Mike Bignell –
The PricewaterhouseCoopers (PwC) Research discusses immigration trends and investor migrants, looking specifically at the state of immigration in New Zealand, how immigration is driving smart capital into New Zealand, and the interest and difficulties in applying for visas.
Immigration services
New Zealand is one of the best countries in the world for business, according to Forbes. With New Zealand’s stable democratic political system, strong legal and judicial institutions, a resilient economy and an abundance of natural resources, investing in New Zealand as a migrant can be your smartest business decision ever, and it comes with a lifestyle to boot.
As a commitment to attracting overseas investment, the New Zealand Government has introduced dedicated investor and business visas to welcome migrants with capital and business skills to settle in New Zealand.
PricewaterhouseCoopers
We offer a fully integrated immigration service for investors and high net worth individuals looking to migrate to New Zealand by investing or doing business in New Zealand.
We have highly skilled and experienced advisers who can assist you through all aspects of your move to New Zealand.
PricewaterhouseCoopers Survey Questions included the following questions and answers:
How difficult is it for a new migrant to apply for and obtain a New Zealand resident visa?
New Zealand, like most countries, has a variety of options for people wanting to live here indefinitely.
What about student visas?
Student, visitor and work visas are classified as temporary, as they have a fixed-term and do not allow the visa holder the right to live in New Zealand indefinitely.
Export Education
International education is a significant service export and a key contributor to the New Zealand Government’s Business Growth Agenda. The ambitious goals set for this sector to achieve by 2025 include (a) doubling the annual economic value to $5 billion through increasing international enrolments in tertiary institutions, private providers and schools (b) doubling the number of international postgraduate students from 10,000 to 20,000 (c) increasing New Zealanders’ skills and knowledge to operate effectively across cultures.
Student numbers
The increasing number of student visa holders is a direct result of conscious efforts to grow New Zealand’s international education industry. An example of such an initiative is the New Zealand Education Story.
In terms of subsequent visa options, for, say, a student visa holder who graduates with a bachelor’s degree from a New Zealand university, there is a pathway that enables them to apply for a short-term work visa.
If they are then able to secure a job offer from a New Zealand employer that is relevant to their New Zealand-gained qualifications, they may then apply for a resident visa under the skills category.
For businesses
I can understand the need to meet skill shortages with migrants. But why have a business category?
The objective of the business category is to grow New Zealand’s economy by increasing smart capital (including human capital), encouraging enterprise and innovation, and fostering external links.
The operational policy of Immigration New Zealand (INZ) has been designed to meet these objectives. The entrepreneurship category, for example, requires the provision of a specific business plan that details how the proposed business activity will significantly benefit New Zealand, as well as evidence to demonstrate the applicant’s capability to deliver what the business plan says.
As for the investor category, there are two sub-categories: the Investor 1, or Investor Plus category and Investor 2, or Investor category.
The minimum investments required under the categories are $10 million and $1.5 million, respectively. The Investor 1 category has relaxed criteria with respect to age, English language ability, minimum number of days spent in New Zealand and the number of years the investment must be kept in New Zealand.
To give you an idea of what this means in dollar terms, INZ made a decision on 116 principal applications between July 1, 2009 and June 30, 2015. Of those, 86 (or 74%) were approved. On the face of it, this reflects more than $800 million of new capital at various stages being invested in New Zealand.
What about the Investor 2 category and the required $1.5 million investment? Is that all it takes to ‘buy’ a New Zealand resident visa?
What most people might not be aware of is that there is an annual cap of 300 resident visa approvals under the Investor 2 category, including the spouse and dependent children of the investor.
As a way to ensure that the annual cap on the number of resident visas approved under this category is not exceeded, Immigration New Zealand (INZ) regulates the number of Investor 2 category applications through the Expression of Interest (EOI) stage. This is a self-assessment against the criteria needed to be successful with applicants claiming points from four areas: age, English language ability, business experience and how much they intend to invest in New Zealand. There are strict rules as to the types of investments that can be made, for example, the investment must be capable of a commercial return under normal circumstances and must not be for the personal use of the applicants. Residential property development may qualify, but the purchase of a residential property for the investor’s family to live in or rent out, will not be an acceptable investment.
Mike Bignell is Partner, PricewaterhouseCoopers based in Auckland.
