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The Active Investor Plus ("AIP") policy which opened in September 2022 has been a dismal failure. On 2 February the Government unveiled a new set of eligibility rules under 2 headings:
Growth Category: This is much like the existing, failed, AIP, except that people who want to invest in the less risky class of Managed Funds will only have to put up NZ$5 million instead of $7.5 million. The time during which they must maintain the investment has been reduced from 4 years to 3 years; and they are only expected to spend 21 days in NZ during that period - that is, a week per year.
Balanced Category: Applicants must invest NZ$10 million for 5 years. The big deal with this one is that most types of investment are now open to applicants, instead of the restricted set of assets allowed by current AIP settings. So long as it is "capable of making a commercial return", it should be acceptable. Basically, this is a return to the old Investor 1 option which attracted billions of dollars from overseas people, many of whom have since made their lives here as Residents and Citizens.
Another plus from the announcement is that investors no longer have to prove their English ability. In a Radio NZ article this week I responded to criticism of this move by pointing out that wealthy people who can afford to qualify do not need fluent English in the same way as others who come here to work for a NZ employer.
More detail about the investor scheme can be found in our blog on the topic.
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