New Zealand Government Reportedly Mulls Investor 1 Visa?
That’s partially true.
Apparently, the New Zealand government is reviewing its program. New Zealand television media is reporting that the country might eliminate its Investor 1 visa.
More on NZ’s Investment Visa
- Investor 1, which requires $10 million (New Zealand dollars) for an investment over a three-year period
- Investor 2, which requires $3 million through a capital injection
Investor 1 is what seems to be in jeopardy. And based on its recent performance, this doesn’t seem improbable.
Approval numbers were low in the 2019-20 fiscal year. Only 38 applications were approved, compared to 77 the year before.
Rejection rates for the 2020-21 are at a high, with 14 applications rejected this year and NZ is barely past its second quarter. Compared to last year, only eight applications were rejected in total.
At this rate, New Zealand is projected to reject 28 applications this year, which is more than three times the previous year’s rates.
Consequences of Cutting Investor 1
Its elimination would leave more than 100 applications unprocessed, and it’s likely that those will be discarded.
Additionally, scrapping Investor 1 visa might have adverse effects on overseas investments. It may risk giving NZ a bad reputation for shutting off unprocessed applicants.
The sources of this info seem reliable too. Television media that reported on the claim included experts who helped the NZ government design its immigration system.
Other Side Effects To Note
It’s estimated that eliminating Investor 1 might even have a negative impact on Investor 2.
Investor 1 applicants may be offloaded to the second category. Category 2 already sees a multitude of applicants, being the cheaper of the two programs. This may lead to tougher selection requirements.
That could also be reflected in longer processing times, a bigger backlog and a much higher rejection rates.
Also, Investor 2 is points-based. With more Investor 1 investors shifting over, the point requirements may go up.
More on Processing Times
Many applicants have to endure additional months of waiting simply for an approval-in-principle.
Those normally require up to five months. But due to the pandemic, the processing time has increased to over a year.
Additionally, visas are being issued slowly. Normally, residency visas take weeks for processing, but they’re currently not being issued at anymore.
This may have to do with the travel bans that New Zealand is currently imposing. Those delays may lead to more failed applications, and the results aren’t in the interest of New Zealand’s public welfare.
Tough Processing Procedures
New Zealand requires that each dollar specified for the program be tracked to its original source, then transferred into the country. Dipping into those funds then replacing them with income from other sources may lead to applications getting denied.
This makes New Zealand’s program one of the world’s most selective. But even then, rejection rates have less to do with processing strictness. According to the data, nationality has some effects, because half of South Africans and 41% of Malaysians are driven away and denied.