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Moving To & From NZ: Expats and Immigrants

Tax Residency Rules NZ

New Zealand imposes income tax on a residency basis. This means a New Zealand tax resident’s overseas and New Zealand sourced income are subject to tax in New Zealand. Accordingly, there may be income tax filing obligations and/or disclosure requirements in New Zealand.

Usually, most countries would tax on the tax residency basis. However, there is a small number of countries that would tax on the citizenship basis, such as United States and Philippines.

Determining residency can sometimes be difficult. Tax residency shall be considered when leaving or entering New Zealand because if the position is not clarified income tax implications may arise without knowing.

For those who arrive in New Zealand, tax residency may or may not obtained, in consideration of the COVID concession and Double Tax Treaty (where applicable); double tax treaty determines which country the taxpayer should “tie break” to. For those who leave New Zealand to live or work overseas for some time, tax residency may or may not be lost.

Transitional residency status may be available for new migrants or Kiwi expats, enabling the taxpayer to treat most overseas income as tax exempt for approximately four years from becoming a New Zealand tax resident. This is an one off concession and there may be advantages for opting out depending on the individuals’ circumstances.

IRD Voluntary Disclosure Helo

Tax residency of related companies

A person entering New Zealand may own shares in or be a director of an overseas company. A change in an individual’s residence may also affect the residence of a company they have an interest in. Where the overseas company is treated as a New Zealand tax resident, overseas and New Zealand income are subject to tax in New Zealand.

We help migrants to and from NZ with their tax responsibilities

We are specialists in advising on the New Zealand tax implications of inbound and outbound investments.

Migrating from NZ

If you are leaving New Zealand, you need to carefully consider your tax position. Here are some questions we can help you answer:

  • Will I still be a New Zealand tax resident after leaving the country?
  • If I retain tax residency in New Zealand what are the income tax implications on foreign investments and assets?
  • What are the income tax treatments of New Zealand assets and investments after departing New Zealand?
  • Are there any adverse tax consequences on existing investment structure and in my personal name if I leave New Zealand permanently?

Migrating to NZ

We can work with your overseas tax advisors to ensure you have the structure that is most tax efficient and effective for you.

We can also advise to determine whether you are eligible for transitional residency status to maximise your advantage using this tax concession.

If you would like to know more about International Tax, click here.

International Tax Advisors NZ

Please refer to our people for more information on who we are, our experience and how we can help.

We offer a no obligation free consultation where we can discuss:

  • Your tax position and circumstance;
  • highlight issues and opportunities; and
  • how we can add value and assist.
Book a Consultation