If you’ve lived or worked overseas, chances are you’ve accumulated investments—shares, managed funds or property —in another country. But once you’ve made the move to New Zealand, the question often arises: should I leave these investments where they are, or bring them home?
At Pacific Wealth, we specialise in helping new migrants and returning Kiwis navigate the complexities of cross-border financial planning. In this blog, we explore the key considerations when deciding whether or not to repatriate your overseas investments.
Understanding Transitional Tax Residency
New Zealand offers a transitional tax residency exemption, which can be a real advantage if you’re newly tax resident here. This four-year exemption allows you to avoid paying New Zealand tax on certain types of foreign-sourced passive income. This includes:
-
Rental income from overseas properties
-
Dividends and interest from foreign shares and bank accounts
-
Withdrawals from foreign superannuation schemes
-
Income from foreign trusts
-
Offshore business income not related to services performed
To qualify, you must not have been a New Zealand tax resident at any time in the last 10 years and must not have used this exemption previously. You qualify automatically—no application needed.
During this period, there’s often no urgent reason to move your investments. But it’s a great time to begin planning for what happens when the exemption ends.
After the Exemption Ends: What Changes?
Once the four-year transitional tax residency period ends, your global income—including income from overseas investments—becomes taxable in New Zealand.
At this point, many types of overseas investments fall under the Foreign Investment Fund (FIF) regime, which applies to:
-
International share portfolios
-
Exchange Traded Funds (ETFs)
-
Managed funds (if the total value exceeds NZD $50,000)
The FIF rules can make tax reporting more complicated. Holding your investments on a New Zealand-based platform can simplify this, improve tax efficiency, and help reduce ‘tax leakage’ from unrecoverable foreign tax deductions.
The Benefits of New Zealand Investment Platforms
Modern NZ investment platforms offer a wide array of global investment options—from direct international shares to local tax-efficient funds like Portfolio Investment Entities (PIEs).
Advantages of using New Zealand platforms include:
-
Easier tax reporting
-
Better alignment with NZ’s tax system
-
Access to local shares, bonds, and custodial services
-
Coordinated investment strategies across all your assets
When is the Right Time to Relocate Your Investments?
The ideal time to consider relocating assets depends on your circumstances but can often be in the final year of your transitional tax exemption. This gives you enough time to plan and implement a tax-smart strategy.
Some investments can be re-registered directly onto a New Zealand platform without triggering a sale and purchase. Others may need to be sold and repurchased—raising issues like:
-
Capital gains tax (especially relevant for U.S. citizens)
-
Currency exchange risk
-
Timing the market and avoiding long periods in cash
Despite the challenges, repatriating your investments can simplify your financial life and align your portfolio with your long-term goals.
Let’s Talk Strategy
At Pacific Wealth, we’ve guided countless expats and returning Kiwis in making smart decisions about their overseas wealth. Whether you’re considering relocating your assets or maintaining an international portfolio, we’re here to help you make an informed choice that suits your needs.
More information about our services is included on our website and you can also book a free consultation.
