Immigration New Zealand has made a smart move to discourage applicants from placing investments entirely in bonds. From 22 May 2017, where 50% of the investor visa funds are invested in “growth oriented” investments, the amount that is required for the Investor 2 visa is discounted by NZD 500,000.
With similar climates, wide-open spaces, good schooling and a strong economy, like Australian, New Zealand is an attractive destination for migration and is already popular in China.
Investor 1 (Plus) Category – 3 years
This investor visa is NZD 10 M. Where 25% is invested in “growth oriented” investments the physical presence requirement of 88 days will now be spread over 3 years, rather than 44 days each in years 2 and 3.
Investor 2 Category – 4 years
This investor visa is now NZD 3M up from NZD 1.5M which also required NZD 1.0M of settlement funds. Under the new rules only NZD 2.5M will be required where 50% is invested in “growth oriented” investments. The physical presence requirement of 438 days to be spread over the 4 year term rather than 146 days in years 2,3 and 4.
Note there is a limit on the number of these visas of 400, increased from 300. There is also a softer “business experience” definition of 3 years, although English language skills are required and applicants must be under age 65.
- Growth oriented investments – New Zealand shares unlisted or listed either directly or through managed funds, and new residential property developments designed for commercial return, not personal use
- Non-growth oriented investments – New Zealand Government and corporate bonds including banking and financial firms, and philanthropy to a maximum of 15%.
New Zealand Citizenship
Once the visa has been granted the pathway to permanent residency is just one year. Further, the opportunity to include investment in certain “off-the-plan” property will be well received by those who prefer investing in real estate and want to have a home for the family or children studying at the end of the four-year visa term.
For those who are weighing up the options, the NZ Investor 2 being equivalent to AUD 2.2M is less than half the amount of Australia’s AUD 5M Significant Investor Visa.
Stacey Martin is the founder of Expat Advisors Community, a network for professionals with internationally connected clients. With a background in financial services, today Stacey consults on investor migration managing relationships between Asia, in particular, China, Vietnam, India and Australia, New Zealand. She is the author of “Smooth Road to Travel: China to Australia” which can be downloaded here.
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