Government overhauls ‘golden visa’ for wealthy migrants who want to take risks

Saturday, 8 February 2025

The Government has announced an overhaul of the “golden visa” scheme to lure rich migrants, including making the process simpler and ditching the English language test.

The shake-up will also now allow investment in commercial property and property development ‒ but it won’t yet overturn a ban on foreigners buying a home.

Prime Minister Christopher Luxon, Immigration Minister Erica Stanford and Finance Minister Nicola Wills outlined changes to the Active Investor Plus Visa on Sunday in Auckland.

Stanford told The Post investment thresholds were being increased and simplified to make high-risk investments more attractive.

The existing rules were “an absolute nightmare … complicated and difficult. No one's been using it,” she said.

Currently a multiplier system is used. Direct investments into New Zealand companies have the higher multiplier of 3x, which means foreigners can invest as little as $5 million to met the $15m investment requirement.

Managed funds, including private equity and venture capital funds, are weighted at 2x, so an investment of $7.5m, and listed equities and philanthropy are capped at 50% of the total investment amount, or $2.5m.

The new categories are $5m for direct investment or managed funds and $10m for lower-risk investments.

“No one has ever invested 15 million actual dollars,” Stanford said.

“I wanted to make sure that if you want to have a higher risk then you got more perks.

“And if you don't, that's fine, because we know over time, those people who come in and invest in lower risk, like commercial property, property developments, or equities, then over time, once they've got to understand the market, they invest in higher risk.”

Stanford confirmed the English language test will go to appeal to Koreans, Japanese and Germans who find it “insulting”.

The Government is hoping geographic isolation and political tranquillity will make New Zealand an attractive prospect in an increasingly turbulent world, as it seeks to drive economic growth this year.

It follows the policy change giving digital nomads the ability to work for overseas companies while on holiday for up to nine months.

The visa gives the uber-rich the chance to obtain residency through investments over a four-year period. But a major hurdle is a ban on on foreign property ownership, introduced in 2018, and an English language test.

The programme also saw a drop in interest after an overhaul in 2022, with only 35 approved applications over two years.

National campaigned on relaxing the ban for homes worth $2m-plus. But NZ First leader Winston Peters criticised the policy.

However, this week he signalled he is open to foreigners purchasing property if they pump millions into the economy.

“We are going to have to construct an economy, which answers the question why invest in New Zealand, and that has to be detailed and specific,” the deputy prime minister told Newstalk ZB on Friday.

“And we are not selling ourselves out if you are investing in New Zealand and you are going to have a massive part in building our economy if home-ownership, while you do that, is part of it.”

Stanford confirmed overturning the foreign buyer ban is still under discussion and likely to follow a revamp of foreign investment rules later this year.

“Buying a home is important,” she said. “But many people are lining up for this new visa who know that they can't buy a home but are still prepared to invest.

“The interest has been phenomenal now that we have signalled that we're open to the world.”

New Zealand has long been seen as a sanctuary for the ultra-rich. The investor visa was introduced in 2008, targeting high-net worth and ultra-high net worth people - but its minimum threshold of $5m made it one of the most expensive schemes in the world.

Despite this, it attracted a staggering number of applications: over 7000 applications for a $5m investment and over 1100 applications for the $10m investment category.

But the arrival of rich foreigners was often controversial. PayPal founder Peter Thiel was granted citizenship despite spending only 12 days in the country. Last year, he said he was considering making New Zealand his permanent home.

Internet entrepreneur Kim Dotcom has fought a long-running battle against extradition to the US over copyright infringement.

And Google founder Larry Page hit the headlines when he was revealed to be a resident after he crossed the border in the midst of Covid-19 restrictions, accompanying his child who fell ill in Fiji. Page’s staff then asked for an accommodation “upgrade” while in quarantine.

Covid-19 border restrictions and the 2022 changes, which increased the investment threshold from $3m and removed bonds and property from the criteria, saw the sharp drop-off.