New Zealand: Withholding tax on sales of residential property

NZ: Withholding tax on sales of residential property

The third part of the property tax package proposed in the budget 2015 provides for a residential land withholding tax on offshore sellers. These withholding tax measures have been released, thereby completing a “trifecta” that also includes new tax disclosure requirements and a bright-line test for taxing residential land.

Related content

The issue paper on the withholding measures confirms that the residential land withholding tax would:

  • Apply to New Zealand property that is subject to the bright-line test if the seller is an “offshore person”
  • Be the lower of 33% of the gain on sale, or 10% of the agreed purchase price
  • Be collected by the conveyancing agent (or purchaser, if there is no agent)

The withholding tax would apply when the property transfer settlement occurs on or after 1 July 2016. 

Submissions concerning the issue paper are requested by 2 October 2015. 

Those conveying residential property and lawyers involved in closing transactions need to note the proposed withholding tax could affect their business operations.


Read a September 2015 report [PDF 582 KB] prepared by the KPMG member firm in New Zealand: Withholding tax on foreign property sellers

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG's new digital platform