New Zealand is seeing “red hot” interest in its revamped golden visa program from the U.S. and Europe as rising geopolitical tensions prompt wealthy people to consider options abroad, Immigration Minister Erica Stanford said.
Applications for the Active Investor Plus visa open Tuesday in Wellington after an overhaul designed to make the program more appealing to affluent migrants. Changes include scrapping the English-language requirement, reducing the time investors must spend in the country, lowering minimum investment thresholds and simplifying investment categories.
“I’m expecting that in the first month we’ll get a lot of applications,” Stanford told Bloomberg News in a telephone interview. “We’re seeing a huge amount of interest out of the U.S., and we’re also seeing a lot of interest out of Germany and the rest of Europe.”
New Zealand, which suffered a sharp recession last year, is looking for foreign capital to spark economic growth and fund new infrastructure. Its remote location in the South Pacific makes it a desirable destination for the rich seeking a haven from turmoil in a picturesque and politically stable country.
“More than anything, it’s actually the geopolitical situation that has driven people to think we need somewhere else to live,” Stanford said. Other comparable countries like Australia and the UK don’t have investor visas, “so we are extraordinarily competitive,” she said.
While formal application data won’t be available for some months, Stanford said immigration agents, lawyers and international advisers report soaring inquiries.
Marcus Beveridge, managing director at Queen City Law in Auckland, said he’s seeing “massive interest,” mostly from China but also from Japan, Indonesia and the U.S.
“A major difference has been waving of the English-language” requirement, he said. “That’s a game-changer.”
The Active Investor Plus visa had previously brought in about NZ$1 billion (US$570 million) annually, but that slumped after the former government tightened rules in 2022. Just NZ$70 million was invested under the stricter version, according to Stanford’s office.
Under the new rules, investors can choose between two paths.
The Growth category requires a NZ$5 million investment in higher-risk assets like businesses or managed funds, with migrants needing to spend just 21 days in the country over the three-year investment term.
The Balanced category requires NZ$10 million to be invested for five years in a mix of bonds, equities or some property investments, with a 105-day stay that can be reduced by investing more.
One lingering concern for potential applicants is New Zealand’s restrictions on foreigners buying homes. Since 2018, only citizens, tax residents and nationals from Australia and Singapore — due to trade agreements — can freely buy property.
Stanford acknowledged it’s a key issue for would-be investors and said talks about changing it are happening “at a leader-to-leader level” in the coalition government.
“If we are asking investors to come to New Zealand and invest their resources, their time, their energy and come and relocate here with their families, then the expectation should be that they have the ability to buy a home here,” Stanford said in a later interview on Bloomberg TV. “It’s certainly something that we are considering.”
The ban was imposed by then-Prime Minister Jacinda Ardern in 2018 amid concern about unaffordable housing and following a passport-for-sale scandal involving PayPal co-founder Peter Thiel.
Stanford’s National Party campaigned on loosening the ban ahead of the 2023 election, proposing to allow foreigners to purchase homes worth NZ$2 million or more. However, coalition partner New Zealand First blocked the policy during government formation talks.
Since then, New Zealand First leader Winston Peters has said he’s open to allowing foreigners to buy expensive houses if they also invest in the country.