Investor Visas Get A Shake-Up: What Does It Mean for NZ?
On 19 September 2022, a revised NZ Investor Visa category called Active Investor Plus was released. The new Active Invest Plus Visa (AIPV) is part of the NZ Government's Immigration Rebalance Strategy.
The Government plans to increase productivity, the levels of highly-skilled workers and attract experienced, high-value investors to support our economic and regional development.
What Is the New Active Investor Plus Visa?
The new Active Investor Plus visa 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.
In the previous decade, over NZ$12 billion was injected into our economy by migrant investors. However, this often was the result of passive investment strategies.
By attracting more active investors, the Government aims to deliver more value from overseas talent over a longer period of time. It is hoped that overseas investors migrating to New Zealand will play an active role in growing Kiwi companies.
What Is the Purpose of the New AIPV?
Incentivising investors is predicted to provide capital, connections, and experience to grow New Zealand companies and help them generate global success.
The Minister of Immigration, Micheal Wood, states "The new visa category will help to attract investors that will remain in New Zealand for the long term, bringing their skills and experience to increase our productivity and competitiveness, supporting our transition to a high wage, productive economy".
What Are the New Investor Visa Changes?
The new Active Investor Plus visa category replaces the existing Investor 1 and Investor 2 visa categories and introduces a weighted system. The system is designed to encourage migrants that want to move to New Zealand to help the economy and fund Kiwi companies.
There is an increase to the minimum investment threshold of NZ$15 million from NZ$10 million. This minimum threshold increase applies to applicants of the Active Investor Visa, and there are four types of investment a migrant can consider.
Each type has its own weighting based on the value it delivers to the New Zealand economy. Depending on active investments, potential migrants are asked to invest between NZ$5 million and NZ$15 million.
Investor migrants now need to spend at least 117 days in New Zealand over the four-year investment period, which has been extended from 88 days under the previous Investor 1 visa criteria.
How Do Investor Visa Changes Benefit the New Zealand Economy?
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With the Government focused on immigration rebalance, the changes to the Investor Visa work towards improving our industries by attracting experienced overseas business leaders.
By incentivising direct investment, it is envisaged that New Zealand businesses will benefit more from these migrant investors' global experience, connections, and monetary investment. The weighted structure now awards investments that will be doing good for Kiwi business and fine-tunes the passive investment structure to reduce the impact on our property market.
There are several ways of investing under the Investor Visa changes, both directly and indirectly, to gain permanent resident status.
If you have any questions about the new Active Investor Visa changes, get in touch with our specialist immigration Investor team. Our licensed immigration advisers can help you understand your options for investing in New Zealand.
What Is Direct Investment?
The legislation defines direct investment as:
- Investing capital into an entity that has already received or will receive funding.
- Investing in an entity listed on the NZTE Live Deals platform.
- Investing that otherwise aligns with the NZTE investment sectors of focus. The investor, in this case, should provide satisfactory evidence of market validation, feasibility, or other reasonable diligence concerning the entity.
Provides Growth to NZ Economy
Direct investors seeking a hands-on approach to developing their investment under the new policy are awarded the highest weighting. For example, an applicant investing in a private entity can meet the Active Investor Plus Visa requirements by investing NZ$5 million to meet the required threshold.
Increases Expertise to New Zealand Businesses
Direct investments are incentivised to provide more expertise to New Zealand businesses. For example, direct investors will offer more benefits to local businesses as they will likely provide more global experience and connections than indirect investors.
What Are the Indirect Investment Types?
The new system increases the value threshold of passive investments. These indirect types have been given a lower weighted threshold for migrants wishing to use these types of investments to make New Zealand their home. The system also caps the investment in listed equities and philanthropy to 50% of the total investments.
The three categories within the indirect investment type include managed funds, philanthropy, and listed equities.
Migrants holding investments in managed funds, like private equity or venture capital fund investment, will now be expected to invest NZ$7.5 million during the 48 months to qualify for the visa.
Whilst migrants with listed equities and philanthropic investments will not receive additional benefits through this scheme and are expected to invest the total threshold of NZ$15 million.
