An IMGW News Report
From April 1, New Zealand will simplify its investor visa and remove the English language test, aiming to attract more foreign investment. However, its ban on foreign buyers purchasing residential properties remains a barrier for some investors. Outside of citizens and tax residents, only Australians and Singaporeans can buy homes due to existing trade agreements.
Immigration Minister Erica Stanford said she expects “huge interest” in the updated visa, citing conversations with lawyers and agents representing 50 potential applicants ready to sign on day one.
“New Zealand is open to global investors willing to contribute NZ$10 million, yet foreign ownership of property is still prohibited,” noted a business migration expert. “This is a challenge the government must resolve,” he stressed.
To entice foreign investors, the country has modified its Active Investor Plus visa, reducing the duration investors must stay and narrowing investor categories to two, including a low-risk option. The government hopes that wealthy migrants can drive economic growth and infrastructure development.
The specialist noted strong interest, with his firm assisting around 20 families keen to apply under the new rules, primarily from China, followed by Indonesia, Japan, and the US.
Immigration Minister Erica Stanford said she expects “huge interest” in the updated visa, citing conversations with lawyers and agents representing 50 potential applicants ready to sign on day one.
The Active Investor Plus visa has traditionally attracted high-net-worth individuals, bringing in an average of NZ$1 billion ($565 million) annually. However, after rule changes in 2022, only 43 applications were fully approved.
A leading migration firm specialist stated that while the visa changes are an improvement, the foreign buyer ban remains a significant issue. He argued that the term “foreign buyer ban” makes wealthy individuals feel unwelcome.
The ban, introduced in 2018 by then-Prime Minister Jacinda Ardern following a scandal involving PayPal co-founder Peter Thiel, has been a contentious point. Although the National Party campaigned in 2023 to ease the ban for homes valued over NZ$2 million, New Zealand First blocked the proposal during coalition talks. Discussions continue about potential conditions for lifting the ban.
