V3.120 Temporary Retirement Category (29/11/2010)

1. For an application to be approved under the Temporary Retirement Category the principal applicant must:
   1. be aged 66 years or over; and
   2. nominate funds and/or assets equivalent in value to at least NZ$750,000 and undertake to invest them in New Zealand for a period of two years; and
   3. demonstrate ownership of these funds and/or assets and that they have been legally earned or acquired; and
   4. transfer and place the funds and/or assets in an acceptable investment in accordance with the instructions in V3.120.25; and
   5. nominate NZ$500,000 of maintenance funds and demonstrate ownership of these funds and/or assets; and
   6. demonstrate an annual income of at least NZ$60,000.
2. The principal applicant and any partner included in the application must:
   1. meet health and character instructions requirements (see A4 and A5); and
   2. demonstrate that they hold acceptable travel and/or health insurance.
3. Applicants must not be accompanied by dependent children.

V3.120.1 Age requirements

Principal applicants under the Temporary Retirement Category must be aged 66 years or over at the time of application.

V3.120.1.1 Evidence of age

Evidence of age may include, but is not limited to, original or certified copies of:

1. a birth certificate; or
2. a passport or other travel document; or
3. an identity document (from countries which require these and where birth details are confirmed before the document is issued).

V3.120.5 Investment funds

1. The principal applicant must invest a minimum of NZ$750,000 in New Zealand for a period of two years.
2. The principal applicant must:
   1. nominate funds and/or assets equivalent in value to NZ$750,000; and
   2. demonstrate ownership of these funds and/or assets.
3. All invested funds must meet the conditions of an acceptable investment as set out under V3.120.5.25.

V3.120.5.1 Ownership of nominated funds and/or assets

1. Nominated funds and/or assets may be owned either:
   1. solely by the principal applicant; or
   2. jointly by the principal applicant and partner who is included in the application, provided a business immigration specialist is satisfied the principal applicant and partner have been living in a partnership that is genuine and stable (see E4.5.1). If so, the principal applicant may claim the full value of such jointly owned funds or assets for assessment purposes.
2. If nominated funds and/or assets are held jointly by the principal applicant and a person other than their partner who is included in the application, the principal applicant may only claim the value of that portion of funds and/or assets for which they provide evidence of ownership.
3. The principal applicant may only nominate funds and/or assets that they earned or acquired legally, including funds and/or assets which have been gifted to them unconditionally (with the exception of New Zealand-based funds or assets) and in accordance with local law. Where nominated funds and/or assets have been gifted to the principal applicant a business immigration specialist must be satisfied that the funds and/or assets being gifted were earned lawfully by the person/s gifting the funds and/or assets.
4. The nominated funds and/or assets must be unencumbered.
5. The nominated funds and/or assets must not be borrowed.

Note: New Zealand-based funds or assets cannot be gifted under these instructions.

V3.120.5.5 Definition of 'funds earned or acquired legally'

1. Funds and/or assets earned or acquired legally are funds and/or assets earned or acquired in accordance with the laws of the country in which they were earned or acquired.
2. Business immigration specialists have discretion to decline an application if they are satisfied that, had the funds and/or assets been earned or acquired in the same manner in New Zealand, they would have been earned or acquired contrary to the criminal law of New Zealand.

V3.120.5.10 Definition of 'unencumbered funds'

Unencumbered funds are funds that are not subject to any mortgage, lien, charge and/or encumbrance (whether equitable or otherwise) or any other creditor claims.

V3.120.5.15 Funds already held in New Zealand

1. Funds held in New Zealand at the time the application is made may be included in investment funds. However, periods of investment in New Zealand before approval in principle cannot be taken into account when calculating the two-year investment period.
2. Funds held in New Zealand must originally have been transferred to New Zealand through the banking system from the country or countries in which they were earned or acquired legally, or have been earned or acquired legally in New Zealand.

V3.120.5.20 Evidence of the principal applicant's nominated funds and assets

1. Principal applicants must provide evidence of net funds and/or assets to the value of the required investment funds.
2. All documents provided as valuations of assets must be:
   1. no more than three months old at the date the application is made; and
   2. produced by a reliable independent agency.
3. A business immigration specialist may seek further evidence if they:
   1. consider that the nominated funds and/or assets may have been gifted or borrowed without being declared; or
   2. are not satisfied with the valuation provided; or
   3. consider that the nominated funds and/or assets fail in some other way to meet the rules for investment funds.

V3.120.5.25 Definition of 'acceptable investment'

1. An acceptable investment means an investment that:
   1. is capable of a commercial return under normal circumstances; and
   2. is not for the personal use of the applicant(s) (see V3.120.5.30 below); and
   3. is invested in New Zealand in New Zealand currency; and
   4. is invested in lawful enterprises or managed funds that comply with all relevant laws in force in New Zealand(see V3.120.5.35); and
   5. has the potential to contribute to New Zealand's economy; and
   6. 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) (see V3.120.10.35); and

   Note: For the purposes of these instructions convertible notes are considered to be an equity investment.

