New Zealand is introducing significant amendments to its tax rules aimed at attracting remote workers and digital nomads, acknowledging that existing settings discouraged extended stays. These changes, set to take effect on April 1, 2026, define a “Non-Resident Visitor” (NRV) as a person lawfully present in the country for 275 days or fewer within any 18-month period, provided they remain a tax resident in a jurisdiction imposing a similar income tax.
Watch our video on the changes here:
A key feature is the tax exemption for services income. Personal or professional service income earned by a NRV for a non-resident employer or client will be deemed exempt from NZ income tax, helping to avoid complicated NZ tax filing requirements and withholding taxes. This exemption relies on an integrity rule ensuring the income is still taxable in NRV’s home country.
Furthermore, NRVs are granted an exemption from the 183-day tax residency rule for the qualifying period. The activities of a NRV will also be disregarded when assessing whether their foreign employer or associated overseas entities establish a Permanent Establishment (PE) in New Zealand. For remote workers whose sole taxable supplies are zero-rated services to non-residents, the amendments allow them to choose not to register for GST, reducing compliance burden, though voluntary registration remains an option to claim GST input tax.
However, strict adherence to NRV criteria is mandatory. If a NRV becomes unlawfully present in NZ (e.g., overstays their visa), they immediately cease to be a NRV and the existing residence rules apply retrospectively, potentially making them a New Zealand tax resident from the date of arrival if they meet the 183-day threshold.
Listen to the podcast here:
Overall, it’s encouraging to see gradual enhancements and positive developments in how New Zealand tax law treats non-resident visitors. If you’d like help navigating these changes, please feel free to reach out and book a free consultation. We offer the free consultation to new clients to review your particular situation—whether it’s short-term stays, cross-border employment, or other non-resident tax issues—and to discuss how we can support and add value. Visit our International & Cross-Border Tax, Double Tax Treaty, and Move to and from NZ pages for more details and resources.
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