Monday, 30 July 2012

What is the Temporary Retirement Category?

The Temporary Retirement Category is a special visitor category designed for those who wish to invest in New Zealand and stay here longer than current visitor categories allow.

 

Successful applicants will be issued with a two year multiple entry visitor visa that allows them to stay for two years, and travel in and out of New Zealand during that time.

Who can apply under the Temporary Retirement Category?

To be approved under the Temporary Retirement Category you must:

• be aged 66 years or over
• invest NZ$0.75 million in New Zealand for two years into an acceptable investment
• demonstrate ownership of NZ$0.5 million of maintenance funds and an annual income of NZ$60,000 at time of application
• meet standard health and character requirements
• hold and maintain comprehensive travel and/or health insurance for the duration of your stay.

Can I bring my family with me under the Temporary Retirement Category?

You may include your partner in your application; however dependent children cannot be included.

If I wish to stay longer than the two years, can I renew my visa under the Temporary Retirement Category?

You can re-apply for another visitor visa under this category if you:

• continue to meet all the requirements above; and 
• can demonstrate that you have maintained your travel and/or health insurance and your investment funds in an acceptable investment during the two year duration of your stay.

Investment funds

What are the requirements for investment funds?

You must demonstrate ownership of your nominated funds and/or assets, and demonstrate that the nominated funds and/or assets have been legally earned or acquired. All invested funds must be placed in an acceptable investment(s).

Can I nominate funds that have been gifted to me?

You may nominate funds and/or assets which have been given to you unconditionally and in accordance with local law. You will need to show that your donor acquired those funds and/or assets lawfully.

 

If some of your funds and/or assets have been acquired by inheritance you will need to provide appropriate evidence, eg probate or evidence from your solicitor, to show that they were acquired lawfully.

What is an acceptable investment?

An acceptable investment is defined as investment that:

• is invested in either one or more of the following:
  • bonds issued by the New Zealand government or local authorities, or
  • bonds issued by New Zealand firms traded on the New Zealand Debt Securities Market (NZDX), or
  • bonds issued by New Zealand firms with at least a BBB- or equivalent rating from internationally recognised credit rating agencies (for example, Standard and Poor's), or
  • equity in New Zealand firms (public or private including managed funds), or
  • bonds issued by New Zealand registerd banks, or
  • equities in New Zealand registered banks, or
  • residential property development(s), or
  • bonds in finance companies.
• is capable of a commercial return under normal circumstances, and
• is invested in New Zealand in New Zealand currency, and
• has the potential to contribute to New Zealand's economy, and
• is invested in lawful enterprises or managed funds that comply with all relevant laws in force in New Zealand, and
• is not for the personal use of the applicant(s).

Note:

• For the purposes of these categories, convertible notes are considered to be an equity investment.
• New Zealand registered banks are defined by the New Zealand Reserve Bank Act 1989.

For the purposes of 'acceptable investment', residential property development(s) is defined as property(ies) in which people reside and is subject to the following conditions:

• the residential property must be in the form of new developments on either new or existing sites, and
• the residential property(ies) cannot include renovation or extension to existing developments, and
• the new developments must have been approved and gained any required consents by the relevant regulatory authorities (including local authorities), and
• the purpose of the residential property investments must be to make a commercial return on the open market, and
• neither the family, relatives, nor anyone associated with the principal investor, may reside in the development, and
• the costs associated with obtaining any regulatory approval (including any resource or building consents) are not part of the principal applicant's acceptable investments.

Investment in bonds in finance companies may be considered where the finance company:

• is a wholly-owned subsidiary of,
• raises capital solely for, and
• has all its debt securities unconditionally guaranteed by,

a New Zealand Stock Exchange listed company or a local authority.

Do bonus bonds qualify as an acceptable investment?

No, they don’t as they do not provide a commercial return.

What is meant by personal use of investment funds?

Personal use includes a personal residence, car, boat or similar assets.

If my application is approved in principle within what time frame do I have to invest my funds in New Zealand?

You should transfer your total investment funds to New Zealand and invest them in acceptable investments within three months of approval in principle.

 

If you do not transfer your funds within three months your application must then be declined.

Can I come to New Zealand to investigate investment opportunities once my application has been approved in principle?

Once your application is approved in principle you are eligible for a three month multiple entry visitor visa to come to New Zealand to investigate investment opportunities.

 

If applicable, your partner is also eligible for a multiple entry visitor visa for the same period. 

Do I have to transfer my maintenance funds to New Zealand?

No, you are only required to transfer your nominated investment funds to New Zealand.

What is meant by comprehensive travel and/or health insurance?

To meet Immigration New Zealand requirements, your insurance policy must have a minimum policy limit of NZ$500,000 for the duration of the visa and cover the costs of:

• all medical expenses including diagnosis and treatment, ambulance, hospital care, and 
• prescribed medicines, post-hospital discharge care, home nursing care up to a limit of NZ$3,000, and 
• emergency dental care, including provision of antibiotics and treatment for the relief of sudden and acute pain up to a limit of NZ$3,000, and 
• evacuation or return home in the event of serious illness or disability.
  

How do I apply?

Application forms and guides can be downloaded or can be obtained from Immigration New Zealand branches. You can apply by completing the Temporary Retirement Category Visitor Visa application form and sending it, along with the application fee and supporting evidence, to the Business Migration Branch.

 

Business Migration Branch
Immigration New Zealand
PO Box 3705
Wellington
New Zealand