New settings being introduced to the NZ investor migrant visa is expected to bring growth opportunities to Kiwi companies.

As part of the Government's Immigration Rebalance strategy, changes to New Zealand's investor visa settings will be made to attract experienced, high-value investors bringing growth opportunities to domestic businesses, Economic and Regional Development Minister Stuart Nash and Immigration Minister Michael Wood announced on Wednesday.

'We have so many fantastic businesses in New Zealand that are making a real name for themselves in the global marketplace. Our Government has a goal to support these businesses to grow into even more successful global brands, and updating our investor visa settings is a key part of our strategy to attract high-value investors,” says Nash.

'This is part of our Immigration Rebalance strategy, which aims to attract high-skilled migrants, and aligns with our goal to build a more productive, competitive and sustainable, economy. The new visa settings will attract active and high-value migrants who will bring their international expertise to help New Zealand businesses to grow, which increases local employment and directly benefits the economy.

'The new Active Investor Plus visa will replace the old investment visa categories, which although successful in attracting a large amount of funds over past decade – over $12b –often resulted in passive investment in shares and bonds rather than directly into New Zealand companies, meaning a missed opportunity to attract more active investors who can deliver real benefits to our economy over a long period of time.

'We want to encourage active investment into New Zealand, which generates more high-skilled jobs and economic growth compared to passive investment. This new visa category will also leverage the skills, experience and networks of migrants who will bring their access to global networks and global markets to help Kiwi companies grow faster and smarter.

'Overall, the visa changes are a win-win for New Zealand and migrant investors. Investors secure an opportunity to invest in smart and innovative New Zealand businesses that have the potential to be globally successful, and Kiwi businesses gain valuable skills, connections, and capital. This will make New Zealand more competitive in the international marketplace and take our businesses to the next level,” says Nash.

'The new visa category will help to attract investors that will remain in New Zealand for the long term, bringing their skills and experience to increase our productivity and competitiveness, supporting our transition to a high wage, productive economy,” says Immigration Minister Michael Wood.

'Applicants who make acceptable direct investments, among other requirements, will be eligible for the new visa with a $5 million minimum investment and receive the highest rating which is a lower minimum amount than those who choose more indirect investments. The minimum amount required for indirect investments will be $15 million.

'We're also improving the flexibility for the investor by allowing them to invest over a three-year period and maintain their investments up to the end of a fourth year. Investors will need to spend at least 117 days, or around a month a year, in New Zealand over the four-year investment period," says Wood.

"This is increased from 88 days in the previous category in order to ensure that investors are actively getting hands on with local companies to help them grow.

'Being in New Zealand will provide more opportunities to become involved in the businesses they've invested in, further sharing their expertise and connections. Spending time here also increases the likelihood of further active investment. The changes align with similar investor migrant settings in Australia,” says Wood.

The new Active Investor Plus visa will open on September 19 2022. Applications under the Investor 1 and Investor 2 visas will no longer be accepted after July 27 2022. All applications in the current pipeline will continue to be processed by Immigration New Zealand.

The Active Investor Plus visa category will:

· Incentivise direct investment through the weighting system, so that direct investments receive a 3x weighting per dollar invested.

· Have a minimum investment threshold of $15 million, or weighted equivalent (so applicants who want to make acceptable direct investments will be eligible with $5 million); with lower weightings for indirect investments such as private equity or venture capital funds (2x) and listed equities and philanthropy (1x).

· Improve flexibility for the investor by allowing investors to invest over a three-year investment period (and maintain their investments up to the end of a fourth year)

· Require investor migrants to spend at least 117 days in New Zealand over the four-year investment period.

· Limit the scope for passive investment by capping investment in listed equities to 50 per cent of the total investments and not allow bonds and property to be eligible asset classes.

· Eligibility criteria for each investment class will be confirmed shortly.