   1. is not (directly or indirectly) invested in residential property development (see V3.120.5.40 below) or deposit-taking financial institutions (e.g. banks or finance companies) (see V3.120.5.45 below).
2. Notwithstanding (a) above, where an investment fails to meet one of the acceptable investment requirements, a business immigration specialist may consider, on a case by case basis, whether the failure was beyond the control of the principal applicant and if satisfied that this was the case, may consider the investment acceptable.

V3.120.5.30 Personal use of investment funds

Personal use includes investment in assets such as a personal residence, car, boat or similar.

V3.120.5.35 Managed funds

1. For the purposes of these instructions, managed funds are defined as either:
   1. a managed fund investment product offered by a financial institution; or
   2. funds invested in equities that are managed on an investor's behalf by a fund manager or broker.
2. In order to be acceptable as a form of investment managed funds must be invested only in New Zealand companies. Managed fund investments in New Zealand with international exposure are acceptable only for the proportion of the investment that is invested in New Zealand companies.

   Example: Only 50% of a managed fund that equally invests in New Zealand and international equities would be deemed to be an acceptable investment as set out in V3.120.30.

V3.120.5.40 Residential property development

For the purposes of these instructions, residential property development includes:

1. building or arranging to build a household unit for the purpose of selling it; or
2. acquiring a household unit from a person who built it or arranged for it to be built for the purpose of selling it; or
3. acquiring and subdividing land for the purposes of residential property development; or
4. acquiring and/or selling an existing household unit.

V3.120.5.45 Deposit-taking financial institutions

For the purposes of these instructions, a deposit-taking financial institution is an institution that carries on the business of borrowing and lending money, or providing financial services, or both.

V3.120.10 Maintenance funds and annual income

V3.120.10.1 Aim & intent

Principal applicants under the Temporary Retirement Category must demonstrate that they have the ability to support themselves and their partner, if included in the application, during the two-year duration of the visa.

V3.120.10.5 Requirement for maintenance funds and annual income

In addition to their nominated investment funds, principal applicants must demonstrate:

1. ownership of a minimum of NZ$500,000; and
2. an annual income of at least NZ$60,000 at the time of application.

V3.120.10.10 Ownership of maintenance funds

1. Funds may be owned either:
   1. solely by the principal applicant; or
   2. jointly by the principal applicant and partner who is included in the application.
2. The principal applicant may claim the full value of jointly owned funds or assets for assessment purposes provided a business immigration specialist is satisfied the principal applicant and partner have been living together in a genuine and stable partnership (see E4.5.1).
3. If funds or assets are held jointly by the principal applicant and a person other than their partner who is included in the application, the principal applicant may only claim the value of that portion of the funds or assets for which they provide evidence of ownership.

V3.120.10.15 Evidence of maintenance funds

Evidence of maintenance funds may include, but is not limited to:

1. funds held in a New Zealand bank account(s); and/or
2. funds held in an offshore bank account(s), together with evidence that the funds can be accessed from New Zealand; and/or
3. acceptable evidence of net assets (either in New Zealand or offshore).

V3.120.10.20 Annual income

Annual income can either be earned solely by the principal applicant or be a combined income of the principal applicant and their partner who is included in the application.

V3.120.10.25 Evidence of annual income

Evidence of annual income may include, but is not limited to:

• pensions;
• earnings from rental properties;
• dividends from share portfolios;
• interest from investments;
• profits from company ownership;
• share market trading.

V3.120.15 Minimum requirements for acceptable travel and/or health insurance under the Temporary Retirement Category

Under the Temporary Retirement Category the principal applicant and their partner included in the application must hold travel and/or health insurance which:

1. is provided by a company with:
   1. experience in the health and/or travel insurance business; and
   2. a credit rating of no lower than A (strong) or equivalent from an internationally recognised credit rating agency (for example, Standard and Poor's).
2. guarantees to cover the costs of:
   1. all medical expenses including diagnosis and treatment, prescribed medicines, ambulance, hospital and post hospital discharge care, home nursing care; and
   2. emergency dental care, including provision of antibiotics and treatment for the relief of sudden and acute pain; and
   3. evacuation or return home in the event of serious illness or disability.
3. is maintained for the duration of the visa.

V3.120.15.1 Allowable exclusions for acceptable travel and/or health insurance under the Temporary Retirement Category

Despite V3.120.15 (b) above, acceptable travel and/or health insurance under the Temporary Retirement Category may exclude costs related to:

1. suicide, attempted suicide; or
2. any situation or action when under the influence of alcohol or non prescribed drugs; or
3. Human Immunodeficiency Virus (HIV) and/or HIV– related illness including Acquired Immune Deficiency Syndrome (AIDS); or
4. pre-existing conditions.

V3.120.15.5 Evidence of acceptable travel and/or health insurance under the Temporary Retirement Category

Applicants must provide evidence of:

1. holding acceptable travel and/or health insurance before a visa is granted under these instructions; and
2. the initial insurance policy being able to be renewed to cover a 24-month period (e.g. a further 12 months after the initial 12-month period).

