Leaving New Zealand has several important tax obligations that many people overlook. From filing a final tax return to updating your KiwiSaver and notifying IRD of your non-residency, this guide covers what you need to do before and after you go.
When you leave NZ: (1) file a final IR3 covering the period you were resident, (2) notify IRD you are becoming a non-resident (via myIR), (3) if you keep NZ income (rental, interest), update payers with your non-resident status so NRWT applies at the correct rate, (4) consider KiwiSaver: after living overseas (not Australia) for 1 year you can apply to withdraw most of it, and a permanent move to Australia allows a transfer to Australian super instead, (5) check if you owe terminal tax or are owed a refund.
Step 1: File Your Final NZ Tax Return
Your final NZ tax return (IR3) covers the period from 1 April (start of the NZ tax year) to the date you cease being a NZ tax resident.
In the return, include:
- All NZ income from the start of the year to your departure date
- All worldwide income earned while you were a NZ resident
- Any NZ-sourced income earned as a non-resident (if applicable)
If you depart partway through the tax year, you file a single IR3 for the full year but note the split between resident and non-resident periods. IRD’s guidance allows this on a single return.
Step 2: Establish Non-Residency
Leaving NZ does not automatically make you a non-resident. You must break both residency tests:
- Remove your permanent place of abode — sell your home or, if renting it out, ensure you have no right to occupy it
- Move your family overseas — your primary family ties should be in the new country
- Stay away — both the 183-day test and the place-of-abode test must be broken
Notify IRD through myIR:
- Log in to myIR
- Profile → Update personal details
- Update your country of residence
- IRD will update your tax status
If your non-residency start date is unclear, consider applying for a binding ruling from IRD.
Step 3: Non-Resident Withholding Tax (NRWT) on NZ Income
Once you are a non-resident, any NZ-sourced passive income is subject to Non-Resident Withholding Tax (NRWT) rather than resident withholding tax (RWT):
| NZ income type | NRWT rate (standard) | NRWT with DTA |
|---|---|---|
| Interest from NZ bank | 15% | May be reduced (e.g., 10% for many DTAs) |
| Dividends from NZ companies | 15% | 15% (standard DTA rate) |
| Royalties | 15% | Varies by DTA |
Notify your NZ bank and any NZ investment providers of your non-resident status so they apply NRWT at the correct rate instead of RWT.
If you have a NZ rental property, you continue to file an IR3 as a non-resident for the rental income (not subject to NRWT — rental income requires a return).
Step 4: NZ Rental Property as a Non-Resident
If you keep a NZ rental property:
- You are still taxed on the NZ rental income as a non-resident
- File a non-resident NZ IR3 each year for the rental income
- Deductible expenses apply the same as for residents
- If you use a property manager, they must withhold tax at 20% from rent collected (non-resident rental withholding tax) unless you elect out
Non-resident taxpayers with NZ rental income can elect to have tax withheld by their property manager (simpler) or file an IR3 and pay the correct amount at year end.
Step 5: KiwiSaver When Leaving NZ
You can’t withdraw KiwiSaver just because you are leaving. What you can do depends on where you go:
Leaving for Australia
If you move permanently to Australia, Inland Revenue says you can transfer your KiwiSaver savings to an Australian superannuation scheme, but you do not have to; you can’t withdraw it as cash. The transfer includes government contributions you received while living in NZ (any received while living overseas are returned to the government). Inland Revenue’s guidance on trans-Tasman portability says savings transferred to Australia stay locked in until the NZ Super age (currently 65) and can’t be moved on from Australia to a third country.
Leaving for all other countries
Inland Revenue says that after you’ve been living overseas (not Australia) for 1 year, you can take most of the savings from your KiwiSaver account:
- You apply to your KiwiSaver provider, which sets the evidence it needs (such as a plane ticket or passport showing your departure, your overseas address and a statutory declaration)
- You must have left NZ permanently
- You cannot take out the government contributions: providers repay them to the Government before your account is closed
You don’t pay tax on money you withdraw from KiwiSaver. Some providers apply the highest PIR to your fund’s returns once you have been outside NZ for more than 325 days, because you are then a non-resident for tax purposes. More detail: withdrawing KiwiSaver when leaving NZ.
Pending Tax Obligations After Departure
Before leaving, check:
- Tax refunds owed: Log in to myIR to check if you have a pending refund — ensure your bank account is current so any refund is deposited
- Tax owing: Any outstanding income tax or provisional tax must be paid before departure (or arrange a payment plan)
- Student loan: If you have a student loan, you become an overseas-based borrower if you are in NZ for 31 days or less in a 184-day period, and overseas repayments then apply — contact IRD about overseas-based borrower repayment rates
Frequently Asked Questions
If I am leaving NZ permanently, do I need to file any future NZ tax returns?
Only if you have NZ-sourced income (rental property, NZ employment income, NZ interest if not fully covered by NRWT). If NRWT is correctly withheld on all passive income, no further returns are needed.
I plan to come back to NZ in 2–3 years. Should I maintain NZ residency?
It depends on your circumstances. If you have significant overseas investment income, becoming a non-resident may save tax. But re-establishing NZ residency triggers the 4-year transitional resident clock again. Talk to an international tax specialist before making this decision.
My partner is staying in NZ. Will I still be a NZ tax resident?
Almost certainly yes — a spouse/partner remaining in NZ with the family home is one of the strongest indicators of a permanent place of abode. You would likely remain a NZ tax resident even if working overseas.