New Zealand’s latest update to the Active Investor Plus visa programme signals a renewed effort to simplify and attract overseas investors to invest and live in New Zealand. The revised framework, as outlined by Immigration New Zealand, presents fresh investment opportunities designed to boost economic activity and become more accessible. But will these changes be enough to create lasting impact?
At Moore Markhams, we work closely with investors and businesses navigating New Zealand’s financial landscape. While we welcome these adjustments, we believe they are only a starting point. The real test will be whether they drive the depth and diversity of investment needed to support long-term economic resilience.
What’s Changing?
The updated investor visa settings introduce more attractive pathways for overseas investors with more flexibility. The aim is clear: encourage capital flow into key sectors which follows global trends where countries are refining investment migration policies to remain competitive.
For investors, these changes may open doors to new asset classes and business opportunities within New Zealand. For the economy, fresh capital injection could provide much-needed support to industries still finding their footing post-pandemic.
There will be two investment categories introduced commencing from 1 April 2025 which are Growth and Balanced. Under the Growth category, a minimum investment of NZD 5 million is required and the applicant must be in New Zealand for a total of 21 days over a 3 year term. Alternatively, a minimum investment of NZD 10 million is required and applicant must be present in New Zealand for 105 days over a 5 year term under the Balanced Category. The new programme has also removed the need for applicants to speak or understand English which lowers the barrier for foreign investors.
New Zealand’s Foreign Investment Landscape
To understand the potential impact of these changes, it’s important to look at New Zealand’s current foreign investment trends:
- Total foreign investment: As of March 2024, New Zealand’s total foreign investment stood at NZD 572.3 billion. (Source: Stats NZ, 2024 – Balance of Payments and International Investment Position)
- Foreign Direct Investment (FDI): FDI accounts for 27.7% of total foreign investment, valued at NZD 158.6 billion. (Source: Stats NZ, 2024 – Balance of Payments and International Investment Position)
- Major source countries: Australia, the U.S., the U.K., and Singapore contribute 57.5% of total foreign investment. (Source: Stats NZ, 2024 – Balance of Payments and International Investment Position)
- FDI as a percentage of GDP: In 2023, net FDI inflows were 1.42% of New Zealand’s GDP, down from 3.38% in 2022. (Source: The Global Economy, 2024 – Foreign Direct Investment in New Zealand)
These figures show that while foreign investment is a crucial part of New Zealand’s economy, its growth has slowed in recent years. The investor visa changes aim to reverse this trend, but their effectiveness remains to be seen.
The Gaps That Remain
While these updates are a step in the right direction, the question remains: are they enough to generate the scale of investment required to sustain long-term economic growth?
Several factors still warrant attention:
- Investor Confidence – Global investors assess not just visa terms but the broader economic environment, regulatory stability, and long-term growth prospects. Are these changes compelling enough to shift investment decisions in New Zealand’s favour?
- Sector-Specific Impact – The success of this policy will depend on how well it aligns with the country’s sectoral needs. Will capital flow into areas that create jobs and innovation, or will it concentrate in less productive asset classes?
- Competitive Positioning – Other nations are also refining their investor migration programmes. How does New Zealand’s offer compare globally in terms of returns, incentives, and risk?
What Could Change in the Investment Landscape?
If these visa changes successfully attract new investors, we could see:
- A rise in FDI inflows, reversing the recent decline in GDP.
- Diversification of investment sources, with potential capital from new markets beyond the traditional strongholds of Australia, the U.S., and the U.K.
- Sectoral shifts, with increased investment in high-growth industries rather than passive assets like real estate.
However, for this to happen, New Zealand must ensure that these visa changes are supported by strong economic policy, clear investment pathways, and global competitiveness.
Navigating the New Investment Landscape
For investors looking at New Zealand, this is a moment of opportunity through careful consideration. Understanding the details of the new framework, identifying high-potential sectors, and structuring investments effectively will be key to making the most of these changes.
At Moore Markhams, we help investors make informed decisions, ensuring their capital not only meets visa requirements but also delivers long-term value. Our expertise in taxation, regulatory compliance, and strategic investment planning positions us as a trusted partner in this evolving landscape.
Tax issues to consider
Offshore investors should always seek specialist tax advice in New Zealand to avoid any double tax issues and to ensure an appropriate structure is in place right from the start.
For individuals that plan to settle in New Zealand, they should obtain advice on their tax residency status. In many cases the client will be able to take advantage of the transitional tax resident rules if they meet the following criteria:
1. A new migrant or New Zealanders returning home,
2. Qualified as a New Zealand tax resident on or after 1 April 2006,
3. Were not a tax resident any time in the 10 years before they qualified.
Transitional tax residents will still be taxed on New Zealand-sourced income but will be exempt from tax on overseas income for 4 years. Within this period, they may need to plan to tidy up their overseas income-earning investments to avoid any potential tax issues when the transitional period ends. For example, distribution from a trust in another tax jurisdiction will generally be taxable in New Zealand even if the distribution is tax-free in that tax jurisdiction. Distribution within the four-year period will avoid any unexpected tax liabilities.
Forward planning for any foreign investors could save significant money in the future and avoid being double taxed.
Our advisor works together with overseas investor by providing a list of questions to understand their long-term plans. This is crucial for when any overseas investors decides to migrate or invest significant capital in New Zealand.
Final Thoughts
New Zealand’s revised Active Investor Plus visa programme promotes and encourages foreign investors to invest and live in New Zealand and its impact will unfold over time. Attracting overseas investors requires more than policy changes. It requires a clear economic vision, sectoral alignment, and a business environment that supports sustained growth.
For those considering investment in New Zealand, now is the time to assess the opportunities and challenges ahead.
If you’d like to explore how these changes may affect your investment strategy, get in touch with your local Moore Markhams advisor today.