The Minister of Immigration and the Minister of Economic Development have jointly announced that a new Investor Policy – the Migrant Investment Policy is effective as of 27 July 2009. This replaces the existing Active Investment Migrant Policy.

Migrant Investment Policy – an overview

The Migrant Investment Policy aims to attract financial capital to local firms or government by providing residence to people who wish to make a significant financial contribution to New Zealand's economy.

The policy is divided into two categories: Investor Plus (Investor 1 Category), and Investor (Investor 2 Category). Outlined below is a summary of the key requirements for each policy:

Investor Plus (Investor 1 Category)

• NO maximum age requirement
  
• NO business experience requirement
  
• Investment funds - NZ$10 million invested in NZ for three years
  
• NO Settlement funds requirement
  
• NO Principal applicant's English language requirement
  
• NO Family member's English language requirement
  
• Minimum time in New Zealand - 73 days in NZ in each of the last two years of the three-year investment period
  
• Applicants must meet health and character requirements.

Investor (Investor 2 Category)

• Maximum age - 65 or younger
  
• Business experience - Minimum of three years
  
• Investment funds - NZ$1.5 million invested in NZ for four years
  
• Settlement funds - NZ$1 million (transfer not required)
  
• Principal applicant's English language - an English speaking background or IELTS
  
• Family member's English language - Same as principal applicant or pre-purchase ESOL tuition
  
• Minimum time in New Zealand - 146 days in NZ in each of the last three years of the 4-year investment period
  
• Health and character - Applicants must meet health and character requirements.

Investor Plus (Investor 1 Category) requirements

All applicants – you, your partner, and your dependent children (if applicable) must meet our health, and character requirements. The other requirements are set out below.

Investment funds and/or assets

You must nominate funds and/or assets equivalent to at least NZ$10 million. You will have to provide evidence to show that these funds and/or assets:

• are owned by you or jointly by you, your partner and/or dependent children
  
• are unencumbered, ie not subject to any mortgage, lien, charge and/or encumbrance (whether equitable or otherwise) or any other creditor claims
  
• have been earned or acquired legally
  
• are transferable through the banking system (we will not be able to approve your application if you are unable to transfer funds to New Zealand through the banking system).
  
  If your application is approved in principle you will need to provide verifiable documents to show that the funds you transfer to New Zealand came from the funds and/or assets that you nominate. You will need to invest a minimum of NZ$10 million in an acceptable investment(s) in New Zealand.
  
  You cannot nominate investment funds or assets you intend to bring to New Zealand for your personal use – for example a personal residence, car, or boat.
  
  After residence is approved
  
  If your residence application is approved you (the principal applicant) will have to retain your investment funds in an acceptable investment(s) for three years. You will have to spend at least 73 days in New Zealand each year in years 2 and 3 of your three-year investment period.
  
  Investor (Investor 2 Category) requirements
  
  All applicants – you and your partner and dependent children (if applicable) – must meet our health, character and English language requirements (see below). You – the principal applicant – must also have at least three years' business experience. The other requirements are set out below.
  
  Age
  
  You (the principal applicant) must be aged 65 or younger.
  
  Investment and settlement funds and/or assets
  
  You must nominate funds and/or assets equivalent to at least NZ$1.5 million for investment funds, and NZ$1 million for settlement funds. You will need to be able to provide evidence showing that your investment and settlement funds and/or assets are owned by you or jointly by you and your partner and/or dependent children. You will also need to be able to provide evidence showing that your intended investment funds:
• are unencumbered, ie not subject to any mortgage, lien, charge and/or encumbrance (whether equitable or otherwise) or any other creditor claims
  
• have been earned or acquired legally
  
• are transferable through the banking system (we will not be able to approve your application if you are unable to transfer funds to New Zealand through the banking system).

You will need to be able to provide verifiable documents to show that the funds you transfer to New Zealand came from the funds and/or assets that you nominate. You will need to place your investment funds in an acceptable investment(s) in New Zealand.

English language requirements

We require people to have a reasonable standard of English to ensure they have the best opportunity to settle successfully into work and life in New Zealand.

Principal applicant

To meet our English language requirements you must:

* have an English speaking background OR
* be a competent user of English OR
* have an International English Language Testing System (IELTS) certificate (no more than two years old at the time you lodge your application for residence), which shows you gained at least an overall band score of 3 or more in the IELTS General or Academic Module.

We may still require you to provide an IELTS certificate to confirm you meet our English language requirements.

Partner and dependent children

To meet our English language requirements partners and dependent children aged 16 or more included in your application must meet the same requirements as the principal applicant (see above).

However, if your partner and/or dependent children do not yet meet the minimum standard of English, they can pre-purchase ESOL tuition in New Zealand. You purchase this tuition from us, on behalf of New Zealand’s Tertiary Education Commission. The residence visa or permit will only be granted once you have paid the tuition charge. Payment of this tuition charge is not due until your application is approved.

After residence is approved

If your residence application is approved you (the principal applicant) will have to retain your investment funds in an acceptable investment(s) for four years, and spend at least 146 days each year in New Zealand in years 2, 3 and 4 of your four-year investment period.

Also, if you were awarded 1 point for English language ability (IELTS 3) you will have to complete 20 hours of English language tuition at a New Zealand registered school or tertiary education provider.

Express an interest, then apply

If you think you meet the requirements and would like to express an interest, you will need to submit an Expression of Interest (EOI) form.


SOURCE: NZIS

How many options are available under the Migrant Investment Policy?
The Migrant Investment Policy has two residence sub-categories. These are:

* Investor Plus (Investor 1 Category); and
* Investor (Investor 2 Category).

