New Zealand Eases Golden Visa Requirements to Attract Wealthy Investors
New Zealand has announced changes to its “golden visa” program in a bid to attract more wealthy investors to the country, the Financial Times reports.
The new regulations relax the residency requirements and drop the English-language proficiency condition, making it easier for international investors to qualify.
To be eligible for a golden visa, applicants now only need to invest NZ$5 million (approximately $2.8 million) directly into New Zealand businesses. In return, they are required to spend just 21 days in the country over three years, significantly less than the previous scheme’s requirement of 117 days over four years. Additionally, individuals willing to invest at least NZ$10 million over five years can qualify for residency by spending 105 days in the country during that period.
The move comes as New Zealand seeks to boost foreign investment amid an economic slowdown, with the country’s economy shrinking by 1% in the September quarter of 2024. Prime Minister Christopher Luxon emphasized that the changes were part of a broader effort to create a welcoming environment for investment.
“We need to say a lot more yes and a lot less no in New Zealand,” Luxon stated at a press conference.
Prime Minister underscored the government’s goal to attract investment that will help revive the nation’s economy.
Erica Stanford, New Zealand’s immigration minister, explained that previous visa requirements were deterring some investors due to the long periods they were required to reside in the country. As part of the government’s strategy to recover from a recession, New Zealand has adapted its approach to attract wealthy investors who might be drawn to the country’s business opportunities.
Golden visa programs have become increasingly popular in many countries as a way to stimulate economic growth. However, several European countries, such as Spain, Portugal, and Ireland, have recently scrapped similar schemes linked to real estate investments, partly due to concerns over rising property prices. New Zealand has chosen to continue with its golden visa program as part of its broader economic recovery plan.
Under previous government policies, stricter rules around investment visas were introduced by Prime Minister Jacinda Ardern’s administration in 2022. These regulations aimed to steer foreign investment toward New Zealand’s companies rather than assets like stocks and bonds. However, these changes led to a sharp decline in visa applications, with only 20 people applying for the “Active Investor Visa” in its first year, compared to hundreds of applicants under the previous program.
The loosened rules have been welcomed by many, including investment banker Justin Murray, who described the move as a “sensible initiative” signaling that New Zealand is “open again” to foreign investment. He emphasized that wealthy investors need to feel welcome in order to be attracted to the country’s opportunities.
