New Zealand's government is planning changes to its Active Investor Plus Visa programme in an effort to attract wealthier migrants after a marked decline in applications. The visa, which previously generated around NZ$1 billion annually, has seen limited success since its overhaul in 2022, with only 35 approved applications totalling NZ$352 million in nominated investments over two years, according to Immigration New Zealand.
“We are conscious that the last government changed those settings and we saw a marked decline in the number of investors,” said finance minister Nicola Willis during an interview in Wellington. “You can expect to see announcements from us on that in the coming weeks.”
Proposed changes under review
The government is reviewing the visa's investment requirements, with announcements by immigration minister Erica Stanford expected soon. Current rules demand a minimum NZ$15 million (approximately Rs 75 crore) investment in eligible assets, such as private equity or start-ups, compared to a lower NZ$3 million threshold under the old Investor Visa programme. Bonds and property, once popular options, are no longer allowed under the revised criteria.
Willis acknowledged the contributions of investor migrants beyond finances, saying, “It’s also the networks, the expertise, the experience, the ideas that they bring with them. There are many examples throughout the country where investor migrants… go on to make other investments and become more engaged in the economy.”
Restrictions on property and housing
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A key hurdle for some investors is New Zealand's ban on foreign property ownership, introduced in 2018. The National Party, which campaigned to relax the ban for homes worth NZ$2 million or more, faced opposition from its coalition partner, New Zealand First.
New Zealand First leader Winston Peters has since indicated a willingness to revisit the policy, suggesting a relaxation could be tied to broader investments in the country. However, Willis maintained that the coalition agreement upholds the ban for now. “As we progress reforms… we’ll have a range of discussions and we’ll see where they land,” she said.
Active Investor Plus visa: Key details
The Active Investor Plus Visa allows applicants to live, work, and study in New Zealand while meeting specific investment and residency criteria, according to Immigration New Zealand (:
Investment amount: At least NZ$15 million over three years in approved assets, maintained for one additional year.
Residency requirements: Applicants must spend at least 117 days in New Zealand over a four-year period.
Eligibility: Includes partners and children under 24 in the application. Permanent residency is available after maintaining investments for four years.
Investment types: Eligible options include direct investments, managed funds, listed equity, and philanthropy. Riskier investments receive higher weighting.
Challenges impacting uptake
Despite its benefits, the visa has struggled to gain traction due to:
1. High financial thresholds: The minimum investment of NZ$15 million narrows the pool of eligible applicants.
2. English-language requirements: Applicants must demonstrate proficiency, which could exclude some potential investors.
3. Global competition: Similar programmes in Australia and Portugal have lower thresholds and more attractive benefits.
4. Policy instability: Frequent changes to visa rules have led to uncertainty among applicants about long-term commitments.
As of mid-2024, the programme has attracted interest from various regions, including Asia, but remains underutilised compared to earlier schemes.