How to obtain residency through investment in New Zealand and reasons to do so

Since September 2022, New Zealand has implemented a new residency program through investment: the Active Investor Plus visa. This replaces the previous Investor 1 and 2 visas, which became unavailable in July of that same year.

This new visa requires a minimum investment of NZ$15 million and is designed to attract high-net-worth investors, encouraging projects that generate tangible benefits for the local economy. Applicants who meet the requirements can obtain indefinite residence in the country.

In today’s article, we’re going to take a closer look at this visa, but we also want to see what New Zealand has to offer, so let’s start there.

What does New Zealand offer tourists and expats?

New Zealand is not just a destination for investors looking for residency: it is also a country that captivates with its quality of life, its almost unreal landscapes, and its relaxed and safe lifestyle. Whether you want to spend a few weeks exploring or are looking for a new home, this country has a lot to offer.

New Zealand for tourists: boundless nature and pure adventure

Visiting New Zealand is like stepping into a BBC documentary narrated by David Attenborough. The country is made up of two large islands—the North Island and the South Island—and numerous smaller islands, each with its own unique character. The variety of landscapes is such that you can be walking on a black sand beach in the morning and end the day on a glacier.

Among the most iconic destinations are:

• Rotorua and its geysers: a city where the ground literally breathes steam.
• Queenstown, considered the adventure capital of the world, perfect for bungee jumping, rafting, and paragliding.
• Milford Sound, a spectacular fjord within Fiordland National Park, ideal for scenic cruises and dolphin watching.
• The Bay of Islands region, a paradise for beaches and sailing.
• Tongariro Alpine Crossing, one of the world’s most epic hikes, among active volcanoes and turquoise lakes.

In addition to its natural heritage, the country also offers a vibrant Maori cultural scene. It is common to find haka performances, visits to traditional villages, and museums honoring the history of the first inhabitants of Aotearoa—the Maori name for New Zealand.

In terms of visitor services, New Zealand stands out for its excellent tourist infrastructure: well-maintained roads, clear signage, quality accommodation, and a highly developed motorhome rental system, ideal for those seeking total freedom.

New Zealand for expats: quality of life, safety, and opportunities

Beyond tourism, New Zealand is one of the most popular destinations for those looking to start a new life. Whether it’s for political stability, public safety, or connection with nature, many people consider it a hidden gem for expats.

Here are some of the key advantages for those who want to live there:

Relaxed lifestyle and connection with nature

Unlike the frenetic pace of many large cities around the world, life in New Zealand flows more calmly. Working hours are reasonable, there is a good work-life balance, and nature is always less than an hour’s drive away.

Imagine leaving work and being able to go surfing, climbing a mountain, or simply walking through a centuries-old forest. That’s normal for many New Zealanders.

Legal and social security

The country has a solid legal system based on the British Common Law model. The protection of individual rights and predictability in legal proceedings offer peace of mind to citizens, foreign investors, and entrepreneurs alike.

It is also one of the safest countries in the world in terms of crime, with an extremely low homicide rate and a tolerant, multicultural society.

Quality education and healthcare

Expatriates with families will find New Zealand a great place to raise children. Public education is free and of high quality up to secondary level, and the country’s universities are highly ranked internationally.

As for healthcare, there is a public system that covers most basic services, complemented by affordable private health insurance.

Job and entrepreneurship opportunities

Although the population is small (just over 5 million people), New Zealand’s economy is growing steadily. Sectors such as technology, tourism, sustainable agriculture, and financial services are booming.

The country is also very attractive to entrepreneurs. Starting a business is a streamlined process with few bureaucratic barriers, and there are support programs for startups, especially those that contribute to technological innovation or sustainable development.

Open and welcoming culture

New Zealanders—known as “Kiwis”—are generally open, hospitable people with a strong sense of community. Although there may be some cultural differences, expats are generally well received and quickly integrated.

In addition, there is a large international community, making it easy to find like-minded groups to share experiences and adapt more easily.

Tax residence and tax advantages

For those looking to optimize their tax situation, New Zealand may be of interest. While not a tax haven, its tax system is transparent and reasonably competitive. There are no taxes on wealth, gifts, or inheritance, and capital gains are not taxed in most cases.

In some cases, such as for “temporary tax residents,” there is even the possibility of a tax exemption of up to four years on income generated abroad, which is very attractive for newcomers with international assets.

What if I just want to try it out before deciding?

An excellent option for those who want to test out life in New Zealand before committing is to apply for a temporary work visa, study there, or even apply for a long-term visitor visa. This allows you to get to know the country firsthand, make contacts, and assess whether it fits your lifestyle.

Comparison: What does New Zealand offer tourists and expats?

Aspect	Tourists	Expatriates
Nature and landscapes	Access to national parks, fjords, beaches, and volcanoes	Natural environment to enjoy every day, close to urban areas
Activities	Adventure (bungee jumping, hiking, kayaking, skiing), Maori culture	Active lifestyle, outdoor leisure, participation in local communities
Stay	Short-term visas (up to 9 months for some countries)	Temporary or permanent residence visas
Language	English (with a local accent), signage in English and Maori	English is the official language, progressive language learning and adaptation
Cost of living	Can be high for extended visits	Possible to adjust in the long term with local income and financial planning
Transport	Car or motorhome rental to explore the country	Own or public transportation in major cities (Auckland, Wellington, etc.)
Accommodation	Hotels, hostels, rural houses, Airbnb	Long-term rentals or home purchase
Healthcare	Emergency medical care (sometimes expensive for tourists)	Access to public and private healthcare through legal residence
Education	Not applicable	Free public schools, prestigious universities
Job opportunities	Not available for tourists (except working holiday visa)	Skilled employment, entrepreneurship, investment programs
Taxes	Not applicable (except on local purchases)	Transparent tax system, no wealth or inheritance taxes
Culture and integration	One-off experience of the local lifestyle	Integration into the community, lasting relationships, multiculturalism

Active Investor Plus Visa

If you are considering living, working, or investing in New Zealand, this visa could be your gateway. To be eligible, you need to have at least NZ$15 million (approximately US$9 million) in liquid assets or equivalent funds in another currency. However, you can combine different types of investments to reach the required NZ$15 million. You can invest as little as US$3 million (around NZ$5 million). We explain this in more detail below.

