Australia 188 Visa Alternative: Is New Zealand a Viable Option?
October 1, 2024 · Residency by investment · 7 min read
When Australia unexpectedly announced that its Business Innovation and Investment Program (BIIP), including the subclass 188 visa, would close to new applications from July 31, 2024, many investors looking for an Australia 188 visa alternative turned their attention to New Zealand, given the many similarities between the two countries. But is New Zealand truly a viable alternative to Australia?
New Zealand is a picturesque island nation in the South Pacific, only about a 2-hour flight from Australia. When Australia unexpectedly announced that its subclass 188 investor visa program would close to new applications from July 31, 2024, many investors turned their attention to New Zealand, given the many similarities between the two countries. But is New Zealand truly a viable alternative to Australia?
At the time of writing, New Zealand offers two popular investor migration programs: the Entrepreneur Work Visa (business establishment route) and the Active Investor Plus Visa (investment route). Each program has its own requirements and conditions and suits a different type of applicant. In assessing how viable these programs are, however, factors such as success rates, financial requirements, and economic growth potential should be weighed carefully.
Business establishment route: Entrepreneur Work Visa
The Entrepreneur Work Visa is a work-to-residence pathway that requires a minimum investment of NZ$100,000 (approximately US$56,000) to establish or buy, and then operate, a business in New Zealand. Its eligibility criteria resemble those of Australia’s program, including the investment amount, management experience, the benefits the business brings to New Zealand, and the business location. However, the points system is somewhat more demanding, so the program suits only a certain group of investors and entrepreneurs. In addition, the pathway to permanent residence involves multiple stages and complex business-operation requirements, and many investors may struggle at this stage.
In practice, New Zealand government statistics show that in recent years very few Entrepreneur applications have been accepted for processing, while the decline rate has been very high.
Even experts and immigration lawyers take the view that the entrepreneur category is not a viable path to long-term residence in New Zealand.
Investment route: Active Investor Plus Visa
The Active Investor Plus Visa is a New Zealand residence visa obtained through an investment of NZ$5 million to NZ$15 million, approximately US$2.8 million to US$8.4 million, depending on the investment categories the investor chooses: direct investment in businesses, managed funds, shares in listed companies, or philanthropy.
The visa allows investors and their families to live, study, and work freely in New Zealand. After meeting the investment and residence conditions for at least 4 years, investors can apply for a Permanent Resident Visa. After 5 years of residence in New Zealand, they may become eligible to apply for citizenship, subject to meeting the citizenship requirements.
New Zealand’s Active Investor Plus Visa is fairly similar to Australia’s Significant Investor stream (subclass 188C). However, the risk is considerably higher for a comparable investment amount. Investors must also have a minimum English level of IELTS 5.0.
New Zealand vs Australia investor visa: is New Zealand a viable alternative?
Compared with Australia’s 188 visa—a program with a flexible investment framework suited to many types of investors—New Zealand’s investor migration programs are not only more demanding but also carry greater risk. The complex process, large investment amounts, and low success rates make it unlikely that New Zealand can serve as a substitute for Australia’s investor visa options.
Moreover, New Zealand’s business ecosystem and growth opportunities are not as strong as Australia’s, which may weigh significantly in an investor’s decision. New Zealand has a smaller economy, which means the potential for business growth and investment returns may be more limited than in Australia’s larger, more dynamic market.
Investors seeking security and a viable residency option should weigh their options carefully before deciding, and may consider other destinations such as the U.S. and Canada or countries in Europe, where policies are more flexible and accessible.
If you are interested in residency or citizenship by investment in the U.S., Australia, Canada, Europe, or the Caribbean, contact IMM Group or leave your details below. Our experienced advisors will provide detailed guidance and help assess the prospects for your application. We keep your personal data confidential and use the information you provide only to advise on your family’s case.
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