New Tax Laws for New Zealand Property Market

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Friday, September 11th, 2015
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New Zealand Inland Revenue
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People who buy and sell houses in New Zealand will have to provide their tax number and other details from October 1.

The new laws were passed by the NZ parliament on September 10, 2015.

Revenue Minister Todd McClay says they mean those who buy and sell property for profit won’t be able to avoid paying their fair share of tax.

“Under this legislation, buyers and sellers will have to provide their IRD (Inland Revenue) number and other details when transferring property, unless it’s their main home,” he said.

“Those who are tax residents elsewhere must provide their IRD number from that country – and offshore persons need a working New Zealand bank account to get a New Zealand IRD number.”

The main home exemption doesn’t apply to offshore buyers.

The new provisions are linked to another bill going through parliament.

Under that bill, income tax has to be paid on gains from property acquired and sold within two years.

Speculators are supposed to pay the tax under current law, but it’s been difficult to enforce.

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