply.

Residential Property Rules (Overseas Investment Amendment Act 2018)

• Generally prohibits foreign buyers from purchasing existing residential homes.
• Exemptions:
• New Zealand citizens and residents (with sufficient ties—typically must hold resident visa and be "ordinarily resident," generally interpreted as living in NZ for 183+ days in preceding 12 months, tax resident, and not previously breached visa conditions).
• Australian and Singaporean citizens/residents (per free trade agreements).
• Purchases of new builds off-plan by foreign buyers may qualify for exemption if adding to housing stock (e.g., apartments in developments of 20+ units historically allowed).
• Overstepping these rules risks fines and forced divestment.

4. Property Ownership Rights for Non-Citizens and Permanent Residents

Distinction Matters: Residency ≠ Automatic Property Rights

• Resident Visa holders may buy residential property only if they meet the "ordinarily resident" test (183+ days physically in NZ in the last 12 months, tax residency, and intent to reside).
• New residents who haven't met the 183-day threshold are treated as "overseas persons" and restricted like any foreign buyer.
• Permanent Resident Visa holders without ongoing physical presence may also fail the "ordinarily resident" test and face restrictions—counterintuitive but important.

Practical Steps

• Buyers should obtain legal confirmation of status before signing sale and purchase agreements.
• Real estate agents and lawyers routinely request evidence of visa status and residency history.

5. Banking Access for New Immigrants

Opening Bank Accounts

• Major banks (ANZ, BNZ, Westpac, ASB, Kiwibank) allow account opening before arrival in many cases via online applications—useful for transferring funds ahead of moving.
• Typically required:
• Passport
• Proof of address (can be temporary NZ address or overseas address initially)
• IRD number (needed for interest-bearing accounts; can apply once in NZ or sometimes before)
• Visa approval or evidence of visa application

IRD Number

• Essential for employment, tax, and full banking functionality (without it, banks withhold tax at a higher default rate on savings interest, ~28-45%).
• Apply through Inland Revenue online; processing typically 8–10 working days once in NZ with valid visa/address.

Credit History Challenges

• New immigrants often have no NZ credit history, affecting:
• Ability to get credit cards immediately (some banks offer secured or immigrant-specific starter cards).
• Mortgage applications—many banks require larger deposits (often 20–35%) for recent immigrants without established NZ income/credit history, though policies vary by bank and visa status.

KiwiSaver (Retirement Savings)

• Available to those with work visas of 2+ years or residence; enrollment automatic for many employees but optional for temporary visa holders.
• Voluntary for self-employed; government contributes matching subsidies up to certain caps (~NZ$521.43/year employer match threshold, subject to change).

6. Labor Law Protections for Immigrant Workers

Core Legislation

• Employment Relations Act 2000: Governs employment agreements, good faith obligations, personal grievance processes—applies equally regardless of visa status.
• Minimum Wage Act 1983: Minimum wage applies to all workers in NZ regardless of citizenship/visa (as of recent update, check current rate—historically around NZ$22.70/hour for adults, indexed annually April 1).
• Holidays Act 2003: Entitles employees to minimum 4 weeks annual leave, public holidays, sick leave (10 days/year after 6 months), regardless of nationality.

Migrant-Specific Protections

• Employer accreditation system (AEWV) requires employers to:
• Pay at least median wage (for many roles) or specified thresholds.
• Provide genuinely available, ongoing work matching visa conditions.
• Cannot charge migrants recruitment fees (illegal under NZ law)—violations reportable to Labour Inspectorate.
• Migrant Exploitation Protection Visa: Introduced to allow migrants to leave exploitative employers and seek alternative work while a complaint is investigated, without losing legal status.
• Employment New Zealand and Labour Inspectorate investigate underpayment, unsafe conditions, and visa-related exploitation.

Common Exploitation Red Flags (worth immigrants knowing)

• Employers demanding payment for visa sponsorship (illegal).
• Withholding passports (illegal).
• Paying below minimum wage or below the contracted rate (breach of both employment and immigration law—can lead to employer accreditation being revoked).
• Threatening deportation for complaints—illegal and can be reported confidentially.

Union Rights

• Immigrant workers, regardless of visa status, have the right to join a union and undertake collective bargaining under the Employment Relations Act.

Dispute Resolution

• Employment Relations Authority (ERA) and Employment Court hear disputes; personal grievance claims must generally be raised within 90 days of the incident.
• Free mediation services available through Employment New Zealand before formal proceedings.

Key Recommendations

• Verify visa-specific work conditions directly on your visa label/immigration status via INZ's official portal before starting work.
• Consult a licensed immigration adviser (registered with the Immigration Advisers Authority) for entrepreneur/investor visa applications given complexity and evolving criteria.
• Engage a NZ-qualified lawyer before any property purchase to confirm "overseas person" status implications.
• Register with Inland Revenue early to avoid unfavorable tax withholding rates.
• Report exploitation to the Labour Inspectorate (0800 20 90 20) — protections exist regardless of visa status, and reporting does not automatically jeopardize your visa (Migrant Exploitation Protection Visa exists precisely for this).
• Monitor policy changes—median wage thresholds, investment visa criteria, and OIO rules have changed multiple times in recent years and are likely to continue evolving.

More about immigrating to New Zealand