When investing in land, a certain part of it could fall under what is called “sensitive” land. The definition of sensitive land is complex; the legislation defines sensitive land using several different types of land, each with an area threshold. The purpose of the Investor Test is to determine whether investors are eligible to own or control “sensitive” New Zealand assets. The new investor test sets out the types of behavior and history that the Overseas Investment Office of New Zealand would consider as a potential risk. The test is made up of two groups: character and capability.
