By Mike Bain
It’s a green light from the New Zealand Government for foreign investment in the country as they look to modernising visa settings to incentivise migrants to invest in New Zealand.
Economic Growth Minister Nicola Willis remains steadfast the red carpet should be rolled out for foreign investment which will potentially provide jobs for Kiwis, lift incomes by delivering new businesses and investing in existing ones.
This attitude is in contrast to the previous Labour Government which made changes to the Active Investor Plus Visa effectively discouraging potential investors from seeking New Zealand residency.
Willis quoted figures in her announcement over the weekend indicating since 2022, migrants entering New Zealand under the AIP category have invested just $70 million. By contrast, in the two years prior to COVID-19 migrants invested $2.2 billion.
“Rather than turning potential investors away, this Government is intent on welcoming people who want to contribute to New Zealand,” Willis said.
“We are already making it easier for digital nomads to work remotely while visiting here and have established Invest New Zealand to promote investment into this country,”
Immigration Minister Erica Stanford announcement early last week making working in the country easier for “digital nomads” who wish to work remotely and stay longer.
“We are now making our investor visa simpler and more flexible to incentivise investors to choose New Zealand as a destination not just for their capital, skills and international connections, but to build a life for themselves and their family here,” Stanford says.
The plan has come under fire from Labour warned dumbing down the rules on investor visa is “risky” as it waters down the economic benefits for New Zealand,
“The focus on wealthy visitors to New Zealand in the very same week the Government has figures showing Kiwi unemployment is at record highs is absolutely tone deaf,” Labour immigration spokesperson Phil Twyford said
From 1 April the current complex weighting system for the AIP will be replaced with two simplified investment categories:
The Growth category will focus on higher-risk investments, including direct investments in New Zealand businesses. It will require a minimum investment of $5 million for a minimum period of three years.
The Balanced category will focus on mixed investments, with the ability to choose ones that are lower risk. There will be a minimum investment of $10 million over five years.
Other changes include expanding the scope of acceptable investments and removing potential barriers to investment, such as the English language requirement.
