Why are New Zealand residency applications on the rise?

Expat news
  • Christchurch New Zealand
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Published on 2022-07-11 at 10:00 by Ameerah Arjanee
According to Radio New Zealand, as of late June 2022, the number of residency visa applications to live in the island nation has surpassed government forecasts by over 50,000. Over 200,000 migrants and expats currently residing in New Zealand want to obtain the one-off permit to stay indefinitely. So why is the Land of the Long White Cloud, as the Maori toponym goes, so popular among expats?

It should be noted that the current visa scheme, called the 2021 Resident Visa, is a new one. It opened up to applications only in December 2021. This scheme grants permanent residency to expats who are professionals in a set list of high-demand fields, who have lived in New Zealand for at least three years, and who earn at least the median wage (NZD $27 per hour). The primary applicants also need an English language level of at least 6.5 (upper-intermediate) on the IELTS test. Their accompanying spouses and children over 16 need at least a 5.0 (lower intermediate) level.

Before 2021, there were other visa schemes. Even under previous schemes, since the new millennium, the inflow of migrants & expats into the country has mostly remained higher than the number of migrant departures (Stats NZ). There were only more departures in 2011-2013, because of economic problems following the 2008 global financial crisis, and in 2021, because of Covid-related border restrictions. 

The high 2021 Resident Visa applicants attest that numbers are bouncing back to pre-pandemic levels. While there were about 150,000 arrivals in June 2019, there are 200,000 forthcoming arrivals waiting for approval in June 2022. What are the reasons behind the quick recovery of New Zealand's appeal as an expat destination?

Great work-life balance

Kiwis are among the happiest workers in the world, with over 75% of New Zealanders saying that they are satisfied with their work-life balance (Stats NZ, 2021). The country boasts of a national legal four weeks of paid vacation, in addition to multiple public holidays and sick leaves. Most workplaces offer flexible start and finish times at the office, and some companies even have a shorter four-day working week.

New Zealand has consistently ranked among the Top 3 expat destinations in the yearly HSBC Expat Survey in terms of quality of life and future prospects. The surveyors often cite mental well-being as a top reason for wanting to prolong their stay. Even inherently more stressful jobs, like nursing and other healthcare professions, report better work-life balance there. 

The boom in residency visa applications can also be explained by how many jobs are in high demand right now in New Zealand. The New Zealand Immigration website lists over 50 jobs with a skills shortage in the country – these range from chef to veterinarian to web developer to aged/disabled caregiver.

New Zealand is a family-friendly country

Family friendliness is closely tied to work-life balance, making New Zealand residency highly desirable. The availability of time outside of work to spend with your family is complemented by universal healthcare, a robust public education system, and easy access to outdoor activities. This makes permanent residency in New Zealand especially attractive for expats over 30 and/or with children. 

New Zealand's streets have a very low crime rate and are safe spaces for children to play in. The country is also famous for its nature spots, from beaches to grassy fields to natural parks with scenic mountains; it should not be surprising that most of the filming locations for Lord of the Rings were in New Zealand. The country is small enough for these nature spots to be accessible from urban areas for day trips. For instance, by driving only 200 km from Auckland, you can visit the Waitomo Caves, which are lit up by glowworms. Hiking, cycling, kayaking, snorkeling and other outdoor activities are accessible to the entire family. The accessibility of sports and nature, of course, contributes to better physical and mental health. 

New Zealand's strong social welfare net includes a high-quality, public-funded healthcare system. In the World Index of Healthcare Innovation 2021, the country ranked sixth worldwide in terms of quality of healthcare. Public healthcare coverage extends to prescription drugs, childbirth and mental health services. Even while the overall cost of living for expats remains high in New Zealand cities, there is no need to plan a budget for personal healthcare if you have a permanent resident visa. The country's efficient response to Covid-19 has reinforced trust in its healthcare system, including among those currently applying for residency.

Expats with a permanent residency visa are guaranteed not only healthcare coverage for their families but also quality public education for their children. According to OECD's Education at a Glance report (2021), New Zealand has the best educational environment worldwide, leading in front of Canada and Finland. The research says that NZ schools receive high government funding, have a curriculum oriented towards future skills, have teachers who are happy in their jobs and are sensitive to cultural diversity.

As New Zealand is an English-speaking country, expats from anywhere around the world can enroll their children in local schools, provided they are proficient in the language. The New Zealand Migrant Settlement and Integration Strategy voted in Cabinet in 2014, also provides needs-based, school-funded English language classes to children under 16 who've recently relocated. Older teenagers or university-age students need to enroll in fee-paying ESOL (English for Speakers of Other Languages) courses if they lack the required level.

Safe, stable and cosmopolitan democracy

New Zealand's international population, political stability and progressive leadership make permanent residency there highly attractive. 

According to the 2018 census, nearly 30% of people in New Zealand were born overseas. The economic capital of Auckland is one of the most culturally diverse cities in the world, with over 200 recorded ethnic groups. This makes newly arrived expats not feel out of place and easily access ethnic grocery stores, meet people who speak the same native language, and make friends from all over the world. In addition, new Zealand society has a reputation for tolerance; according to Stats NZ, less than 20% of people say they experienced discrimination of any kind in 2021. While the indigenous Maori people and Asians report slightly higher discrimination rates, the numbers still remain under 30%.

New Zealand also has a progressive reputation in other social aspects. For instance, gender parity in the workplace is higher than the global average, with 40% of senior management in NZ being women. Transparency International's Corruption Perception Index ranks New Zealand first worldwide in terms of perceived low corruption in the workplace and government. This environment attracts highly-skilled professionals who value meritocracy. 

One con of expat life in New Zealand is the high cost of living in the major cities, Auckland, Wellington (the capital) and Christchurch, especially when it comes to renting accommodation. New Zealand is selective in giving residency permits, mostly to highly-skilled workers who can afford the cost of living while enjoying the multiple benefits that come from living in the land of the Kiwis.