The government is changing immigration policies to attract high-net-worth individuals. Prime Minister Christopher Luxon announced the new visa rules at an Auckland Business Chamber event.
“We are dusting off the welcome mat,” Luxon said. The new policy replaces the current Active Investor Plus (AIP) visa with two simplified categories.
Starting April 1, the visa will be split into Growth and Balanced categories. Each category has different investment requirements and residency obligations.
The Growth category requires a minimum investment of $5 million over three years. Investors must reside in New Zealand for at least 21 days.
The Balanced category allows mixed investments with a minimum of $10 million over five years. Visa holders must stay for 105 days but can reduce this by investing more.
Officials removed the English language requirement to attract more investors. Luxon said the rule discouraged many potential applicants.
Labour criticized the changes for offering wealthy migrants a fast-track to residency. Party leaders questioned why Winston Peters is not opposing the policy.
Peters supported the adjustments, saying previous rules failed to attract investment. He argued that the Labour government’s policies had weakened foreign investor interest.
Luxon blamed Labour for a sharp decline in investor visa approvals. Since 2022, migrants using the AIP visa have invested only $70 million, down from $2.2 billion before the pandemic.
Economic Growth Minister Nicola Willis joined Luxon in promoting the changes. She emphasized that foreign investment can strengthen local businesses.
Immigration Minister Erica Stanford expects strong interest in the new program. She believes at least 50 high-wealth individuals will apply immediately.
“I’m expecting a huge amount of interest,” Stanford said. She claimed that New Zealand’s visa would be more competitive than those in Australia and the United Kingdom.
Some critics worry that relaxed rules will encourage passive investments. Labour’s Phil Twyford said the policy benefits the wealthy without ensuring economic development.
“This will stick in the craw of hard-working migrants,” Twyford said. He argued that investors should contribute to job creation, not just park money in property.
Property ownership remains a key issue in the debate. The government maintains a foreign buyer ban, limiting investors’ ability to purchase homes.
National had proposed a 15% tax on foreign home buyers during the election. The policy was blocked by NZ First during coalition negotiations.
Stanford admitted that renting is unpopular among wealthy migrants. “They don’t love renting, but they’re still here,” she said.
Willis explained that foreign investors can buy property after becoming permanent tax residents. This process requires a significant time commitment.
Peters rejected claims that visa changes will allow easy property purchases. He insisted his party still opposes foreign home ownership.
Business leaders have welcomed the announcement. BusinessNZ CEO Katherine Rich said the changes create more opportunities for foreign investors.
“A broader range of investment opportunities will open the doors,” Rich said. She believes New Zealand businesses can benefit from global investment networks.
Former Labour Minister Stuart Nash supported some aspects of the changes. He admitted the original AIP settings were not attractive enough.
“There are competitor countries with better investor visa programs,” Nash said. He argued that New Zealand needs to adjust policies to remain competitive.
Global instability has led many wealthy individuals to seek new residency options. New Zealand could benefit if it offers a more appealing visa.
Officials say the new visa categories will encourage direct investment in local businesses. They expect this to support economic growth and job creation.
Opposition parties will continue to challenge the government’s approach. They argue that immigration policies should benefit a wider range of New Zealanders.
Luxon insists the changes will bring positive economic outcomes. He said the government will track the program’s success and make further adjustments if needed.
The updated visa rules take effect in April. Investors and business leaders will be watching closely for further details.
