New Zealand Investor Plus Visa Set for Major Revamp

The New Zealand government is planning major changes to its Active Investor Plus Visa program, as revealed by Finance Minister Nicola Willis.

This decision comes after a steep decline in applications for the program over the past two years.

At its peak, the so called “golden visa program” brought in around NZ$1 billion (approximately $580 million) annually. However, after changing the rules 2022, only 35 applications have been approved, equating to NZ$352 million of nominated investment funds.

In response to this downturn, the government is planning reforms to revamp the program and restore its global appeal.

Proposed Investor Visa Reforms

The investment thresholds for the visa are set to increase. Applicants must now invest at least NZ$5 million for direct investments or NZ$15 million for passive investments, that compared to a NZ$3 million threshold under the previous terms.

Besides, the program is shifting the investment focus. Bonds and property are no longer eligible options for the visa. Instead, the updated rules prioritize investments that directly contribute to New Zealand’s economy and promote sustainable growth.

Another important change under consideration is the potential removal of the English-language test. This adjustment aims to make the program more accessible to a wider range of global investors.

Reasons Behind the Changes

Finance Minister Willis explained that the focus is not only on attracting more global capital, as it may seem. The government majorly values the networks, expertise, and ideas that investor migrants bring to the country.

Reforms have already been introduced to speed up the approval process for overseas investments, and more changes are on the horizon. Legislation planned for next year will highlight New Zealand’s reliance on foreign capital to achieve its economic goals.

Potential Challenges for Investors

Despite these updates, some barriers still exist. Chinese investors, for instance, face challenges because of a rule that requires bank-to-bank transfers directly from the source country.

Additionally, property investment rules remain restrictive. International investors can only purchase new developments, and not existing properties.

While these policies may change in the future, they could deter some investors in the short term.

These reforms prompt a long-term contribution to the country's plans to revitalize its investor immigration pathway.

Upcoming announcements are expected to provide further clarity on changes to visa criteria, including potential updates to property investment rules and language requirements.