On 27 August, the Minister of Immigration announced the retirement of the long-troubled Entrepreneur Category and introduced a promising new pathway: the Business Investor Visa (BIV), expected to launch in November 2025.
While full policy details are still pending, Cabinet and Ministerial briefings have revealed key insights into what this new visa will look like. It’s shaping up to be an excellent addition to the Active Investor Plus policy in New Zealand’s developing suite of investment and business visa products aimed at attracting more foreign direct investment into the economy.
Why the Entrepreneur Category had to go
The Entrepreneur Category, first introduced in 1999, was once full of promise. But over time, it became known as the “visa of last resort.”
Constant policy tweaks made it nearly impossible to navigate and execute, leading to high decline rates and heartbreaking outcomes for migrants who invested their savings and energy into New Zealand businesses – only to be denied residency.
Why Now?
Two main reasons:
- Strategic vision: The current government is focused on attracting foreign investment and driving economic growth. Policies like this require a detailed vision/objective to create the instruments concerned to achieve those objectives, so with a firm new vision/objective being set, new visas designed to achieve the outcomes desired are a logical outcome. The Active Investor Plus Visa was the first product released, with the BIV being the second of three (the third still under development).
- Policy complexity: Business and investment visas are notoriously difficult to design. The Entrepreneur Category lingered in the “too hard” basket for years – until now. The timing is right for this new product with the vision/objective being set, and conveniently resolves the current policy setting failure that existed until this new policy was announced this week.
The BIV is part of a three-tiered strategy:
- Active Investor Plus Visa (launched April 2025): focused on investment capital.
- Business Investor Visa: combines investment and human capital for the purchase and improvement of an existing business.
- Upcoming third visa: will focus on human capital and new-business creation.
What makes the BIV different?
The BIV is designed for experienced businesspeople looking to buy and grow existing New Zealand businesses. It aims to:
- Preserve jobs by maintaining current employment.
- Create new jobs for New Zealanders.
Likely key features:
- Investment requirement: NZD $1m (standard pathway) or NZD $2m (fast-track), excluding land value.
- Additional funds: NZD $500k to support business growth.
- Age limit: under 56, ensuring long-term business continuity.
- English proficiency: IELTS 5.0 – enough to operate in an English-speaking environment.
- Tax residency: applicants must spend at least 184 days each year in New Zealand and actively work in the business.
- Job creation: must maintain existing jobs and create new employment.
“Boomer Exit Visa” – a win-win solution
Many small-to-medium (SME) New Zealand businesses are owned by founders nearing retirement, often without succession plans.
One in four SMEs are predicted to come up for sale in the next 10 years. The BIV opens the door for international buyers to step in, ensuring these businesses continue to thrive and grow with the application of a fresh and – in some instances – innovative adjustment to the operation of the business. This could result in the improvement of businesses that may have been operating in a largely unaltered manner for many years.
It’s a win for retiring owners and the economy. Also, for migrants seeking a meaningful path to residency who cannot apply for an Active Investor Plus Visa but have sufficient funds to acquire a business and apply their skill set to the continuity and growth of the business in question.
Looking ahead
The BIV fills a crucial gap between the high-capital Active Investor Plus Visa and the upcoming new business creation visa. It’s expected to attract 50–100 applicants in its first year, scaling up to 500 as the policy matures.
While it’s too early to declare success, the thoughtful design and strategic alignment suggest the BIV could be a major win for New Zealand’s immigration and economic landscape.
