Golden visa demand surges as Invest NZ cuts US and Europe staff

Summarised by Centrist

New Zealand’s relaxed “golden visa” scheme has attracted more than 800 wealthy applicants and $4.8 billion in investment commitments, driven partly by affluent Americans seeking safety and residence rights.

Yet Invest NZ has abandoned overseas roadshows and eliminated its US and European positions just as California emerges as one of the scheme’s strongest markets.

Critics warn the changes could weaken investor relationships and expose managed funds that depend on continuing inflows.

More than 700 people have applied under the Growth category, which requires $5 million to be invested in local companies, managed funds or charities. A further 127 have applied under the $10 million Balanced category.

Americans account for 277 applications, with strong interest from California.

“It is becoming a badge of honour in Silicon Valley,” Motion Capital founding partner Lachlan Nixon told the 

Financial Times.

Invest NZ previously employed four US-based staff and one in London to guide applicants and promote the scheme. Those positions were eliminated last month, while more than a dozen international networking events have also been discontinued.

The agency says its new model will use mobile investment specialists and New Zealand-based teams. However, immigration adviser Richard Howard questioned whether wealthy applicants would accept less personal service.

“These aren’t the sort of people who expect to do things that way,” he said.

The scheme is also attracting scrutiny over where the money goes. Three dozen managed funds attended Invest NZ events after the visa’s relaunch, but not one company approved to receive direct investment did so.

Most money has flowed into managed funds, including private credit, rather than directly into New Zealand businesses.

Tax adviser Andrew Ryan warned some illiquid funds could struggle when investors seek to withdraw their money after completing the required three-year investment period.

Meanwhile, some visa holders are pressing for more favourable tax and property rules. Californian investor Courtney Andelman said capital would leave if New Zealand failed to offer sufficient value.

“Every one of those dollars is mobile,” she said.

Read more at The Financial Times and The NZ Herald (paywalled)