If you are a Kiwi expat returning to New Zealand to settle you will assume tax residency in New Zealand which can have significant tax implications for you. In particular, consider the following questions:
- Will you be retaining investments offshore such as property, shares etc?
- Will you be paying interest to offshore lenders?
- Will you have foreign dominated loans?
- Will you have foreign dominated savings or cash investments?
- Will you retain interest in offshore super schemes, pension funds or life insurances?
- Are you are a beneficiary of an offshore established Trust?
- Will you retain significant shareholdings in closely-held offshore companies?
If you answer yes to any of the above you will have significant tax issues to grapple with once you become a tax resident of New Zealand. That said, it is important to note that there is relief from some of the harsher aspects of New Zealand’s offshore tax rules if you are a transitional resident. As explained in our article on the transitional resident rules you are a transitional resident if it has been 10 years since you were last a tax resident of New Zealand and you have not been a transitional resident before. The transitional residency rules provide a 48 month exemption from having to bring most types of offshore income into the New Zealand tax net.
In short, if you are returning to New Zealand with the intention of retaining offshore assets, loans or investments then you need to contact us for advice as there will be tax implications upon your migration to New Zealand.