Investor Policy for New Zealand Residence

With various areas of uncertainty in the world, New Zealand Immigration is experiencing a significant lift in enquiries for NZ residency. I thought that it may be helpful for you and your colleagues to know about two investor categories that could well be of interest to some of your clients. This investor policies are being taken advantage of not just by people who wish to move to NZ, but also by those who think that a NZ residency, as an additional residency, is something worth having in these times. 
 
Under the Migrant Investor Policy, investors may apply for residency under one of two categories: 
 
•       Investor 1 – the top priority category for high value investors investing NZ$10 million (US$7 million) for 3 years. It imposes minimal policy conditions and has facilitated, fast-track processing. 
 
•       Investor 2 – a category for those investing a minimum of NZ$1.5 million (US$1.05 million)  for 4 years. 

In summary:
 

 

	Category 1	Category 2
Investment funds	NZ$ 10 million(US$7million) for 3 years	NZ$ 1.5 million (US$1.05 million) for 4 years
Min. business experience	None	3 years
Max. age	None	Up to 65
Min. English language requirement	None	IELTS level 3
Min. settlement funds (in addition to investment funds)	None	NZ$ 1 million
Min. time in NZ	44 days in years 2 & 3	146 days in years 2-4

 

There are requirements for the investment of the funds, but they include ‘easy’ to implement investments such as certain bonds and managed funds.
 
As you see Category 1 is considerably simpler. The Investor 2 policy is a points-based system to prioritise migrants on the basis of their potential to contribute to New Zealand. The points system recognises: 
 
•       Importance of having both financial and human capital 
 
•       Benefit of active investment 
 
•       Value of export linkages, technology transfer, entrepreneurship and management skills. 
 
Long term investment or business activity in NZ is not necessary for residency. However while NZ is a small economy (4.6 million people), it has some attractive features. It is an international, open economy with good trade and investment connections with Asia, Middle East, the US and Europe and a safe stable and secure business environment. Some highlights:

• The World Bank ranks NZ as No.1 in the world for ease of starting a business, and ease of doing business: http://www.doingbusiness.org/rankings 

• Heritage Foundation ranks NZ as No 3 in the Index of Economic Freedom (behind Hong Kong and Singapore): http://www.heritage.org/index/ranking 

• Transparency International ranks NZ as No 2 in the world for lack of corruption it its Corruption Perceptions index: http://www.transparency.org/news/feature/corruption_perceptions_index_2016 

• For the fourth year in a row, NZ has been ranked No 1 in the Global Prosperity Index published by the Legatum Institute: http://www.prosperity.com/globe#NZL 

• On the tax side, NZ has no Capital Gains tax, no Stamp Duty, no State Taxes (as we have no states), no Gift Duty and no Inheritance Tax.

Our firm can assist with applications under these investor categories, and of course we are happy to answer any questions.

Mark Lowndes
Lowndes
[email protected]