New Zealand

New Zealand is a country made up of two major islands and several smaller islands in the South Pacific Ocean. Wellington is the capital city of New Zealand – located on the southern tip of its North Island. The city of Auckland – also in the North Island – is its largest urban area and most populous city in the country. 

The ancestors of New Zealand’s indigenous Māori population were the first to settle in New Zealand around 1200-1300 AD and probably arrived from Polynesia. Europeans began arriving from the mid 17^th century, with the treaty of Waitangi being signed in 1840 between local Māori chiefs and European settlers. 

The term Māori – meaning ‘ordinary’ – was coined by the indigenous people to mark themselves out from the fair-skinned Europeans. 

This year, the unemployment rate in New Zealand fell to its lowest level since 2007. But inflation has increased significantly, along with house prices, and household and government debt. 

But the outlook is positive, with the country having recovered well from the pandemic. Policy focuses in the near future will likely be on helping the digital sector to grow and introducing reforms to increase housing supply. 

New Zealand’s currency is the New Zealand dollar (NZD) and the official languages are English and Māori. Its gross domestic product (GDP), declined in 2022 but is set to increase to 4.9% in 2023. 

Our local Tax Natives in New Zealand can tell you everything you need to know about the ins and outs of your tax obligations there. Whether you’re buying a single property, or doing complex business deals, we’ll get you the advice you need. Just say the word and we’ll link you with a local expert who can answer all your questions. 

THE HEADLINES

• The corporate income tax rate in New Zealand is 28%
• In the New Zealand the headline personal income tax rate is 39%
• The standard VAT rate is 15%