Our specialist advisers help US citizens living (or intending to live) in New Zealand to overcome the challenges and complexities of cross-border investments and successful wealth management.
US citizens in New Zealand will typically face a combination of the following issues:
Subject to US tax code
US citizens (and green card holders) must continue to file US tax returns when living in NZ. You therefore remain subject to the US tax regulations. This is where most of the complexity derives from.
Foreign Account Tax Compliance Act (FATCA)
The US has enacted laws requiring foreign financial institutions (such as those in NZ) to identify if they have any US clients and report information back to the US authorities. This means US citizens should assume that the IRS has full visibility of your financial situation, if you were tempted to try and ‘fly below the radar’.
Passive Foreign Investment Companies (PFIC)
When US citizens invest in offshore (non-US) funds, you typically are subject to the US PFIC rules and subject to additional financial reporting (i.e. which increasing your compliance burden) and potentially higher tax. Many US citizens and NZ advisers are not aware of the US PFIC rules.
KiwiSaver
There are slightly differing opinions among US tax accountants, but investments in KiwiSaver can get caught by the PFIC rules. There are a very limited number of providers that you can use in NZ that offer PFIC compliant investments. Also, as KiwiSavers are set up Trusts, investing in a KiwiSaver is considered having an interest in a foreign Trust with additional US reporting obligations.
US Retirement Accounts
Not easily managed from NZ due to restrictions imposed by the US retirement account provider on trading & managing the accounts, once they realise you are overseas.
Other tax advantaged accounts (college 529 plans)
NZ doesn’t recognise the tax advantaged nature of these accounts and are taxable in NZ.
US Social Security and NZ Super
Determining the interaction and benefits you get.
We have many years of experience in overcoming the very specific challenges US citizens.
There are many other benefits and complexities depending on your individual circumstances.
You can find out more for yourself in our US Guide, or contact us any time to discuss your individual situation.
Contact us or book a time to talk that suits you.
We do not charge for initial meetings.
