The New Zealand Government is modernizing its visa settings to encourage foreign investment, aiming to boost economic growth and job creation. The revised Active Investor Plus (AIP) visa framework, set to take effect from April 1, 2025, introduces simplified investment categories and removes barriers that previously deterred investor migrants.
Economic Growth Minister Nicola Willis emphasized the critical role of foreign investment in strengthening the country’s economy. “Foreign investment has the potential to provide jobs for Kiwis, lift incomes by delivering new businesses and investing in existing ones. We should be rolling out the welcome mat and encouraging investor migrants to choose New Zealand as a destination for their capital,” she stated.
Willis noted that the previous government’s modifications to the AIP visa had unintended consequences that may have discouraged potential investors. “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,” she said. “Rather than turning potential investors away, this Government is intent on welcoming people who want to contribute to New Zealand.”
The government has already taken steps to enhance New Zealand’s investment appeal, including making it easier for digital nomads to work remotely and establishing Invest New Zealand to promote foreign investments.
Immigration Minister Erica Stanford underscored the importance of creating a more investor-friendly environment. “Capital is highly mobile, and in an increasingly complex world, people are looking for a safe and stable country to do business. We are now making our investor visa simpler and more flexible to incentivize 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 explained.
Key Changes to the Active Investor Plus Visa (AIP)
The revamped AIP visa will replace the existing complex weighting system with two simplified investment categories:
Growth Category: This will focus on higher-risk investments, such as direct investments in New Zealand businesses. Investors must commit a minimum of $5 million for at least three years.
Balanced Category: This will allow for mixed investments, including lower-risk options. The minimum investment requirement will be $10 million over five years.
Additional modifications include broadening the scope of acceptable investments to include bonds and property-type investments, reducing the minimum investment threshold from $15 million, and eliminating the English language requirement. Moreover, Growth and Balanced category visa holders must complete all investments within six months of receiving approval in principle, with an option to apply for a six-month extension.
“Incentivizing, simplifying, and broadening the investment offerings will make New Zealand more attractive and accessible to more foreign high-value investors. These changes will turbocharge our economic growth, bringing brighter days ahead for all Kiwis,” Stanford affirmed.
The reforms reflect feedback from investors and industry stakeholders, ensuring that New Zealand remains a competitive destination for global capital. By offering lower-risk investment opportunities, the government hopes to attract a wider range of investors who can contribute to the nation’s economic prosperity.
Applications for the updated AIP visa will continue through the existing online portal, which will be revised to accommodate the new changes. With these reforms, New Zealand is positioning itself as a prime location for investor migrants looking to establish and grow their businesses in a stable and welcoming environment.