Changes to Managed Funds to Secure New Zealand Investment
Ensuring the New Zealand investment first policy is key to new reforms and applies to Managed Fund investment.
The acceptance criteria for this investment type ensure that the investor's fund manager is licensed by the Financial Markets Authority and is a New Zealand Resident Entity. The fund should have a minimum of 70% of Net Committed Capital made available to the Managed Investment Scheme allocated to investing in businesses that benefit New Zealand.
Exclusions to Ensure Investment Is in New Zealand's Benefit
Property and bond investments are now excluded from the asset classes to provide more stability to New Zealand's property market and ensure the investment prioritises New Zealand's economic growth.
What Is the NZ Government Doing to Attract Investors?
Active investment into a potential foreign market could limit the number of willing people to apply. The Government recognises this risk by incentivising a lower monetary value of direct investment funding and allowing flexibility around the timing of investment to curb this potential issue.
Minimum Initial Investments
An investor migrant applying for the NZ Active Investor Visa is granted six months to make a minimum initial investment whilst the remainder of the funds can be placed in holding investments. This allows the new investor to carry out due diligence.
This initial investment is also weighted by type of investment.
Direct investments - NZ$100,000
Managed funds - NZ$500,000
Listed equities/Philanthropy - NZ$1 million
Investor Match-Making Services
NZTE is a crucial link between investors and prospects for profitable investments, as they help potential migrant investors be matched with active investment opportunities in New Zealand more effectively.
Increased Timescale of Investment
Migrant Investors are given 18 months to invest NZ$7.5 million or the weighted equivalent into an acceptable investment. This is followed by an additional 18 months to invest the remaining balance. Permanent residency can then be granted after 48 months with the caveat that the total investment is NZ$15 million or weighted investment is retained into acceptable investments.
Get Investor Visa NZ Advice From Immigration Experts
If you want to understand more about NZ's immigration new visa changes and how they may impact you, get in touch with Malcolm Pacific Immigration.
We have directly helped thousands of investors and their families secure Permanent Residence Visas leading to over $15 billion in the New Zealand economy.
Our experienced licensed immigration advisers provide expert advice on all parts of the immigration process, including investor visas and residence pathways.
We invest our time to get to know you, your family and your goals to support your application. We are the best at what we do and will always stand behind what we say.
Get in touch with us today!
Get started with a FREE consultation today
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.
Get started with a FREE consultation today
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.
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Latest Updates
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Migrant Worker Residence
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.
Skilled Migrants 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.
New Employer Accreditation Process
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.
Skilled Migrant Changes
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.
Work Visa Rules
From 19 July 2021
- The median wage used to assess Essential Skills Work Visa applications increases from $25.50 per hour to $27 per hour.
- Applicants paid below the median wage may be granted a work visa for up to 24 months. The usual 6-month visa validity restriction is suspended until mid-2022.
- In certain cases, the labour market test is waived and in some cases, it will still apply.
Work Visa Rules
From 30 June 2021
- Employer Accreditation and Approval in Principle applications are now closed.
- No new Employer Accreditation applications (including renewals) will be accepted until the new process goes live in mid-2022.
Employer Accreditation Becomes Mandatory
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.
Work Visa Rules
From mid-2020 (delayed)
- Government to negotiate and introduce Industry Sector agreements setting minimum conditions for industries that heavily rely on overseas workers. Sectors include; residential care, meat processing, dairy, forestry, road freight transport, tourism, and hospitality. Construction, horticulture, and viticulture may also be included.
Skilled Migrant Changes
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.
Work Visa Rules
From 15 February 2021
- Dairy Cattle Farmer job offers are now assessed by three new occupation descriptions: Dairy Farm Manager, Assistant Dairy Farm Manager and Dairy Herd Manager. Pay rates and job tasks will determine how long a work visa is valid. Take advice.
Skilled Migrant Changes
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.
Work Visa Rules
From 7 October 2020
- Introduction of "Oversupply" and "Undersupply" occupation lists used to assess Essential Skills Work Visa applications when a job offer pays less than the median wage.
