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A Donkey, an Elephant, or New Zealand

A Donkey, an Elephant, or New Zealand

Written by:
Arran Hunt

There is no doubt that 5 November 2024 will lead to someone being appointed as the most powerful person in the world. This year, more so than perhaps any other, we see two very different sides, each painting the other as being the worst possible candidate. While we won't be trying to assume who will win, we do know that, on that day, about half of the population in the USA is likely to be disappointed with the result. 

That is why we wanted to raise a third option.  It is one that we see many people look up after each USA election, no matter who wins, as Google search queries for moving to New Zealand substantially spike.  We'll cover a few differences that people may experience by moving to New Zealand, as well as some of the immigration options that may be open to you.

Climate

Generally, it is temperate.  While there is some snow in the south in winter, and some fantastic skiing on both of our two main islands (imaginatively named North Island and South Island), the general temperature is above freezing for most of the year, and rarely reaches an unbearable heat.

Most of the country also has the joy of living close to a golden sand beach, even within minutes of our major cities.

Population

New Zealand is a reasonably large country, comparable in area to Colorado, but with a population of just over 5 million.  This means its population density is just over half that of the USA.  However, the population is largely based in several cities, the largest being Auckland with a population of just under 1.7 million, larger than all but four US cities.  The remainder of the largest cities range from 100k to 400k.

The country was founded on Te Tiriti, a treaty between the native Māori and the British crown.  Te reo, the Māori language, is an official language in the country, and the Māori culture is loved and protected. Those of you who have seen the All Blacks, our national rugby team, may have seen the haka before the match, so will have seen a tiny introduction to the native culture.

The country is generally based on British and Christian values, though there is a clear separation between any religion and the government.

As a population, we are heavily focused on the outdoors, nature, and the environment. Auckland has long been known as the "city of sails" as it has the highest per capita boat ownership in the world. The population itself has a love for natural flora and fauna, to the point where we have a nature Bird of the Year vote, as brought to the World's attention when it was highjacked by John Oliver in 2023. We even take our national identification from a bird, calling ourselves Kiwis.

Politics

We have unicameral representational government.  This means we have one house that is elected mostly based on the percentage of votes that party received in the election.  While this has still led to the same two main parties getting most of the votes, we often see 30%+ of the votes going to smaller parties, typically leading to coalitions being needed to form governments.

The two main parties themselves are generally aligned on most topics, and you don't usually see the same animosity that you would in the USA.  Approximately 75% of Bills get passed with agreement by both parties.  Many of the ideas of one party will be continued by the other when elected, often leading to the accusation of "stealing policies" but still giving continuity between governments.

We would generally be seen as a capitalist society with social considerations, with people often comparing New Zealand to countries in Scandinavia.  Healthcare is free and, as a country, there is a collective belief that the country is there to help and support its people.

Business

The most recent Ease of Doing Business ranking listed New Zealand as the easiest country for doing business, continuing a run in which the country always sat in the top three positions. Businesses can be easily created online, and working with the Inland Revenue Department (our version of the Inland Revenue Service) is a breath of fresh air. We also have a simpler tax system, especially, with few tariffs, and sales taxes built into consumer prices by default.

Costs

There is one downside to living away from the pollution and mayhem of the Northern Hemisphere, and that is the cost of living.  Being so far away from most other markets means that there is often a cost to bring items to the country.  For larger consumer products, this cost isn't that much greater, and people receive better consumer protections where items should reasonably last long enough, and not down to how long the manufacturer thinks. However, lower-cost items, particularly food, can be more expensive than in other countries due to the cost of import or the limited size of the market.  However, it is often of greater quality.  For example, what would be seen as being some of the highest quality beef in the USA, would just be ordinary beef in New Zealand as it will just be how we do things as normal. Similarly, those with a fear of genetic modification will enjoy the fact that New Zealand has generally protected against its use. We also have some of the world's highest standards on the care of animals, including banning the use of battery hens.

Housing costs can vary depending on where you want to live.  As almost anywhere in New Zealand would be a desirable place to live, so there are no places where the land is extremely cheap, there certainly is a difference between living near a city centre, or the cost, against being more inland.  With the strength of the USA dollar, most prices should still be affordable.  New Zealand also doesn't have a strong history of apartment dwelling, so those looking at apartments in the larger cities will find that prices have dropped significantly in the past couple of years.

Immigration

This then leads to the options for how to come to New Zealand.

US citizens have the advantage of being a visa-waiver country.  This means that, for those of you without convictions, you can get a visa on arrival to remain in New Zealand for six months.  You will need to get an NZeTA, much like the USeTA, which is there to make sure people pay to help contribute to upkeep our beautiful national parks.  You won't be allowed to work while in New Zealand on that visa, nor can you purchase real estate.  However, you can study for up to six months per year.

