There are many good reasons why New Zealand has been very popular with retirees from all over the world looking to move overseas. If you wish to relocate to New Zealand, you may consider two different options, the Active Investor Plus Visa (AIPV) or the Temporary Retirement Visitor Visa (TRVV).
1. Comparison of the Active Investor Plus Visa and Temporary Retirement Visa
Successful applicants under the AIPV will receive indefinite residence and the possibility to apply for permanent residency (PR) after 4 years. Applicants can also apply for citizenship after 5 years, subject to language and residency requirements. Once you received the PR, you can live, work, and study in New Zealand. You can also include your spouse or partner and children up to 24 years old in your application.
The TRVV allows the investor to stay in New Zealand for 2 years. You can include your spouse or partner in the application, other dependents cannot be included. You must maintain appropriate health coverage for the duration of your visa. Additionally, as this type of visa is a retirement visa, it does not allow applicant to undertake any work but you can study for up to 3 months in any 12-month period. There is also no possibility to apply for permanent residency or citizenship as the visa is of a temporary nature.
Applicant of TRVV needs to invest NZD 750,000 for a minimum of 2 years in an acceptable investment option such as Bonds issued by New Zealand or Equity in New Zealand. The TRV visa cannot be renewed, you must leave New Zealand before your visa expires. If you want to stay longer, you can apply for another Temporary Retirement Visitor Visa by showing that you maintained your insurance and kept your funds invested during your 2-year stay.
Applicants who are granted the AIPV or the TRVV must apply for entry permission upon arrival in New Zealand. This means that once you received the visa, you also need to get entry approval to fully enter New Zealand. Entry permission can be applied upon arrival in the country.
2. Investment Options
The Active Investor Plus visa offers four different investment options, weighting toward the NZD 15 million investment threshold such as:
- Listed Equities (Max. NZD 7.5 million),
- Philanthropy (Max. NZD 7.5 million),
- Managed Funds (each $1 invested equals $2)
- Direct Investment (each $1 invested equals $3)
Those options provide greater flexibility by allowing investors to invest across a combination of each category, as direct investments in a private business will receive the highest weighting. This means that you could meet the required investment amount by investing NZD 5 million into direct investment.
As a reminder, the retirement visa option calls for an investment of NZD 750,000 for a minimum of 2 years in an acceptable investment option such as Government Bonds.
3. Additional Requirements
In addition to the investment funds, the applicant is required to prove an annual income of NZD 60,000 in order to apply for the TRVV and there is no minimum income to demonstrate under the AIPV.
The TRVV is available for applicants aged 66 years old and over while there is no age restriction under the AIPV.
4. Processing Time
Once the applicant applied for the TRVV it will take from 58 to 62 working days for the authority to make a decision on the complete petition that has been submitted (https://www.immigration.govt.nz/new-zealand-visas/visas/visa/temporary-retirement-visitor-visa). Some delays will be substantially longer if the file is incomplete. Note also that the Applicants will also need to apply for a 3-month multiple entry visitor visa to come to New Zealand to investigate investment opportunities.
For the AIP, once the applicant is satisfied for the eligibility assessment, you can submit an Active Investor Plus application, together with application fees, immigration levy, and supporting documentation. Upon approval-in-principal, you can transfer the funds and investment in acceptable investments within 6 months (possible extension to 12 months). Then you will submit the supporting documents to prove that the funds come from the same source as the one named in the application (https://www.immigration.govt.nz/new-zealand-visas/visas/visa/active-investor-plus-visa).
In conclusion, both programs offer a valid option dependently on your objectives. While the Active Investor Plus Visa requires a higher investment amount, it also provides higher benefits to applicants. If you would like further information or advice on the above programs, do not hesitate to contact us by email at contact@harveylawcorporation.com.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.