Starting a business in
🇳🇿New Zealand
Checked November 4, 2026 · How we score
Corporate tax
28%
Top income tax
39%
Setup from
$600
all-in, first year
Time to form
2 days
visit usually needed
Taxes in New Zealand
| Corporate income tax | 28% Flat 28% company tax rate. Imputation credits let resident shareholders offset company tax on dividends. A 15% minimum tax applies to large multinational groups from 2025. Look-through companies (LTCs) pass profits to owners at personal rates. |
|---|---|
| Personal income tax (top) | 39% Progressive rates of 10.5%, 17.5%, 30%, 33% and 39% (39% on income above NZ$180,000). Residents are taxed on worldwide income, but new migrants and returning residents get a 4-year exemption on most foreign income under the transitional resident rules. ACC levies also apply. |
| Tax system | Worldwide income |
| Capital gains tax | 0%No general capital gains tax, but the bright-line test taxes residential property sold within 2 years, and the foreign investment fund (FIF) rules tax offshore share portfolios above NZ$50,000 at a deemed 5% return. |
| Dividend withholding (non-residents) | 30% |
| VAT / GST | 15% |
| Social security | ACC levies apply to employees and the self-employed; KiwiSaver employer contributions are 3% of salary (rising to 3.5% from April 2026 and 4% from 2028). Non-resident withholding on dividends is 30%, reduced to 15% under most treaties or 0% when fully imputed with a foreign investor tax credit. |
Forming a company in New Zealand
| Usual entity | Limited company (Ltd) |
|---|---|
| Minimum capital | $1 |
| Setup cost (all-in) | $600–$1,500 |
| Annual running cost | $1,500–$4,000 |
| Time to incorporate | 2 days |
| Form remotely as a foreigner | No |
| Local director required | Yes |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Moderate |
Residency and visas
No dedicated digital nomad visa; visitors may work remotely for a foreign employer for up to 90 days (from 2024 guidance) but cannot serve local clients. The Active Investor Plus visa requires an investment starting around NZ$5m (growth category; confirm current amounts), and the Entrepreneur Work Visa and Skilled Migrant Category are the main founder routes.
| Digital nomad visa | No |
|---|---|
| Golden visa | Yes, from $2.9M |
| Ease of residency for founders | 4/5 (1 = easiest) |
Special tax regimes
Active Investor Plus Visa
Investor residency route with growth and balanced categories requiring a multi-million NZ dollar investment over several years, with reduced time-in-country requirements.
Transitional resident exemption
New residents get a four-year exemption on most foreign-source income, including from foreign employment and investments.
R&D Tax Incentive
A 15% tax credit for eligible research and development spending, with a 'cash-out' option for loss-making startups.
Look-through company (LTC)
Flow-through taxation for small closely held companies, letting owners use losses against other income.
Pros and cons
Why founders pick New Zealand
- Very cheap and fast online registration
- No general capital gains tax and no inheritance tax
- Highly trusted and transparent jurisdiction
- 4-year foreign income exemption for new residents
Watch out for
- A director resident in NZ or Australia is required
- Top personal rate of 39% and 28% company tax are high compared with the region
- Small domestic market
- Foreign investment fund rules and the bright-line test add complexity
Best for: Companies selling to New Zealand and Australia · Founders who want a highly trusted and cheap-to-register entity · Investors interested in a stable, rules-based Pacific base
New Zealand: common questions
What is the company tax rate in New Zealand?
The company tax rate is a flat 28%. Imputation credits attached to dividends let resident shareholders avoid double taxation.
Does New Zealand have a capital gains tax?
No general capital gains tax applies, but residential property is taxed under the bright-line test if sold within two years, and individuals with offshore shares above NZ$50,000 pay tax on a deemed 5% return under the FIF rules.
Can a non-resident set up a company in New Zealand?
Yes, but at least one director must live in New Zealand, or live in Australia and be a director of an Australian company. The incorporation fee is about NZ$100, and many non-residents use a nominee director service.
What are the personal income tax rates in New Zealand?
Resident rates are 10.5% up to NZ$15,600, 17.5% up to NZ$53,500, 30% up to NZ$78,100, 33% up to NZ$180,000 and 39% above, before ACC levies. New migrants get a four-year exemption on most foreign income.
Does New Zealand have a digital nomad visa?
No dedicated visa exists. Visitors can work remotely for an overseas employer for up to 90 days under guidance introduced in 2024, but they cannot work for New Zealand clients, so longer stays need another visa.
Sources
- Inland Revenue (New Zealand)
- New Zealand Companies Office
- Immigration New Zealand
- PwC Tax Summaries - New Zealand
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.