New Zealand

{"ftc_utility":"high","fbar_trigger_notes":"NZ bank accounts are routinely required for salary payment and day-to-day living. A typical NZ current account, savings account, and KiwiSaver account will together easily exceed the USD 10,000 FBAR threshold (FinCEN 114). All NZ financial accounts with aggregate value over USD 10,000 must be reported annually. NZ participates in CRS/FATCA; NZ financial institutions report US person account data to the IRS.","ftc_utility_reason":"NZ taxes residents on worldwide income at rates up to 39%, which are generally higher than or comparable to US federal rates. US citizens in NZ typically pay more NZ tax on earned income than the equivalent US tax, generating surplus foreign tax credits. The FTC is therefore the preferred mechanism for most NZ-based US taxpayers to avoid double taxation on NZ-sourced income, often eliminating US federal liability entirely on NZ employment income.","presence_day_count_notes":"NZ imposes no restriction on days spent in-country that would prevent the 330-day physical presence test in other countries from being met. However, US citizens living in NZ long-term will generally qualify under bona fide residence. NZ residence visas and permanent residence are straightforward for qualifying migrants. The 183-day rule under NZ domestic law determines NZ tax residency independently of FEIE qualification.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":16800,"local_tax_rate_on_earned_income":0.33,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by NZ tax residents is generally assessable income. The transitional resident exemption (first 4 years) may shelter some foreign pension income depending on source and type. After the exemption period, pension distributions are taxed at progressive rates up to 39%. NZ employer superannuation contributions to KiwiSaver are taxed via the Employer Superannuation Contribution Tax (ESCT) regime; KiwiSaver withdrawals at retirement are tax-free in NZ.","tax_rate":0.39,"locally_taxed":true},"social_security":{"notes":"US Social Security benefits received by NZ tax residents are included in NZ assessable income and taxed at marginal rates. The NZ-US DTA does not contain a specific Social Security article exempting these payments from NZ tax. NZ also operates its own superannuation (NZ Super) for eligible residents aged 65+; it is taxed as ordinary income. US citizens resident in NZ may be subject to the Windfall Elimination Provision or Government Pension Offset affecting US Social Security based on NZ Superannuation.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"NZ does not recognise the Roth IRA as a tax-free vehicle. Distributions from Roth IRAs may be treated as taxable income by IRD, particularly the earnings component. The NZ-US DTA does not explicitly exempt Roth distributions. There is no IRD private binding ruling establishing blanket exemption. US expats with Roth accounts should obtain specialist NZ tax advice before assuming distributions are exempt.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"The NZ-US Double Tax Agreement (DTA) signed 1983 provides that pensions and other similar remuneration paid to a resident of NZ in consideration of past employment are taxable only in NZ. IRD guidance treats 401(k) and traditional IRA distributions as pension income subject to NZ income tax at the recipient's marginal rate. The DTA generally prevents double taxation but the US also taxes these distributions; the taxpayer must use the US foreign tax credit or treaty provisions to avoid double tax. The treaty Article 18 covers pensions. Specialist advice is strongly recommended given IRS and IRD treatment can diverge.","tax_rate":0.39,"locally_taxed":true,"treaty_protection":true}}

{"rate":0.39,"notes":"New Zealand has no general capital gains tax. Gains may be taxed as ordinary income under specific rules - e.g. the bright-line test (currently 2 years for new builds, 10 years for other residential property acquired before July 2024, reduced to 2 years for all property sold on or after 1 July 2024), and where the taxpayer's purpose in acquiring the asset was to resell it at a profit.","details":{"tax_type":"Capital Gains Tax","country_name":"New Zealand","country_iso_code":"NZL","source_references":["Inland Revenue New Zealand (IRD)","PwC New Zealand Tax Summary 2024-25"],"last_verified_date":"2026-06-03","general_description":"New Zealand does not have a standalone capital gains tax. However, gains can be taxable as ordinary income under several provisions: the land bright-line test, the financial arrangements rules, the share trader rules, and the intention-to-sell test. The bright-line test was reduced back to 2 years for all residential property disposed of on or after 1 July 2024 (rolling back the previous 10-year rule introduced in 2021). Gains caught by these rules are taxed at the individual's marginal income tax rate, up to 39%.","corporate_capital_gains":{"rate":0.28,"tax_treatment":"No separate corporate CGT. Gains taxable as ordinary corporate income at the 28% flat corporate rate if caught by the land bright-line test, financial arrangements rules, or trader/dealer rules."},"individual_capital_gains":{"rate":0.39,"tax_treatment":"No separate individual CGT. Where gains are taxable (bright-line, financial arrangements, intention rules), they are included in assessable income and taxed at progressive rates up to 39%. Most share and asset gains for passive individual investors are not taxed."}}}

{"notes":"New Zealand operates an imputation (franking) credit system. Dividends paid by NZ resident companies carry attached imputation credits representing corporate tax (28%) already paid. The net dividend plus imputation credit is included in assessable income and taxed at the individual's marginal rate. A Resident Withholding Tax (RWT) of 33% (or 39% for certain recipients) applies to dividends as a withholding mechanism. Non-resident withholding tax (NRWT) on dividends is generally 15%, reduced to 5% under the NZ-US tax treaty where the recipient holds at least 10% of the voting shares, and 15% in other cases.","rates":[{"rate":0.33,"type":"withholding","notes":"Resident withholding tax (RWT) default rate on dividends for resident individuals; 39% rate applies if no IRD number provided or for top-rate taxpayers"},{"rate":0.15,"type":"withholding","notes":"NRWT on dividends to non-residents under domestic law; reduced by treaty"},{"rate":0.05,"type":"withholding","notes":"NRWT under NZ-US DTA where US recipient holds at least 10% voting interest in NZ company"},{"rate":0.15,"type":"withholding","notes":"NRWT under NZ-US DTA for portfolio/other dividends"}]}