Investor migration policy changes:

Residence requirements during the investment period

Changes: Reduce the residence requirements for Investor Plus migrants during the three year investment period from 73 days to 44 days per annum. Residence requirements for the Investor category will remain the same.

Benefit: Encourage interest in the Investor Plus category by High Net Worth individuals, who are globally mobile and are unable to meet the current residential requirements.

Required transfer times for investment funds

Changes: Reduce the allowable extension granted to Investor category migrants to transfer funds from 12 months to six months. Require that the migrant demonstrates reasonable efforts to transfer funds within the first 12 months, before being granted a six month extension.

Benefit: This encourages Investor category migrants to transfer their funds to New Zealand more quickly while still granting flexibility for Investor Plus migrants.

Definition of acceptable investment

Changes: Amend policy to clarify that all investor migrants can invest in entities established by parent organisations to raise funds. This includes State Owned Enterprises, public companies, banks, and local authorities. Funds raised must have guaranteed security by the parent organisation to qualify.

Benefit: This change widens the range of acceptable investments for investor migrants, and enables a greater number of New Zealand financial institutions to benefit from migrants’ funds.

Bank bonds and equities are not acceptable investments

Changes: Amend policy to enable all investor migrants to invest in bank bonds and equities. These are currently excluded from policy.

Benefit: This change widens the range of acceptable investments for investor migrants, and enables a greater number of New Zealand financial institutions to benefit from the wealth of Investor migrants.

Business experience required under policy

Changes: Amend policy so investor migrants are required to have had an involvement (including managed or owned) in a business with EITHER at least five Full Time employees OR at least $1 million in turnover per annum. Current policy requires applicants to meet both of these conditions.

Benefit: This provides flexibility for quality investor migrants who are excluded by not meeting both of these conditions.

Calculating the value of investments made by investor migrants

Changes: Clarify in policy that investment value is based on the purchase price of the investment (less any accrued interest).

Benefit: This clarifies an area of policy where there is some confusion for migrants and their agents.

Funds transfer through foreign exchange companies

Changes: Amend policy to enable investor migrants to transfer their investment funds through foreign exchange companies.

Benefit: Foreign exchange companies are increasingly used by migrants and the proposed policy change would recognise this emerging trend.

Exclusion of residential property as an acceptable investment

Changes: Enable residential property to be included as an acceptable investment, with appropriate safeguards.

Benefit: This change recognises the substantially changed drivers in the New Zealand property market since the policy’s introduction and enables Investor migrants to choose to invest in residential property in a way that benefits New Zealand.

• Changes: Reduce the residence requirements for Investor Plus migrants during the three year investment period from 73 days to 44 days per annum. Residence requirements for the Investor category will remain the same.

• Benefit: Encourage interest in the Investor Plus category by High Net Worth individuals, who are globally mobile and are unable to meet the current residential requirements.

• Changes: Reduce the allowable extension granted to Investor category migrants to transfer funds from 12 months to six months. Require that the migrant demonstrates reasonable efforts to transfer funds within the first 12 months, before being granted a six month extension.

• Benefit: This encourages Investor category migrants to transfer their funds to New Zealand more quickly while still granting flexibility for Investor Plus migrants.

• Changes: Amend policy to clarify that all investor migrants can invest in entities established by parent organisations to raise funds. This includes State Owned Enterprises, public companies, banks, and local authorities. Funds raised must have guaranteed security by the parent organisation to qualify.

• Benefit: This change widens the range of acceptable investments for investor migrants, and enables a greater number of New Zealand financial institutions to benefit from migrants’ funds.

• Changes: Amend policy to enable all investor migrants to invest in bank bonds and equities. These are currently excluded from policy.

• Benefit: This change widens the range of acceptable investments for investor migrants, and enables a greater number of New Zealand financial institutions to benefit from the wealth of Investor migrants.

• Changes: Amend policy so investor migrants are required to have had an involvement (including managed or owned) in a business with EITHER at least five Full Time employees OR at least $1 million in turnover per annum. Current policy requires applicants to meet both of these conditions.

• Benefit: This provides flexibility for quality investor migrants who are excluded by not meeting both of these conditions.

• Changes: Clarify in policy that investment value is based on the purchase price of the investment (less any accrued interest).

• Benefit: This clarifies an area of policy where there is some confusion for migrants and their agents.

• Changes: Amend policy to enable investor migrants to transfer their investment funds through foreign exchange companies.

• Benefit: Foreign exchange companies are increasingly used by migrants and the proposed policy change would recognise this emerging trend.

• Changes: Enable residential property to be included as an acceptable investment, with appropriate safeguards.

• Benefit: This change recognises the substantially changed drivers in the New Zealand property market since the policy’s introduction and enables Investor migrants to choose to invest in residential property in a way that benefits New Zealand.

(Source INZ)

For further information please contact Terra Nova Consultancy Ltd