NZ
Transitional resident exemption
Active
Non dom
New Zealand · special tax regime
Rate
—
Duration
4 years
Prior non-residency
10 years
required before applying
Standard top income tax
39.0%
New Zealand, without the regime
Overview
- Regime
- Transitional resident exemption
- Country
- New Zealand
- Type
- Non dom
- Status
- Active
- Effective from
- Apr 1, 2006
- Expires on
- —
Details
- Summary
- Four-year exemption from New Zealand tax on most foreign-sourced passive income for new migrants and returning residents who were non-resident for at least 10 years.
- Eligibility
- First-time New Zealand tax resident or returning New Zealander absent at least 10 years; becoming resident on or after 1 April 2006; exemption granted once in a lifetime.
- Benefits
- Most foreign passive income exempt for 48 months; New Zealand-sourced income and certain foreign employment or business income remain taxable.
- Requirements
- Apply transitional resident status to IRD; maintain ordinary residency rules after the period.
- Limitations
- Excludes overseas employment performed while living in New Zealand and business income from services performed offshore; FIF/CFC rules may still apply to some interests.
- Income types covered
- Most foreign passive income (dividends, interest, royalties, etc.)
- Duration details
- 48 months from date of becoming resident
Other regimes in New Zealand
| Name | Type | Rate |
|---|---|---|
| Non-resident visitor | Exemption | — |
View source Income Tax Act 2007 transitional resident rules; PwC NZ residence