In a major move to boost its economy and tourism, New Zealand is easing visa regulations to allow tourists to work remotely while visiting the country.
The change came into effect this week and will allow holiday-makers to work while traveling through the country.
The government says it’s all about moving with the times and keeping up with today’s flexible working environment — which has seen Aussies flock to places like Singapore and Bali so they can live the dream while working remotely.
“The change is part of the government’s plan to unlock New Zealand’s potential by shifting the country onto a faster growth track,” Economic Growth Minister Nicola Willis said.
“Tourism is New Zealand’s second largest export earner generating revenue of almost $6,230,900,170 ($11 billion NZ) and creating nearly 200,000 jobs.
“Making the country more attractive to ‘digital nomads’ – people who work remotely while traveling – will boost New Zealand’s attractiveness as a destination.”
Tourism Minister Louise Upston said digital nomad visas are taking off around the world and New Zealand wants to stay on trend.
“Many countries offer digital nomad visas and the list is growing, so we need to keep pace to ensure New Zealand is an attractive destination for people who want to ‘workcation’ abroad,” she said.
The visa changes will allow people to work remotely for a foreign employer while they are on holiday in New Zealand.
Anyone who wants to work remotely for more than 90 days should look at what it means for them in terms of tax, the government says.
The move applies to all visitor visas, including tourists and people visiting family, as well as partners and guardians on longer-term visas.
NZ’s economy in the toilet
New Zealand’s economy has been faltering for a few years and plunged into a technical recession during the third quarter of last year.
The government is desperate to kickstart the economy and is hoping it can lure well-paid workers over with the visa changes.
Australians can already work in New Zealand without needing a work visa. Citizens and permanent residents of Australia automatically have the right to live, work, and study in New Zealand indefinitely under the trans-Tasman Travel Arrangement.
When Australians arrive in New Zealand, they are typically granted a Special Category Visa (SCV), which allows them to work and reside without restriction. This is a straightforward process and does not require prior application.
However, if Australians plan to stay long-term or apply for certain benefits or citizenship, they may need to meet additional residency requirements.
Willis said making life easier for digital nomads will boost the country’s appeal as a destination — and that the visa will extend to influencers, as long as they are being paid by an overseas company.
“We simply won’t get rich selling to ourselves,” she told reporters.
High-earning IT workers from the US and East Asia will be targeted in a promotional campaign.
“We want more wealth and super-talented people coming in the arrival gates,” Willis said.
She said it’s a win-win for Kiwis as digital nomads work for overseas companies, so they would not be competing with New Zealanders for local jobs — and that while some nomads may break the rules, the benefits outweighed the risks.
“We’re not going to be checking out how many emails they’re sending and how many days they’re spending working,” she said. “We just want them to be here and spending their hard-earned money.”
And New Zealand really needs that cash. Its economy has been in the doldrums after its much-heralded COVID-19 pandemic response that saw it shut itself off from the rest of the world.
Last week, HSBC said the country experienced the biggest contraction in GDP of any developed country in the world in 2024 — mainly due to sky-high interest rates and high unemployment.
Tourism — which is a major industry in New Zealand — has taken an almighty hit. Prior to the pandemic, the sector was New Zealand’s largest export industry and brought over $22,657,818,800 ($40 billion NZ) to the country. The most recent figures show those numbers are slowly increasing, with tourism bringing in $21,353,421,789.70 ($37.7 billion NZ) in 2023.
Aussies digital nomads on the move
New Zealand’s move is cashing in on a major global trend off the back of Covid which made everyone realise they don’t have to be stuck in an office to be productive.
Now remote workers are plying their trade from anywhere in the world so they can travel and pay for it all at the same time.
There’s no shortage of Australian digital nomads – and the number looks set to grow, according to new stats released this year.
In July, a new YouGov survey found that almost one in three (29 percent) Australians have previously worked as a digital nomad, and two in five (41 percent) said they’re considering this lifestyle. The top three countries were New Zealand, Japan and Singapore.
Some Aussies have taken the opportunity to escape the current cost of living crisis. Others go in Australia’s winter, then return, so they have endless summers.
Despite many benefits, it isn’t also the dream life with a laptop perched in a hammock you may see from Instagram influencers. Digital nomads must navigate visa issues, different languages and cultures, countries far more dangerous than Australia, loneliness, poor Wi-Fi, and potential tensions with locals, some of whom say digital nomads are the new gentrifiers because they’re pushing up rents.
Locals living in Spain, Portugal, and South Africa have criticized the influx of tourists and digital nomads for contributing to crowding and putting strain on housing markets.
Back in New Zealand, not everyone is happy with the new push for digital nomads.
The Labour Party, now in opposition, slammed the move saying it showed double standards for Kiwis and foreigners.
Last year, the government warned public service employees that working remotely was not an entitlement. It also cut nearly 10,000 jobs from the public service, in order to save money.
Labour’s finance spokeswoman Barbara Edmonds said the ruling National Party is “choosing to prioritize visitors to New Zealand, instead of tackling the urgent challenges facing Kiwis today”.
“Nicola Willis doesn’t even know how many people will benefit from these changes or have an estimate as to how much our economy would grow,” she said.
“With rising rents, workforce shortages, and businesses crying out for more support, this announcement shows a lack of focus on the real issues affecting our economy.
“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.
“We need real long-term solutions for economic growth that provides (sic) the jobs of Kiwis, not a short-term sugar hit.”
