Some of California's wealthiest residents are exploring options to relocate to New Zealand, particularly its Southern Alps, as the state prepares to vote on a significant wealth tax. The proposed measure, set to appear on the November ballot as Proposition 40, would impose a one-time tax of up to 5% on individuals and trusts with more than $1 billion in covered wealth.
New Zealand is actively promoting its "golden visa" programs, which require a minimum investment of NZ$5 million (approximately $2.9 million) for the right to live, work, and study in the country. A separate program necessitates an investment of NZ$10 million (about $5.7 million) in passive assets. Since the visa rules were relaxed in April 2025, over 700 wealthy foreigners, including a significant number from North America, have applied, committing approximately NZ$4.8 billion to the country. Americans, particularly those from California, have shown considerable interest.
This trend coincides with California's political landscape, where Proposition 40 aims to generate substantial revenue for healthcare, food assistance, or education programs. Supporters, including the California Democratic Party and the California Labor Federation, argue the tax is necessary to address funding gaps in healthcare, especially after federal cuts. State officials estimate the measure could generate tens of billions of dollars over several years.
However, the proposal faces strong opposition from some of the state's wealthiest individuals. Governor Gavin Newsom has voiced concerns that the tax could lead to an exodus of affluent residents and businesses, potentially harming funding for public services. Billionaire tech figures have invested heavily in campaigns against the measure, with competing ballot initiatives also emerging to complicate its implementation.
Several high-profile billionaires have reportedly already left California, with some doing so before the proposed January 1, 2026, residency cutoff for the tax. These departures include figures such as Google co-founders Larry Page and Sergey Brin, venture capitalist Peter Thiel, and former Uber CEO Travis Kalanick, whose combined fortunes represented an estimated $27 billion in potential tax revenue. Other notable figures like Meta CEO Mark Zuckerberg and venture capitalist David Sacks have also been reported to have moved, though their circumstances may differ.
New Zealand's Prime Minister Christopher Luxon sees the influx of wealthy individuals as an opportunity to counteract a "brain drain" by attracting foreign capital, entrepreneurial expertise, and business connections. Start-ups in New Zealand are already reporting benefits from these investors. Lachlan Nixon, a founding partner at venture capital firm Motion Capital, noted that several golden visa holders have invested significantly in New Zealand companies, contributing substantially to recent fundraising rounds. Businesses in sectors such as critical minerals, magnesium production, and seed protein are among those benefiting.
The appeal of New Zealand is particularly strong in Silicon Valley, where the "golden visa" is seen by some as a status symbol. Queenstown, a resort town surrounded by the Southern Alps, has become a focal point for these relocations. It boasts New Zealand's most expensive property market, with median home prices around NZ$1.8 million. While golden visa holders face restrictions on property purchases, they can acquire real estate above the NZ$5 million threshold. Agents working with potential applicants have noted that many are already familiar with Queenstown's luxury amenities and private jet access, with some wealthy arrivals being referred to locally as "sleepers in the hills."