New Zealand To Overhaul Golden Visa Program To Attract High-Net-Worth Investors

Published on December 17, 2024

New Zealand is set to revamp its investor visa program, aiming to attract wealthy migrants, boost foreign capital, and restore the country’s status as a top investment hub.

New Zealand’s government is preparing to overhaul its investor visa program, aiming to restore the country’s appeal as a premier destination for global wealth and investment. With significant reforms on the horizon, the changes seek to simplify the process, attract high-net-worth individuals, and drive economic growth.

Declining Interest in Active Investor Plus Visa

The Active Investor Plus Visa, once a popular avenue for wealthy individuals looking to relocate, has seen a drastic decline in applications. The visa, which offers the opportunity to live, work, and study in New Zealand indefinitely in exchange for significant investments, has been affected by stricter rules introduced in 2022.

To qualify for the visa, applicants are required to invest NZD 15 million in approved investments. After maintaining these investments for four years, they can apply for permanent residency. However, despite offering a pathway to permanent settlement, the program has experienced a sharp drop in applications, with only 35 approved in the past two years. This has resulted in just NZD 352 million in investments—far below the previous annual intake of NZD 1 billion.

Urgency for Change

Finance Minister Nicola Willis has acknowledged the decline, attributing it to rule changes under the prior administration. In a statement from Wellington, she confirmed that new announcements would be made soon. “You can expect to see announcements from us on that in the coming weeks,” she said, signaling an urgent need for reform to reignite interest from wealthy investors.

Key Reforms to the Investor Visa Program

The government’s proposed reforms to the investor visa aim to streamline the process and better align with global standards, while also ensuring investments continue to benefit New Zealand’s economy. Key proposed changes include:

1. Revised Investment Thresholds
   The minimum required investment will be adjusted to NZD 5 million for direct investments and NZD 15 million for passive investments, up from the previous NZD 3 million threshold. This change brings New Zealand in line with international norms for investor visas.
2. Updated Investment Options
   The revised visa criteria will exclude bonds and residential property from the list of eligible investments. Instead, emphasis will be placed on investments that directly stimulate the New Zealand economy, such as sustainable business ventures and infrastructure projects.
3. Faster Application Process
   To make the process more appealing to overseas investors, the government plans to accelerate application approvals. Legislative changes expected in 2024 will streamline the process, ensuring a quicker and more efficient path for investors looking to contribute to New Zealand’s growth.
4. Broader Economic Contributions
   New Zealand aims to attract investors who can offer more than just financial capital. Investors will be encouraged to bring their expertise, networks, and innovative ideas to contribute to the country’s economic and social development.

Potential Changes to Language and Property Rules

In addition to investment-related changes, discussions are underway regarding the removal of the English-language proficiency test, which could ease the application process for some investors. Immigration Minister Erica Stanford is expected to provide further details on this in the near future.

A key issue for many potential investors is New Zealand’s 2018 ban on purchasing residential property, which restricts investor migrants from buying homes. While some exceptions exist for Australian and Singaporean citizens, the government is considering revising property rules to make the country more attractive to foreign investors while balancing local housing needs.

What’s Next for Investor Migrants?

The upcoming reforms are designed to reverse the current downturn in investor visa applications and position New Zealand as a top choice for affluent migrants. As the government moves forward with these changes, expect more details on adjustments to property investment restrictions, language requirements, and overall visa criteria.