In the 12 years up to mid – 2022, New Zealand’s investor immigration program was really successful. It brought in over 3,000 families and around NZ$14 billion in investment. But things changed in October 2022 when the previous government introduced the current policy. Since then, only 43 applications have been completed, with about NZ$70 million in investment. The current policy has turned out to be too complicated and difficult. It also puts too much investment risk on those applying.
The current government has realized that New Zealand is losing out on its share of the 120,000 high – net – worth people. These individuals are looking for a safe and stable country to invest in and maybe even live. They can contribute a lot to New Zealand’s economic growth. They can do this through their investments, their business knowledge, and their international connections.
Starting from 1 April 2025, there will be changes to the investor policy:
The existing investment weighting system will be replaced by two simpler categories: Growth and Balanced.
The Growth Category needs an investment of $5m for 3 years. Applicants have to spend a total of 3 weeks in New Zealand. Acceptable investments in this category can be made directly into New Zealand businesses or through specific managed funds. NZ Trade & Enterprise (NZTE) will play a major part in making sure these investments match the government’s economic growth goals.
The Balanced Category requires an investment of $10m for 5 years. Applicants need to spend a total of 7 weeks in New Zealand. Acceptable investments here can include bonds, listed equities, some new property, existing commercial/industrial developments, philanthropy, and any Growth Investments.
The total investment must be made within 6 months of the initial application approval. One 6 – month extension is allowed.
There will be no requirement for English language skills.
All applicants still have to meet the requirements for good health and character. They also have to prove that their investment money was legally earned originally and that it was transferred to New Zealand through the banking system.
The final policy details will be released in early March and will start being used on 1 April.
Since applicants have a short time (6 months) to invest and it will take time for Growth Investments to be available, we think most initial interest will be in the Balanced Category. But later on, we expect to see a lot of great Growth Investment opportunities. This is especially true with managed fund investments that target many different business opportunities which fit with the government’s economic growth plans. The quick access to a large amount of capital will start many projects that have been waiting.
The main challenges for the new investor immigration program (AIP) will be how NZTE assesses and approves acceptable Growth Investments, and how fast they do it. Also, Immigration New Zealand’s ability to process AIP applications efficiently will be a challenge. Another challenge will be getting the skills and labor needed for the projects being invested in.
At least now New Zealand has a visa option that can be sold to investors. We’re already seeing a lot of interest from the USA, which makes sense. There’s also good interest from Asia and Europe. Since Australia and some other countries don’t have a current migrant investor program, New Zealand is in a great position to make the most of the new AIP opportunity.
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