New Zealand is currently facing labor shortages, and it will take some time for reforms in educational and training programs to impact this issue. In response, the government is implementing new visa reforms to attract skilled workers. This move is considered a potential driver for growth. How will these changes benefit foreign investors and workers?
Enhanced investor visa program
The New Zealand government is revamping its investor visa to attract wealthier international investors, emphasizing simplicity and flexibility. Effective from April 1, the program will introduce two investment categories. The "Growth" category targets investors interested in sectors with high growth potential, requiring a minimum investment of 5 million New Zealand dollars (NZD) over three years. The "Balanced" category, requiring double the investment over five years, offers a broader array of investment options, including bonds and real estate assets.
Streamlined residency requirements
The New Zealand government has simplified the residency requirements for its new investor visa categories. Holders of the Growth visa need only reside in the country for 21 days during the entire investment period to maintain their status. For Balanced visa holders, the requirement extends to 105 days. However, larger investments can qualify for reduced residency durations—91, 77, or 63 days for investments of at least 11, 12, or 13 million NZD, respectively.
Moreover, the initial investment deadline is set at six months from visa approval. Investors who face difficulties can receive a six-month extension, provided they can prove they are making all possible efforts to finalize their investment. This flexibility aims to accommodate investors' challenges while still encouraging significant foreign investment.
Updated work visa regulations
Significant changes to the work visa for accredited employers (Accredited Employer Work Visa, AEWV) took effect this March. As of March 10, fixed salary thresholds have been eliminated, except for the minimum wage requirement, which will increase from 23.15 NZD to 23.50 NZD per hour starting April 1. Additionally, from March 10 onwards, employers are no longer required to meet the median salary for foreign workers holding an AEWV or a Specific Purpose Work Visa (SPWV). However, they must continue to pay these workers at the same rate as their local counterparts. Migrant workers currently holding an AEWV must be paid according to the existing terms of their employment contracts.
Other changes in visa policies effective March 10
From March 10, New Zealand has reduced the required professional experience for foreign professionals from three years to two. This change is part of the ongoing effort to prevent the exploitation of foreign workers. Additionally, less skilled expatriates holding an Accredited Employer Work Visa (AEWV) now benefit from an extended three-year visa duration, representing the maximum stay allowed under one or more employment contracts. This specific amendment impacts those classified at levels 4 and 5 of the Australian and New Zealand Standard Classification of Occupations (ANZSCO), which is currently being phased out in favor of the National Occupation List (NOL), a system exclusive to New Zealand.
Certain occupations, such as cooks, pet groomers, and childcare providers, have been reclassified from levels 4 or 5 to level 3 in ANZSCO to ensure they are not disadvantaged by the transition to NOL.
Improved visa processing times
The New Zealand government is actively working to reduce visa processing times. Initiatives started in 2022 have already cut the median processing time from 14 working days in the 2022-2023 period to 9 working days in 2023-2024. Further improvements are planned for this year to enhance the system's efficiency and reduce administrative errors, ensuring that visa issuance is secure and that information provided to expatriation candidates is clear and accurate.
The government also reports increases in both the reliability rate—from 89.2% to 91.6% for resident visa approvals and from 85.6% to 91.2% for temporary visas—and the visa refusal rate, which it attributes to enhanced scrutiny in application handling. These reforms are intended to make New Zealand more attractive to skilled foreign workers.
