In August this year, I published a vlog describing New Zealand Visa options for US citizens, with reference to some of the discussions we have had with US citizens in recent times. You can watch the video on Youtube here.
After the recent elections, New Zealand is again on the radar in the United States, with a move to New Zealand a popular idea for many. We have seen an article ‘Moving to New Zealand searches spike on Google……’ and also an article ‘Americans searching how to move to NZ skyrockets…….’. New Zealand maintains its position as a popular destination for migrants, including from one of the largest countries in the world.
The photo above is of the Auckland harbour and skyline, taken from North Head which is one of the extinct volcanoes around Auckland (don’t worry, it is indeed extinct and is not going to erupt any time soon). The picture is taken in summer, as the slightly burnt grass in the foreground shows. North Head (the Maori name is ‘Maungauika’), was used as a military installation during World War 2. You can still visit the tunnels and gun emplacements there today. It is a popular tourist location for many people who visit Auckland.
In this article, I will describe some of the Visa options for US citizens looking to migrate to New Zealand as Immigration Law and Policy in New Zealand currently stands, with a bit of a different angle compared to the vlog.
Our experience talking with US citizens interested in migrating to New Zealand is that New Zealand offers ‘something different’, a different pace of life, a great place to raise children, while still culturally compatible and English speaking. Auckland is the destination for most new migrants to New Zealand, but many new migrants also settle around New Zealand in places such as Hamilton, Tauranga, Wellington and the South Island.
If you are considering a move to New Zealand, it is important to bear in mind that unless you have a large amount of money that you are prepared to invest, most Visas will require you to secure an offer of employment with an accredited employer.
Employment-based Visas
Accreditation’ is a status granted by Immigration New Zealand (INZ), where INZ is satisfied the employer has met and will continue to meet certain standards in employing migrant workers. All employers wanting to hire migrants must be accredited.
Most Visas for New Zealand are based on an offer of employment with an accredited employer, generally speaking where the employment pays above the median wage (NZD$29.66 per hour). Note that the median wage is low by US-standards, but especially for those who have a job offer in an occupation on the Green List (areas of identified skill shortage), you can expect to be paid well above this. Residence Visas can be granted to people where they have an offer of employment in an occupation that appears on the Green List, or otherwise can score enough ‘points’, while also aged younger than 55.
However, often we find that Americans interested in New Zealand do not necessarily want to work, instead New Zealand is more of a lifestyle choice. With this in mind, we turn to categories which require an investment in New Zealand.
Visas by way of investment in New Zealand
The ‘Active Investor’ category has been in place since September 2022. It requires an investment in New Zealand of at least NZD$5million, but it can require more depending on the type of investment you intend to make. NZD$5million is the minimum amount and in this situation you must invest in New Zealand businesses looking for investment capital and approved by New Zealand Trade and Enterprise (NZTE). However, there is a view amongst Immigration Lawyers and Advisers that this Investor category is not fit for purpose. A consultation round is in progress at the time of writing to review this category and possibly replace it with something different as early as February 2025. This is a space which should be watched as the policy setting could become more Investor-friendly.
There is a category of 2-year Visitor Visa for those who are aged 66 or over and can invest NZD$750,000 in acceptable investments, show they have NZD$500,000 in maintenance funds and demonstrate a guaranteed annual income of at least NZD$60,000. This category is called the Temporary Retirement Visitor Visa.
For those who might have a NZ citizen or resident child living in New Zealand who can provide sponsorship, there is the ‘Parent Retirement’ category which requires an investment in New Zealand of at least NZD$1million, demonstrating ownership of settlement funds at least NZD$500,000 and a guaranteed annual income of at least NZD$60,000.
It is not possible to buy residential land in New Zealand until a person has held Residence for at least 12 months, has been physically present in New Zealand for at least 183 days in the last 12 months, and also is a New Zealand tax resident. What this means is migrants new to New Zealand need to rent a residential property to begin with.
What about setting up a business in New Zealand?
The ‘Entrepreneur Work Visa’ category provides a pathway to Residence where a business has been successfully established or purchased, or a substantial investment made in a business in New Zealand; the business is benefiting New Zealand significantly; and the applicant has been self-employed in the business in New Zealand for at least 2 years.
It is critical to bear in mind that historically INZ has applied a very high standard for approving this type of application, so much so, that most Immigration Lawyers and Advisers have told clients wondering about this category that it is not worth applying. A key challenge is for the business owner to meet all the financial forecasts set out in the Business Plan provided to INZ at the outset, and to do so for 2 – 3 years – a big ask for any business to achieve in the prevailing economic climate.
However, technically the category does still exist. One of our professional colleagues spoke at an industry seminar recently, pointing out that an application for an Entrepreneur Work Visa could be a better option for some than the Investor route. Instead of having to commit $5 million or more for 4 years as an Investor, the Entrepreneur applicant could apply for Residence 6 months after getting their initial Work Visa. They do this by investing $500,000 into buying or growing a business, and creating 3 new jobs for New Zealanders. This is a quicker and cheaper route to securing an unconditional Resident Visa, although it would demand active involvement in developing a business in New Zealand yourself, rather than more passively providing capital for (say) a start-up enterprise approved by NZTE. There is, of course, a higher level of risk and effort attached to being an entrepreneur, and this should not be underestimated in the course of considering how best to secure New Zealand Residence.
That’s all for now.
Please contact us if you think we can help. We would be happy to discuss with you further during a consultation.