Active Investor Plus Category
INVESTORS
A new investor category, called the Active Investor Plus (‘AIP’) category, was introduced by Immigration New Zealand in September 2022.
Whilst it has some features of the previous two investor categories, the AIP category is designed to “attract skilled and experienced active investors to help build globally successful New Zealand businesses that align with the Government’s objectives, by providing resident visas to those who wish to participate in New Zealand’s investment ecosystem and make a significant contribution to New Zealand’s economy”. This is the stated objective for the category in the Immigration New Zealand Instruction Manual and hints at a more targeted approach to the investment aspect under this category going forward.
The change replaced both the Investor 1 and Investor 2 categories with just one category, whilst also increasing the minimum investment (or weighted equivalent) to NZD15 million. The introduction of a ‘weighted equivalent’ for different investment products allows for someone who is comfortable with more riskier investments to invest a mere NZD5 million, whereas someone with more risk adverse preferences may be required to provide the full NZD15 million.
As well as providing a more targeted incentive for different investment products, Immigration New Zealand now relies on New Zealand Trade and Enterprise (NZTE) to be the determiner of what constitutes an acceptable investment. NZTE maintains a list of acceptable direct investments as well as approved managed funds that can be invested into for the purposes of the AIP category.
The weighting of the various investment classes is as follows, and allows for a ‘mix and match’ approach across different investment groups provided the total weighted value adds to NZD15 million:
| Listed equities (maximum NZD7.5 million) | $1 invested equates to $1 of investment funds |
| Philanthropy (maximum NZD7.5 million) | $1 invested equates to $1 of investment funds |
| Managed Funds | $1 invested equates to $2 of investment funds |
| Direct Investment | $1 invested equates to $3 of investment funds |
For a resident visa to be issued, the entire nominated assets/funds must be transferred to New Zealand AND one of the following is required to be invested into acceptable investments, within a six month time frame from receiving Approval in Principle from Immigration New Zealand:
- At least NZD1 million into listed equities or philanthropy
- At least NZD500,000 into managed fund(s)
- At least NZD100,000 into direct investment(s)
Note that the remaining nominated investment funds must be held separate to any other funds and held in one or more of bonds issued by the New Zealand government or local authorities, term deposits with New Zealand registered bank(s) or deposited into New Zealand bank account(s).
The resident visa that is issued will be subject to several conditions, the key requirements being that:
- At least 50% (being NZD7.5 million or weighted equivalent) of the acceptable investment must be invested within the first 18 months of the investment period
- 100% of the acceptable investment (being NZD15 million or weighted equivalent) must be invested within the first 36 months of the investment period
- 100% of the acceptable investment must be retained for the fourth year of the investment period
- Over the four year investment period, the principal visa holder must spent at least 117 days physically present in New Zealand
Other requirements include a minimum standard of English for principal applicants (note this does NOT apply to accompanying family members) and mandatory reporting requirements after the 18 and 36 month milestones of the investment period, along with a final report at the conclusion of the four year investment period.
There is no requirement to show past business experience, although as with the previous categories, it will be necessary to prove that the nominated investment funds/assets have been earned or acquired lawfully. There is no upper age limit, nor is there a cap on the number of visas that can be granted under the AIP category in one program year.
The objective of the Investor categories is to attract financial capital to New Zealand by providing residence to those who wish to make a significant contribution to New Zealand’s economy.
There are two Investor categories, Investor 1 (or Investor Plus) and Investor 2. Both require that funds be invested into an acceptable investment and held for a period of either three or four years, with a significant easing of the requirements under the Investor 1 category as a trade-off for a substantial investment amount (NZD10 million).
While the Investor 1 category is not capped, the number of visas to be granted under the Investor 2 category is currently capped at 400 per program year (which runs from 1 July to 30 June).
Under the Investor Plus category, principal applicants must invest NZD10 million in New Zealand in an acceptable investment for a three-year period.
While applicants under the Investor Plus category must meet requirements for health and character in the same way as any other residence application, there is no English language requirement or upper age restriction, with the main requirement being the investment sum, invested in a suitable vehicle in New Zealand for a period of three years.
Once the visa is issued, applicants must:
- Retain their full investment for a period of three years in New Zealand
- Report in to Immigration New Zealand after two years (within three months of reaching this milestone) to confirm time spent in New Zealand thus far, and that the acceptable investment is being maintained
Principal applicants need to spend either 44 days in each of the years 2 and 3 of the investment period, or a combined total of 88 days over the total of three years if they invested at least NZD2.5 million in 'growth' investments.
At the end of the three-year investment period, an applicant and their family are granted Permanent Resident visas.
Under the Investor 2 category, a points test applies. Applicants must be able to score a minimum of 20 points, comprising of at least one point for English language, at least nine points for business experience (i.e., a minimum of three years) and 10 points for investment funds (i.e., a minimum of NZD3 million). The upper age limit is set, under this category, at 65 years of age.
The application process for the Investor 2 category is similar to that of the Skilled Migrant Residence category, in that an applicant initially submits an Expression of Interest.
The Expression of Interest provides information only, and no supporting documentation is required to be provided at this stage. Selections are made every fortnight from the pool. After an initial assessment, an applicant will then be formally invited to apply for residence, at which time the documentation supporting claims made in the Expression of Interest will need to be provided.
The Investor 2 category requires a minimum of NZD3 million to be invested. Once the investment has been made, applicants have ongoing requirements to be met under both categories. These relate to the minimum number of days to be spent in New Zealand, how long the investment must be maintained, and the submission of a monitoring report to Immigration New Zealand at the end of the second year of investment.
The key Investor 2 requirements are as follows:
- Be in a position to nominate at least NZD3 million in net assets, that are able to be liquidated and invested in New Zealand for a period of four years
- Demonstrate ownership of the nominated assets for investment, and that they were lawfully earnt or acquired
- Be under 66 years of age
- Have at least three full years’ worth of senior management or business ownership experience, in a business that:
- Had a turnover of at least NZD1 million for the same period OR
- Employed at least five full-time equivalent staff during that same period
- Have a minimum English score of (e.g.) IELTS 3.0 overall band score – very low in essence
Once the visa is issued, applicants must:
- Retain their full investment for a period of four years in New Zealand
- Report in to Immigration New Zealand after two years (within three months of reaching this milestone) to confirm time spent in New Zealand thus far, and that the acceptable investment is being maintained
Principal applicants need to spend either 146 days in each of the years 2, 3 and 4 of the investment period, or a combined total of 438 days over the total of four years, if they invested at least NZD750,000 in ‘growth’ investments.
At the end of the four-year investment period, an applicant and their family are granted Permanent Resident visas.
The top points-scored Expressions of Interest are drawn from the pool every fortnight. Please find below a chart showing the selection points in more recent times.