New Zealand Wants Rich Foreigners to Come Live There. Americans Are Beating a Path.

New Zealand has created a new, easier path to residency for wealthy people, and it’s attracting attention from Americans looking for an alternative to living in the U.S.

According to New Zealand Trade and Enterprise—the government’s international business development agency—70% of incoming inquiries into a revised program leading to permanent residency in the country are from the U.S.

A spokesperson with the agency said it remains to be seen whether those inquiries turn into the same level of visa applications. Still, the inquiries are evidence that Americans are interested.

“There’s a huge increase in demand from the U.S.,” said Dominic Jones, managing director of Greener Pastures New Zealand, which helps those applying for the country’s so-called Golden Visa to find investment opportunities.

Many U.S. citizens are seeking residency in New Zealand—as well as other countries —as a “plan B” during President Donald Trump’s administration, according to immigration attorney David Lesperance. Many of these are applicants who worry Trump could exact retribution on them or their families for perceived slights, in addition to those who have family members that could face discrimination because of their sexual orientation. Some are concerned about the future of the U.S. economy.

For those with the money, reallocating $2.88 million in assets from the U.S. to New Zealand for three years—as the new requirements allow—isn’t a heavy lift, Lesperance said. “Depending on foreign exchange and returns on investment over this time, the cost could easily be zero or positive,” he wrote in an April 2 blog post.

Investment visa

The island country is also only requiring applicants to be physically present for 21 days over three years, depending on which category of investment visa they pursue.

“These applicants are people who are in a financial position to look at this as an asset reallocation and one or two vacations in the next three years in exchange for a permanent insurance policy in a first-world country,” Lesperance told Barron’s.

U.S. citizens have long been interested in living in New Zealand. About 38% of applicants to a previous program with stricter requirements that was in effect from September 2022 through April 1 this year were from the U.S., according to the trade and enterprise agency.

That program required a four-year investment of between NZ$5 million and NZ$15 million ($2.88 million and $8.4 million) in the country, with the amount varying depending on the type of investment. It also required being in the country at least 117 days over four years and passing an English language test—which was more an annoyance than an impediment for U.S. citizens.

Wealthy investors consider New Zealand as a residency option because of the country’s lifestyle, climate, and dramatic, beautiful landscapes, according to Jones. It’s also a stable, English-speaking democracy with a free economy, and it’s safe, he said.

“We’re on the other side of the world,” Jones said. “We don’t tend to get involved in global conflicts. The drive to safety isn’t why all people all choose Golden Visas, but it’s why people choose the New Zealand option.”

The revised New Zealand Active Active Investor Plus Visa program that went into effect on April 1 eases up on the previous requirements through the introduction of two categories for obtaining permanent residency.

Growth category

Under a “growth” category, applicants need to invest $2.88 million for three years directly into privately owned New Zealand-based companies that have been approved by the trade and enterprise agency, or in New Zealand managed funds that are invested in the local economy, Jones said.

Applicants are only required to be in New Zealand for 21 days during the three-year investment period, and they don’t have to pass an English test.

A second “balanced” category requires a minimum $5.6 million over five years, but allows it to be invested more passively in listed stocks, government bonds, and New Zealand-based corporate bonds, Jones said. It also requires applicants to be present in the country for at least 105 days over five years.

Once the requirements are met during the three- or five-year period, applicants achieve permanent residency in New Zealand, even if they no longer spend time in the country, according to Lesperance.

The growth category was structured to be quicker and more attractive, to encourage applicants to make meaningful, active investments in the country with the potential to spur economic growth and create jobs.

“What our government is trying to do is attract capital, but also put it into forms of enterprise where the impact on the economy is material,” Jones said.