Reviewed by John Hu, Principal Consultant at John Hu Migration Consulting.
After moving to New Zealand, the common question is: "Will my Hong Kong and overseas income be taxed in New Zealand?" Once you become a NZ tax resident, worldwide income is generally taxable; but Inland Revenue (IRD) offers a Temporary Tax Exemption (TTE), under which new migrants or returning New Zealanders can have most foreign-source income exempt for about 4 years. Below is based on IRD's website.
1. Who qualifies?
IRD calls them transitional tax residents:
- New migrants or returning New Zealanders;
- Became NZ tax residents on or after 1 April 2006;
- Were not NZ tax residents in the 10 years before.
Eligible people get the exemption automatically, but only once.
2. What income is exempt?
| Exempt | Not exempt |
|---|---|
| Overseas interest | Overseas employment income |
| Overseas dividends | Overseas personal services income |
| Foreign investment fund (FIF) income | |
| Overseas rent |
Lump sums from foreign pensions follow a separate 4-year rule. IRD notes a double tax agreement may give full or partial relief.
3. How long, and how it is calculated
- About 4 years;
- Start: the first day you become a NZ tax resident;
- End: the earlier of two events, plus 4 years (counted from the end of that month): (1) spending more than 183 days in NZ in any 12-month period; (2) establishing a permanent place of abode here.
IRD examples: someone who bought a house before reaching 183 days has an exemption from 10 March 2023 to 30 April 2027; one qualifying by 183 days of presence runs to 31 October 2027.
4. Four ways it can end early
- You or your transitional-resident partner apply for Working for Families tax credits (including Best Start);
- You include otherwise-exempt income in your IR3 return (irrevocable, with limited amendments);
- You confirm to a foreign tax authority and IRD that you have paid or will pay NZ tax on overseas income from the exemption period;
- You tell IRD you no longer want transitional resident status.
After it ends, worldwide income is taxable in NZ from the next day.
5. Planning checklist for Hong Kong applicants
- Pin down your tax residence date; buying a home or long stays move the start and end;
- Watch overseas employment income; it is not exempt;
- Avoid triggering early termination; take tax advice before filing or claiming family credits;
- Plan assets; review your overseas holdings before the exemption ends;
- For route options see New Zealand investment immigration and the New Zealand hub.
⚠️ IRD's page does not mention investor visas such as AIP. Eligibility depends on your own tax residence status; confirm with a tax professional.
FAQ
Q: Do I pay NZ tax on worldwide income as soon as I become resident?
Generally yes, but TTE-eligible people can exempt most foreign income for about 4 years.
Q: Are AIP investors automatically eligible?
IRD refers to new migrants generally and does not single out AIP; confirm by your tax residence status.
Q: How many times can I use it?
IRD says only once.
Based on IRD public guidance; for reference only; not tax advice. Rules may change and outcomes depend on personal circumstances. Consult a qualified tax adviser.
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Source: Inland Revenue (New Zealand) — Temporary tax exemption (accessed October 2026).