NEW ZEALAND IMMIGRATION CHANGE WORK AND RESIDENCY VISAS
So just to make this clear. You are a New Zealand Tax Resident if you have a ‘permanent place of abode’ in New Zealand, or you have spent 183 days in any 12-month period and not become a non-resident. You will be treated as a tax resident from the 1st day of the 183 days you spend in New Zealand. This means taxation. If you are new Migrant then it is more than likely you will have to fill in a return in your first year so put on your list of things to do when you get to New Zealand … apply for a IRD number.
The sooner the better.
GST (or VAT as it is called in the UK) is a flat rate 15% with Personal income tax bands as below
33% from $70,000
30%: $48,001 to $70,000
17.5%: $14,001 to £48,000
10.5%: $0 to $14,000
It gets more complicated if you are receiving a Pension or other income from overseas. As I get asked this a lot it is best to take expert advice because clearly it matters. However, new Migrants should look into the temporary tax exemption on ‘foreign income’ which can be for a period of 49 months from the date you become a tax resident. Really helpfully this can include rental on overseas property to those who have not sold before they arrive, income from foreign trusts and dividends. You should check the list.
A note of warning and a reason to know the facts before you leap. Working families are entitled to tax credits in New Zealand if there are Dependant children so you have to do your sums. If you opt to take the temporary tax exemption you are not entitled to tax credits.
Lastly NO inheritance tax or general capital gains tax. I had a Client who worked with me to move to New Zealand for this very reason.
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