Do I Owe Tax on My NZ Investment?
Select your investment type to find out if and how it's taxed in New Zealand.
How NZ Investment Tax Works
New Zealand does not have a formal capital gains tax, but several rules can make investment gains taxable:
- Bright-line test: Residential property sold within the bright-line period (currently 2 years) has gains taxed as income.
- FIF rules: Foreign investments with a total cost of $50,000+ are subject to the Foreign Investment Fund regime.
- Intention test: Any asset acquired with the dominant purpose of resale for profit may have gains taxed.
- PIE funds: Taxed at your Prescribed Investor Rate (max 28%) — a final tax.
- Interest & dividends: Always taxable income, regardless of the asset type.
Frequently asked questions
Does New Zealand have capital gains tax?
No formal CGT, but certain gains are taxable under the bright-line test (property), FIF rules (foreign shares), and the intention test (anything acquired for resale).
Are NZ shares taxed?
Capital gains on NZ shares are generally not taxed if held for investment. Dividends are taxable income, with imputation credits reducing your liability.
When does the bright-line test apply?
The bright-line test taxes gains on residential property sold within 2 years of acquisition (for properties acquired from 1 July 2024). Your main home is generally exempt.
What is the FIF $50,000 threshold?
If your total cost of foreign investments is under $50,000, you're generally exempt from FIF rules. Once you cross $50,000 at any point in the year, FIF applies to the full portfolio.
This tool provides general guidance only, not tax advice. Tax rules depend on your individual circumstances. Sources: IRD. Last updated March 2026.