New Zealand

Quick Facts

• Tax residency threshold: More than 183 days in any 12-month period (rolling, not calendar year)
• Alternative trigger: Having a permanent place of abode (home) in New Zealand
• What counts as "day": Any part of a day in New Zealand counts (including arrival/departure days)
• Consequence: Residents are taxed on worldwide income, even if not remitted to NZ
• Key relief: New or returning residents get a 4-year temporary exemption on many types of foreign income

Residency Rules Explained

• Be absent from New Zealand for more than 325 days in any 12-month period, AND
• No longer have a permanent place of abode in New Zealand

Visa vs Tax Residency

Key Dates

• Tax year: 1 April to 31 March (different from calendar year)
• Filing deadline: If you have overseas income, returns (IR3) due by 7 July (or later via agent/extension)
• Residency start: Backdated to the first relevant day once you satisfy a test (days or abode)
• Residency end: Backdated to the first of 325 absence days (if both conditions met)

Common Pitfalls

• Assuming "stay under 183 days" automatically avoids residency — the permanent place of abode test may override
• Retaining a NZ home or strong ties while abroad can maintain residency status
• Not meeting BOTH absence and abode severance requirements to cease residency (both required, not just one)
• Overlooking the 4-year transitional resident exemption when newly arriving
• Failing to plan for the 12-month rolling period (not calendar year) when counting days
• Missing dual residency issues under treaties when also taxed elsewhere

Before You Reach 183 Days

• Track entry/exit dates with DayVA using rolling 12-month periods (not calendar year)
• Understand that retaining any NZ home or family ties may maintain residency even under 183 days
• If planning to leave NZ permanently, plan to sever both presence (325+ day absence) and abode (no permanent home)
• If newly arriving as a resident, understand the 4-year foreign income exemption — this is valuable
• Document your abode situation (own, rent, maintain, abandon)
• Understand NZ's tax year (1 April – 31 March) differs from calendar year

Offshore & Expat Considerations

• Worldwide income taxation: As NZ resident, you must report all global income, even if not brought into NZ
• Transitional Resident Exemption: New or returning residents can get a 4-year exemption on many types of foreign income (dividends, interest, capital gains from non-NZ sources). This is a significant relief
• Foreign tax credits: You can claim credits for foreign taxes paid under NZ's regime, and treaties may limit double taxation
• Certificate of Residency: Request one from Inland Revenue to prove NZ tax residency for treaty purposes abroad
• Capital gains treatment: New Zealand has no broad capital gains tax, but certain property sales (bright-line test) and resale profits can be taxed
• Permanent place of abode complexity: This test is more subjective than day counting. Retaining NZ property while abroad creates ongoing residency risk
• Rolling 12-month periods: Unlike most countries that use calendar years, NZ uses rolling 12 months. You can trigger residency mid-year, and the calculation is always moving