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What
What to do to pay tax on rental income from an overseas residential property
Who
New Zealand residents who rent out an overseas residential property

As a New Zealand tax resident you’ll pay tax on income from New Zealand and overseas. This includes tax on the rental income from your overseas rental property.

Even though your property is overseas you’ll still need to follow the New Zealand tax rules for your rental income.

Filing tax returns for your rental income

You'll need to file a New Zealand tax return for your overseas rental income.

You may also have to file a tax return for your rental income in the same country as your overseas property.

Working out tax you'll need to pay

Working out your rental income, expenses, and if there's GST to pay is not the same for all residential property. Check what to do for the type of property you're renting out:

Tax by rental property type   

Double tax agreements

Filing tax returns in two countries means you'll pay tax twice on the same income.

If New Zealand has a double tax agreement (DTA) with the other country you might only have to pay tax to us or them. You may also be able to claim a tax credit if the DTA allows the credit. This is a tax credit for what you’ve paid to the other country. 

Double tax agreements (DTAs)

Credit for tax paid overseas

Offshore mortgage

If you have an overseas mortgage on your rental property, you may need to pay non-resident withholding tax (NRWT) or approved issuer levy (AIL) on the interest paid overseas.

Financial arrangement rules apply if your overseas mortgage is over certain thresholds. The rules may also apply to your foreign currency account or loans. This means any foreign exchange gain or loss may need to be included in your New Zealand income tax return.

Non-resident withholding tax (NRWT) 

Converting overseas currency for your tax return

You cannot put foreign currency amounts into your New Zealand tax returns.

Once you’ve worked out your overseas rental income and allowable rental expenses convert it to New Zealand dollars.