BIV purchase price: why a deal above NZD 1 million may not meet the investment minimum
An advertised business price above NZD 1 million does not by itself establish BIV's minimum investment. INZ excludes GST, the business property's value, fees and transaction costs. Identify the business interest being purchased and the qualifying component before choosing a standard or fast-track investment figure. The final total on a sale agreement answers only part of the question.
Start with what the buyer will acquire
An advertisement may combine a trading business with land and buildings, describe a business using leased premises, or offer only a shareholding. The lawyer should explain the actual rights and scope, with appropriate accounting advice on valuation and allocation. A company's total value, the ownership percentage and the applicant's payment are distinct figures. A minority buyer cannot automatically attribute the whole company's value to their own investment.
Property remains an excluded component even where it is a genuine expenditure. If the documents do not separate it clearly, obtain a professional explanation rather than allocating an arbitrary percentage. Broker photographs and a seller's assurance do not replace evidence of the rights, valuation and transaction being assessed.
Component | Minimum-investment treatment | Budget consequence |
Eligible business interest | Assess the actual structure and evidence | Acquisition expenditure |
Business property value | Excluded | May still require payment |
GST, fees and transaction costs | Excluded | Budget actual applicable costs |
Reserve funds of at least NZD 500,000 | Additional to investment | Support living and business development |
A simple calculation shows the difference
For arithmetic illustration only, take a total price of NZD 1.4 million including NZD 300,000 of property and NZD 150,000 of tax and fees. The remaining business component is NZD 950,000. This is not a client transaction, valuation or market fee assumption. If the exclusions are confirmed, a total payment of NZD 1.4 million cannot alone prove a qualifying NZD 1 million investment.
An actual deal needs its own assessment of value, ownership, payment and the remaining requirements. Applicable tax, amount and payment responsibility should be checked by appropriate New Zealand accounting and legal professionals. No fixed tax rate or universal cost allocation is assumed here. The example explains the need for a breakdown; it does not determine eligibility for a particular business.
Use separate eligibility and cash-budget figures
Keep total cash expenditure alongside the proposed qualifying investment. Valuation, legal, professional and government application costs should follow real quotations and applicable charges. A cost excluded from the investment minimum may still be payable. Renaming a fee as business consideration does not establish that it can count.
Reserve funds of at least NZD 500,000 are additional to the investment. A bank balance cannot be committed in full to completion and also described in full as retained reserves. The business may need working capital for employees, stock or equipment, while the family has relocation and living costs. Forecast turnover is not automatically cash available for distribution or household spending.
Recheck the assessment when the deal changes
A price reduction, removal of property, new ownership proportion or changed payment arrangement may alter the original assessment. Give the revised agreement, allocation and structure to the relevant legal, accounting and immigration professionals. A report prepared for an earlier transaction should not silently be treated as covering a different one.
Record an expression of interest, deposit, completion and commencement of operation separately. Funds expected from an unfinished asset sale are not already invested. BIV also requires an acceptable business, personal eligibility and active operation. A satisfactory price breakdown addresses one part of that process, not a government endorsement of the enterprise or a guarantee of profit or visa approval.
Official sources and verification date
18 October 2026
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