NEW ZEALAND

i. Name of country

NEW ZEALAND

ii. Region

Oceania, islands in the South Pacific Ocean, southeast of Australia

iii. Population

4,991,442 (July 2021 est.)

iv. General Introduction

New Zealand is one of the world’s most stable and well-governed countries, making it an appealing destination for investment, business, and family life. The country is consistently ranked in the top ten in terms of investor protection, business startup, and ease of doing business.

v. Wifi Speed

However, the average internet speed in NZ was 14.7 Mbps, still faster than the Australian average speed of 11.1 Mbps. Overall, New Zealand ranked 7th in the Asia Pacific Region – the highest peak average internet speed was 70.8 Mbps and placed New Zealand 35 overall.

vi. Electrical outlet

New Zealand operates on a 230V supply voltage and 50Hz.

vii. Per Capita GDP

Real GDP per capita

$42,400 note: data are in 2017 dollars (2020 est.)
$42,900 note: data are in 2017 dollars (2019 est.)
$42,900 note: data are in 2017 dollars (2018 est.)

note: data are in 2010 dollars

viii. Climate

temperate with sharp regional contrasts

ix. Residence-by-Investment

New Zealand has an immigration and investment policy that allows foreign nationals to obtain permanent residency in the country by making a significant investment.

Investment

Within three years, you must be able to invest NZ$10,000,000 in New Zealand. To qualify, investments must be made in lawful enterprises or managed funds that can generate a commercial return, have the potential to contribute to the country’s economy, and be made in New Zealand dollars (NZD).

Acceptable investments

An acceptable investment is:

• Investments that are capable of a commercial return
• Not for the personal use of the applicant(s)
• Invested in New Zealand in a NZD amount
• Invested in lawful enterprises or managed funds
• One that has the potential to contribute to the economy

Acceptable investments include:

• Bonds issued by the New Zealand government or local authorities
• Firms traded on the New Zealand debt securities market
• Firms with at least a BBB or equivalent rating
• Registered banks
• Finance companies
• Equity investments in New Zealand firms (public or private, including managed funds), registered banks, and residential property development are also possible (s). Applicants can choose from a variety of funds and/or assets in which to invest.

Processing Time

• Five–six months under an Investor 1 resident visa

Key Benefits

• High living standards, a multicultural population, and a low population density
• Stability in the political, social, and economic spheres
• A strong legal system based on English law
• Strong network of tax treaties with a large number of counterparties

Requirements

• Applicants can live, work, and study in New Zealand under the Investor 1 and Investor 2 resident visa programs. Applicants may include in their applications their spouse and dependent children aged 24 and under.

Investor 1 resident visa

To apply for New Zealand residence under this program, an applicant must invest NZD 10 million in New Zealand over a three-year period. There is no upper age limit, no language requirement, and no requirement for business experience.

Investor 2 resident visa

This visa is only available to experienced business people aged 65 or younger with a minimum of NZD 3 million in available funds or assets. To determine eligibility, a point-based system is used.

• Applicants must invest at least NZD 3 million in an acceptable New Zealand investment that will be held for four years.
• Applicants must have an English-speaking background or an International English Language Testing System test report with an overall band score of three or higher, or be competent English users.

Procedures and Time Frame

The procedures and time frames for the Investor 1 and Investor 2 resident visa programs are reasonably straightforward with specialist assistance.

Investor 1 resident visa

• Applicants lodge an application directly to Immigration New Zealand for the resident visa, without the need for an expression of interest (EOI).
• An approval in principle is usually given within five to six months depending on the quality of information provided as well as security and health checks.
• Immigration New Zealand will only approve in principle and will not issue the visa until the funds have been transferred and invested and evidence of this is submitted to the agency.
• The resident visa may then be issued within two to four weeks.
• Successful applicants must spend at least 44 days in each of the last two years of the three-year investment period in New Zealand or 88 days over the entire three-year period if they invest at least NZD 2.5 million in growth investments.
• If all conditions that apply to the first two years of the first two-year investment period are met, the applicant can apply for a variation of conditions to allow travel in and out of New Zealand for another two years.

If conditions at the end of the three-year investment period are met, the applicant and family members can apply for permanent residence, that is, a resident visa valid for life.

