US Applicants For Foreign ‘Golden Visa’ Scheme Surge

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By Giulia Carbonaro

Senior Housing Reporter

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New Zealand has experienced a "golden visa" boom this year after relaxing its rules around the program, driven by growing numbers of wealthy Americans seeking to leave the U.S. and diversify their portfolio.

Applications from U.S. citizens for the country’s "Active Investor Plus Visa" program have risen by 72 percent since July alone, according to New Zealand’s immigration data—and they are likely to continue climbing.

That is because the country is trying to beat the competition posed by the likes of Portugal, Greece, Malta and Spain by stepping up its game and offering wealthy investors an even better deal—a new four-year golden visa program.

What Is the New Program Offered by New Zealand?

New Zealand has just launched its new "Business Investor Work Visa" program, which offers high-net-worth individuals from around the world the chance to live and work in the island country for up to four years, as long as they are willing to invest in and run a business there.

Applications for the new program opened on Monday, November 24. Not everyone is likely to be able to afford it: applicants can either invest $1 million New Zealand dollars—the equivalent of $567,300—in an existing business for a three-year work-to-residency track, or $2 million NZD—or $1,134,480—for an expedited one-year track.

They also need to demonstrate they have funds of at least $500,000 NZD—or $283,700—and own a company that earns an annual revenue of $1 million NZD—$567,300—or employs at least five full-time workers.

That is on top of paying the application fee of $12,380 NZD (about $7,010).

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There are also restrictions on the kind of companies applicants can invest in. Gambling and tobacco-related companies are excluded, and so are fast-food franchises and companies younger than five years old.

But for all these expenses and restrictions, the new program offers something great in return—an easier path to permanent residency. Foreigners can apply for permanent residency after living in New Zealand for at least two years. After at least five years, they can apply for citizenship.

Will This Bring Even More High-Net-Worth Americans to New Zealand?

New Zealand has proven a popular destination among high-net Americans trying to invest outside of the U.S., for whatever reason—whether that is a personal choice or one influenced by the political and economic situation in the country.

After New Zealand first relaxed its requirements for the Active Investor Plus Visa program in April, Reuters reported in June that 189 investors applied in less than three months—45 percent of whom were U.S. citizens.

Since the minimum investment required for the new program is cheaper than the already-existing Active Investor Plus Visa, which starts at $5 and $10 million NZD—or at $2,835,700 and $5,669,350, respectively—the new program is likely to be even more popular—including among Americans.

There may be more opportunities in the future as well: the country is working on a visa option for "startup entrepreneurs with scalable, innovative business ideas, designed to complement existing settings and complete the suite," Erica Stanford, the country’s immigration minister, said in a statement.

New Zealand has also an interest in more people investing, living, and working in the country. "This new visa will bring overseas investment to maintain and create jobs, grow incomes, and breathe new life into existing businesses across the country," she said of the new golden visa program.

"Our Government is focused on smart, flexible and nuanced immigration solutions to help stimulate the New Zealand economy. These changes will help bring brighter days ahead for all Kiwis."

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