Taxing Land in NZ

land

New Zealand is a beautiful country and increasingly people from overseas and cities within NZ are retiring to the country. In buying large blocks of rural or city fringe land owners become liable for property taxes.

New Zealand – Property Guides and Articles on Property and Property taxes are available in our Law Library here.

Queen City Law have an excellent tax dispute team who are skilled at getting positive settlements for their clients. Lawyers Melinda Li and Brett Carpenter understand NZ tax law and are excellent at getting your case resolved successfully.

To find out more about Melinda click here. To find out more about Brett click here. 

To read more articles on Tax law in NZ click here.

What are Property Taxes in NZ?

In NZ Property taxes (rates) are levied by local authorities and are based on the rateable value of properties.
Bills are sent out at the beginning of the financial year and are payable by whoever occupies the property, whether it’s the owner or a tenant. If you occupy a property for just part of a year, then only a proportion of the tax is payable.

How much is property tax in New Zealand?

The annual bill for an average family house is between $1,000 and $2,000. It isn’t uncommon for residents, either individually or collectively, to appeal against their property valuation in order to obtain a tax reduction.

Property taxes pay for local services such as street cleaning, lighting and subsidies paid to local public transport companies. They usually include rubbish collection (although an extra charge is levied in some areas), recycling collection and water, although in some areas such as Auckland, water is billed separately.

Auckland residents have been protesting against water charges and rates for the last few years, because although water charges were recently excluded from their rates, they weren’t reduced! As a result, Auckland residents pay more or less the same as before in rates as well as expensive water charges (most households pay more than $800 per year).

For New Zealand – Property Guides and Articles on Property and Property taxes are available in our Law Library here.

If you have any concerns regarding the possible tax consequences, including GST, of any pending sale or purchase, please contact Brett Carpenter at our office.

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