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Thread: 2. You have New Zealand tax residence status

  1. #1
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    Default 2. You have New Zealand tax residence status

    I remember someone in this forum mentioned before that buying a property in New Zealand will make one become tax resident and only require to stay 41 days per year to be eligible for PR visa.

    Is that true?



    https://www.immigration.govt.nz/new-...to-new-zealand

    I am holding resident visa under SMC offshore. After buying a property in NZ, I will have tax resident status. Does it mean that I only need to stay 41 days per year for two years to be eligible for PR visa?

    Thank you for advice! Happy new year 2018.

  2. #2
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    Quote Originally Posted by golden View Post
    I remember someone in this forum mentioned before that buying a property in New Zealand will make one become tax resident and only require to stay 41 days per year to be eligible for PR visa.

    Is that true?
    That ISN'T true, just like that, no.

    Here http://www.ird.govt.nz/international...-index.html#02 is the official word from NZ IRD on what makes you a NZ tax resident. As you will see, owning a property in NZ, IN CERTAIN LIMITED CIRCUMSTANCES, can HELP towards your being considered a NZ tax resident, but ownership is not the only criterion taken into account by the Inland Revenue before issuing a certificate.

    Also, notice that the criteria for PR are headed 'Acceptable evidence of your commitment to living in New Zealand.' The authorities are well aware that many foreign nationals would LIKE to have NZ PR, as a convenience, while continuing to live, work and pay into another country abroad while it suits them, which is an arrangement that doesn't benefit NZ. For that reason, the criteria are quite strictly applied and checked out. PR has to be genuinely earnt.

  3. #3
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    Quote Originally Posted by golden View Post
    I remember someone in this forum mentioned before that buying a property in New Zealand will make one become tax resident and only require to stay 41 days per year to be eligible for PR visa.

    Is that true?



    https://www.immigration.govt.nz/new-...to-new-zealand

    I am holding resident visa under SMC offshore. After buying a property in NZ, I will have tax resident status. Does it mean that I only need to stay 41 days per year for two years to be eligible for PR visa?

    Thank you for advice! Happy new year 2018.
    You are confusing what might be IRD requirements for being/not being a tax resident, and INZ requirements for PRV, which can include owning a home (established base) or being a tax resident and being in NZ for 41 days each 12 months.
    https://www.immigration.govt.nz/opsmanual/30505.htm

  4. #4
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    Thank you JandM again. You are always so helpful and knowledgeable!

    Quote Originally Posted by JandM View Post
    That ISN'T true, just like that, no.

    Here http://www.ird.govt.nz/international...-index.html#02 is the official word from NZ IRD on what makes you a NZ tax resident. As you will see, owning a property in NZ, IN CERTAIN LIMITED CIRCUMSTANCES, can HELP towards your being considered a NZ tax resident, but ownership is not the only criterion taken into account by the Inland Revenue before issuing a certificate.

    Also, notice that the criteria for PR are headed 'Acceptable evidence of your commitment to living in New Zealand.' The authorities are well aware that many foreign nationals would LIKE to have NZ PR, as a convenience, while continuing to live, work and pay into another country abroad while it suits them, which is an arrangement that doesn't benefit NZ. For that reason, the criteria are quite strictly applied and checked out. PR has to be genuinely earnt.

  5. #5
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    Thank you ChrisMwn.

    “RV2.5.5 Tax residence status in New Zealand
    A principal applicant has demonstrated a commitment to New Zealand if:
    they have been in New Zealand as a resident for a total of 41 days or more in each of the two 12-month portions of the 24 months immediately preceding the date the application for a permanent resident visa was made (ie, in each of the two 12-month portions, a period or periods that amount to 41 days or more); and
    they are assessed as having tax residence status (RV1.15.10) for the 24 months preceding their application.”

    Does buying a property in New Zealand make a buyer tax residence status automatically as Long as he is holding the property no matter where he is living?

    Thanks.

  6. #6
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    Does buying a property in New Zealand make a buyer tax residence status automatically as Long as he is holding the property no matter where he is living?
    No, it does NOT.

    I know you are asking Chris this, but I have given you the answer already. Please LOOK AT the link I supplied to you before. That clearly shows what IRD require about ownership of a property before they consider a person to be a tax resident. Look under the heading A permanent place of abode in New Zealand. The property has to be "a place of abode" for the owner.

  7. #7
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    Thank you! Understand now.

  8. #8
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    Quote Originally Posted by JandM View Post
    No, it does NOT.

    I know you are asking Chris this, but I have given you the answer already. Please LOOK AT the link I supplied to you before. That clearly shows what IRD require about ownership of a property before they consider a person to be a tax resident. Look under the heading A permanent place of abode in New Zealand. The property has to be "a place of abode" for the owner.

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