Note: Applicants are responsible to ensure that their insurance is current for the duration of their stay.

V3.120.20 Currency and conditions of a Temporary Retirement Category visa

1. Despite V2.5 and V2.15, a visitor visa granted under these instructions will be valid for a maximum of two years and will allow multiple journeys.
2. Visas granted under these instructions will be subject to the condition that the applicant maintains acceptable travel and/or health insurance (V3.120.15) for the duration of their stay in New Zealand.

V3.120.25 Approval in principle and transfer of funds

V3.120.25.1 Aim and intent

The instructions regarding the nominated investment funds and/or assets and the method of transfer of those funds to New Zealand is designed to ensure:

1. the legitimacy and lawful ownership of the nominated funds and/or assets; and
2. the direct transfer of the investment funds through a structured and prescribed process to guarantee ongoing legitimacy and lawful ownership of the funds invested in New Zealand.

V3.120.25.5 Approval in principle

Principal applicants who are assessed as meeting the requirements under the Temporary Retirement Category will be advised that:

1. their application has been approved in principle; and
2. visitor visas may be granted once they:
   • provide acceptable evidence of having transferred and invested the nominated funds in accordance with the relevant instructions requirements; and
   • provide a New Zealand address at which they can be contacted by mail, after they arrive in New Zealand.

V3.120.25.10 Transfer of the nominated investment funds

1. When their application is approved in principle, the principal applicant will be required to transfer the nominated investment funds to New Zealand. These funds must:
   1. be the funds initially nominated, or the funds that result from the sale of the same assets as those initially nominated, in the application; or
   2. be funds, as agreed to by a business immigration specialist, secured against the nominated assets in the application and as approved in accordance with (b) below; and
   3. be transferred through the banking system directly from the principal applicant's bank account(s) to a New Zealand bank account.
2. A business immigration specialist may consider, on a case by case basis, borrowed funds as acceptable investment funds where the principal applicant is able to demonstrate that:
   1. they own net assets equal or greater in value to the required investment amount; and
   2. the borrowed investment funds will be from a bank or commercial lending institution acceptable to a business immigration specialist and will be secured against the assets identified under (i); and
   3. it is not economically viable or practical to liquidate the nominated assets, e.g. sell a business.
3. The investment funds that are transferred to New Zealand and subsequently into an acceptable investment must be from the same source of funds as nominated in the Temporary Retirement Category application.

Note: Nominated funds held in a country other than the country in which they were earned or acquired legally must have been originally transferred through the banking system from that country.

V3.120.25.15 Evidence of the transfer of the nominated funds to New Zealand

1. Acceptable evidence of the transfer of the nominated funds must be provided by way of the telegraphic transfer documentation together with a current bank statement showing the transfer(s).
2. A business immigration specialist may request any other information to satisfy them that the above requirements have been met.

V3.120.25.20 Time-frame for investing funds in New Zealand

1. Principal applicants must meet the requirements for transferring and investing the nominated funds within three months of the date of the letter advising of approval in principle.
2. Applications must be declined if principal applicants do not present acceptable evidence of having transferred and invested the nominated funds within three months from the date of approval in principle.

V3.120.25.25 Evidence of the principal applicant's investment

1. Principal applicants must submit the following information and documentation as evidence of having invested funds:
2. the full name of the investor; and
   1. the amount invested in New Zealand dollars; and
   2. the date the investment was made; and
   3. the type of investment (in the case of shares or bonds in companies, the names of the companies invested in and the number of shares or bonds purchased must be listed); and
   4. documentary evidence of the investment; and
   5. a letter from a reliable independent professional (for example, a solicitor or chartered accountant), confirming that the funds have been invested.
3. A business immigration specialist, at their discretion, may require any other form of evidence.

V

3.120.25.30 Temporary visa to arrange transfer and/or investment of funds

1. After approval in principle, and upon application, a visitor visa may be granted to allow the principal applicant to arrange the transfer to, and investment of funds in, New Zealand.
2. The visitor visa will be valid for three months from approval in principle and will be valid for multiple journeys.
3. A visitor visa may be granted for the same period (on application) to the principal applicant's partner.
4. A student visa may be granted for the same period on application to the principal applicant's partner if they wish to study, in accordance with current student instructions (see U2).

V3.120.25.35 Investment transfers during the investment period

Investment funds may be transferred from one investment to another during the investment period, provided:

1. the funds remain invested in New Zealand in New Zealand currency at all times during the investment period; and
2. the investment of the funds continues, during the investment period, to meet all other requirements for investments.

V3.120.30 Subsequent applications for a Temporary Retirement Category visa

When an application is made for a subsequent visa under the Temporary Retirement Category, in addition to the requirements listed under V3.120 above, the principal applicant and partner (if applicable) must also demonstrate that for the duration of the previous Temporary Retirement Category visa they have maintained:

1. the investment amount of NZ$750,000 in an acceptable investment as set out at V3.120.5.25; and
2. acceptable travel and/or health insurance.

Effective 29/11/2010