New Zealand is set to introduce major changes to its Active Investor Plus (AIP) Visa on April 1, 2025, making it easier for wealthy foreign investors to gain residency while injecting capital into the country’s economy. The new system replaces complicated investment weightings with two simplified categories and significantly lowers residency requirements, a move that has already drawn interest from global investors, particularly in the technology sector.
Key Changes to the Investor Visa Program
The revised investor visa program introduces two investment categories, each with different financial and residency requirements:
- Growth Category: Requires a minimum investment of NZ$5 million over three years, with funds directed toward direct business investments or managed funds. Investors must spend only 21 days in New Zealand over the investment period.
- Balanced Category: Requires NZ$10 million over five years, allowing for a mix of investments, including stocks, bonds, property development, and managed funds. Investors must spend 105 days in New Zealand, but this can be reduced by investing more—those who invest NZ$13 million instead of NZ$10 million can lower their stay requirement to 63 days.
Additionally, the English language requirement has been removed, a move the government says will make New Zealand more accessible to investors from non-English-speaking countries. Immigration Minister Erica Stanford emphasised that these changes are designed to make the visa simpler and more flexible, positioning New Zealand as an attractive destination for high-net-worth individuals.
Luxon said this is about “rolling out the welcome mat” for serious investors who want to contribute to New Zealand’s economy.
A Surge of Interest from Global Investors
The changes are already drawing significant attention, particularly from tech entrepreneurs and venture capitalists. Robbie Paul, CEO of venture capital firm Icehouse Ventures, said that dozens of potential investors from the United States, Europe, and Asia have reached out since the new visa rules were announced.
Paul noted that the revised visa framework removes major barriers that previously discouraged investment, particularly the high financial threshold and strict residency requirements. Under the old system, investors had to commit at least NZ$15 million, a figure that limited participation to only the ultra-wealthy.
Many more people have a net worth of NZ$25 million than NZ$500 million, Paul said, as reported by BusinessDesk. Lowering the investment minimum widens the pool of potential investors, which could have a transformative impact on New Zealand’s startup ecosystem.
The government also expects these changes to revitalise New Zealand’s venture capital market, with more investors now able to back early-stage companies in high-growth sectors like agritech, clean energy, and AI-driven industries.
Impact on Real Estate and Investment Markets
One of the most controversial aspects of the revised visa program is its inclusion of property investments. Investors in the Balanced category can now invest in new residential developments, as well as existing commercial and industrial properties. However, strict foreign property ownership laws remain in place, meaning investors must still navigate the Overseas Investment Office (OIO) process to gain approval for residential developments.
Lawyer Marcus Beveridge, who advises high-net-worth clients, argues that these restrictions will limit the program’s effectiveness in boosting the property sector.
“You need to change the OIO rules for this to work,” Beveridge said, pointing out that the costly and time-consuming approval process could deter investors. He also noted that developers looking for foreign capital to fund new housing projects might struggle to attract investment under the current framework.
Meanwhile, New Zealand’s stock market and managed funds sector are expected to benefit, with more than 30 approved managed funds already positioned to accept foreign investment under the new visa scheme. NZX CEO Mark Peterson welcomed the move, saying it would provide a fresh capital injection for local businesses.
A Global Competitive Advantage
New Zealand’s investor visa overhaul comes as many other countries are scaling back or shutting down their golden visa programs. Spain will end its golden visa scheme in April, while Portugal, the UK, Ireland, the Netherlands, Greece, and Malta have all introduced tighter restrictions. Australia recently scrapped its Significant Investor Visa, citing concerns that it encouraged passive investment rather than economic contributions.
In contrast, New Zealand is moving in the opposite direction, positioning itself as one of the most accessible and flexible investor visa destinations in the world. The simplified application process and lower financial thresholds could make New Zealand an attractive alternative for investors who no longer qualify for European or Australian programs.
“I think there’s a lot of push factors that are driving people from around the world to NZ and pull factors as well,” Paul said. “NZ’s just a great place to live, and it’s actually super connected and easy to get to and all that.”
Balancing Economic Growth and Public Concerns
Despite enthusiasm from investors and business leaders, the visa changes are not without criticism. Some argue that allowing wealthy individuals to effectively “buy” residency undermines the fairness of New Zealand’s immigration system. Others worry that foreign investment in real estate could drive up housing prices, exacerbating affordability issues for local buyers.
Opposition immigration spokesperson Phil Twyford has criticised the program, saying it risks prioritising financial gain over long-term economic sustainability.
“Allowing people to buy residence by parking their money in a passive investment like property that won’t generate jobs or sustainable economic development for New Zealand doesn’t sit well,” Twyford said.
Proponents, however, argue that the revised framework is better structured than many previous golden visa programs, as it prioritises direct investment in businesses rather than simply allowing real estate purchases.
Looking Ahead: A High-Stakes Investment Summit
The government is expected to unveil additional foreign investment measures at its upcoming two-day Global Investment Summit, which begins on March 13. Investors, policymakers, and industry leaders will discuss potential further reforms, including whether to ease restrictions on residential property purchases.
Associate Finance Minister David Seymour has stated that while changes to business investment rules are being considered, the government has no plans to relax restrictions on foreign ownership of residential or farmland.