Are you interested in New Zealand citizenship by investment? Getting NZ citizenship and a New Zealand passport is extremely desirable for many property investors. It can make life and business in NZ a lot easier. However, it can undoubtedly be quite challenging. But don’t worry! We promise to provide you with the ultimate checklist on getting NZ citizenship by investment. If you want to know how to get New Zealand citizenship through buying property for rent, read on. Below we will talk about:

• how to apply for citizenship in New Zealand and how to get citizenship in New Zealand as an investor;
• how to get a New Zealand passport as a foreign investor;
• the requirements for New Zealand citizenship for foreign property investors.

Foreign property investors: the current numbers

There are many reasons why foreign investors believe that New Zealand property is an attractive asset. Three major ones are:

• Tax benefits: In some cases, foreign property investors in New Zealand may get property tax or capital gains tax privileges, and they find that many of their expenses, from legal fees to insurance and the cost of property repairs, are deductible.
• Political stability: New Zealand is renowned for its political stability and commitment to economic and societal growth, which makes investments there a secure option.
• Financing: There are many financing options available to foreign property investors in New Zealand. They can borrow up to 70% of the purchase price or valuation of a property in some cases.

To learn more about the latest property tax changes, watch the highly informative video below:

The value of total foreign investment in New Zealand, including investment into property, was $429.2 billion in 2019 – a trend that continues to rise upward. Major source countries of investment are Hong Kong, China, the United States, Japan, and the United Kingdom.

According to Statistics NZ, 720 residential properties were purchased by overseas buyers in 2019 and 672 in 2020. Most of the buying and selling activity was located in the Auckland region, where foreign investors purchased 348 residential properties in 2020 alone. That was followed by Christchurch (69 purchases), Otago (54 purchases), and Waikato (27 purchases).

While getting citizenship is not as simple as sending in an application one day and then having a New Zealand citizenship ceremony the next, it is certainly possible, and it becomes easier after residing there for 5 years. Once you fulfil your New Zealand citizenship requirements, you can try to apply for a passport.

Famous people having NZ citizenship

While there are many famous NZ nationals (e.g. Russell Crowe, Lorde, Peter Jackson, and others), there are not that many famous foreigners who have managed to get NZ citizenship as it is quite a complex process! One notable example of an individual who managed to do so, however, is billionaire Peter Thiel who became an NZ citizen in 2011 after heavily investing in land and property in Lake Wanaka and other areas.

NZ citizenship: official information

There are 3 main types of New Zealand citizenship: by birth, by descent, and by grant. If you want to apply for a New Zealand passport, you must be a citizen. In other words, to apply for a New Zealand passport, you must go through the process of applying for New Zealand citizenship first.

When it comes to dual citizenship: New Zealand allows it, while some other countries do not.

Foreign Property Investors can apply for citizenship in New Zealand by grant, based on their investments.

The difference between a New Zealand resident and a New Zealand citizen is that an NZ resident is legally and permanently allowed to live in the country but does not have all of the rights and privileges of a New Zealand citizen. This includes getting a New Zealand passport, which comes after getting citizenship in New Zealand. As a New Zealand citizen, one can also represent the country officially in sports, receive educational scholarships, and subsidised healthcare. If you have been a resident of NZ for five years and meet certain conditions, you can apply for New Zealand citizenship.

There is no direct and immediate ‘citizenship by investment’ programme in New Zealand. For getting New Zealand citizenship, foreign investors can apply for the following two options depending on what applies to their situation.

Investor categories

There are several investor categories in New Zealand. Here is what they entail:

Investment property requirements

Here, we will outline the general requirements for investments in New Zealand, in order for them to be considered acceptable. They must be:

• able to make a commercial return, i.e. be able to make a profit
• located in New Zealand
• invested in the local currency, i.e. New Zealand dollars
• invested in legal enterprises or managed funds (i.e. bonds, equities, property, or other)
• able to contribute meaningfully to New Zealand’s economy
• not meant for your personal use

In this article, we focus on investing in residential property only. And so, below, we will talk about what makes a residential property an acceptable investment. A residential property development is deemed to be an acceptable investment if:

• it is new and not a renovation or extension of an existing residential property
• it has received all the necessary approvals and consents
• its purpose is to make a commercial return on the market (meaning you and your friends or family must not live there)

In your New Zealand citizenship application, you are going to have to be able to provide the government with the following in order to be able to proceed with your investment:

• a business plan for the project
• a contract with builders and other subcontractors
• all required consents from local authorities
• the schedule of payments (if funds are going to be paid overtime)
• a time frame of completion

Remember that any funds used to pay for the costs of regulatory approvals or consents as part of your property investment are not calculated as part of your acceptable investment. Purchasing an existing residential property for rental purposes is not an acceptable investment – meaning you have to start your project from scratch.

Apart from meeting specific investment requirements, investors are also required to meet certain other requirements which we have briefly mentioned before in this article. Specifically, for the Investor 1 Visa, there is no maximum age or English language requirement, but for the Investor 2 Visa, the maximum age is 65 and there is an English language requirement.

Authorities

If you are eligible for getting NZ citizenship by investment and you are wondering which authority you should address or want more information on eligibility and the application process, you need to contact the Department of Internal Affairs. Their contact information is the following:

• Freephone: 0800 22 51 51 (NZ only)
• Phone: +64 4 462 0651 (outside NZ)
• E-mail: citizenship@dia.govt.nz
• Postal address: PO Box 10680 Wellington 6143

To find an official list with all the necessary documents that you are supposed to provide, head to the NZ government website. Here is a list of them:

• your full birth certificate or birth record
• your current passport or travel document (if it has expired, your most recent one will do)
• a photo taken less than 6 months ago that meets passport photo requirements
• additional documents depending on your situation

f you apply online, you must attach digital copies of your documents. If you apply by post or in person, you must provide original documents and not copies. You may also need to include other documents with your application in some circumstances, such as if English is not your first language, if you are applying for a child aged 15 or under, or if you have changed your name or gender identity.

Every good citizen adds to the strength of a nation!

For those who have decided to become New Zealand Property Investors, CGPM will help you with all your inquiries and guide you expertly through your investment journey. As residential property management specialists with a reputation for being fully transparent and creating great bespoke solutions for clients, CCPM is known for its constant innovation and has a proven track record of success. When it comes to you making the most from your property in no time, CGPM is the professional to choose to guarantee your investment success!