How many places are available under the Migrant Investment Policy?
There is no limit on the number of Investor Plus (Investor 1 Category) applications that can be considered. The Investor (Investor 2 Category) has a cap of 300 approved applications per year. These sit within the total number of places available under the Skilled/Business stream of the New Zealand Residence Programme.

INVESTOR PLUS (Investor 1 Category) REQUIREMENTS:

How do I apply under the Investor Plus (Investor 1 Category)?
You can lodge your residence application directly if you apply under the Investor Plus (Investor 1 Category).

How much is the application fee for the Investor Plus (Investor 1 Category)?
The application fee for the Investor Plus (Investor 1 Category) is NZ$3400.

INVESTOR (Investor 2 Category) REQUIREMENTS:

How do I apply under the Investor (Investor 2 Category)?
The Investor (Investor 2 Category) is managed by requiring applicants to first submit an Expression of Interest (EOI). This is a points-based system. Those with highest total points in their EOI may be invited to apply for residence. If you are invited to apply for residence you must lodge your residence application within three months of the date of our letter of invitation.

How do I submit an EOI?
You must fully complete the Investor (Investor 2 Category) EOI form and send it, along with the fee, to the Business Migration Branch. You do not need to provide any documentary evidence with your EOI.

Business Migration Branch
PO Box 3705
Wellington
New Zealand

What are the fees for an EOI and a residence application?
For the Investor (Investor 2 Category) the EOI fee is NZ$460, and the residence application fee is NZ$3400.

How often does EOI selection happen?
EOIs will be selected from the Pool every two weeks.

If my EOI does not get selected from the Pool, how long can my EOI remain in the Pool?
An EOI is current for a period of six months from the date of initial entry to the Pool.

How many points will I need to go into the Investor (Investor 2 Category) EOI Pool?
To enter into the EOI Pool, you must meet prerequisites for health, character, English language, age, business experience, investment funds and settlement funds, and have a minimum points score of 20 or more. These points accrue from the minimum requirements for:

* English language – IELTS 3 level: 1 point
* Age – 65 years: 0 points
* Business experience 3 years: 9 points
* Investment funds NZ$1.5 million: 10 points

How many points do I need to have in order to be selected from the EOI Pool and issued an Invitation to Apply for residence?

There is no pass mark for EOIs being selected from the Pool. EOIs will be selected periodically from the Pool according to their points ranking in sufficient numbers to suit the places available under the Investor (Investor 2 Category) at the time of selection.

How can I increase my chances to be selected from the Pool?
People with highest total points in their EOI will be selected from the Pool. You may qualify for additional points for English language, age, business experience, and investment funds.

What happens if I reach age 66 while my EOI is still in the Pool?
You cannot apply for residence under the Investor (Investor 2 Category) if you are aged 66 or over at the time of your application. In that situation your EOI would be removed from the Pool.

Are there any requirements for business experience?
You need to have at least three years’ business experience to be approved for residence under the Investor (Investor 2 Category). Business experience is recognised if it is experience in planning, organisation, control, senior change-management, direction-setting and mentoring acquired through ownership of, or management level experience in, a lawful business enterprise that has at least five full-time employees and an annual turn-over of NZ$1 million.

Ownership means owning at least 25 percent of a business.

A lawful business enterprise is an organisation that operates lawfully in a commercial environment with the goal of returning a profit and is not set up primarily for passive or speculative purposes.

Investment funds requirements for both categories

What are the requirements for investment funds?
You must demonstrate ownership of your nominated funds and/or assets, and demonstrate that the nominated funds and/or assets have been legally earned or acquired. All invested funds must be placed in an acceptable investment(s).

Can I nominate funds that have been gifted to me?
You may nominate funds and/or assets which have been given to you unconditionally and in accordance with local law. You will need to show that your donor acquired those funds and/or assets lawfully.

If some of your funds and/or assets have been acquired by inheritance you will need to provide appropriate evidence, eg probate or evidence from your solicitor, to show that they were acquired lawfully.

What is an acceptable investment?
An acceptable investment is defined as investment that:

1. is 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:

2. is capable of a commercial return under normal circumstances and has the potential to contribute to New Zealand's economy, and

3. is invested in New Zealand in New Zealand currency, and

4. has the potential to contribute to New Zealand’s economy, and

5. is invested in lawful enterprises or managed funds that comply with all relevant laws in force in New Zealand, and

6. is not for the personal use of the applicant(s), and

is not (directly or indirectly) invested in residential property development or deposit taking financial institutions (e.g. banks or finance companies).

Note: that for the purpose of the Migrant Investment Policy, convertible notes are considered an equity investment.

What is meant by personal use of investment funds?
Personal use includes a personal residence, car, boat or similar assets.

If my application for residence is approved in principle within what time frame do I have to invest my funds in New Zealand?
You should transfer your total investment funds to New Zealand and invest them in acceptable investments within 12 months of approval in principle.

If you cannot liquidate your assets, transfer and invest your funds in New Zealand within 12 months of approval in principle, you may request a further 12 months to do so.

If you do not transfer your funds within 12 months (or 24 months if extended) your application must then be declined.

Can I come to New Zealand to investigate investment opportunities once my application has been approved in principle?
Once your application is approved in principle you are eligible for a 12 month multiple entry work visa to come to New Zealand to investigate investment opportunities.

If applicable, your partner and children are eligible for multiple entry visitor’s visas for the same period. If your children wish to study during this period they will have to apply for a student visa and meet student policy.

A further 12 month multiple entry work visa is available if needed.

Do I have to transfer my settlement funds to New Zealand (Investor (Investor 2 Category))?
No, you are only required to transfer your nominated investment funds to New Zealand.