For those wanting to stay for longer, there are short-term visas of up to five years, what we call temporary entry visas, and there are rights to remain in New Zealand indefinitely.  Most of these visas also have an allowance for partners and dependent children, which we'll cover at the end.

Temporary Entry Visas

These will usually be either based on study or on employment.

Student visas allow someone to study a course in New Zealand, from a short course through to a PhD. Those with bachelor's degree and higher, as well as several selective degrees under bachelor, also provide for an open work visa to be gained after you complete your studies to allow an opportunity to gain experience in New Zealand.  Most will also allow some limited work while studying, with dissertation qualifications typically allowing someone to work full-time while studying.

Employment visas are based on accredited employers, those who are registered with Immigration New Zealand, having already proved that they cannot find a Kiwi to do the role and need to hire a migrant. The scheme is generally focused on what is considered skilled roles, usually those that require a degree to do, or a number of years of experience.  There are some roles that are also included as exceptions, including some roles in healthcare, hospitality, and adventure tourism.  The right offer of employment, with the applicant meeting the criteria for the role, could provide a five-year work visa in New Zealand.

For those who visit New Zealand and fall in love with a local as well as the country, there is the option of a partnership-based work visa. These will allow initially a one-year open work visa, then followed by a two-year work visa while residence is sought.

There is also the entrepreneurial pathway, which we will list here although it straddles the line between temporary entry and residence, as it starts with one and moves to the other.  It's based on bringing in talented individuals, with experience running businesses or being in senior management, to either create or improve businesses in New Zealand.  It is based on a points system, with points allocated based on a number of factors including age, length of experience, export potential, the number of jobs created, and even if the business will be based outside of Auckland. There are minimum investment requirements, though exceptions exist for areas of innovation.  It provides someone with the opportunity to come to New Zealand to start the business and, if the elected criteria are met within the time period, they can be granted residence.

Residence Visas

Most residence visas work as a two-step process.  The first residence visa is a right to remain in New Zealand permanently, but a right to re-enter New Zealand for two years.  At that two-year point, an application can be made to provide a permanent right to re-enter New Zealand.  Gaining residence is also the first step towards citizenship which can be possible after five years of residence if the criteria is met.

Residence can be gained through employment in several ways.  For most, there is the Skilled Migrant Category visa which is based on a six-point system.  Some may require three years to get enough points, while others, with PhDs or certain high-paying roles, may be eligible immediately and may find this approach faster than applying for a temporary entry work visa.  For others, particularly those whose jobs aren't considered skilled, or where there is added demand in the country, applications may be possible through the green list.  This is a set list of roles, with specific criteria, which allow for applications to either be made immediately or after two years of local experience.

For those looking to bring in investment funds of at least USD$3.03m, the Active Investor visa may be a fast way to residence, with the required investment amount being dependent on the investment type, with the safest types requiring USD$9.1m in investment.  While the approved investment in New Zealand needs to be maintained for four years, the residence visa status can be granted once Immigration New Zealand has confirmed the minimum required investment has been made.  You also only need to be in the country for a limited time per year, meaning that residence could be gained in New Zealand while still based largely offshore.

As below, after living for 12 months with a citizen or residence visa holder, someone may apply for a partnership residence visa.  This is often the easiest process to residence, though one that requires the greatest commitment.

Family and dependents

Most of the temporary entry visas, and all of the residence visas, allow the inclusion of a partner and dependent children.  For partners of temporary entry visas, the partner will usually be granted an open work visa allowing them to work.  Dependent children up to the age of 18 will be granted either a visitor visa, if under five, or a student visa.  Dependent children do not pay international fees, paying the same low voluntary fee, or nothing at all, that citizens pay.  For residence visas, dependents can be up to 24, as long as they are single, have no children of their own, and are dependent on an adult.  This can mean that a child who is studying outside of New Zealand can be included, and gain, residence in New Zealand even if they only visit once.

Of course, each of these visas have benefits and pitfalls, and anything stated above has caveats attached.  However, it is typically a straightforward approach when handled by experts.  Immigration New Zealand are, in our experience and much like other New Zealand government departments, one of the best immigration departments to deal with, though, things can still go awry.  Feel free to reach out to us with any questions you may have.

We're here to help you escape to a better place, no matter the outcome on 5 November.

Arran Hunt (Partner)

DDI: 09 306 6726

Email: ahunt@mcveaghfleming.co.nz

© McVeagh Fleming 2024

This article is published for general information purposes only.  Legal content in this article is necessarily of a general nature and should not be relied upon as legal advice.  If you require specific legal advice in respect of any legal issue, you should always engage a lawyer to provide that advice.

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