Parent Investment: New Zealand
PROGRAM OVERVIEW
New Zealand’s investor visa categories include the parent retirement category which allows New Zealand citizens and residents living in New Zealand an opportunity to sponsor, through investment, their parents. The investment amount is NZD$ 1 million but there must be other assets of at least $0.5 million and a guaranteed annual income of $60K (this can be from rent, retirement funds or investments or similar).
INVESTMENT
An investment of $1 million is required. It must be in an approved investment ranging from shares, equities and bonds, commercial real estate and a variety of other types of investment (but not speculative land or residential).
The applicant will need to make the investment once residence is approved-in-principle. A typical application can be filed once financial evidence is provided. There is normally a 12 month period of time to transfer the investment into improved investments after the sale of assets that have not been previously liquidated.
REQUIREMENTS
Once the investment is made and while maintained for four years the applicant may live as a resident in New Zealand. Please note the investment funds can be gifted but not in New Zealand. The asset or assets must be owned by the principal applicant or the accompanying spouse jointly with the principal applicant (and not by the spouse separately). There is no presence requirement but of course after approval, all applicants must arrive in New Zealand within 12 months of approval (first arrival dates have been extended because of COVID).
FEES
Government fees for the application itself are currently $4720. There are fees that apply later to renew the first two year resident visa ($210) and then at the end of the financial period ($210). To this should be added costs for translations and in addition applicants need to plan for lawyers’ fees.
FAMILY
Qualifying family members include the spouse (de facto or de jure, including same-sex).
TAX
There is no inheritance tax in New Zealand and there is also no gift tax.
LIVING AND WORKING
Applicants may decide not to reside permanently in New Zealand. Once granted residence however (subject to conditions) all applicants including the spouse will have access to all state healthcare, unemployment benefits, and tertiary education (as a domestic student).
CITIZENSHIP AND PASSPORT
Obtaining a New Zealand citizenship requires a significant commitment. A total of 1350 days must be spent in New Zealand in the 5 years prior to making the application. The minimum in each of the five years is 240 days but you will note that the average will need to be at least 270 days per annum (at least 9 months). If the period in New Zealand drops below 240 days at any stage, then the five year period starts over. These rules are strictly adhered to.
BENEFITS
Applicants gain the right to live in New Zealand permanently. Upon arrival they can reside indefinitely. Upon departure however during the investment, a two year travel condition will apply. A second two year set of travel conditions will apply after the mid-investment check. After the investment period of four years is completed however the grant of indefinite residence means that the person will be a resident in New Zealand for life no matter how long they spend outside the country. This is unique and provides an edge when compared with other similar products run by other countries.
SUMMARY
New Zealand’s Parent Retirement Category is an investor visa. It is one of the best investor programs in the world for those wanting to establish a safe bolt hole. New Zealand’s response to COVID-19 is famous around the world. We currently have a government that keeps the safety of the New Zealand people a priority. Potential applicants should email Ryken and Associates at: info@rykenlaw.co.nz.
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