9 August 2010

The New Zealand Government has recently made a move to this country an even more viable option.  With income tax set to be lowered in October of this year and positive changes being made to new migrant visas; making the transition to the “Aotearoa: The Land of the Long White Cloud” is now an exciting possibility for off shore residents.

New Zealand has weathered the storm of the global financial crisis and is showing signs of economic recovery well ahead of other OECD countries.  By introducing personal income tax cuts and new investment based visas (one of which that doesn’t even have an upper age limit) New Zealand is hoping to capitalise on the brain drain from other parts of the world.

Currently New Zealand’s personal income tax rates are as follows:

• 12.5% for earnings up to $14,000 NZD
• 21% between $14,001 and $48,000 NZD
• 33% between 48,001 and $70,000 NZD and then
• 38% for everything over and above the $70,000 threshold

As of 1 October 2010 these rates will decrease to:

• 10.5% for earnings up to $14,000 NZD
• 17.5% between $14,001 and $48,000 NZD
• 30% between $48,001 and $70,000 NZD and then
• 33% for everything over and above the $70,000 threshold

This compares favourably to the UK and Europe where the top tax rates can be as high at 50%.

Further benefits can include a period of tax free living in New Zealand.  Before the Government considered the lowering of personal income tax rates in a bid to attract the best migrants possible and ensure their kick started economic recovery remains on track, the nation already offered migrants a period of semi-tax-free living.

Those who move to the nation can enjoy up to four years tax-free living from certain types of foreign sourced income which can certainly allow for a smoother transition period all round.

There are also two new (non-skills based) visas available.  Both are investment class visas, with one certainly favouring retirees as it has no upper age limit.  The Investor Plus Visa, as it is known, requires significant investment commitment, but it does allow you to move to live permanently in New Zealand whether you’re retired, skilled or unskilled, well qualified or just wealthy as there is no age limit and no business skills level stipulation.  The requirement is investing 10 million NZ dollars into the nation over 3 years.

If that is too high a sum for you and you’re under 65, you could apply for the straight Investment Visa instead.  You have to have 3 years business experience, invest 1.5 million New Zealand dollars over 4 years (including investment property) and have an additional million in the bank.  Please refer to the New Zealand Immigration Department website for more details, which will also include the requirements for the skills based migrant visas.

All in all, New Zealand is now more than ever an attractive nation for new migrants.  With the added benefits of the excellent lifestyle options, the relatively low cost of living and clean, green eco-friendly status New Zealand should be top of mind for those considering a move to greener pastures.

Ref: http://www.shelteroffshore.com