New Zealand’s Golden Visa Revamp and Indian Investors
New Zealand has introduced significant changes to its Golden Visa program, now known as the Active Investor Plus (AIP) Visa. These changes aim to attract high-net-worth individuals by simplifying investment criteria and removing the English language requirement. While this shift may appeal to some foreign investors, Indian nationals may find Dubai’s Golden Visa more beneficial. In this article, we’ll explore the details of the New Zealand Golden Visa, compare it with Dubai’s offering, and help Indian investors determine which program better suits their needs.
New Zealand’s Active Investor Plus (AIP) Visa: Key Changes
New Zealand has introduced the Active Investor Plus (AIP) visa, which replaced the Investor 1 and Investor 2 visa categories in 2022. The AIP Visa features two new categories for investment: Growth and Balanced, both of which have different financial thresholds and residency requirements.
- Growth Category: Requires a minimum investment of $2.8 million for three years with a requirement to spend at least 21 days in New Zealand over three years.
- Balanced Category: Requires a minimum investment of $5.6 million over five years, with the investor needing to spend at least 105 days in New Zealand over five years.
Despite these changes, New Zealand has not received any applications from Indian nationals for the AIP visa since its introduction in September 2022, and it remains uncertain whether the Indian market will respond positively to the revamped program.
Why Indian Investors Might Prefer Dubai’s Golden Visa
While New Zealand has adjusted its Golden Visa program to appeal to foreign investors, there are several reasons why Indian investors may prefer Dubai’s Golden Visa over the AIP Visa.
Lower Investment Threshold
- Dubai Golden Visa: The entry threshold for Dubai’s Golden Visa is significantly lower compared to New Zealand’s revised program. Dubai offers various options for investors, including real estate and business investment, with a much lower capital outlay than New Zealand’s $2.8 million for the Growth category.
Streamlined Process
- Dubai Golden Visa is known for its efficiency and seamlessness in processing. The visa program has shorter processing times compared to New Zealand’s more complex application procedures.
Attractive Terms for Families
- Dubai Golden Visa also extends several benefits to investor families, including the ability to bring spouses, children, and extended family members under a single visa, making it a compelling choice for investors looking to relocate with their families.
Investment Categories: Growth vs. Balanced
Understanding the two categories under New Zealand’s AIP visa is essential for investors considering their options. Let’s take a closer look at the Growth and Balanced categories.
| Category | Investment Amount | Investment Period | Minimum Time in New Zealand | Investment Focus |
|---|---|---|---|---|
| Growth | $2.8 million | 3 years | 21 days (3 years) | Higher-risk investments in New Zealand businesses or managed funds |
| Balanced | $5.6 million | 5 years | 105 days (5 years) | Mixed investments: bonds, property, corporate bonds |
Growth Category
- The Growth Category requires a higher-risk investment for those willing to take more financial risks, such as investing in business ventures and managed funds. The investment must be maintained for three years, with a minimum time commitment of 21 days in New Zealand over three years.
Balanced Category
- The Balanced Category focuses on lower-risk investments, such as government bonds, corporate bonds, listed equities, and real estate developments. This category requires a minimum investment of $5.6 million and a longer time commitment of 105 days in New Zealand over five years.
Risks and Considerations for Indian Investors
While the removal of the English language requirement and the lower investment thresholds might appeal to Indian investors, there are still some key considerations to take into account.
- High Capital Investment: Despite the changes, New Zealand’s investment requirements are still high compared to other countries, such as Dubai, which has a much lower capital entry point.
- Residency and Time Commitment: The residency requirements for the Balanced category (spending at least 105 days) and the Growth category (at least 21 days) may not appeal to investors looking for greater flexibility.
- Economic Risks: As with any investment, there are inherent economic risks in New Zealand, especially with the post-COVID recovery period. Although New Zealand’s government is hoping for increased interest, investors should assess whether the higher-risk Growth category or Balanced category aligns with their investment goals.
Comparison: New Zealand vs. Dubai Golden Visa
| Aspect | New Zealand AIP Visa | Dubai Golden Visa |
|---|---|---|
| Investment Amount | $2.8 million (Growth) – $5.6 million (Balanced) | Much lower thresholds depending on the type of investment |
| Time in Country | 21–105 days | Very flexible, with less time commitment |
| Processing Time | Relatively longer | Faster, more streamlined process |
| Family Benefits | Limited family benefits | Includes extended family, spouses, and children |
| Risk Level | Higher risk (Growth) or Mixed (Balanced) | Moderate risk with diversified investment options |
| Market | More niche, limited interest from India | Popular among Indian investors due to lower entry barriers |
Should Indian Investors Choose New Zealand’s Golden Visa?
While New Zealand’s Golden Visa program has been revamped with lower investment thresholds and removed language requirements, the program’s high investment levels and time commitments may make it less attractive to Indian investors. In contrast, Dubai offers a more flexible and cost-effective alternative, with lower entry thresholds, a streamlined application process, and benefits for families.
Ultimately, Indian investors seeking to invest in foreign markets should carefully weigh the capital investment required, time commitments, and investment goals before choosing between New Zealand and Dubai’s Golden Visa programs.
