New Zealand Govt to Announce Changes to Investor Visa in “Coming Weeks”

The New Zealand government plans to revise its Active Investor Plus Visa program after a significant drop in applications, Finance Minister Nicola Willis has revealed to Bloomberg.

The program, which once attracted NZ$1 billion ($580 million) annually in foreign investment, now averages just NZ$176 million per year, an 82.4% decline. Immigration New Zealand has approved only 35 applications in the past two years.

“English will be removed as a requirement,” and the government plans to introduce “other investment options,” James Hall, Director at ANZ Migrate, revealed. “We’re waiting for the official announcement, but it’s already been decided internally.”

The 2022 requirements mandate NZ$5 million for direct investments or NZ$15 million for passive investments such as listed equities. The government eliminated previously popular investment options in bonds and property.

Beyond capital, New Zealand seeks to attract more investor migrants for their valuable contributions, Willis emphasized. “It’s also the networks, expertise, experience, and ideas that they bring with them,” she explained.

She says these investors often expand their economic engagement beyond their initial investments, becoming more involved in the economy “in a range of ways which are helpful.”

She also revealed that the government has already advanced reforms to speed up overseas investment applications. She plans to introduce legislation next year emphasizing New Zealand’s need for foreign capital to meet its economic objectives.

While Willis has kept specific changes under wraps, she noted that there will be more details in Immigration Minister Erica Stanford’s upcoming announcement.

Chinese investors, however, still face restrictions “due to the requirement to have direct bank-to-bank transfers from the fund source country.” Hall emphasized that investors “can’t sidestep this by moving funds to a third country” because it’s required that the funds be “transferred legally from the country where they were earned.”

Hall also clarified that current property investment rules allow overseas investors to purchase property, but they are “limited to new developments, not second-hand property.”

Deputy Prime Minister Winston Peters has signaled flexibility on foreign house purchases if linked to additional investment commitments, suggesting potential for future policy adjustments.

New Zealand’s plans contrast sharply with Australia’s recent policy direction. The Australian government closed its entire Business Innovation and Investment Program to new applications in January 2024, ending a pathway that had attracted AUD$12 billion through its Significant Investor stream alone since 2012.

While Australia shifts focus to skilled worker visas, New Zealand aims to revitalize its investor immigration pathway.