Acceptable investments

In comparison with other countries, New Zealand is quite flexible and allows most types of financial investment as long as its capable of making a commercial return. The information below is meant as general information, are subject to change at any time, and should not be taken as exhaustive operational instructions.

Business categories' acceptable investments

Under business categories, an acceptable investment means investment of funds that:

  • are not for the personal use of the applicant(s); and
  • are invested in New Zealand, in New Zealand currency; and
  • are invested in either one or more of the following assets classes:
    • listed equities ; or
    • philanthropy ; or
    • managed funds ; or
    • direct investments.

Listed equities

A maximum of NZ$7.5 million can be invested in listed equities. The funds must be invested either directly or through an exchange traded fund or managed fund, managed by someone licensed by the Financial Markets Authority to provide that service, in the equities of a New Zealand resident entity that:

  • are listed by a market operator licensed by the Financial Markets Authority; or
  • are offered through a crowdfunding provider licensed by the Financial Markets Authority; and
  • is not engaged in the acquisition, development, ownership, leasing, management, and operation of property (see BN7.10.30) except if (b) below applies.

Equities in entities engaged in the acquisition, development, ownership, leasing, management and operation of property assets, which are held through an exchange traded fund or managed fund, may be counted towards the principal applicant's investment in listed equities provided they comprise no more than 20 percent of the value of the total assets held by the fund.

The requirement of no more than 20 percent of the value of the total assets held by the fund will only be determined at the date the investment is initially made, and if met at that time, remains an acceptable investment eligible for treatment as listed equities.

Philanthropic investments

A maximum of NZ$7.5 million can be invested in philanthropy. The funds must be donated to organisations that are a registered charity with at least two years of annual returns and have Inland Revenue donee status.

Managed Funds

The investment must be in either the managed investment products issued by a managed investment scheme which is on the acceptable managed fund list maintained by New Zealand Trade and Enterprise, or a discretionary investment management service which is on the same list.

Direct investments

For direct investments, the principal applicant must invest in listed equities as a wholesale investor, or an equity security in an investee entity, or another financial product that will be converted, or is or may become convertible, into an equity security in an investee entity,

New Zealand Trade and Enterprise must also confirm that the investment by the principal applicant in acceptable listed equities as a wholesale investor was pre-approved by NZTE prior to funds being invested, or investee entity is an acceptable direct investment.

The principal applicant must also have have a direct ownership interest in the entity, or a sole beneficial interest in a trust whose trustee has a direct ownership interest in the entity.

 

Other visa categories requiring investment

Under other categories requiring investment, such as the Temporary Retirement Visitor visa, or the Parent Residence Category, 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
    • bonds in finance companies

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.

 

For a detailed overview of the investment visa process please contact us for an individual assessment.

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