Some of America's wealthiest individuals are reportedly investing up to $5.7 million to obtain 'golden visas' for New Zealand, seeking a lifestyle change away from California. The trend highlights a migration pattern driven by a desire for remoteness and privacy among the affluent.
New Zealand's Southern Alps have become a particular draw, with a private members' club offering exclusive expeditions as part of its residency program. The club, run by Chief Executive Peter Fullerton-Smith, facilitates the process for a significant investment. Over the past 14 months, more than 700 wealthy foreigners have applied for New Zealand citizenship through a scheme that has eased rules on property purchases and residency requirements.
Applicants must invest a minimum of NZ$5 million (US$2.9 million) in companies, charities, or local funds over three years. An alternative program requires a NZ$10 million (US$5.7 million) investment in passive assets over five years. Under these visa schemes, property purchases must exceed a minimum price threshold.
New Zealand Prime Minister Christopher Luxon views the visa program as a way to reverse the country's 'brain drain' and boost foreign investment. He noted that startups have benefited from the influx of capital and expertise. Lachlan Nixon, a founding partner at Motion Capital, described the scheme as a "badge of honor in Silicon Valley," with Americans making up a significant portion of applicants. He reported that "golden visa" holders have contributed substantially to recent fundraising rounds for New Zealand companies.
However, the influx has also impacted local markets. Queenstown, situated in the Southern Alps, now has the country's highest property market, with a median home price of NZ$1.9 million (US$1.12 million). Property agents note that many relocating individuals hail from areas like San Diego and Beverly Hills, seeking a more understated lifestyle.
Some visa holders, like Courtney Andelman, appreciate the country's environment but have raised concerns about tax policies. Andelman noted that her family is taxed on global earnings if they spend more than 183 days annually in New Zealand, adding that their investment decisions are based on where their capital yields the best value.
The program is being implemented during a challenging economic period for New Zealand, which has been affected by global events like the conflict in the Middle East, impacting its crucial tourism and trade sectors. Economists have described the past few years as particularly tough, marked by economic contraction, job losses, and business closures.