New Zealand golden visa: Why Indian investors are better off in Dubai

Despite changes, it remains unclear whether Indian investors will be interested in the revamped New Zealand investor scheme

At a time when several countries, including Spain, Portugal and Greece, are making it harder for foreigners to secure "golden visas," New Zealand has gone in the opposite direction. It has simplified its investment criteria and removed the English language requirement. "From April 1, 2025, under New Zealand’s Active Investor Plus (AIP) visa, there will be two new categories of investment visas: Growth and Balanced," said Stacey O’Dowd, border and funding immigration policy manager at the Ministry of Business, Innovation and Employment.

 

The AIP visa, which replaced the Investor 1 and Investor 2 visas, was introduced in 2022. This replacement led to a drop in both the number of investor-class applicants and the total capital invested. "The new settings are designed to simplify and broaden the investment offerings available, with the intent of making New Zealand more attractive to investment-ready migrants," O’Dowd said in an email response to Business Standard.

 

Are the changes enough to entice Indian investors?

 

Despite the changes, it remains unclear whether Indian investors will be interested in the revamped scheme.

 

"Since the AIP was introduced in September 2022, there have been no applications for an Active Investor Plus visa from Indian nationals," O’Dowd revealed.

 

Jeannie Melville, deputy chief operating officer at New Zealand’s Ministry of Business, Innovation and Employment, provided data on previous investor categories. "There were seven applications from Indian nationals under the Investor 1 category and 17 under the Investor 2 category. Between the two categories, 13 of these applications were approved and 11 declined. Active Investor Plus replaced the Investor 1 and 2 categories in September 2022, and applications under the Investor 1 and 2 are no longer accepted."

 

Asked why some applications were rejected, Melville told Business Standard, "All visa applicants must meet immigration requirements to be granted a visa. This may include health, character, finances, skills and qualifications or length of time you have lived in New Zealand. A visa application will be declined if the applicant does not meet all the criteria of the visa they are applying for. For privacy reasons, we are unable to comment on the specific reasons for the 11 declined applications."

 

Risks and considerations for investors

 

With the removal of the English language barrier, experts expect more interest from Indian investors. However, risk remains a key factor.

 

"New Zealand has been eager to revamp its programme as the post-Covid changes did not bring the anticipated outcome, and the country actually saw a significantly reduced inflow of FDIs under the investor visa programme. Now, whether that was only a matter of programme parameters or other factors such as programme setup time and administration were at play, is a separate topic," said Armand Arton, CEO of Arton Capital, a global financial advisory firm that specialises in residency and citizenship by investment programmes.

 

For those considering the AIP visa, the choice depends on risk appetite.

 

"The new Growth category that requires three years of investment at $2.8 million is for investors with a higher risk appetite. It focuses on higher-risk investments, including direct investments in New Zealand businesses and managed funds. The Balanced category will focus on mixed investments, with the ability to choose ones that are at lower risk. You have government, corporate bonds, listed equity, philanthropy, and property developments, which can be new residential or new/existing commercial properties. The investment must be held for five years, and the threshold as I said is $5.6 million," Arton told Business Standard.

 

Where to invest depends on the investor’s priorities. "It depends on the underlying reasons for the move – whether it is mobility, capital gains, active or passive investment preferences," he said.

 

Do the changes make New Zealand more competitive?

 

"In theory, yes. The government hopes to attract more high-net-worth individuals with the revamped AIP. However, given the significant investment threshold differences between its programme and others around the world, such as in Dubai, it remains to be seen whether this will come to pass," said Arton.

 

He suggested that Dubai may be a better option for wealthy Indian investors. "I believe that the best match for wealthy Indians right now is Dubai’s Golden Visa. It comes with a moderate entry threshold, the process is seamless and efficient, there are added benefits for the investor and their families, and it is very attractive in terms of logistics."

 

Investment thresholds remain the key difference between New Zealand’s AIP visa and other schemes.

 

"New Zealand has traditionally held relatively high entry thresholds for qualifying investors and even though the new rules introduce reduced minimum investment, they remain high in comparison with Dubai or Greece. At $2.8 million for the Growth category, and $5.6 million for the Balanced category, the AIP programme is still in the upper investment segment. You also have the residency requirements, which under the revamped rules are reduced to a minimum of 21 days over three years for the Growth category and 105 days over five years under the Balanced category," Arton explained.

 

Growth and Balanced categories explained

 

The Growth category focuses on higher-risk investments, including direct investments and managed funds. It requires a minimum investment of $2.8 million, a minimum investment period of three years, and for the investor-migrant to spend at least 21 days in New Zealand over three years.

 

The Balanced category allows mixed investments, including bonds, new residential property, and new or existing commercial or industrial property developments. Investors must commit at least $5.6 million over five years and spend at least 105 days in New Zealand during that period. However, exceeding the minimum investment amount in the Growth category can reduce the number of days required to be spent in New Zealand, up to a maximum of six weeks, O’Dowd explained.