The New Zealand government has signalled major changes to the Active Investor Plus (AIP) residence category, aiming to attract more investor migrants and boost foreign direct investment (FDI). With a more accommodating policy expected in early 2025, this could be a golden opportunity for high-net-worth individuals looking to invest and secure New Zealand residency.
The Decline of New Zealand’s Investor Visa Programme
New Zealand has long welcomed investor migrants, with residence-by-investment programmes dating back decades. Between 2009 and 2022, the Investor 1 and Investor 2 categories were highly successful, bringing in over NZ$1 billion annually through the visa programme and an additional NZ$2–3 billion into the broader economy. However, in September 2022, the previous government introduced significant policy changes, requiring investors to take a more “active” approach.
Under the AIP Programme, applicants must invest NZ$5 million to NZ$11.25 million, progressively committing funds over three years and maintaining the investment for a fourth year. The amount required depends on the investment type, with higher-risk direct investments having a lower minimum threshold. However, the complexity and risk associated with AIP investments have made the programme less attractive, leading to a sharp decline in investor interest.
Government Response: Reform is on the Way
Recognizing the programme’s shortcomings, Minister of Immigration Erica Stanford recently remarked, “We had the golden goose, and now we’ve got the lame duck.” In response, the government has initiated a review of the AIP, with changes expected in early 2025.
A Global Perspective
Investor migration is a booming industry, with Henley & Partners estimating that 128,000 high-net-worth individuals will seek alternative residency or citizenship in the coming year. With several countries tightening or closing their investor migration programmes, including Australia, New Zealand has an opportunity to position itself as a premier destination for investor migrants.
Historically, New Zealand has struggled to attract FDI, ranking last on the OECD’s 2022 Foreign Direct Investment (FDI) restrictiveness index. However, the current government has made it clear that attracting foreign investment is a top priority. Plans are already in motion to reform foreign investment laws, and coalition partner NZ First has proposed a NZ$100 billion “future fund”, which may include tax incentives for foreign investors.
What’s Next?
In addition to overhauling the AIP, the government is considering:
- Reforming Foreign Investment Fund (FIF) rules
- Reviewing Overseas Investment Office (OIO) processes
- Potentially lifting the foreign buyer ban on residential property
Given New Zealand’s current economic challenges, FDI is more crucial than ever. Increased investment could drive capital inflows, job creation, technology transfer, skill development, and global trade connections—all of which are essential to boosting the nation’s economy and productivity.
Final Thoughts
The anticipated relaxation of investment requirements and a more welcoming approach could restore New Zealand’s attractiveness as a prime destination for investor residency.
If you’re considering New Zealand’s investor visa programme, now is the time to start planning—a more favourable investment landscape may be just around the corner!
Contact us now to discuss your options and stay informed about the latest updates!