On 19 September 2022, the new Active Invest Plus Visa (AIPV) was released as part of the NZ Government's Immigration Rebalance Strategy.
The Government's aim with this new strategy is to increase the involvement that investors have with NZ businesses and reduce the levels of passive investment from foreign nationals wanting to make New Zealand their home.
In this article we review what’s happening within this category in the last four months and its investment opportunities
AIPV replaces the previous NZ investment visa categories to ensure higher levels of participation from investors in our economy. The change has come about to rebalance the types of investment prioritised, as the Government aims to bring more value to New Zealand's business growth and attract international expertise.
By attracting more active investors, the Government aims to deliver more value from overseas talent over an extended period. They hope that overseas investors migrating to New Zealand will play an active role in growing Kiwi companies.
The Active Investor Plus Visa requires investor migrants to meet the following criteria:
There will be soon a publicly available list of acceptable investments made up of either managed funds or direct investments. The investments are reviewed by a panel of experts engaged by New Zealand Trade and Enterprise. There are other investment types that don’t have to be approved by the panel such as philanthropy and equities.
New Zealand's economy continues to introduce new innovative companies that have the potential to become global competitors.
New Zealand Trade and Enterprise (NZTE) collaborates with many new and innovative companies and is a crucial link between investors and prospects for profitable investments.
In addition to investment growth and opportunities that New Zealand provides, the Active Investor Plus Visa further assists investor migrants in their move to NZ, as it offers a fast-tracked pathway to residence.
A wide range of business sectors characterizes the NZ economy. Many have strengths and advantages found nowhere else in the world.
Here are the top sectors with high-growth potential, including how they're significant opportunities for forward-thinking investors and entrepreneurs.
New Zealand is one of the world's leading food exporters, supplying premium food and beverage products to millions of people in over 120 countries. In 2021, New Zealand made $31.2b from global food and beverage exports.*
New Zealand's temperate climate, fertile soil and clean ocean make it a world leader in food production. As one of the world's top food exporters, the country provides premium food and beverage products for millions of people across 120 countries.
NZ is a known exporter of dairy products, lamb, venison, beef, kiwifruit, apples and seafood. Natural production advantages and the expertise of local producers and businesses combine to offer significant potential for investors.
81 countries worldwide import NZ's aquaculture products, which are considered some of the best seafood.***
The sub-sectors of focus within NZ's food and beverage sector for potential growth include aquaculture, pet food and value-added dairy products.
NZ ranks 3rd out of 113 countries for food safety, nutritional standards and food safety net programmes.**
NZ's trusted reputation is outlined by strict food safety and biosecurity measures. A global reputation as a trusted supplier of quality products and ingredients to the world's primary food and beverage companies is due to food regulation based on evidence and designed with business in mind.
A Kiwi Success Story
Zeffer is a premium cider company focused on domestic and international growth. They are positioning themselves as New Zealand leading Cider manufacturers. They anticipate 48% growth in FY23. Zeffer forecasts growth to $12.4m in revenue with $1m EBITDA in the next three years.
The sub-sectors of focus within NZ's renewable energy sector for potential growth include green hydrogen, solar and geothermal.
New Zealand ranks 2nd in the world for energy security.****
New Zealand's natural resources, world-class technology and national ethos of sustainability contribute to its potential for investment in renewable energy. It also ranks in the top two in the world for energy security. This is enhanced by the Government's targeted approach to continuous improvement and innovation within the renewable energy sectors.
84% of New Zealand's electricity usage is renewable.*****
NZ has the fourth-highest share of renewable energy in the OECD, currently at 84% and rising. It is estimated to have around 14,700 MW of additional capacity, offering significant scope for high-growth investment opportunities across the clean-energy value chain.
A Kiwi Success Story
Lodestone Energy is 100% New Zealand owned and operated. In June 2022, they succeeded in raising $300 million to build 5 wind farms, and they aim to be the leader in grid-scale solar in New Zealand. Lodestone projects their solar farms will increase New Zealand's solar production by eight times and feed electricity into local networks.
New Zealand is known for its unique solutions with technology and innovation. With its Tech Sector is the country’s 2nd largest export sector, equating to $13.9b in revenue in 2021. Its potential for growth has only scratched the surface as maturing New Zealand startups hit the global markets.
With a 23% growth in digital exports from 2020 to 2021, the NZ tech companies continue to be recognised globally due to their fresh perspectives, creative energy, and unexpected answers to problems.
In 2021, New Zealand experienced a 48% growth in early-stage investment tech.******
Being on the edge of the world fostered a new approach to challenges, driving the nation to become innovators. Creativity, practicality and a readiness to challenge convention became core facets of the New Zealand mindset. The world is now a great deal more connected.
111% increase in capital investment into NZ tech businesses over 2021. *******
New Zealanders due to their location, and ingenuity are generally seen as early-adopters to technological trends and software.
Our economy is often seen as the perfect testing ground for innovation, with a small, multi-cultural population and one of the highest rates of internet usage globally. This is all supported by advanced digital infrastructure and high speed cables.
