On January 9, 2025, the New Zealand government announced significant changes to the Active Investor Plus Visa, aimed attracting more high-value investors. These changes, set to take effect from April 1, 2025, are designed to simplify the investment process, reduce barriers, and encourage more active participation in New Zealand’s economy.
Simplified Investment Categories
One of the most notable changes is the introduction of two simplified investment categories: Growth and Balanced. The Growth category focuses on higher-risk investments, requiring a minimum investment of NZD 5 million for a period of three years. This category is tailored for investors willing to directly invest in New Zealand businesses, thereby fostering innovation and economic growth.
The Balanced category, on the other hand, caters to those seeking a mix of investments, including lower-risk options. Investors in this category must commit a minimum of NZD 10 million over five years. This flexibility allows investors to diversify their portfolios while still contributing significantly to the New Zealand economy.
Reduced Minimum Investment Amounts
The changes also include a substantial reduction in the minimum investment amounts. Previously, the investment required was up to NZD 15 million. Under the new rules, the minimum investment for the Growth category is reduced to NZD 5 million, and for the Balanced category, it is NZD 10 million. This reduction is expected to make New Zealand a more competitive destination for global investors, who may have previously been deterred by the high entry threshold.
Broadened Scope of Acceptable Investments
To further attract investors, the scope of acceptable investments has been broadened. The new rules now include bond and property-type investments, providing investors with more options to diversify their portfolios. This change is particularly appealing to those looking for lower-risk investment opportunities, as it allows them to invest in more stable and secure assets. These lower risk investments were proven to be popular under the previous ‘Investor Visa’ (pre 2018).
Fewer Immigration Requirements
In a bid to make the visa more attractive, the government has also reduced the immigration requirements for migrants who choose more active investments. For instance, the time required to be spent in New Zealand has been reduced, making it easier for investors to manage their commitments both in New Zealand and abroad.
English language requirement dropped.
Additionally, the English language requirement has been removed. This was a significant barrier for many HNW applicants and followed no apparent logic. We are very supportive of this change.
Accelerated Investment Timeline
The new rules also mandate that Growth and Balanced category visa holders must make all their investments within six months of their approval in principle. However, they may apply for a six-month extension if needed. This accelerated timeline ensures that investments are made promptly, contributing to the economy without unnecessary delays. Once, again the deferred timeline of the investment required previously made very little sense, and minimised the benefit of the investment activity to NZ overall.
Government’s Vision and Industry Feedback
Prime Minister Christopher Luxon emphasized that these changes reflect the government’s commitment to welcoming high-value investments and fostering economic growth. “For way too long, New Zealand has put up the shutters on investment. We’ve been reluctant to recognize the benefits for Kiwis from attracting overseas investment to this country,” Luxon stated. He highlighted the potential for billions of dollars in capital that investors are looking to find a home for.
The changes also incorporate feedback from investors and industry stakeholders, who have long criticized the previous iteration of the investor scheme for its high thresholds and focus on riskier investments. Andrew Sayers was on an advisory board that met with Erica Stanford as part of this feedback loop.
Deeply invested and working alongside the immigration sector, iNZvest have experienced the lack of activity and failure of the previous Active Investor Plus Visa in attracting capital – it was simply not globally competitive and from a policy perspective, was an abject failure. The investment numbers showcase this with a 98% reduction of investment over the previous policy.
Other policy changes to attract investment.
Other policies under review are the foreign buyer ban rules (which prevent any citizens other than Australia and Singapore from purchasing NZ residential property – unless they are tax resident here and have a qualifying visa, and the foreign investment fund rules (which currently tax many unrealised foreign capital gains). We encourage the government to move forward on these initiatives asap to remove investment obstacles.
iNZvest focused markets – Hong Kong and China will be attracted to the revised visa, having been effectively locked out for years by the language requirement. We have been receiving interest from investors and partners within minutes of yesterday’s announcement.
Absent from the policy announcement is any mention of approved money channel options from Mainland China. This will need to be resolved before we see significant activity from China (historically a very significant market for the investor visa). However, we note that many HNW Chinese have existing global investments – for these individuals the funds transfer should be straightforward.
Success of the visa will also in part depend on Immigration New Zealand’s ability to improve processing times, while operating under an increased workload.
Entrepreneur visa
We understand that the government are looking to make significant changes to the entrepreneur visa. We have prepared more than 30 entrepreneur visa business plans over the past 5 years and are encouraged at the prospect of this visa not only remaining an option, but also gaining support and investment from the Government.
Conclusion
The changes to the Active Investor Plus Visa (along with other policy changes) mark a sensible shift in New Zealand’s approach to attracting global investment. By simplifying the investment categories, reducing minimum investment amounts, broadening the scope of acceptable investments, and lowering immigration requirements, New Zealand becomes a more welcoming and competitive environment for high-value investors.