New Zealand might not be a tropical paradise, but for many people, it still represents a dream lifestyle. So, it’s no surprise that some global wanderers are choosing to make their temporary home here.

But, of course, there’s always a catch, and in this case, it’s tax.

When your employer is based in one country, you’re working in another, and your clients are somewhere else entirely, who gets to collect the tax?

Tax rules can be tricky at the best of times, and cross-border situations multiply the complexity. Still, there’s good reason to figure it out: digital nomads bring money with them. They’re essentially long-term tourists who contribute to the local economy while living and working here.

Recognising this, the government has clarified the rules for “non-resident visitors.” In short, these visitors won’t be taxed in NZ if they:

• Spend 275 days or less in an 18-month period here,
• Weren’t already resident or transitional resident,
• Aren’t receiving benefits (nor their partner),
• Are here lawfully, and
• Are tax-resident somewhere else with a comparable tax system (sorry, no tax havens).

There are a few catches: you can’t be working for a New Zealand employer, selling to New Zealand residents, or doing work that physically requires you to be here.

If you meet those conditions, you can effectively ignore the usual 183-day rule that triggers tax residency (though if you’ve set up a permanent home here, you’ll still count as a resident regardless). 

There are also additional concessions allowing GST registration to be optional and ensuring that a visitor’s presence in New Zealand does not create payroll tax obligations for their employer or establish a taxable connection between an offshore company or business and New Zealand.

Think of it as a free trial subscription to life in New Zealand – no tax strings attached.

If you’re a digital nomad hearing the call of Aotearoa, we’d love to help you navigate what this means for you. Get in touch and let’s chat about your options.

Alex Cull

Tax Partner, Greenhawk Chartered Accountants

0800 422 526 | [email protected] | greenhawk.co.nz

91 Sir Tim Wallis Drive, Wānaka