Why New Zealand is the Ideal Safe Haven in these “Interesting Times”

One of the attention-grabbing pandemic media stories was about American “Billionaires flying to New Zealand” and hiding in underground bunkers.

As part of our ongoing series on alternative residences, we looked into these reports in June 2020. We concluded that “unless one’s objective is to subject your loved ones to an unpleasant and unsustainable lifestyle, acquiring a bunker is completely unnecessary.”  We also concluded that “the New Zealand residence part makes complete sense!”

Fast forward four years and New Zealand is back in the alternative residence news after announcing changes to its Migrant Investor Categories. These took effect on April 1. 2025. And no, there is still no need for American billionaires to go “bunkers” in New Zealand.

Indeed, along with the new category of migrant investor, there are many features of the New Zealand migrant investor program that HNW families will want to consider when if and when they add New Zealand to their Backup Plans.

Table of Contents

Cost of acquiring NZ residence status under the new Migrant Investor Category?

As a result of the announced changes, there are two new investor categories available to those seeking residence in New Zealand. The broad details of the new categories are as follows:

• The Growth category will require NZ$5M (approximately $2.88USD) and focus on higher-risk investments, including direct investments and managed funds. The investment hold period will be three years. Physical presence in New Zealand requirement will be 21 days over the three year period.
• The Balanced category will focus on mixed investments, re-introducing lower-risk investment options.  The minimum investment amount for this category will be NZ$10 million over five years, with an increased residence requirement of at least 105 days in New Zealand over five years

Applicants under the Balanced Category will be eligible for a reduction in the number of days they must spend in New Zealand during the 5 year investment period if they invest additional funds into acceptable direct investments and/or managed funds. Applicants who invest:

• NZ$ 1 million (a total investment of NZ$ 11 million) receive a 14 day reduction;
• NZ$ 2 million (a total investment of NZ$ 12 million) receive a 28 day reduction; and
• NZ$ 3 million (a total investment of NZ$ 13 million) receive a 42 day reduction.

These new categories mean that aside from a fairly minimal physical presence requirement, the “cost” of acquiring NZ citizenship is diversifying part of one’s liquid portfolio in NZ. Depending on foreign exchange and returns on investment over this time, the cost could easily be zero or positive.

No English language requirement?

There is now no longer an English language requirement for applicants.

The cost of maintaining residence status? 

Once the relevant investment period and physical presence requirements are complete the applicant can apply for permanent residence. Once permanent residence is acquired there is no annual physical presence or tax status necessary to maintain permanent residence.

Ability to own property? Freehold or lease? 

As a resident permit holder, you are allowed to own land/property in freehold in New Zealand IF you are already or agree to become tax resident.

There is some active discussions regarding loosening these restrictions.

When and how does tax residence kick in? 

Tax residency is complex but at a high level, one becomes tax resident in NZ when:

1. You spend more than 182 days physically present in NZ; or
2. A permanent place of abode in NZ (i.e. a “pied a terre / home” and other connections) is established.

It is important to note that NZ is signatory to a large number of tax treaties. As a result, these treaties can be used either to a) rebut NZ presumed tax residence; OR b) claim NZ tax residence as a shield against taxation in another jurisdiction.

Income tax? Worldwide or domestic source? What are the rates?

If one is tax resident in NZ, then normally one would include domestic and international source income. However, there are legal pre-immigration tax strategies that, if properly implemented, could effectively leave only NZ domestic source income subject to NZ tax.

NZ income tax rates are progressive with a top rate of 39% – but with proper planning this may only be applied to NZ source income.

Is there Capital Gain tax? 

There is no general capital gains tax in New Zealand.

Is there inheritance, estate and/or wealth tax?

There is no gift, estate, inheritance or wealth tax in New Zealand. There is also no land tax but municipal rates are charged on real estate.

What about Medical Facilities?

New Zealand’s medical facilities are world class with both public and private options available to resident permit holders.

International school availability

The schooling system in New Zealand – both private and public – is amongst the best in the world with the International Baccalaureate program widely available.

Family Law situation if New Zealand courts claim jurisdiction

Relationship-derived property claims may be brought by persons who are married or persons who have lived in a qualifying relationship. There is no difference whether the relationship was homosexual or heterosexual.

Broadly speaking, all property obtained during the relationship is divided equally. In respect of property that is brought into the relationship, an assessment will be made of any contributions the other party has made to the property after it was introduced.

Summary

In summary, for HNW families, New Zealand is an excellent option to easily (and relatively cheaply) add a quality alternative residence arrow to their backup plan.

Furthermore, with its breathtaking and varied geography and warm, inviting population, it’s hard to understand why anyone would want to condemn themselves to living in a bunker!

If you are convinced that you would like to add New Zealand to your Backup Plan, please feel free to contact us now by clicking the link.