_{Friday 9th April 2010}

As the longest, coldest winter for 30 years in the UK draws to a close, and the country’s top earners are facing a 50p tax rate to plug the country’s burgeoning deficit, is it little wonder that Brits are moving overseas?

Traditionally, the laborious task of organising visas for a move has been the biggest stress on someone wishing to make the move, especially if they have to qualify for it. The expat hotspots of Canada, Australia and New Zealand are renowned for encouraging skilled workers and working out your status on a points based system.

However, if you are a high net worth individual and fed up of paying most of your wages to the government, Immigration New Zealand have two categories of investor visas that cater for the needs of the wealthy. The visas allow individuals to take advantage of the country’s favourable investment climate and was born out of the relaxation of the relaxation of the investors policy last summer.

There are two types of investor visa: the first has no age or business conditions and simply requires an investment of NZ$ 10 million over three years while in the country. The second requires an investment of NZ$1.5 million over four years plus three years of business experience and an age limit of 65. In addition, those who apply for the second investor visa must have settlement funds of NZ$1 million.

Investors who choose to emigrate on the new visa types will be able to enjoy a more favourable economic environment than the UK, or other countries such as those in Northern Europe. There is no inheritance tax in New Zealand, no stamp duty on property, no capital gains tax and no local or state taxes and no social security tax. In addition, the top rate of tax is just 39% compared with what you could face in the UK.

Interest rates in New Zealand are also comparably higher and will produce a better return for those migrants investing in the country. The current interest rate in New Zealand is 2.5% compared to 0.5% in the UK.

The major advantage of New Zealand’s revised investment policy is that it grants immediate residency for all those who qualify and you are able to invest in a wide range of products within the country, including government bonds and equities. The country also has a more advantageous deposits guarantee scheme, in which the government guarantees retail investments of up to NZ$1 million.

If all of this sounds too good to be true, rest assured it is not a scam! New Zealand has a long history of attracting expatriates from all over the world and are currently keen to attract foreign investment to the shores. New Zealand and Australia, although affected, have had no lasting damage from the global downturn that seems to have raged on in the Europe. The government have promised tax concessions for those who move under the scheme for the first few years in the country.

As with any scheme, there are restrictions. You have to remain in New Zealand for at least 146 during the year and your pension will act differently from back in the UK. If you have moved your pension across with you, you cannot move it back if you move home.

For more information on the scheme please visit www.immigration.govt.nz/migrant/stream/invest/migrantinvestment/default.htm

If you would like more information on expat investments, pensions or mortgages, please contact us. 

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