Government overhauls investor visa to attract more capital

The new framework, effective April 1, aims to reverse the foreign investment decline

Government overhauls investor visa to attract more capital

The New Zealand government is introducing changes to its investor visa settings to attract more foreign capital and stimulate economic growth.

The new framework, effective from 1 April, simplifies the investment process and aims to reverse a decline in foreign investment seen under previous policies.

Economic Growth Minister Nicola Willis emphasised the benefits of foreign investment, stating that it can create jobs, boost incomes, and support business development in New Zealand. However, she noted that adjustments made to the Active Investor Plus (AIP) visa category in 2022 discouraged potential investors.

“Since 2022, migrants entering New Zealand under the AIP category have invested just $70 million. By contrast, in the two years prior to COVID-19, migrants invested $2.2 billion,” Willis said in a statement. “Rather than turning potential investors away, this government is intent on welcoming people who want to contribute to New Zealand.”

The government is introducing a simplified two-tiered system to encourage investor migration to replace the current complex investment weighting framework. Immigration Minister Erica Stanford explained that the “Growth Category” requires a minimum investment of $5 million over three years and focuses on higher-risk investments, such as direct investment in New Zealand businesses. The “Balanced Category” requires a minimum investment of $10 million over five years, allowing investors to choose lower-risk investment options.

In addition to these changes, the scope of acceptable investments will be expanded, and certain barriers, such as the English language requirement, will be removed.

Stanford highlighted New Zealand’s appeal as a secure and stable location for investment, particularly in an increasingly complex global environment. “We are now making our investor visa simpler and more flexible to incentivise investors to choose New Zealand as a destination not just for their capital, skills, and international connections, but to build a life for themselves and their family here,” Stanford said.

The government has also introduced measures to attract digital nomads and established Invest New Zealand to promote investment opportunities.

Stanford described the visa changes as a way to “turbocharge” economic growth by attracting high-value investors. “Incentivising, simplifying, and broadening the investment offerings will make New Zealand more attractive and accessible to more foreign investors,” Stanford said.

With these reforms, the government aims to restore New Zealand’s reputation as a destination for investor migrants, fostering long-term economic benefits for the country.