New Zealand's Golden Visa Overhaul

New Zealand is poised to draw numerous investors from the U.S. and Europe due to its revamped investment visa program, which offers greater incentives to affluent migrants.

The Active Investor Plus visa, open for applications from Tuesday, has been revised to remove the English-language requirement, shorten the residency period for investors, and reduce the minimum investment amounts.

"I anticipate a high volume of applications in the first month," Immigration Minister Erica Stanford told Bloomberg during a phone interview.

She mentioned that there is growing investment interest from the U.S., Germany, and other European regions.

Following a recession in 2024, New Zealand aims to attract foreign investment to boost economic recovery and support new infrastructure projects.

Its remote location in the South Pacific makes it appealing as a haven for the wealthy seeking to escape global geopolitical tensions.

"In New Zealand, we need to say yes more often," Prime Minister Christopher Luxon remarked at a press conference last month, emphasizing that the changes are about "rolling out the welcome mat" to investment, according to the Financial Times.

The recent visa initiative is a "sensible move that signals we’re open again," stated investment banker Justin Murray.

"The moment a high-quality, wealthy migrant feels unwelcome, it deters them."

New Zealand’s updated investment visa program, which is not available in countries like Australia and Britain, is anticipated to be a significant draw for foreign investors.

The elimination of the English-language requirement has been a major change, leading to increased interest from investors in China, Japan, and Indonesia, noted Marcus Beveridge, managing director at Queen City Law in Auckland.

However, Americans are particularly drawn to the relaxed visa policy.

About 40% of inquiries regarding New Zealand's "golden visa" program have come from the U.S., said Benny Goodman, investment general manager for New Zealand Trade and Enterprise, as reported by Business Insider.

The government seeks to attract high-net-worth immigrants, and Americans are increasingly considering New Zealand for its relaxed lifestyle, political stability, and low crime rates, said Dominic Jones, managing director of Greener Pastures New Zealand.

"A decade or two ago, safety may not have been a major concern, but now it's increasingly on people's minds," he noted.

The Active Investor Plus visa previously generated about NZD1 billion (US$572 million) annually, but this significantly declined after the previous government implemented stricter regulations in 2022, with only NZD70 million invested under the tougher guidelines, according to official figures.

The updated rules now provide investors with two options.

One option, termed "growth," requires a NZD5 million investment in higher-risk ventures like businesses or managed funds.

Investors need to reside in the country for only 21 days during the three-year investment period.

The other option, "balanced," involves a NZD10 million investment over five years in a mix of bonds, equities, or select property investments, with a 105-day residency requirement that can be reduced by increasing the investment.

One restriction remains, however. Since 2018, only citizens, tax residents, and nationals from Australia and Singapore—due to trade agreements—can purchase property without restrictions.

Stanford acknowledged this as a key issue for potential investors and mentioned that discussions are ongoing within the government.