Tuesday, June 18, 2024

Govt banking on new investor visa

A new Active Investor Plus visa category will be introduced in September in a bid to attract high-value investors to New Zealand shores.

The new visa is part of the Government’s Immigration Rebalance strategy to attract experienced, high-value investors to domestic businesses.

“We have so many fantastic businesses in New Zealand that are making a real name for themselves in the global marketplace. Our Government has a goal to support these businesses to grow into even more successful global brands, and updating our investor visa settings is a key part of our strategy to attract high-value investors,” said Economic and Regional Development Minister, Stuart Nash.

“This is part of our Immigration Rebalance strategy, which aims to attract high-skilled migrants, and aligns with our goal to build a more productive, competitive and sustainable, economy.”

The Minister said the new visa settings will attract active and high-value migrants who will bring their international expertise to help New Zealand businesses to grow, increasing local employment at the same time.

“The new Active Investor Plus visa will replace the old investment visa categories, which although successful in attracting a large amount of funds over past decade – over $12b –often resulted in passive investment in shares and bonds rather than directly into New Zealand companies, meaning a missed opportunity to attract more active investors who can deliver real benefits to our economy over a long period of time,” said Mr Nash.

“We want to encourage active investment into New Zealand, which generates more high-skilled jobs and economic growth compared to passive investment. This new visa category will also leverage the skills, experience and networks of migrants who will bring their access to global networks and global markets to help Kiwi companies grow faster and smarter.

“Overall, the visa changes are a win-win for New Zealand and migrant investors. Investors secure an opportunity to invest in smart and innovative New Zealand businesses that have the potential to be globally successful, and Kiwi businesses gain valuable skills, connections, and capital. This will make New Zealand more competitive in the international marketplace and take our businesses to the next level,” he said.

Applicants who make acceptable direct investments, among other requirements, will be eligible for the new visa with a $5 million minimum investment and receive the highest rating which is a lower minimum amount than those who choose more indirect investments. The minimum amount required for indirect investments will be $15 million.

“We’re also improving the flexibility for the investor by allowing them to invest over a three-year period and maintain their investments up to the end of a fourth year,” said Immigration Minister, Michael Wood.

Investors will need to spend at least 117 days, or around a month a year, in New Zealand over the four-year investment period. This is increased from 88 days in the previous category in order to ensure that investors are actively getting hands on with local companies to help them grow, said Minister Wood.

“Being in New Zealand will provide more opportunities to become involved in the businesses they’ve invested in, further sharing their expertise and connections. Spending time here also increases the likelihood of further active investment. The changes align with similar investor migrant settings in Australia,” he said.

The new Active Investor Plus visa will open on 19 September. Applications under the Investor 1 and Investor 2 visas will no longer be accepted after 27 July. All applications in the current pipeline will continue to be processed by Immigration New Zealand.     

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