New Zealand Revises Active Investor Plus Visa, Drops English Test

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Key Takeaways

Changes to the Active Investor Plus Visa, including no English requirement and simplified investment tiers, will be announced on February 11, 2025.
New investment tiers: NZ$5M for direct investments/managed funds, NZ$10M for lower-risk investments, and commercial property eligibility added.
The current program’s poor performance—35 approvals, NZ$352M investments—has driven reforms aimed at attracting global investors more effectively.

New Zealand is set to make major changes to its Active Investor Plus Visa program. On February 11, 2025, Prime Minister Christopher Luxon, Immigration Minister Erica Stanford, and Finance Minister Nicola Willis will announce reforms in Auckland aimed at reversing a drop in applications since the program’s last update in 2022. The new approach involves eliminating the English language requirement and simplifying the investment structure—clear steps to attract more wealthy immigrants.

These adjustments follow a period of review and consultation. Since the program was overhauled in 2022, it has underperformed, both in terms of applications and investment figures. The government hopes these changes will reinvigorate interest and encourage global investors to choose New Zealand as a destination.

New Zealand Revises Active Investor Plus Visa, Drops English Test

The Current Landscape of the Active Investor Plus Visa

The Active Investor Plus Visa, in its current form, has faced challenges. Over the last two years, only 35 applications have been approved, leading to just NZ$352 million in investments. This marks a steep decline from the program’s earlier version, which used to bring in about NZ$1 billion annually. Several factors, including the high NZ$15 million investment requirement and restricted investment options, have contributed to this decline.

At present, applicants must invest at least NZ$15 million in eligible assets such as private equity or start-ups. Notably, investments in bonds or residential property are no longer allowed—options that had proved popular in the past. The restrictions on where and how funds can be invested might have discouraged potential applicants and contributed to the program’s poor performance.

Upcoming Changes: Focus on Simplicity and Attractiveness

Removal of the English Language Requirement

One of the most significant changes will be the removal of the English language requirement. According to Immigration Minister Erica Stanford, this rule deterred investors from countries such as Korea 🇰🇷, Japan 🇯🇵, and Germany 🇩🇪, where it was often seen as unnecessary and insulting. Removing this barrier is expected to make the visa program more appealing to a diverse range of international investors.

Simplifying the Investment Structure

Currently, applicants face strict rules requiring a NZ$15 million investment. The proposed reforms will introduce a two-tier system, simplifying investment requirements and offering more flexibility:

NZ$5 million for direct investments or managed funds.
NZ$10 million for lower-risk investments.

Stanford explained that the current NZ$15 million threshold often did not reflect real-world practices: “No one has ever invested 15 million actual dollars.” The revised tiers aim to better align with investor behavior, allowing applicants to choose based on their financial strategies and risk levels.

Introducing New Investment Categories

For the first time, the government will allow investments in commercial property and property development. This broadens the scope of eligible investments, creating fresh opportunities for applicants. The move also ties into broader economic goals, such as stimulating growth in the property and construction sectors.

As Stanford noted, allowing lower-risk options like commercial property could help ease new investors into the market. Over time, she believes such investors may shift toward higher-risk investments as they gain familiarity with New Zealand’s economic landscape.

Why the Changes Are Necessary

The current version of the Active Investor Plus Visa has disappointed both the government and potential applicants. According to Finance Minister Nicola Willis, the visa now generates only NZ$176 million annually, an 82.4% decline from the earlier program’s average of NZ$1 billion. Clearly, the program requires an overhaul to bring it back to life.

But the reforms aren’t only about boosting financial returns. Willis emphasized that wealthy immigrants bring more than just money: they contribute networks, business experience, innovative ideas, and other intangible benefits. These contributions have the potential to stimulate different sectors of New Zealand’s economy and enhance its global competitiveness.

Addressing Property Ownership Concerns

Although the government has introduced new investment categories, it has not yet removed the ban on foreign ownership of residential property. This restriction has been in place for several years but remains a contentious issue. Some officials, like Winston Peters, have suggested that there may be room for change in this area. Peters noted that allowing investor migrants to own homes while contributing to the economy might align with the government’s broader goals.

However, as of now, investors applying under the Active Investor Plus Visa must accept that residential property remains off-limits. Minister Stanford acknowledged this limitation but pointed out that many wealthy applicants are prepared to invest even without the ability to buy a home.

A Bigger Picture: Attracting Global Investors

The reforms are happening at a time when many wealthy individuals worldwide are looking for stable, peaceful destinations for themselves and their capital. New Zealand 🇳🇿, with its geographic isolation and political stability, is well-positioned to meet this demand. According to Stanford, international interest has surged now that the government is making it clear that the country is “open to the world.”

The changes also align with a broader strategy to ensure New Zealand remains competitive in attracting investment. By reducing barriers, creating clear paths for investment, and welcoming diverse participants, these reforms aim to strengthen both the country’s economic appeal and its reputation as a destination for high-net-worth individuals.

Timeline and Further Questions

While February 11 marks the date when these changes will be formally announced, the government has not provided specific details about when the reforms will take effect. It is also unclear whether there will be a transition period for applicants who are already partway through the process. Investors and immigration professionals will need to monitor the announcement closely to understand the full scope of the new rules.

Comparing the Old and New Approaches

Each iteration of New Zealand’s investor visa program has had distinct rules:

Earlier versions, such as the Investor 1 and Investor 2 visas, allowed lower investment thresholds, starting at NZ$3 million. These programs ceased in 2022.
The current Active Investor Plus Visa raised the bar significantly, requiring NZ$15 million investments and narrowing eligible options to specific types of assets. This approach led to fewer applications and lower investment totals.
The upcoming changes aim to blend rigorous investment standards with practical flexibility, offering a two-tier system for different investor preferences.

An Eye on the Future

The government is placing high expectations on these reforms. Officials seem confident that the new rules will not only attract larger numbers of applicants but also encourage long-term investment in the New Zealand economy. Beyond immediate capital infusions, they are counting on investor migrants to contribute expertise, connections, and fresh opportunities.

Final Thoughts

The announced reforms to New Zealand’s Active Investor Plus Visa mark a turning point for the program. By scrapping the English language requirement, simplifying the investment structure, and introducing new categories like commercial property, the government is addressing the program’s weak performance. These changes could open doors for more wealth and talent to flow into New Zealand.

However, the real test will be in the coming months. Wealthy investors and their advisors will closely evaluate whether the updated rules truly offer the opportunities and flexibility they’re seeking. As VisaVerge.com reported, the Active Investor Plus Visa’s success will depend on how well the government’s changes resonate with global markets. For those interested, keeping an eye on the February announcement and following updates on official portals like Immigration New Zealand (www.immigration.govt.nz) will be crucial.

Learn Today

Active Investor Plus Visa → An immigration program in New Zealand allowing wealthy individuals to gain residency by making significant investments.
Investment Threshold → The minimum financial amount required to qualify for participation in an investment-based visa program or initiative.
Eligible Assets → Specific types of investments, such as private equity or start-ups, that applicants can use to fulfill visa requirements.
Direct Investments → Investments made directly into specific businesses or assets, without using intermediaries like managed funds.
Commercial Property → Non-residential real estate properties like offices, retail spaces, or industrial buildings, often used for business purposes.

This Article in a Nutshell

New Zealand’s Active Investor Plus Visa is poised for a transformation, with reforms set to simplify investment thresholds and eliminate the English language requirement. These changes aim to revive waning interest while attracting global investors. By embracing flexibility and inclusivity, New Zealand seeks to reaffirm its status as a prime destination for wealth and innovation.
— By VisaVerge.com