WELLINGTON (AP) — December 13, 2024 — New Zealand is revamping its Golden Visa program to draw in wealthy investors, following a sharp decline in the number of applications in recent years. The government’s move comes as the country seeks to rejuvenate its property investment sector and reverse a downturn that has seen the program lose its allure.
The Active Investor Plus Visa, which once brought in around NZ$1 billion (approximately $580 million) annually, has struggled to attract international investors since changes to the program in 2022. Last year, the visa approved only 35 applications totaling NZ$352 million—far below its previous average.
New Zealand’s Finance Minister, Nicola Willis, acknowledged the downturn in applications during a recent interview. “We are conscious that the government changed those settings and we saw a marked decline in the number of investors,” Willis said. “You can expect to see announcements from us on that in the coming weeks.”
The details of the government’s new approach remain under wraps, but current regulations require applicants to invest at least NZ$5 million in direct investments or NZ$15 million in passive investments. Prior to the 2022 changes, the threshold was set at NZ$3 million, making it a more accessible option for investors looking to relocate to New Zealand.
In an effort to streamline the process, the government has already taken steps to expedite visa applications. Willis also announced plans to introduce new legislation in 2025, emphasizing the importance of foreign capital in achieving New Zealand’s long-term economic goals. However, she made it clear that attracting wealthy foreigners is not the sole objective.
“It’s also the networks, the expertise, the experience, and the ideas that they bring with them,” Willis explained. “There are many examples throughout the country where investor migrants, while they may make initial investments, go on to make further investments and become more engaged in the economy in a range of ways.”
Golden visa programs, which offer residency or citizenship in exchange for significant investment, surged in popularity following the COVID-19 pandemic, with high-net-worth individuals flocking to countries offering such opportunities. In particular, European nations like Portugal and Ireland became favored destinations for U.S. citizens seeking a more permanent move abroad.
However, several European countries have moved to phase out their golden visa programs due to concerns over rising property prices. Spain, the most recent country to consider ending its program, introduced a bill last month that would halt the issuance of new visas linked to real estate investments. While the bill was vetoed by the Spanish Senate, the proposal remains on the table and could resurface in 2025.
As New Zealand adjusts its approach, it hopes to rekindle interest from investors while fostering broader economic benefits from their presence in the country. The outcome of these changes will likely have a significant impact on the nation’s real estate market and its wider economic landscape in the coming years.
Related Topics:
Shipping Finance Nears Net Zero Alignment, Reports Poseidon Principles
Yellen Discusses South Korean Political Crisis with Finance Minister Choi