A Kiwi Success Story
Unleashed is a cloud-based inventory management system built in New Zealand, which has seen global success in 75 countries. In 2020 the company was sold to Access Group, a UK-based company, for an undisclosed amount estimated to be over $100m.
The sub-sectors of focus within NZ's tourism sector for potential growth include hotels and tourism attractions.
In 2020, 73% of visitors to NZ were first-time visitors.********
The Māori culture, New Zealand's friendly hospitality and the nation's stunning landscapes make NZ a global tourist destination. NZ has a reputation worldwide for high-quality experiences, meaning there are significant opportunities for investment in tourism and its unique attractions.
Domestic tourism market value of $23.7b.*********
New Zealand's domestic and international tourism sectors are moving from strength to strength as the country looks ahead to its bright future in the emerging post-Covid landscape.
New Zealand's tourist attractions are experiencing record performance, with an increasing demand for high-value attractions to provide authentic experiences for visitors. Hotel demand is growing as well. NZ has the strongest average daily rate (ADR) growth in the Asia-Pacific market, so there is an ongoing demand for accommodations to meet future needs.
The sub-sectors of focus within NZ's transportation sector for potential growth include advanced transportation and space.
NZ is working towards net-zero carbon emissions by 2050.**********
Due to its distance from world markets, New Zealand's isolation has helped the country breed a spirit of innovation, with transport technology no exception. The country's creative mindsets combined with NZ's innovation-friendly business environment have resulted in the ability to find unexpected solutions to complex problems whilst focusing on environmentally-friendly options.
NZ has the world's 1st fully private orbital launch ranges.***********
The various natural advantages of New Zealand make the country an ideal place for developing and testing advanced transport solutions. As NZ is relatively isolated from other crowded parts of the world, the location provides the sector with larger areas of clear airspace, making it the ideal environment for earth observation and data calibration and a range of suitable sites for ground infrastructure.
The sub-sector of focus within NZ's wood product sector for potential growth is wood processing.
NZ ranks 1st globally for log exports, worth more than $3.8 billion.************
New Zealand's forestry products are in high demand globally, with over 75 per cent of the woof coming from NZ's production forests and being exported in many forms, like logs, wood chips, sawn timber, engineered wood products, pulp and paper, and manufactured wood products such as furniture. For example, NZ is the largest global roundwood log exporter in the world, delivering 21 million cubic metres of product per year.
New Zealand's modern economy continues to introduce new companies that have the potential to become global competitors.
New Zealand Trade and Enterprise (NZTE) collaborates with many new and innovative companies and is a crucial link between investors and prospects for profitable investments.
By registering your interest and connecting to the Live Deals portal you can access information on these New Zealand companies seeking investment opportunities.
As the category evolves there will be more developments to be released in the early part of this year on the specifics of acceptable investment opportunities for potential investor migrants.
Keep up to date with these changes and other NZ immigration news by subscribing to our newsletter.
The Investor Visa in NZ is worth pursuing and offers increasing opportunities for high-growth potential. However, with changes to the investment visa categories, getting all the assistance you need from experienced licensed immigration advisers is essential.
With one of the most skilled Investor Visa teams in the country, Malcolm Pacific Immigration can assist you with every step of the application process and beyond. Get in touch with our specialist Investor Visa team today to discuss your eligibility and investment options.
Sources
*Stats NZ Export Data YE June 2021.
**Global Food Security Index, 2021.
***Aquaculture New Zealand.
****International Index of Energy Security Risk (2020).
*****Ministry of Business, Innovation & Employment (2020), Energy in New Zealand.
******New Zealand Capital Growth Partners (NZGCP), TIN research.
*******NZ Private Capital Monitor (2021).
********Tourism NZ, March 2020.
*********TNZ, Domestic Tourism Insights May 2020.
**********New Zealand Ministry for the Environment, 2021.
***********Deloitte and New Zealand Ministry of Business, Innovation & Employment, 2020.
************Stats NZ, year end 2020.
Our highly experienced licensed Immigration team will take away the stress and worry of navigating the complicated world of New Zealand Immigration. All you need to do is get in touch. Our team is on standby, ready to help.
Our highly experienced licensed Immigration team will take away the stress and worry of navigating the complicated world of New Zealand Immigration. All you need to do is get in touch. Our employer team is on standby, ready to help.
We stay on top of the most important updates to immigration law. Browse below or subscribe and get updates straight to your inbox.
We stay on top of the most important updates to employment and immigration law. Browse below or subscribe and get updates straight to your inbox.
Our team keep ahead of all the latest immigration developments and post updates regularly. Stay up to date by signing up to our newsletter and get these updates directly to your inbox.
Today the government announced a pathway to residence for migrant workers who are living and working in New Zealand. Applications open on 1 December 2021 for the first wave who are eligible to apply. The second wave can apply from 1 March 2022. The deadline to lodge an application is 31 July 2022 or else they will miss out on this one off opportunity.