Investor 2 resident visa

• EOI must be sent to Immigration New Zealand outlining the applicant’s personal details, business experience, and investment funds.
• If the EOI is successful, the applicant and their spouse and/or dependents are invited to apply for New Zealand residence. Invites are generally issued within two weeks of selection of an EOI.
• Once invited to apply, the applicant will have four months to submit the application.
• An approval in principle is usually given within approximately 18 months but is reliant on the quality of information provided as well as security and health checks.
• Immigration New Zealand will only approve in principle — they will not issue the visa until the funds have been transferred and invested and evidence of this is submitted to the agency, after which the visa may then be issued within two to four weeks.
• Evidence that the invested funds have been maintained will be required at the end of the second and fourth years of the applicant’s residence in New Zealand.
• The main applicant needs to accumulate 146 days in each of years two, three, and four of the investment period, or 438 days over the entire four-year investment period if they invest at least NZD 750,000 in growth investments.

Performance Guarantee

xi. Natural Resources

natural gas, iron ore, sand, coal, timber, hydropower, gold, limestone

xii. Ethnic Groups

European 64.1%, Maori 16.5%, Chinese 4.9%, Indian 4.7%, Samoan 3.9%, Tongan 1.8%, Cook Islands Maori 1.7%, English 1.5%, Filipino 1.5%, New Zealander 1%, other 13.7% (2018 est.)

note: based on the 2018 census of the usually resident population; percentages add up to more than 100% because respondents were able to identify more than one ethnic group

xiii. Languages

English (de facto official) 95.4%, Maori (de jure official) 4%, Samoan 2.2%, Northern Chinese 2%, Hindi 1.5%, French 1.2%, Yue 1.1%, New Zealand Sign Language (de jure official) 0.5%, other or not stated 17.2% (2018 est.)

note: shares sum to 124.1% due to multiple responses on the 2018 census

xiv. Religion

Christian 37.3% (Catholic 10.1%, Anglican 6.8%, Presbyterian and Congregational 5.2%, Pentecostal 1.8%, Methodist 1.6%, Church of Jesus Christ 1.2%, other 10.7%), Hindu 2.7%, Maori 1.3%, Muslim, 1.3%, Buddhist 1.1%, other religion 1.6% (includes Judaism, Spiritualism and New Age religions, Baha’i, Asian religions other than Buddhism), no religion 48.6%, objected to answering 6.7% (2018 est.)

note: based on the 2018 census of the usually resident population; percentages add up to more than 100% because respondents were able to identify more than one religion

xv. Median Age

total: 37.2 years
male: 36.4 years
female: 37.9 years (2020 est.)

xvi. Urbanization

urban population: 86.8% of total population (2021)
rate of urbanization: 0.92% annual rate of change (2020-25 est.)

xvii. Physician density

3.59 physicians/1,000 population (2018)

xviii. Government type

parliamentary democracy under a constitutional monarchy; a Commonwealth realm

xix. Unemployment Rate

4.13% (2019 est.)
4.32% (2018 est.)

x. Taxes

Headline Personal Income Tax Rate (highest marginal tax rate)

– 39%

Headline Corporate Income Tax Rate (excluding dividend taxes)

– 28%

Individuals who have a permanent place of abode in New Zealand or spend at least 183 days in any 12-month period are considered tax residents.

Tax residents are taxed on their worldwide income, while non-residents are subject to tax on their NZ-source income. Tax exemptions may apply for certain income accrued in NZ by non-residents.

New residents may be granted a four-year tax exemption on income accrued abroad.

Personal income is taxed at progressive rates up to 33%.

There is no capital gains tax, however certain gains derived from the sale of real estate may be included in the personal income tax base. Gains on financial instruments may be treated as ordinary income and taxed on an accrual basis. Rental income is taxed at standard rates.

Dividends are treated as ordinary income, but a tax credit for underlying tax paid may be available. Income derived from certain collective investment vehicles is taxed at progressive rates of 10.5%, 17.5%, and 28%.

New Zealand has enacted extensive controlled foreign company rules. The rules apply when five or fewer New Zealand residents directly or indirectly control more than 50% of a foreign company, or when a single New Zealand resident directly or indirectly controls 40%. Passive income of a CFC is attributable.

Apart from the CFC rules, there is a Foreign Investment Fund regime. This regime applies if the investor does not have a sufficient interest in a foreign entity for it to be considered a CFC. Under this regime passive income derived from foreign investments and retained in foreign entities may be taxable if certain conditions are met.

Local authorities levy real property taxes on the official value of the property. There are no transfer, inheritance and net worth taxes.

Goods and services tax is levied at a 15% rate, although certain supplies are tax-exempt.

Regarding corporate taxation, resident entities are subject to an income tax of 28% on their worldwide income.