Wealthy foreigners seeking residency in New Zealand will soon be incentivised to invest directly in local companies rather than in shares or bonds.

The government unveiled an overhaul of the investor visa settings on this afternoon, replacing two categories with a new pathway.The new system means applicants will have to invest at least $15 million over three years or just $5 million if the funds go directly to a New Zealand business.

Investors will also have to spend roughly four months over four years in the country, about a month longer than now.

Economic Development Minister Stuart Nash said the old visa categories attracted more than $12 billion over the past decade but much of it was passive investment in shares and bonds.

He said the new Active Investor Plus visa would attract "active and high-value migrants" who could offer their international expertise to local businesses.

"Overall, the visa changes are a win-win for New Zealand and migrant investors. Investors secure an opportunity to invest in smart and innovative New Zealand businesses that have the potential to be globally successful, and Kiwi businesses gain valuable skills, connections, and capital."

'Double standards' of immigration settings

The Greens said the scheme was allowing wealthy individuals to 'purchase' residency while entrenching a system that kept low-waged workers on a precarious and temporary status.

"The government is essentially maintaining its open door policy for the super wealthy, even as it makes it harder and harder for essential workers on low wages to come to New Zealand to put down roots," Ricardo Menéndez March, Green Party spokesperson for immigration, said.

"Many people who we deemed essential during the pandemic face uncertain pathways to residency while the government continues to prioritise investors.

"We urge Labour to put energy into reviewing the residency settings for underpaid professions such as nurses, decouple work visas from single employers and to create genuine pathways to residency for lower waged workers to create a more equitable immigration system.

"The double standards present in the current approach do not reflect the values of most New Zealanders and speak to a growing divide in our immigration system."

He demanded the government guarantee investments were also ethical.

"People should not be able to purchase a residency without showing that they are committed to the wellbeing of their communities.

"There are also no audits carried out to check the viability, sustainability, and desirability, and human rights compliance of the investment."

The Greens recommend a three-year provisional visa be introduced for investors before residency is handed pending the results of the audit.

However, Immigration Minister Michael Wood said the changes would bring New Zealand's settings in line with Australia's.

"The new visa category will help to attract investors that will remain in New Zealand for the long term, bringing their skills and experience to increase our productivity and competitiveness, supporting our transition to a high wage, productive economy," Wood said.

The new category will open on 19 September. Applications already in the pipeline will still be processed, but new applications under the old settings will not be accepted after 27 July.

Source RNZ