The New Zealand government has announced major changes to its Active Investor Plus (AIP) visa, aiming to simplify the application process and encourage more foreign investment. Effective April 1, 2025, the reforms will introduce two new investment categories, reduce financial thresholds, and relax residency and language requirements. Officials hope the move will reinvigorate foreign capital inflows, which have plummeted in recent years.
Key Changes to the AIP Visa
Under the revised structure, investor migrants will have two pathways:
- Growth Category: Requires a minimum investment of NZD 5 million in higher-risk options, such as direct investments in New Zealand businesses. The investment period is three years.
- Balanced Category: Requires NZD 10 million over five years, allowing for a mix of investments, including bonds, listed equities, property developments, philanthropy, and managed funds.
The updated visa settings also:
- Lower the minimum investment from NZD 15 million under the previous system.
- Expand acceptable investment options, particularly for the Balanced Category.
- Remove the English language requirement, which previously limited non-English-speaking applicants.
- Significantly reduce residency obligations. Growth category investors must spend only 21 days in New Zealand over three years, while Balanced category investors must stay 105 days over five years.
The investment timeframe has also been shortened, requiring investors to commit funds within six months of visa approval, with an option for a six-month extension.
Government Hoping to Revive Foreign Investment
The reforms come as New Zealand struggles to attract investor migrants following a drastic drop in foreign investment. Economic Development Minister Nicola Willis pointed out that investment under the AIP visa had fallen from NZD 2.2 billion pre-pandemic to just NZD 70 million since 2022.
“Foreign investment has the potential to provide jobs for Kiwis, lift incomes by delivering new businesses and investing in existing ones,” Willis said. “We should be rolling out the welcome mat and encouraging investor migrants to choose New Zealand as a destination for their capital.”
Immigration Minister Erica Stanford echoed this sentiment, arguing that New Zealand must remain competitive. “These are incredible investors with tens of millions and they flit all around the world,” she said.
The government sees these changes as a way to increase capital inflows, particularly into sectors that generate employment and long-term economic growth.
Criticism and Concerns Over the Changes
Not everyone is convinced the new policy will deliver meaningful benefits. Opposition MPs, particularly Labour’s Phil Twyford, argue that loosening investor visa rules could dilute economic gains.
“Dumbing down the rules for the investor visa risks watering down the economic benefits for New Zealand,” Twyford said. “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.”
Critics warn that permitting investments in existing property developments could fuel real estate speculation, potentially impacting housing affordability. There are also concerns that investors may not actively contribute to the economy beyond their financial deposits.
Immigration lawyer Nick Mason, however, believes the changes are necessary to attract high-net-worth individuals. “The previous category was just too hard. There were too many hoops to jump through. This will make it much easier,” he said. “There’s no guarantee that people won’t just be passive and that sort of stuff. But we can’t let the perfect be the enemy of the good.”
A Boost for the Economy?
The government hopes that simplifying the process and lowering residency barriers will attract more investors and boost economic growth. However, questions remain about whether the policy will deliver long-term benefits or merely allow the wealthy to obtain residency with minimal commitment.
Officials have promised close monitoring of the new visa program to ensure that investments lead to genuine economic contributions. More details on the revised criteria are expected in March.