Investments must meet the set definition to be accepted.
In comparison with other countries, New Zealand is very flexible and allows most types of financial investment as long as its capable of making a commercial return. Certain aspects of residential development are allowed and additional points are given if investments are made into ‘growth investments’ under the investor 2 visa category.
Most applicants opt for safer initial investment until they settle into New Zealand and familiarise themselves with the economy and market at which point they may look to diversify their investments.
The formal definition of an acceptable investment under New Zealand Immigration Instructions is an investment that:
- is capable of a commercial return under normal circumstances; and
- is not for the personal use of the applicant(s); and
- is invested in New Zealand in New Zealand currency; and
- is invested in lawful enterprises or managed funds that comply with all relevant laws in force in New Zealand; and
- has the potential to contribute to New Zealand’s economy;
- and is invested in either one or more of the following:
- bonds issued by the New Zealand government or local authorities; or
- bonds issued by New Zealand firms traded on the New Zealand Debt Securities Market (NZDX); or
- bonds issued by New Zealand firms with at least a BBB- or equivalent rating from internationally recognised credit rating agencies (for example, Standard and Poor’s); or
- equity in New Zealand firms (public or private including managed funds and venture capital funds); or
- bonds issued by New Zealand registered banks; or
- equities in New Zealand registered banks; or
- residential property development(s) or
- commercial property; or
- bonds in finance companies; or
- eligible New Zealand venture capital funds; or
- philanthropic investment; or
- ‘angel funds or networks’ investments
The following relates only to residential property:
- the residential property must be in the form of new developments on either new or existing sites; and
- the residential property(ies) cannot include renovation or extension to existing developments; and
- the new developments must have been approved and gained any required consents by any relevant regulatory authorities (including local authorities); and
- the purpose of the residential property investments must be to make a commercial return on the open market; and
- neither the family, relatives, nor anyone associated with the principal investor, may reside in the development; and
- the costs associated with obtaining any regulatory approval (including any resource or building consents) are not part of the principal applicant’s acceptable investments.
The following relates only to investing into commercial property:
- the property(ies) is not residential or for domestic use; and
- the property(ies) is used for business purposes, in that it is:
- capable of a commercial return; and
- not used for land banking ; and
- the purpose of the commercial property investments must be to make a commercial return on the open market; and
- neither the family, relatives, nor anyone associated with the main applicant may reside in the development; and
- if a new development, the property(ies) must have been approved and gained any required consents by any relevant regulatory authorities (including local authorities).
Benefits as set out in the table are for those including a portion of growth investments into their New Zealand investment portfolio, namely a minimum of NZ$750,000.
The formal definition of a growth investment under New Zealand Immigration Instructions is an investment other than:
- bonds (including convertible notes); and
- philanthropic investments.