In a world filled with turmoil and uncertainty, we are seeing a lot of interest in New Zealand’s revamped Active Investor Plus visa (known as AIP and sometimes as the ‘Golden Visa’).
Recent data shows billions of dollars is coming in as offshore investors look to secure a place here by showing they are investing in local initiatives. In fact, the programme’s simplified structure means there has been a 500% surge in applications and 573 applications, with $1.05 billion already invested and an additional $2.34 billion expected soon.
This could have significant implications for New Zealand companies, funds, and startups. In this article we explain what they need to consider to gain a share of the funds flowing in.
What are the key points for the AIP visa?
In our other article on the AIP we outlined all the details of how it works. In summary the key points are:
- There are two investment categories:
- Growth (minimum $5m) or
- Balanced (minimum $10m)
- You need to spend 21 days over three years in New Zealand for the Growth category, and 105 days over five years for the Balanced category.
- There are now no English language requirements.
Invest New Zealand was established less than a year ago and it exists as “an Autonomous Crown Entity dedicated to attracting and enabling high-quality foreign direct investment that supports long-term economic growth and productivity.”
Implications for New Zealand entities seeking investment
All this can assist New Zealand-based fund managers as well as venture capitalists, private equity, startups, and those seeking investors.
What we are seeing is that it is important to structure things well, in order to be able to access this source of capital. Legal input is critical to ensure your initiative is “ticking the box” for these AIP investors. This is because they want to meet two key factors: both the investment being a good one and it allowing them to qualify for immigration purposes.
You should be considering your strategy and whether you meet the AIP investment criteria – something we can help with when deciding on a legal structure, such as:
- companies,
- limited partnerships,
- joint ventures,
- funds, and more.
The key point is that both Invest New Zealand are involved, looking at the legal investment vehicle, as well as Immigration New Zealand (INZ), from the immigration side.
At Parry Field Lawyers, our immigration team are actively helping investors and can advise on what they are looking for. This informs the structure that New Zealand entities should consider when seeking that investment, helping to attract more AIP investors.
We also regularly comment and release updates on Immigration changes and the Active Investor Visa, as well as acting for those involved in this area, so are well placed to assist and answer any questions you have.
How We Can Help
Our team combines expertise in immigration, commercial, and property to provide comprehensive guidance tailored to your needs. We can assist those in charge of startups and funds to ensure you get it right from the very start and identify issues early on, enabling you to attract more investors. Whether you require assistance with immigration procedures, investment structuring, or property regulations, we are here to help.
Please note that this article is not a substitute for legal advice and you should contact your lawyer about your specific situation. Please feel free to contact us to discuss how we can support you.
Additional resources
For more reading from a variety of angles on this topic of the AIP we recommend the following sources:
Beehive information with Government summary of recent statistics
Immigration NZ summary of the Visa
Icehouse Ventures perspective with a guide from startups perspective
