The immigration authorities in New Zealand responsible for the issue of new investor visas cannot issue any new visas, including Investor Visas to HNWIs and affluent entrepreneurs – as the borders are currently ‘closed’ to contain the spread of Covid-19.
The New Zealand Investor Visa has enjoyed a surge in demand from new markets including the US market. In fact, it is estimated that demand for the New Zealand Investor Visa has almost doubled since last year fueled by interest from affluent investors and tech entrepreneurs in both Asia and Western countries all keen to relocate to (safer and investor friendly) New Zealand.
It is estimated that about NZ$ 2 billion is currently on hold with about 400 or so applications hanging in the balance. These investor visas could represent much needed funds that could be used to bolster the New Zealand economy in these trying times, but very few Category 1 Investor Visas and Category 2 investor Visa applications have been approved. The rationale being that – as borders continue to remain shut, granting new visas is contrary to the government’s health policy and applicants would be unable to meet their entry requirements (see below).
What is the New Zealand Investor Visa Category 1?
This category is most tailored to investors with approximately NZ $10 million (approximately US$ 7 million) available to invest in New Zealand for over 3 years. You must be resident in New Zealand in Year 2 and Year 3 for at least 44 days. Applicants can include their spouse/partner and dependent children aged up to 24.
But for those not fortunate enough to hold dual citizenship, or to have made the move prior to the Covid 19 pandemic – the US Passport has fallen from grace, having been ranked 1st – most powerful passport in both 2006 and 2014 it is now ranked 7th on the Henley Passport Index for 2021. Yet with over 22 million cases of coronavirus in the US, many countries have shut their doors to American tourists, further weakening the global mobility power of this once stalwart passport.
Read more: The Ever Growing Investment Migration Industry
What is the New Zealand Investor Visa Category 2?
This category is most tailored to working age entrepreneurs with approximately NZ $3 million (approximately US$ 2 million) available to invest in New Zealand for over 4 years. Applicants must meet the necessary points on the Investor 2 Points system. They can also include their spouse/partner and dependent children aged up to 24.
What lies ahead for New Zealand’s policy in 2021?
As the pandemic rages in the UK, US and Europe, New Zealand is currently considering a traffic light system where those with uncontrolled epidemiological situations would be marked RED and have flights suspended for weeks/months, further mitigating inbound travel. Jacinda Ardern’s strict border policy has been applauded by the global community.
Nonetheless, 2021 will stage a strategic game of wealth and health chess as she balances how long borders can (should) remain shut and how it is impacting foreign investment in the immediate future.
Rolling out the vaccine and obtaining enough immunity will need to be balanced with opening borders, resuming international economic activity, and allowing investors funds (including Category 1 and 2 investors) to stream back into Aotearoa (New Zealand in Maori).
