Marcus Beveridge, Managing Director at Queen City Law NZ Limited, answers queries in relation to investor immigrants. Marcus will Chair the ‘Key Changes and Challenges for Immigration Practitioners’ session at the upcoming Immigration Law Summit in Auckland on Friday 25 March, 2022.
What is the difference between Investor 1 and Investor 2 and what should we be recommending to clients?
Investor 2 needs $3M invested over 4 years and has other conditions such as English language and business experience requirements. Investor 1 requires $10M invested over 3 years, but doesn’t come with any other conditions. Talk with your client and see what works best for them. For example, if they come from a non-English speaking background and have the cash, maybe Investor 1 is worth it. Currently experienced lawyers and advisors are advising clients to lodge ASAP to avoid disappointment given proposed change to $25M.
Is the Government planning to shut down the investor immigration categories? What does this mean for New Zealand, and its relationship with other countries?
It is not possible to accurately respond to this question. An industry working group has worked with government. A couple of weeks ago we were advised that millionaire immigration would be transferred over to NZTE. More recently, we have been advised that the government is considering reducing the proposed investment funds of $25M down to a number that is more realistic. It is understood that these details are being closely held by INZ’s policy unit. So far it would seem that the trial by media has delayed the government introducing policy settings that are fanciful and out of touch with reality. If INZ dumped the Investor 1 and 2 categories and replaced them with a $25M category, consequences would include a dramatic reduction in application numbers and investment funds coming into New Zealand which would not enhance relationships with other countries including our largest trading partner.
Are there any issues arising with the proposed investment changes that you think may be of particular significance?
As above, and our competitors like Australia and Canada will be seen as having far more workable immigration pathways.
Is New Zealand winning from Investor migrants?
Simply put, yes. There are many demonstrable benefits to New Zealand from the billion dollars that has flowed directly into our economy each year for the last 10 years. It is assumed that indirect investment would mean that this figure is probably doubled plus there are many downstream economic benefits including employment for Kiwis, further penetration of export markets, investment in high growth industries in New Zealand where traditionally capital has been harder to come by, and so on. Instead of irrevocably damaging these categories, if you had smarter guys in the room more in touch with reality, the policy settings could be tweaked to create even more favourable outcomes for New Zealand. For example, by promoting regional investment, infrastructure investment, and in fact in any valued industry that works for us. Sadly, we seem to be a little bereft at getting these settings right which is disappointing. In addition, these policies can be dynamic and agile and be moulded to economic outcomes that work best for us.
Are there any key learnings from Australia’s approach to its investor policy?
Currently it is our view that our investment program is superior to Australia for reasons which include an applicant’s ability to continue to reside in Aotearoa indefinitely. However, if the powers that be decree that a business migrant must transfer $25M to New Zealand as a condition precedent of obtaining residency but the same potential immigrant can choose to invest AUS $5M in Aussie – do we have rocks in our head?
Marcus Beveridge is the Managing Director of Queen City Law NZ Limited. Marcus has developed expertise in business-based immigration and has acted on 100’s of successful business-based immigration applications over the best part of 3 decades. Many of these clients have subsequently become major clients of his firm. The total amount of business immigration funds invested in NZ in the last decade is close to NZ$10 Billion. Marcus has also recently been on several Working Groups and Immigration Reference Groups liaising with senior INZ management about assorted immigration issues. Marcus was formerly Chairman of NZAMI and Convenor of the New Zealand Law Society Immigration Committee. Connect with Marcus via LinkedIn 
