Just 35 applications have been fully approved in the past two years, equating to NZ$352 million of nominated investment funds. - UNSPLASH
WELLINGTON: New Zealand’s government is planning changes to its so-called "golden visa” program to attract more wealthy immigrants who invest in the country.
The Active Investor Plus Visa that historically lured rich individuals to New Zealand and raked in an average NZ$1 billion (US$580 million) a year has languished after rule changes in 2022. Just 35 applications have been fully approved in the past two years, equating to NZ$352 million of nominated investment funds, according to data from Immigration New Zealand.
"We are conscious that the last government changed those settings and we saw a marked decline in the number of investors,” Finance Minister Nicola Willis said in an interview on Thursday (Dec 12) in Wellington.
"You can expect to see announcements from us on that in the coming weeks.”
Willis said the centre-right government has already progressed reforms to speed up overseas investment applications and will change legislation next year to emphasise that the nation requires foreign capital to achieve its economic objectives. She said investor migrants bring much more than just money.
"It’s also the networks, the expertise, the experience, the ideas that they bring with them,” Willis said.
"There are many examples throughout the country where investor migrants, while they may make initial investments, then go on to make other investments and become more engaged in the economy in a range of ways which are helpful.”
Under current settings, applicants for the visa must commit to at least NZ$5 million of direct investment or NZ$15 million of passive investment such as in listed equities. That compared to a NZ$3 million starting threshold under the old criteria. Bonds and property, historically popular investments in New Zealand, are no longer eligible.
Asked whether changes to the visa programme may include removing the English-language test, Willis said she would leave Immigration Minister Erica Stanford to make her announcement.
A bugbear for some foreigners wanting to invest in New Zealand is an inability to buy a house in the country, the consequence of a ban imposed in 2018 on outsiders - other than those from Australia and Singapore.
Willis’ National Party campaigned before the 2023 general election on a relaxation of that ban, proposing to allow foreigners to buy a home valued at NZ$2 million or more, but that policy was blocked by the New Zealand First Party during the formation of the coalition government.
Since then, New Zealand First leader Winston Peters has said he’s open to allowing foreigners to buy expensive houses if they also invest in the country.
While the agreement not to relax the ban remains in place, "as we progress reforms to the Overseas Investment Act and investor migrant settings, we’ll have a range of discussions and we’ll see where they land,” Willis said. - Bloomberg
