I have been advised by our accountant that an investment property in NZ would incur tax up to (I think) 48 cents in the dollar. Has anyone got suggestions for a way to invest differently in NZ. We own our home in Australia outright and are also considering setting up a SMSF. The property that we want to purchase in NZ is under $120K so we don't have to use our super to purchase it we could purchase using other funds.
Appreciate any suggestions.
barkwool
Hey barkwool,
I've seriously considered investing in NZ, especially since I read that Steve had done so, and I have researched some of the properties there, and the potential yields looked very favorable.
Are you talking about capital gains tax when you sell or when you buy IPs there? I'm curious…
Both countries have a Double Tax Agreement. You are taxed by the country you live or reside in.
Hi
I was talking about income, so that would include capital gains if sold.
NZ doesn't have a CGT. You pay tax on property bought for resale at your marginal tax rate in the country you reside. If you buy an investment property rent it and then sell it some years later there is NO tax on the CG.
There's a great new tool called google and NZ have had the internet for a few years now. Their tax agency is even on the internet. It's called the I n l a n d R e v e n u e S e r v i c e
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