The suspense about whether and when a capital gains tax would be introduced to New Zealand seems to have been drawn out for well over a decade. OK, the suspense is over now. Are you relieved? The focus in this budget is on damping down property speculation rather taking a slice off the family home.
There will be a two-year window for sales of residential property. If residential property is bought and sold within two years, it will be subject to tax. This does not apply for:
- taxpayers selling their family home
- inherited property, and
- property that is being transferred as part of a relationship property settlement
In addition to providing a New Zealand IRD number, non-residents will also have to:
- provide their country’s equivalent of an IRD number, and
- open a New Zealand bank account