Introduction
New Zealand, a country celebrated for its stability, economic growth, and superior quality of life, has furthered its commitment to attracting global investors with the introduction of the Active Investor Plus (AIP) visa in September 2022. This program succeeds the Investor 1 and 2 visas which has, since 2009, welcomed over 3,000 families and facilitated investments totaling more than 14 billion New Zealand Dollars (NZD).
The Appeal of New Zealand's Investor Visa
New Zealand extends beyond its reputation as a cinematic and adventure destination. It offers a harmonious blend of urban sophistication and tranquil landscapes, underpinned by a strong economy, political stability, and a society valuing diversity and inclusion. Its global ranking in healthcare, education, and life quality makes it a sought-after location for investors seeking prosperity and a balanced lifestyle.
As of November 2023, the AIP visa has attracted significant attention, with applications indicating a potential investment of over NZD 430 million. The visa has seen a diverse interest from regions like the U.S., Europe, and Asia.
Distinguishing Features of the Active Investor Plus Visa
This visa encourages investments in high-growth potential areas, particularly in companies and approved private equity or venture capital funds. Although it is based on a 15 million NZD investment, it has options to lower the investment threshold through a weighting system, allowing for a minimum of 5 million NZD for direct investments and 7.5 million NZD for approved funds, a significant reduction from the standard 15 million NZD.
Investment Options and Weighting System
The AIP visa categorizes investments into different classes, each with its own weighting:
- Direct Investments
The highest priority is given to direct investments in private businesses, with a 3x multiplier effect. A 5 million NZD investment in this category fulfills the 15 million NZD requirement.
- Managed Funds
Investments in approved private equity or venture capital funds receive a 2x weighting. An investment of 7.5 million NZD in these funds meets the visa's criteria.
- Philanthropy or Listed Equities
While these investment options are accepted, they come without additional weighting and are capped at 50% of the 15 million NZD requirement.
Role of New Zealand Trade and Enterprise (NZTE)
Unlike the previous Investor program which was solely managed by Immigration New Zealand, New Zealand Trade and Enterprise (NZTE) now provides essential support from the outset, assisting investors with market insights, connections to local entities, and aiding in the overall success of their investment journey in New Zealand.
Eligibility and Investment Criteria
The AIP visa mandates a base investment of 15 million NZD, adjustable based on the type of investment and employing a unique weighting system. The investment is spread over three years with the full investment amount maintained for a fourth year, with a residency stay requirement of 117 days in New Zealand during the four year investment period.
Comparison with Australian and U.S. Investor Visas
This visa program stands out with its incremental investment approach and comprehensive residence benefits, in contrast to the more rigid U.S. EB-5 and Australia's investor visas. New Zealand's program culminates in a permanent residence visa, offering a long-term stay without further obligations.
As the Australian Business and Investment program is on hold indefinitely for new applications, this program presents an attractive alternative pathway with a similar lifestyle to Australia.
Application Process Overview
Prospective investors should start by consulting a Licensed Immigration Adviser. The application steps include:
- Initial Advice and Eligibility Review
A Licensed Immigration Adviser will be able to review and confirm your eligibility for this pathway and advise on the process and requirements.
- Submission to Immigration New Zealand
An application will be submitted to Immigration New Zealand which can family members comprising a partner and dependent children (up to and including age 24).
- Approval in Principle
After Immigration New Zealand has confirmed the application criteria is met, the application will be confirmed for the Approval in Principle (AIP) stage. Following this confirmation, the investor can proceed to move the funds to New Zealand.
- Transferring Funds
Investors transfer their nominated funds to New Zealand-registered banks or into government bonds.
- Initial Investment and Residency
The investor can then make the first investment, which marks the start of the four year investment period and will allow for the four-year residence visa to be issued. The minimum investment varies, starting at NZD 100,000 for direct investments, NZD 500,000 for managed funds, or NZD 1 million for listed equities or philanthropy.
- Further Investments
Investors must invest at least NZD 7.5 million (or weighted equivalent) by 18 months after the initial investment, and the full NZD 15 million (or weight equivalent) after 36 months.
- Required stay in New Zealand
The principal applicant must spend at least 117 days in New Zealand during the 48 month investment period.
- Applying for permanent residence
The investor and family members included in the application can apply for a permanent resident visa after the 4 year investment period is completed and the requirements to hold the investment and the required stay in New Zealand are met.
New Zealand's Active Investor Plus visa is a transformative approach in investment migration, offering high-value investment opportunities and substantial support from NZTE. It represents an exceptional opportunity for global investors looking to establish a presence in New Zealand. As an experienced migration agency celebrating our 20th year of operations, we can assist with the New Zealand Active Investor Plus visa.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
