Government to lower investor threshold to attract wealthy foreigners
Sunday, 9 February 2025
The National-led Government will lower the amount of wealth a foreigner needs to apply for an investor visa, and remove the need for applicants to speak or understand English, as part of an overhaul of the “golden visa” scheme.
Prime Minister Christopher Luxon revealed the plan in a briefing on Sunday in Auckland alongside Economic Growth Minister Nicola Willis and Immigration Minister Erica Stanford, as well as Auckland Chamber of Commerce head Simon Bridges.
The breakdown
From April 1, the “complex weighting system” behind the Active Investor Plus visa will be replaced with two simplified categories: a “growth category” for applicants to make $5m of higher-risk investments, including direct investments in local businesses, over a minimum of three years, and a “balanced category” of mixed investments, with a minimum threshold of $10m over five years.
“We need to say a lot more yes and a lot less no, in New Zealand,” Luxon said, adding the Government was “rolling out the welcome mat” to investors.
He pointed out migrants under the Active Investor Plus visa had only invested $70 million since the category was created in 2022, by the previous Labour Government. This was significantly lower than the $2.2 billion invested in the two years leading up to the pandemic, when investors could migrate under looser restrictions, he said.
Now, a migrant on an investor visa must have at least $15m or the weighted equivalent in available assets or funds to invest in local bonds, equities, property or other investments, in order to qualify for the Active Investor Plus visa.
Labour changed the visa in 2022, hiking the requirements in order to encourage active investment in the economy and reduce immigration pressures.
The visa also lets a person live, work and study in New Zealand. They can also include their partner, and dependent children aged under 24, in their application.
They may also apply for permanent residence after four years of keeping their funds in New Zealand.
Who said what
Stuart Nash, the former Labour Minister for Economic Development who set up the requirements in 2022, welcomed the change. He now heads Nash Kelly Global, which offers relocation and investment services for high-net-worth individuals migrating to New Zealand.
He said the Labour Government’s “intent was right, but it missed a couple of the nuances”, adding it was to be reviewed 12 months after it was set up.
While the super-wealthy may have traditionally wanted to relocate to “tax havens”, there were a growing number who were looking to live in safe, politically-stable countries.
“Right now, a significant number of very wealthy people are looking for a home for their money and their families in a way that is quite unique,” he said.
However, Labour criticised the plan as “peak short-sightedness” and said it would have a negative effect on the economy because it opened up the rules around passive investments.
“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,” Labour’s immigration spokesperson Phil Twyford said.
Removing the English language test “for ther rich but not everyday migrants” was “not the Kiwi way”, he added.
“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.”
But David Cooper, chief executive of immigration advisory practice Malcolm Pacific, heralded the change as a “turning point for New Zealand’s economy”.
“Investor migrants bring far more than the required capital – they inject roughly two to three times more in additional spending across businesses, property, and high-value services. These policy changes recognise the immense value these individuals bring, and puts New Zealand back on the global investment map.”
He added investor migration was highly competitive around the world, but the fact many nations including Australia, the UK and Canada were introducing stricter restrictions gave New Zealand a competitive advantage.
“This is New Zealand’s chance to position itself as a premium destination for investor migrants.”