- Employers offering jobs to migrant workers where an occupation is on the "Oversupply" list will not get Skill Match reports issued by Work & Income. Solid evidence of genuine attempts to find a local to fill the job will be critical for approval.
Skilled Migrant Changes
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.
Work Visa Rules
From 27 July 2020
- Essential Skills work visa applications are now assessed based on the current median wage (NZD $25.50 or more per hour.).
- Job offers paying below the median wage require employers to pass the labour market test* and secure a Skills Match Reports from WINZ (work visas granted for a maximum of 6 months).
Skilled Migrant Changes
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.
Work Visa Rules
From 27 May 2020
- Regional Skill Shortage List goes live. 15 regions around New Zealand list occupations reflecting local skill shortages in each region. The labour market test is not mandatory provided the job offer matches the occupation and region plus the visa applicant has qualifications and/or work experience set out on the list.
Skilled Migrant Changes
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.
Skilled Migrant Changes
Immigration NZ is now prioritising Skilled Migrant Residence applications where the main (principal) applicant meets the criteria:
- Has employment paying double the median wage which is currently NZD $51 per hour OR NZD $106,800 per annum; OR Has New Zealand occupational registration and is required to hold valid registration to lawfully carry out their job.
Work Visa Rules
From 24 February 2020
- Wage or salary thresholds increase for Essential Skills Work Visas applications lodged on or after 24/02/2020 (labour market tested; read more here).
- Higher Skilled employment increases to $38.25 or more per hour ($79,560 per annum*)
- Mid Skilled Employment increases to $21.68 or more per hour ($45,094 per annum*)
Work Visa Rules
From 7 October 2019
- Base salary to qualify for a Work to Residence Visa (WTR) supported by an accredited employer increases from $55,000 per annum to $79,560 per annum (or $38.25 per hour).
- Pay rates for WTR visas are now reviewed annually.
- Work visa applicants paid less than $79,560 per annum by accredited employers need to apply under other work visa categories.
Skilled Migrant Changes
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.
Work Visa Rules
From 1 November 2021
- Work to Residence Visa (Accredited Employer and Long Term Skill Shortage) applications close.
- Applications lodged on or before 31 October 2021 will be processed under current visa settings.
Mandatory Vaccination Required for Travel
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.
Employer Accreditation
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.
2021 Resident Visa
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.
2021 Resident Visa
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.
2021 Resident Visa
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.
2021 Resident 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:
- Had lodged a residence application under the Skilled Migrant Category (SMC) or Residence from Work category; OR Had lodged an SMC Expression of Interest (EOI) in the SMC pool that included at least one dependent child aged 17 or above.
2021 Resident Visa
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:
- Settled.
- Skilled.
- Scarce.
2021 Resident Visa
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:
- Workers in NZ who held an eligible work visa on or before 29/9/2021 and on the day they apply for residence; OR Applied for an eligible work visa on or before 29/9/2021 and the work visa application is subsequently approved and still hold an eligible work visa on the day they apply for residence.
2021 Resident Visa
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.
Critical Purpose Visitor Visas
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.
Policy Decision Key Dates in 2022
- July 4. Applications open for the new Accredited Employer Work Visa.
- July 31. Applications for the 2021 Resident Visa close.
- August. Skilled Migrant Residence category scheduled to reopen.
- August. A new pathway to residence for people earning 200% or more of the median wage.
*Excludes high-risk countries.
Policy Decision Key Dates in 2022
- February 13. Fully vaccinated Kiwis plus certain other travellers entering NZ from the rest of the world* can skip MIQ.
- April 30. The border starts a phased reopen to fully vaccinated foreign nationals.
- April 30. The Productivity Commission reports back to the government on immigration settings.
- May 9. Applications open for mandatory Employer Accreditation.
*Excludes high-risk countries.
Work Visa Categories Closing
The work visa categories set to close are:
- Essential Skills Work Visa
- Essential Skills Work Visa – approval in principle
- Work to Residence (Talent – Accredited Employer)
- Work to Residence (Long Term Skills Shortage)
- Silver Fern Job Search Work Visa (closed October 2019)
- Silver Fern Practical Experience Work Visa.
The Green List
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.