The New Zealand Golden Visa program is going to be revamped in a bid to attract wealthy migrants and boost the economy through significant investments as the centre-right government plans reforms after a decline in investor interest due to 2022 rule changes.
Reviving the New Zealand Golden Visa Program
The Active Investor Plus Visa, which previously attracted rich investors and generated NZ$1 billion annually, has been suffering under stricter rules introduced in 2022. Over the last two years, only 35 applications have been fully approved, bringing in NZ$352 million in investment funds—far below the historical average.
Knowing the turn, Finance Minister Nicola Willis said, “We are aware that the previous government altered those parameters, and we experienced a significant drop in the number of investors. You can expect to hear from us on that in the coming weeks.”
Wealthy Migrants in New Zealand: More Than Just Capital
The government of New Zealand recognises that the investor migrants contribute not only in financial capital but also through their networks, expertise, and innovative ideas that shape and strengthen the economy. Most often, such individuals make an initial investment and continue to expand engagement across the sectors, thereby giving an upward spiral effect on the economy.
Recommended Amendments in the Requirements of Investment Visa
Currently, applicants for the Active Investor Plus Visa have to invest NZ$5 million in direct investments or NZ$15 million in passive investments such as listed equities. The former required a threshold of NZ$3 million and allowed bond and property investments. All these changes have made the program significantly less attractive.
Key reforms that are being considered include:
1. Reviewing the minimum investment thresholds
2. Revisiting the requirement for English language proficiency by applicants.
3. Opening up avenues for foreign investors to buy expensive homes, currently illegal since a 2018 prohibition.
The National Party would introduce the ability for foreigners to invest in homes worth NZ$2m or more, but the Coalition partner New Zealand First spoke out against it, saying that it would not agree, but New Zealand First leader Winston Peters has recently signalled he would open these avenues if there was some offsetting investment commitment.
Investor Visa Overhaul in New Zealand. Path Going Forward
Overall reform plans that the New Zealand government implements about the Overseas Investment Act aim to improve the convenience of making such applications. “Foreign capital has been pretty necessary to helping New Zealand reach those economic goals. It is concerning in some way. It’s about making sure that the investment migrant setting aids them in helping meet the needed outcome,” stated Minister Willis.
Conclusion
New Zealand’s proposed overhauls of the Golden Visa scheme are a strategic step to reclaim New Zealand as a preferred destination for high-net-worth migrants. In doing so, the government would be able to revive interest, boost economic growth, and address investment thresholds and restrictions and the added value that investor migrants bring. As such reforms take place, New Zealand will have to walk that thin line between protecting local interests and attracting global capital.