This visa allows you to settle, work, and study in New Zealand. You can also include your partner and dependent children under the age of 24 in your application. If you maintain your investment for four years, you will then be eligible for permanent residence.

The process begins with the approval of a work visa to organize the investment and transfer of funds. While your partner may accompany you, they will need their own visa; your children can obtain student visas.

What factors influence the acceptability of an investment?

For an investment to be considered valid under this program, it must meet certain criteria:

• It must not be used for personal purposes.
• It must be made in local currency (NZD).
• It must be directed to one or more of the following destinations:

○ Listed shares

○ Philanthropy

○ Managed funds

○ Direct investments

The investment is assessed at the time it is made and must continue to meet these criteria throughout the 48-month duration of the program. The value is calculated at the time of purchase, including any costs such as management or transaction fees.

The classification system

Different forms of investment have different weights:

• Direct investments in private companies have a weighting of 3x. This means that by investing NZD 5 million in this type of asset, you already meet the requirement.
• Investments in managed funds count double (2x).
• Investments in philanthropy or listed shares count once (1x) and are limited to 50% of the total required.

You can combine different types of investment to reach the required NZD 15 million.

Advantages of investing in New Zealand

• High quality of life, low level of corruption, and multicultural environment
• Opportunity to include your spouse and children under the age of 24
• Political and economic stability, with a presence of solid financial institutions
• Reliable legal system based on English law
• No taxes on wealth, inheritance, or capital gains
• Average income tax rate compared to other developed countries

Requirements for New Zealand’s Active Investor Plus visa program

The requirements are clear:

• Invest between NZD 5 million and NZD 15 million over a period of 4 years
• Be in good health and have no criminal record
• Be present in the country for at least 117 days during those 4 years
• Demonstrate proficiency in English

The investment structure can be as follows:

• Direct investments (worth 3x)
• Authorized managed funds (worth 2x)
• Philanthropy and listed shares (worth 1x, with a limit of 50% each)

Procedures and deadlines for acquiring residency in New Zealand through investment

The process requires submitting forms, paying fees, and providing the relevant documentation. From application to approval, the process usually takes between eight and nine months.

You can make the investment over three years, with a fourth year dedicated to maintenance. After four years, you can apply for permanent residency if you have met all the requirements, including the minimum length of stay.

Family members included in the application must enter the country within 12 months of approval. There is no length of stay requirement, but those over 16 must demonstrate English language proficiency or enroll in ESOL courses.

As a resident, you can live anywhere in the country, study as a local, and later support your parents’ application under the “Parent Retirement” category.

To purchase property, you need to be a tax resident or have spent more than 183 days in New Zealand during the last year.

Frequently asked questions

Can I invest in real estate to obtain an Active Investor Plus visa?

Direct investment in real estate is not permitted to meet the visa requirements. However, it is possible to invest in exchange-traded funds or managed funds that own companies engaged in real estate activities (acquisition, development, leasing, management, etc.), provided that the real estate sector does not exceed 20% of the fund’s total assets. This allows for indirect and regulated exposure to the New Zealand real estate market.

What documents do I need to apply for the visa?

You must submit the following documents:

• Two passport-size photographs.
• Medical examination and chest X-ray.
• Criminal record certificates from your country of nationality and any country where you have resided for 12 months or more during the last 10 years.
• Declaration of good character (no history of fraud, financial crimes or tax investigations).
• Proof of the legal origin of funds (tax returns, bank certificates, property documents, business income, inheritances or donations).
• Proof of English language proficiency (official exam, training or accredited experience).
• If the investment is joint, documents proving joint ownership and relationship (e.g., community property with your partner).

Can I include my spouse and children?

Yes, you can include your partner and dependent children under the age of 24. You will need to provide:

• Marriage and/or birth certificates.
• Health, character and identity documentation for each member included.
• The INZ 1242 form signed by each dependent if they are applying for residency.

How long must I maintain the investment?

The capital must be kept invested for at least 48 months. You have six months from the approval of the visa to make a minimum initial investment (depending on the type of asset), and then complete the rest. Detailed proof of each investment must be provided, including:

• Exact amount in New Zealand dollars.
• Date of investment.
• Type of asset and name of the issuing company (if applicable).
• Number of shares/bonds.
• Confirmation letter from a qualified professional (lawyer, accountant, or investment agent).

What if I have already invested before my residence is approved?

If you already have funds placed in acceptable investments in New Zealand before obtaining residence, the investment period begins from the moment your application is accepted.

Are donations accepted as part of the investment?

Yes, provided that the donation was legal, unconditional, and the source of the funds can be justified as lawful. Evidence may include bank documentation, notarized certificates, tax returns from the donor, among others.

Can I apply for New Zealand citizenship?

Yes. After five years of residence and meeting the minimum physical presence requirement (117 days in total during the investment period), you can apply for citizenship. New Zealand offers one of the most valued passports in the world, with visa-free access to over 180 countries.

Would you like to take advantage of the opportunities New Zealand has to offer?

If you are thinking about making the leap to a new life in New Zealand, please contact us. We are here to help you plan your investment and residency strategy and design a life with lower taxes and more freedom, whether in New Zealand or anywhere else in the world. Contact us or book a consultation directly if you would like our help.

Because your life is yours!