What’s happening with New Zealand citizenship?

Anyone born in New Zealand prior to 1 January 2006 or born in NZ on or after this date to a parent who is a NZ citizen, or NZ resident, is automatically a NZ citizen. A person who is born overseas to a NZ citizen parent may also be eligible for NZ citizenship by descent.

Otherwise, NZ citizenship can normally only be obtained by grant which requires a person to hold a NZ resident visa and to have lived in NZ as a resident for at least 240 days each year, and a total of 1350 days, in the 5 years immediately preceding the date of their citizenship application (with some exceptions). Applicants must also be of good character and have a suitable level of English understanding. Following approval, they will normally receive their citizenship certificate at a formal ceremony, and they can then apply for a NZ passport.

Citizenship applications cost $470.20 (adult), and are processed by the Department of Internal Affairs, and almost 40,000 people were granted New Zealand citizenship in the year to 30 June 2024. The main source countries were India (6,218), UK (4,789), Philippines (3,969), South Africa (3,918), China (2,340), Fiji (2,238) & Samoa (2,029) with USA, Tonga and Sri Lanka rounding out the top 10 countries.

The DIA website states that 93% of applicants are granted citizenship within 18 months of submitting their application. However, we have seen many decisions made very quickly, within 2-3 weeks, but also decisions which have taken well over 12 months. This variance in processing times is currently a matter of great angst among applicants and their advisers. The DIA uses algorithms to compare data such as identity verification, presence in NZ and good character and, as far as we can understand, if these auto checks are favourable then the application quickly moves to the approval stage. It appears that around 50% of applications do pass the auto check and are approved in a very timely manner. However, those that do not pass are generally looking at a 12+ month timeline which is understandably of great frustration for these applicants. Reasons for why an application may be delayed can relate to their character, visa history, inconsistent identity information and if they applied too early.

We expect the number of people being eligible for the grant of NZ citizenship to remain consistent, or even reduce, over the next 2 years but from 2027 the number will very significantly increase. This is due to some 200,000+ people gaining NZ residence as a consequence of the 2021 Resident Visa which was introduced during Covid to transition work visa holders to NZ residence.

In the year to October 2024 some 80,000 NZ citizens left the country (a new record) and, in this same year, NZ recorded a net migration gain of 38,800 – well down on the 136,000 gain in the previous 12-month period. The net monthly migration gain in October 2024 was 4,900 people. The current net migration trend is clearly down, and the expectation is that sometime in the next 6 months NZ will begin to record net monthly migration losses.

NZ citizenship provides the opportunity to live and work in Australia and, historically, some 55% of NZ citizens who do leave, relocate to Australia. Stats NZ does not record the original birth country of NZ citizens who leave the country but, one can imagine that, come 2027, the outflow to Australia of non-NZ born citizens will increase dramatically.

Apart from the Covid years, and a period from 2011 to 2013, New Zealand has always enjoyed positive net migration and the associated economic benefits – it looks like this is about to change!

Please also refer to our blog What you need to know before you apply for New Zealand citizenship for more information. Need assistance with a NZ Citizenship application? Do not hesitate – call 0508PATHWAYS today for your free no obligation consultation!