Investment Advice for New Immigrants
For any new immigrant coming into New Zealand there are important financial decisions to be considered. We deal with many new immigrants and assist them in a number of areas. Whilst assisting new immigrants with investment planning we also specialize in advising clients who are coming into NZ under the Migrant Investment Policy.
Migrant Investment Policy
New Zealand Immigration changes policy for new migrants from time to time and they revamped the investor categories in July 2009. The new policy is now divided into two categories: Investor Plus (Investor 1 Category), and Investor (Investor 2 Category). Outlined below is a brief summary of the some of the requirements:
|
Key requirements |
Investor Plus (Investor 1 Category) |
Investor (Investor 2 Category) |
|
Maximum age |
No requirement |
65 or younger |
|
Business experience |
No requirement |
Minimum of three years |
|
Investment funds |
NZ$10 million invested in NZ for three years |
NZ$1.5 million invested in NZ for four years |
|
Settlement funds |
No requirement |
NZ$1 million (transfer not required) |
|
Minimum time in New Zealand |
73 days in NZ in each of the last two years of the three-year investment period |
146 days in NZ in each of the last three years of the four-year investment period |
The recent changes have made New Zealand more attractive to overseas investors seeking permanent residency as they provide more flexibility and a wider choice of investments than previously allowed. This makes it easier for investors to meet Immigration New Zealand requirements.
Getting professional advice in this area is important as there are rules regarding what are acceptable investments and we suggest you seek expert advice on your Migrant Investor investment portfolio.
At Richard Harden Investment Services we're pleased to offer a bespoke investment service for New Zealand migrant investors. We can help put together a well diversified investment portfolio that remains within New Zealand Immigration's Acceptable Investment guidelines for the Migrant Investment Policy.
There is no doubt the recent changes have made the new categories more attractive from an investment point of view for the following reasons:
- For smaller investors it is now possible for migrants with as little as NZ$1.5 million invested in New Zealand for 4 years to be able to get residency.
- The new policy gives investors more choice in how and where to invest.
- Investors can now invest into Debt securities as well as equity investments which will suit more conservative investors who prefer to invest mainly into fixed interest.
The custodial service we use provides detailed reports which make it easier for investors to meet New Zealand Immigration and tax requirements.
New Policy from March/April 2010
Temporary Retirement Category
Successful applicants will be issued with a two-year multiple entry visitor’s visa/permit that allows for a two-year stay and travel in and out of New Zealand.
Key requirements:
- Principal applicant must be aged 65 or over.
- Meet health and character requirements.
- Comprehensive medical insurance for the duration of the stay.
- Invest NZ$0.75 million in acceptable investments for a period of two years.
- Assets of a further NZ$0.5 million and annual income of at least NZ$60,000.
Parent Retirement Category requirements
Key requirements:
- Meet health and character requirements.
- Must have an adult child who lives in New Zealand and is either a New Zealand citizen or resident.
- Centre of gravity, your family must be in New Zealand.
- Have available at least NZ$1 million for investment into acceptable investments, NZ$0.5 million for settlement funds, and be able to show an annual income of NZ$60,000 at the time of application.
We can assist new migrants with the structure of their investments under the policies but it is important that advice is taken prior to making any investment decisions with regard to these categories.