Government announces investor immigration policy changes to support NZ economic growth10 Feb 2025

The Active Investor Plus (AIP) policy is to be significantly revised, and enhanced, with the changes announced this week by the Prime Minister – and not before time!

In the 12 years to mid-2022 New Zealand’s investor immigration policies proved very successful in attracting over 3,000 families, and some NZ$14 billion of investment. This all changed with the introduction of the AIP category by the previous Government in October 2022 which has resulted in only around 50 applications being approved, and NZ$70 million invested, to date. The current AIP settings have proved complex and cumbersome and impart far too much investment risk on applicants, and it is no surprise that the current settings have proved singularly unattractive to migrant investors.

It is therefore pleasing to see the present Government recognising that New Zealand is missing out on its share of the 120,000 + of high-net-worth individuals throughout the world who are looking for an alternative residence in the next year. Such individuals have the ability to make a significant contribution to New Zealand’s economic growth, not only from their investments but also from their business acumen and international connections.

Effective from 1 April 2025 the following changes to the AIP settings are being made:

  • Replacing the existing investment weighting system with two simplified Growth and Balanced investment categories.
  • The Growth Category will require $5m investment for 3 years, with applicants to spend a total of 3 weeks in New Zealand. Acceptable Growth Category investments will comprise investments made into New Zealand businesses either directly or through targeted managed funds.
  • The Balanced Category will require $10m investment for 5 years, with applicants to spend a total of 7 weeks in New Zealand (which can be reduced if additional Growth Investments are made). Acceptable Balanced Category investments can comprise a range of bonds, listed equities, certain new property and existing commercial/industrial developments, philanthropy, and also any Growth Investments.
  • The total investment must be made within 6 months of the initial application approval (with one 6 month extension allowed) – as opposed to the current staged investment which only requires the full investment to be made for a total of 12 months.
  • There will be no English language requirement.
  • All applicants must continue to meet good health and character requirements, and evidence their investment funds were originally lawfully earned, and that these funds have been transferred through the banking system to New Zealand.

The final policy details are expected to be published in early March 2025.

The above changes are welcomed and will, we believe, generate significant interest in New Zealand from prospective migrant investors. There is already significant interest from the USA, but we also anticipate good interest from Europe, Asia and the UK.

Applications can still be made under the existing AIP policy settings through until the policy changes are implemented.

Interested applicants should reach out to Pathways® Managing Director Richard Howard, who personally attended the Prime Minister’s announcement and who is fully conversant with the AIP policy and the impending changes. For a free no-obligation discussion please contact Richard directly at [email protected].

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