It has been a while since we sent out this investor-specific newsletter. A key reason for this is that the flagship policy, the Active Investor Plus ("AIP") has not been a stellar performer. At the NZAMI Annual Conference in October 2024, which I hosted as Chairman, the Minister of Immigration described AIP as a lame duck, rather than being the golden goose that the Government hoped it would be.

At the time of writing, policy officials have received submissions from stakeholders in response to Hon. Erica Stanford's directive to develop a product that will attract serious offshore investors. By the end of Q1 2025 we may be able to report something concrete.

If you know others who would benefit from knowing about developments as they arise, invite them to subscribe to this newsletter and to our fairly regular blog and vlog posts.

Make an online booking if you want to talk about how we could work for you.

Simon Laurent

Principal

slaurent@laurentlaw.co.nz

The AIP Resident Visa requires someone to invest a bare minimum of NZ$5 million in "direct investment" - see our explanation of the investment classes. If that sum is a bit daunting, consider the Entrepreneur Work Visa and Residence route.

The Entrepreneur category has been demonised over the last few years because it sets a high bar on success. However, it is worth another look because it gives the chance to secure Residence at a lower "price point" than the Active Investor scheme. After operating your business in NZ for 6 months, you can apply for Residence directly if you have:

• made a capital investment of NZ$500,000; and
• created at least 3 full time jobs for New Zealand Citizens or Residents.

This clearly needs much less financial outlay to achieve Residence, and in a fairly short time.

The main challenge in reaching this point is getting the initial Entrepreneur Work Visa. This requires the applicant to have a number of proven years of experience as a business owner or senior manager; to commit to putting in a certain amount of capital; and show that the business will deliver a "significant benefit" to New Zealand in one of a number of ways. There is a bit more to it than this, and the policy is, admittedly, complicated.

One way to approach this is to buy and revitalise an existing enterprise. If you can inject at least $500,000 into the purchase and development of the business, and create 3 or more genuine jobs in the process, then this would go a long way toward getting the Work Visa. From there, you simply need to trade successfully for 6 months before the Residence application can be filed. Once Residence is granted, you must maintain the business (and the employment of new staff) for a total of 2 years. However, this is much less than maintaining an investment for 4 years to keep your AIP Resident Visa.

Something at least to think about, if you are put off by the AIP option.

Our firm has seen a lot of interest in the Parent Retirement Resident Visa (for those who have a New Zealand adult child) and the Temporary Retirement Visitor Visa, which allows a 2-year stay. Both policies require investment in New Zealand. For parents, it is $1 million for 4 years; for temporary retirees, it is $750,000 for 2 years.

These can offer a ready alternative to the Active Investor pathway in certain situations, depending on what the person wants to achieve by way of lifestyle and future plans. Read more about these in one of our recent blogs.

Recently, the investment rules for these policies were eased so as to line up with the rules for AIP investment. Specifically, funds or assets already held in New Zealand may be used as nominated funds or assets. They will be assessed based on market value at the time the application was made, and not the original purchase price. For example, if you bought a NZ property from overseas some years ago, this could be nominated for its current (increased) value, and then liquidated in order to make an acceptable investment (which generally means something that can generate a commercial return).

One catch is that the nominated asset cannot have been gifted to you. For instance, if your child holds NZ Residence and owns their house, they cannot transfer it to you as a gift which you can then call your nominated asset for investment purposes.

If you want to talk further about how this might work for you, please make an appointment.