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Big congratulations, Immigration New Zealand, on the success of the new Active Investor Plus (AIP) programme! We’re just as excited — we’ve already signed up four investor clients, and one of them got their application approved just two weeks ago. It’s a great start, and we’re looking forward to more good news ahead! From our interactions with our clients and prospective clients, we found that our clients are particularly concerned about their tax liabilities, investment options, how to provide evidence of source of funds, the immigration processes, and a whole host of issues that need to be resolved and answered before they embark on this immigration journey. This could be quite a daunting process, especially given the amounts of money and time involved. Quick Guide to AIP Tax Most AIP clients have concerns about their tax liabilities in New Zealand. They are concerned about whether they will be taxed on their worldwide income in New Zealand. Under the current AIP program, investors are required to stay in New Zealand for a certain number of days. Under the Growth Category, investors are required to stay in New Zealand for 21 days over the 3-year investment period or 105 days over a 5-year investment period under the Balance Category. If the investors choose to stay the minimum in New Zealand, they are not likely to cross the threshold of becoming New Zealand tax residents – thus their income outside New Zealand would not be subject to New Zealand tax. However, if other family members who are included in the application choose to come to live in New Zealand, the principal applicant could potentially meet the threshold of becoming a New Zealand tax resident. The investor needs to consult professional tax consultants who can advise on the intricacies and implications of becoming a New Zealand tax resident. Even in the event of they decide to move to New Zealand and live permanently in New Zealand, it should be noted that they may be eligible for the transitional tax exemption for the first 4 years of becoming New Zealand tax residents. There are also ways to protect their overseas assets from being subject to New Zealand tax jurisdiction. Investment options The new AIP policy has more investment options. AIP investors are required to invest in Acceptable Investments. What are the acceptable investments? Growth category Under the Growth category, investors are required to invest a minimum of $5 million into either Direct Investments or Managed Funds, which are approved by New Zealand Trade & Enterprise, or NZTE – a government agency. The investors need to invest in these acceptable investments for a minimum of 3 3-year periods. NZTE has a list of all approved Direct Investments in their Live Deals platform. Prospective investors are required to register with the platform to access the list of approved Direct Investments. Direct Investments are companies and businesses that are currently raising funds, and their businesses are deemed to align with the government’s economic strategy. NZTE also maintains a list of approved Managed Funds that are deemed acceptable investments. There are 3 types of funds available – Private equity / Venture capital funds, Private debt funds, and Funds of funds. Investors need to understand their risk profile, liquidity, and exit options for these investments. As we work closely with some of the fund providers, we can always arrange for the providers to have a private session with the investors, so the investors would have a better understanding of their investment products and options. Balance category AIP investors would have even more options if they decide to invest in the Balance category. Under this Balance category, investors need to invest at least $10 million for 5 years. Investors can invest in, besides the Direct Investment and Managed Funds, listed shares, bonds, new residential developments, new or existing commercial/industrial property developments, and philanthropy. Safe Haven Being far away and tucked in the corner of the South Pacific, New Zealand is considered a haven by many investors. Being a neutral and proudly independent nation, New Zealand has a reputation for being a responsible and peaceful nation. New Zealand is also a self-sufficient country in terms of food and energy. From 2020 to 2022, we have seen the dire situation of how the COVID-19 pandemic ravaged across the globe. New Zealand came out relatively unscathed. Despite the challenges, our health system and supply chain survived and coped well under such challenging circumstances. This is one reason many investors choose New Zealand, especially given the current geopolitical tensions in Europe and the Middle East. Source of funds Immigration New Zealand (INZ) has very strict requirements for the evidence of funds. All AIP applicants need to provide evidence of funds, and INZ needs to verify that investors’ funds are legally acquired. In fact, from our discussions with many aspiring applicants who have had some experience applying for Residence in other jurisdictions, they found the INZ source of funds requirements are one of the strictest. This is a necessary safeguard to protect the integrity of the New Zealand immigration system, and this is exactly the reason why investors choose to come to New Zealand, following the highest standards of financial due diligence. We have a team of advisers who are experienced in helping clients to unravel the complexity of the source of funds and present it to the satisfaction of INZ. The applicants Some applicants have tricky family situations, and it’s important to be open and thoughtful about them. Questions like who should be included in the application, who can’t be, or who should be the main applicant can get complicated, especially when family members have different goals. Our team understands these challenges and has plenty of experience helping people navigate them the right way. Health and Character We are not all perfect. All aspiring AIP applicants need to meet INZ Health and Character requirements. Sometimes, some of our clients cannot meet the stringent Health and Character requirements, which does not necessarily mean the application

  WELLINGTON, June 23 – New Zealand’s revamped Active Investor Plus visa has seen a surge in interest, with Immigration New Zealand receiving 189 applications in just ten weeks since policy changes came into effect in April. The government attributed this sharp rise to reforms aimed at making it easier for high-net-worth individuals to gain residency through strategic investment. According to Economic Growth Minister Nicola Willis, the volume of applications under the new policy has already outpaced the previous system, which saw only 116 applications over a two-and-a-half-year period. She suggested that New Zealand’s reputation as a secure, business-friendly economy with high growth potential increasingly attracted international investor interest. Minister Willis noted that as countries around the world compete for global capital and skilled migrants, the uptick in applications reflected positively on New Zealand’s international standing. The revised visa framework, she said, was part of the government’s broader efforts to boost economic momentum and attract quality investments. The updated program introduced a two-tier system: The Growth investment category requires a minimum of NZ$5 million invested over three years, with a focus on high-risk assets such as managed funds and direct equity in local businesses. The Balanced investment category calls for a NZ$10 million commitment over five years, allowing lower-risk options. Previously, the investor visa demanded a minimum of NZ$15 million, with strict limitations prohibiting investments in property and bonds. As of June 23rd, 100 applications had been approved in principle, with seven investors already relocating to New Zealand, transferring funds, and receiving visas. Of these, five were through the Growth category and two via the Balanced category. The total committed capital from these applicants stood at NZ$45 million. Immigration Minister Erica Stanford remarked that the government had initially hoped for 200 applications over a full year and was impressed by the pace of interest. With nearly 190 applications submitted in just ten weeks, she said the program was clearly gaining traction across global markets, including the United States, China, Hong Kong, and Germany. Applicants now have six months to transfer their funds and begin the investment process in New Zealand. Minister Willis further commented that the investor visa complemented the government’s recently announced Investment Boost policy, introduced in the national Budget. This initiative allows businesses to deduct an extra 20 percent of the value of new assets alongside standard depreciation, giving companies a stronger incentive to reinvest. She said that while the Active Investor Plus visa brings in capital, the Investment Boost gives investors the confidence to deploy it effectively, helping ensure long-term returns and meaningful economic impact. For more details, subscribe to us or check our website https://ahiainvest.com/ News Source: https://www.rnz.co.nz/news/political/564907/nearly-200-people-apply-for-golden-visas-in-3-months