New Zealand is a “Tax Haven” for Temporary Visa Holders
There are new opportunities to increase your wealth by moving abroad. Your choice is now a lot wider, with New Zealand joining the ranks of those countries seeking to attract tax exiles. In fact it must be one of the few advanced English speaking countries, with a clean environment and so is a pleasant place to live, yet there can be no tax to pay for the privilege for 4 years.
The Detail
From 1 April 2006, all new migrants and returning New Zealanders who have been out of the country for at least 10 years, are no longer subject to New Zealand income tax on most foreign income. This applies regardless of whether the income etc is remitted to New Zealand, or how long you stay in New Zealand each year.
The good news rolls on. New Zealand still does not impose a general capital gains tax.
The Challenges
The remaining issues are to also avoid taxation in the countries where you now live and where the income or capital gains flow from. This requires a detailed knowledge of their local and international tax rules. Moving assets to a third jurisdiction can also help.
In the case of inheritance type taxes, avoid locating assets that you own in those countries. New Zealand does not impose any inheritance, death, estate, or wealth taxes but there is a gift tax.
The Result
If all of the above can be achieved, then you will be living in a truly “tax haven” type fiscal environment. Your hard earned money will last longer, giving you and your family greater security and purchasing power.
What is Taxed by Whom and Where?
Different items of income and capital gains are treated either as:-
- exempt from all tax for 4 years;
- still fully taxed in the UK
- just subject to UK tax at source
- are fully taxed in New Zealand
- tax free in New Zealand for 4 years
- never subject to New Zealand tax.
Contact jeff.bowmantax@gmail.com for the complete list and how to get into the tax free category.
Why Contact Bowman & Associates?
- We can help you identify:-
– totally exempt; and
– partially exempt
types of foreign income and capital gains that New Zealand won’t tax as well. - You can then plan to earn these.
- For income and gains that are taxed outside New Zealand, it is possible to restructure ownership of the underlying assets and/or refinance them, to mitigate the local tax charge.
- If there is still a potential New Zealand tax bill, there are numerous New Zealand tax shelters in everyday use and other domestic tax reliefs available.
- As you would expect, there is plenty of detail to work through in both the New Zealand and other country’s tax provisions before a tax-free result can be achieved.
Our Services to You
We offer the following personal tax services to those contemplating leaving the UK:-
- Advising how and when to relocate
- Setting up businesses in both New Zealand and the UK (or keeping the UK one)
- Structuring the acquisition and disposal of investments
- Holding savings, including pensions, that utilise tax concessions in both the UK and New Zealand
- Links to registered migration agents who can secure your temporary visa.