New Zealand has revamped its investor visa in mid 2022. The conditions of the visa were made significantly stricter to ensure that only active investors who add real value to the economy would be attracted. But so far, the amount of applications for this new visa has been disappointingly low.
New Zealand as a hotspot for wealthy people
New Zealand is one of the most remote countries in the world. The country's unique natural landscapes and high standard of living make it a popular travel destination. The country is also popular among very rich people these days. Its isolated location guarantees calm from everyday hustle and bustle, and its spectacular natural landscapes are a source of inspiration for many. In recent decades, some of the world's richest people have settled in New Zealand. These include Peter Thiel, the founder of PayPal. New Zealand has long welcomed wealthy people with open arms, as long as they invested enough money in the country. To this end, the country has a special visa for investors, which allows them to bypass the normal application procedure for a residence permit.
Visa requirements for New Zealand
New Zealand's isolated location allows the government to closely monitor who enters and leaves the country. Most travellers need to apply for a visa prior to departure to enter the country. British and Irish nationals are exempt from the visa requirement, but do need to apply for an NZeTA. This is an electronic travel authorisation that enables tourist and business stays of up to 90 days in New Zealand. If you want to stay longer, the NZeTA does not suffice. You will have to apply for a New Zealand visa instead. There are several visas for New Zealand, including the investor visa.
Replacing the old investor visa
Until mid 2022, foreign investors could apply for an Investor 1 Resident Visa or an Investor 2 Resident Visa. To qualify for these visas, applicants had to invest a minimum of 10 million New Zealand dollars (about 5,0 million GBP) or 3 million NZD (about 1,4 million GBP) in the country. Since September 2022, however, these two visas have been replaced by a new investor visa. This new Active Investor Plus Visa requires an investment of at least 15 million NZD. An investment of 5 million NZD could also suffice if the applicant invests the money directly in a New Zealand company. The major difference from previous investor visas is that the investor is now expected to play a more active role. Previously, investors could also invest their money in relatively safe government or corporate bonds. This is no longer allowed as of mid-2022.
The new visa is not popular yet
New Zealand's new Active Investor Plus visa soon proved to be less popular than its predecessors. Only 15 applications were submitted in the first six months after its introduction. This is a very modest number compared to the 492 applications for the old investor visa filed in 2021. The first Active Investor Plus visa was only issued nine months after its introduction. This was for an applicant who was already in New Zealand.
The reason why the new visa is less popular is due to the stricter conditions that come with it, which puts off many interested parties. While investors could previously invest money in relatively safe bonds, applicants now have to take significantly more risk if they want to qualify for the investor visa. However, the New Zealand government does not see this as a problem. After all, the aim of the new visa was to attract only committed investors who would make an active contribution to the economy, rather than investors investing mainly in passive bond funds, from which society receives little return. The latter was often the case with the old visa.
Conditions of the new investor visa
Those wishing to qualify for the new Active Investor Plus visa must invest a minimum of 15 million NZD. Direct investments in New Zealand companies are counted triple and investments in certain managed funds are counted double. Investments in shares and charities may be counted 1-for-1 to reach the total amount of 15 million NZD. Investments in real estate may only be included in the minimum amount under very specific circumstances. Another condition of the new investor visa is that applicants must have a sufficient command of the English language. Those who receive the Active Investor Plus visa, maintain the investment for at least four years and have spent a minimum of 117 days in New Zealand are eligible for permanent residence in New Zealand.
Travellers from the UK and Ireland can travel to New Zealand without a visa, but will need to apply for an NZeTA in that case. Travellers with an NZeTA are not eligible for a residence permit, but are allowed to spend up to 6 months per year in New Zealand during the validity period of 2 years. You do not need to invest in New Zealand's economy to travel to the country with the NZeTA. You can apply for the NZeTA online.