The Government has unveiled plans to adjust migrant investor visa settings, hoping to incentivise more people to invest in the New Zealand economy.
The changes will be made to the Active Investor Plus (AIP) visa, which provides a pathway to residency for wealthy individuals willing to invest in the New Zealand economy.
Under current law, those applying for the visa must have at least $15 million or weighted equivalent in available assets or funds.
From April 1, the current weighting system for the AIP will be replaced by two “simplified” investment categories.
The first is called the “growth category”, focusing on higher-risk investments, including direct investments in New Zealand businesses and managed funds.
It will require a minimum investment of $5 million for a minimum period of three years.
The other, called the “balanced category”, will focus on mixed investments, including ones that are lower risk.
These include bonds, listed equities, new property developments, existing commercial or industry property developments, philanthropy, direct investments, and managed funds.
There will be a minimum investment period of $10 million over five years.
Other changes include expanding the number of acceptable investments and removing possible barriers to investment, like the English language requirement.
“Foreign investment has the potential to provide jobs for Kiwis, lift incomes by delivering new businesses and investing in existing ones,” Economic Growth Minister Nicola Willis said.
“We should be rolling out the welcome mat and encouraging investor migrants to choose New Zealand as a destination for their capital.”
Willis said changes made to the AIP by the previous government had discouraged potential investors from seeking residency.
“Since 2022, migrants entering New Zealand under the AIP category have invested just $70 million. By contrast, in the two years prior to Covid-19, migrants invested $2.2 billion,” she said.
“Rather than turning potential investors away, this Government is intent on welcoming people who want to contribute to New Zealand.”
Last month, the Government said it planned to loosen visa requirements for overseas visitors who want to tour New Zealand while working remotely for their employer at home, also known as “digital nomads”.
The so-called “digital nomads” include visitors such as IT specialists, as long as they are not receiving any income from New Zealand sources. It would also extend to influencers — provided they were being paid by overseas companies. These changes would apply to all visitor visas, including tourists and people visiting family.
“Capital is highly mobile, and in an increasingly complex world, people are looking for a safe and stable country to do business,” Willis said.
“Incentivising, simplifying and broadening the investment offerings will make New Zealand more attractive and accessible to more foreign high-value investors. These changes will turbocharge our economic growth, bringing brighter days ahead for all Kiwis.”
Labour responds
Labour’s immigration spokesperson, Phil Twyford, called today’s announcement “peak shortsightedness” and said “picking apart immigration settings piece by piece” was a detriment to the New Zealand economy.
“Dumbing down the rules for the investor visa risks watering down the economic benefits for New Zealand,” he said.
“Allowing people to buy residence by parking their money in a passive investment like property that won’t generate jobs or sustainable economic development for New Zealand doesn’t sit well.”
He said Kiwi venture capitalists looking for investment opportunities had urged the Government to keep the original rules in place.
“This will stick in the craw for the hard-working migrants who have to crawl over cut glass to get residence. Giving the fast track to residence for the rich with no requirement for economic development for New Zealand, and removing the English language test for the rich but not for every day migrants, is not the Kiwi way.
“The focus on wealthy visitors to New Zealand in the very same week the Government has figures showing Kiwi unemployment is at record highs is absolutely tone deaf.”