Today the government announced a pathway to residence for people living and working in New Zealand. Applications open on 1 December 2021 for the first wave eligible to apply. The second wave can apply from 1 March 2022. The deadline to lodge an application is 31 July 2022 or else you miss the boat.
The government has moved the introduction of the new employer accreditation process across to mid-2022. At the same time, the Minister of Immigration announced new work visa rules for migrant workers who are already in New Zealand and working full time.
The government has increased the median wage to $27 per hour from 19 July. Any Skilled Migrant residence application lodged after this date will need to include a skilled job offer that pays at least $27 per hour. For some lower-skilled occupations, the minimum pay rate increases to $40.50 per hour.
From 19 July 2021
From 30 June 2021
Employers of migrant workers must become accredited from 1 November 2021 before work visa applications can be processed. Most employers are not accredited. Those that are accredited will have to roll into the new system when it goes live in late September.
From mid-2020 (delayed)
Skilled occupation "Dairy Cattle Farmer" spilt into three occupations. New occupations are: "Dairy Farm Manager", "Assistant Dairy Farm Manager" and "Dairy Herd Manager". Each sit at different skill levels, therefore, the award of points will depend on pay rates, job tasks and other requirements.
From 15 February 2021
The government has deferred the fortnightly selection of Expressions of Interest from the Skilled Migrant pool for six months (to be reviewed in April 2021). Invitations to Apply for Residence remain suspended. The last selection from the Skilled Migrant pool took place on 18/03/2020.
From 7 October 2020
The government added four new occupations that are now regarded as skilled employment and may qualify for job offer points under the Skilled Migrant Category. These are:
Aged or disabled carer, Bicycle mechanic, Driller and Nursing Support worker.
From 27 July 2020
Anyone invited by Immigration NZ to apply for residence under the Skilled Migrant Category where their invitation is dated between 1 November 2019 and 15 April 2020 (inclusive) has now been granted an additional six months to lodge their residence application.
From 27 May 2020
The government has deferred the fortnightly selection of Expressions of Interest from the Skilled Migrant pool. This means Invitations to Apply for Residence are also suspended. Malcolm Pacific Immigration does not anticipate selections to resume until after the general election held on 17 October 2020.
Immigration NZ is now prioritising Skilled Migrant Residence applications where the main (principal) applicant meets the criteria:
From 24 February 2020
From 7 October 2019
The government recently added more occupations that are now to be regarded as skilled employment and may qualify for job offer points under the Skilled Migrant Category. In order to qualify for points, the job must be paying at least the current median wage (or higher for certain occupations) at the time the residence application is lodged.
From 1 November 2021
From 1 November 2021 anyone who is not a NZ citizen must be fully vaccinated (unless exempt) before travelling to New Zealand. Fully vaccinated means your last dose of vaccine was given at least 14 days before travelling and it was an approved vaccine.
Applications for employer accreditation closed at the end of June 2021. Applications lodged before the closure date are still being processed. New applications for accreditation open on 9 May 2022. The process will be quite different to what employers have experienced in the past. Businesses will need to meet minimum standards.
Wednesday, 1 December is fast approaching and it is estimated that around 16,000 individuals and families can apply in the first wave for the 2021 Resident Visa opening next month. It is exciting for the thousands of people who have been waiting patiently to become residents that finally the finish line is in sight.
The first wave of applicants can apply from 1 December 2021. Around 16,000 applications are expected in this first wave. The second wave opens on 1 March 2022. In total, the government expects approximately 110,000 applications that will include about 165,000 people.
The second group of workers who can apply online for the 2021 Resident Visa that opens on 1 March 2022 are those who hold an eligible work visa and either meet "Settled", "Skilled" or "Scarce" as set out above. In total Immigration NZ estimate around 110,000 people will qualify to apply for this visa.
The first group of workers who can apply online for the 2021 Resident Visa that opens on 1 December 2021 are those that on 29/09/2021:
Is this the only requirement to qualify for residence? No. In addition to the eligible work visa criteria workers also need to be regarded as one of the following:
People who were lawfully in NZ (or in Australia when the travel bubble closed between April and July 2021) on 29/09/2021 need to meet the visa eligibility criteria:
The government has introduced a limited pathway to residence for people who are already living and working in New Zealand. Applications open on 1 December 2021 for the first wave of people eligible to apply. The second wave opens on 1 March 2022. The deadline to apply for the 2021 Resident Visa is 31 July 2022.
A small number of critical health workers (taking up jobs for six months or longer) or specialist workers (taking up jobs that are for longer than six months) who were granted border exemptions may also have eligibility for the 2021 Resident Visa. They will need to have arrived in NZ and lodge a 2021 Resident Visa application.
*Excludes high-risk countries.
*Excludes high-risk countries.
The work visa categories set to close are:
From September 2022 people holding job offers in a small number of occupations may apply for residence. Some occupations are a direct pathway to residence and others require a period of two years or longer before applying.
There are qualification and/or occupational registration requirements to meet. Establishing if an overseas qualification matches the NZ equivalent qualification before applying is paramount for success.