New Zealand is changing its visa policy to make life easier for visitors who want to work during an extended trip to the southwest Pacific island nation. The new rules mean that people whose job allows them to work remotely, or so-called “digital nomads”, can now stay in New Zealand for up to 90 days while working for a foreign employer.
After 90 days, New Zealand taxes may need to be paid on income earned during the stay, but, according to Economic Growth minister Nicola Willis: “We’re not going to be checking out how many emails they’re sending and how many days they’re spending working. We just want them to be here and spending their hard-earned money.”
The change will enable many visitors to extend their stays, which will lead to more money being spent in the country.
Erica Stanford, New Zealand Immigration Minister
“We won’t get rich selling to ourselves”
It’s a move designed to combat a post-Covid-19 recession in New Zealand, whose tight border closures were admired by some around the world but led to what HSBC has labelled the biggest economic contraction of any developed nation. Even by 2023 the country’s tourist sector – its biggest export – remained nearly 8% down on pre-pandemic revenues.
The idea is to bring in “more wealth and super-talented people” Willis explained. The relaxed visa rules will be heavily promoted among highly-skilled IT workers from the US and East Asia, who, Willis argued, have roles that “connect them to powerhouse firms and industries globally” and “won’t be competing for Kiwi jobs” she added. Putting it bluntly, “We simply won’t get rich selling to ourselves,” she told press.
“A short-term sugar hit”?
Voicing criticism of the visa change, shadow Economic Development, Infrastructure and Finance Associate, Barbara Edmonds, noted the lack of economic projections to support it and implied that foreign workers were being treated better than New Zealand’s own. The country slashed 10,000 public sector jobs in 2024 and told civil servants to get back to the office.
“With one hand she’s begging foreigners to come here to work from home, while implementing strict policies on Kiwi public servants to stop them from doing the same,” Edmonds said in a Labour press release. “We need real long-term solutions for economic growth that provides the jobs of Kiwis, not a short-term sugar hit.”
Digital nomad visas around the world
New Zealand is not the only nation reducing visa bureaucracy and bringing in so-called “digital nomad” permits in a bid to boost its economy and reconnect with the outside world. Notable examples include China, which had one of the longest and toughest Covid lockdowns anywhere, as well as Brazil, Japan, South Korea, Portugal, and Spain.
However, some of those countries are now experiencing such popularity with visitors that overtourism is becoming a problem. Over 30% of visitors to Japan said they had felt the negative effects of crowds last year. And in Spain, tourists have been targeted with unwelcoming graffiti and protests about their impact on local housing markets. Given that digital nomads are more likely to take up short-term rentals than stay in hotels for the duration of their trip, their effect on rental prices could be argued to be worse than “ordinary” visitors.