How the new investor visa policy changes can positively impact the New Zealand economy1 Apr 2025

Changes to the Active Investor Plus visa category, from the beginning of April, have real potential to inject significant economic stimulus with the possibility of $1 billion of new investment into New Zealand before the end of 2025.

AIP investors have the option of investing $5 million for 3 years into Growth Category investments, or $10 million for 5 years into Balanced Category investments.

Growth Category investments are those made into direct investments, and managed funds, which have been approved by New Zealand Trade and Enterprise (NZTE). Direct investments are those made in New Zealand businesses that deliver economic and other positive impacts for New Zealand through:

  • increases in economic output; and
  • creation or saving of jobs; or
  • increases in productivity and/or productive assets; or
  • investment into intangible assets (e.g. research and development or other intellectual property); or
  • other economic, social or environmental impacts
Currently targeted business sectors include – technology, manufacturing, food and beverage, renewable energy, aged care, primary sector (such as in post-harvest facilities), forestry, agriculture, or aquaculture; or infrastructure - including tourism, film, health and education. Other sectors which can also generate these economic impacts will also be considered. Such investments can include a property component where this is a core part of the business (eg: new hotel or aged care development), but pure property investments are not allowed under the Growth Category (but can be possible under the Balanced Category).

The business must be incorporated, and have its head office, management and directors, in New Zealand. Managed funds can also be approved by NZTE if they invest in businesses as above.

Approval by NZTE means that the business meets the required policy criteria. It does not mean that NZTE has undertaken due diligence on the investment, and it is critical that investors undertake their own due diligence. NZTE is encouraging businesses who are seeking growth investment, aligning with the required criteria, to apply to become an approved investment through the NZTE website. Being on the NZTE approval list will give businesses the visibility and opportunity to attract the significant investment and international connections that investor applicants can contribute to grow their business.

Balanced Category investments comprise a range of bonds, NZ listed equities, property development, philanthropy as well as any acceptable Growth Category investments. Immigration NZ assesses and decides all investment in relation to the Balanced Category.

For an investment in property development to be considered an acceptable investment, the funds must be invested in:
  • new residential, commercial or industrial property developments or
  • existing commercial or industrial property developments which also include investment to improve or add value to the property
New residential developments must have the purpose of increasing New Zealand’s housing stock (beyond a single dwelling) and making a commercial return on the open market, including rental returns. It will be interesting to see where INZ draws the line as what constitutes “new”. Any housing cannot be for personal or family use. New commercial or industrial must be exclusively for commercial/business use and for the purpose of making a commercial return. All property investments must evidence all required and appropriate consenting.

Managed funds which invest in the above property developments can be acceptable and are not required to be NZTE approved (like they are for Growth Category investments).

Investors will have 6 months to transfer and invest the required funds after their application is approved in principle, but there is an option to extend this by another 6 months in some circumstances. This limited timeframe to invest may mean that most AIP applications will initially be under the Balanced Category, as NZTE approved Growth Category investments may take time to come to the market.

INZ is expecting around 70 AIP applications during April & May, representing around $500 million of new investment and all indications are that the AIP may well deliver on $1 billion of new investment by the end of 2025 – now that will make a welcome, and very positive, impact on the New Zealand economy!

Disclosure: Pathways® Managing Director, Richard Howard, is a member of the Minister of Immigration’s Adviser Reference Group which has advised on the AIP policy changes.

Link: First Published in the Waikato Business News, April 2025 Edition, Page 9