New Zealand Loosens "Golden Visa" Regulations to Draw in Wealthy Investors in the Face of a Faltering Economy
Posted on Feb 14, 2025 at 09:02 PM
The goal of New Zealand's “golden visa” scheme is to draw in affluent foreigners and aid in the country's economic recovery by streamlining it and eliminating the English language requirement.
Notably, immigration Minister Erica Stanford has announced that the Active Investor Plus visa will be reduced to two categories starting April 1, and the permitted investments range will be expanded.
Other potential obstacles to investment, such as the duration of investor stay, will also be altered in addition to the language test's removal.
A Strategic Step for Economic Growth
According to Stanford, “Capital is highly mobile and in an increasing complex world, people are looking for a safe and stable country to do business. We are now making our investor visa simpler and more flexible to incentivise investors to choose New Zealand as a destination.”
Moreover, the New Zealand government, which has admitted that it lacks the required capital, intends to take advantage of declining interest rates to improve economic performance by easing remote work regulations, reworking foreign investment laws, and establishing a single agency to serve as a one-stop shop for foreign fund managers in the hopes of luring highly qualified individuals to move there permanently.
Additionally, economic Growth Minister Nicola Willis urges New Zealand to welcome investor migrants, citing potential job creation and income boost through new and existing businesses.
After regulations were changed in late 2022, the Active Investor Plus visa, which attracted wealthy people to New Zealand and generated an average of NZ$1 billion ($570 million) per year, has stagnated.
Immigration New Zealand statistics show that after the changes, just 43 applications, totalling NZ$545 million in specified investment money, have been completely granted.
The New Initiative Falls Under Two Categories
Growth or increasing risk necessitates a minimum investment of NZ$5 million spread over three years, either directly into businesses or managed funds. The duration of a visa holder's stay in the country is 21 days.
A minimum investment of NZ$10 million spread over five years must be made in bonds, equities, new residential real estate development, or existing commercial and industrial property to achieve balanced, or mixed, risk. Unless holders invest more than the minimum, they must spend a minimum of 105 days.
Besides, HSBC's chief economist for New Zealand and Australia, Paul Bloxham, reported that New Zealand's economy experienced the largest GDP contraction among developed nations in 2024.
To address this, the country has adjusted its visa policies, including a new “digital nomad” initiative that allows tourists to work remotely for foreign employers while holidaying. This move aims to boost New Zealand's attractiveness as a destination for remote workers.
Furthermore, at a time when many other countries are abolishing their investor visa policies, New Zealand is relaxing its own. While the United Kingdom, Ireland, the Netherlands, Greece, and Malta have either tightened or terminated their golden visa or similar regulations, Spain is set to terminate its golden visa program on April 3.
In summary, the Australian government has eliminated its Significant Investor visa category, which was open to visitors who invested over A$5 million ($3 million), due to concerns about misuse by wealthy individuals who used it for real estate purchases without contributing significantly to the economy.
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