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Jump right in:

• How to open a bank account in New Zealand
• The New Zealand tax system explained
• What is an IRD number?
• What types of taxes are there in New Zealand?
• [What is KiwiSaver & how does it work?](#what-is-kiwisaver-how does-it-work-)
• Taxes for self-employed people

How to open a bank account in New Zealand

The process of opening a bank account in New Zealand is fairly simple. You can even set up a New Zealand bank account from your own country before you move. Read on for more information on how to open a bank account, either in person or from abroad.

What are the requirements to open a bank account as a non-resident?

As a foreigner, here’s what a New Zealand bank may typically ask for when you open an account in person:

• a valid ID
• proof of an address in New Zealand (e.g., utility bill, rental agreement)
• a New Zealand IRD number
• proof of your visa

Keep in mind that requirements can vary slightly depending on the bank.

How to open a New Zealand bank account from abroad?

You can open a New Zealand bank account from overseas, but most banks will only offer limited access until you arrive in the country and complete an in-person identity verification.

This means you’ll be able to deposit money and receive payments, but you won’t be able to withdraw funds or use the account fully until it’s activated at a local branch. The application process is usually straightforward and can be completed online, though it may take up to 10 business days to process.

While requirements vary slightly between banks, you will generally need to submit the following:

• a copy of your passport
• proof of your residential address from your home country
• a copy of your New Zealand visa (such as a work, student, or residence visa)
• a completed migrant banking application form

Some banks may require that your documents are officially certified by a notary or other authorized person.

Once your application is approved, you’ll receive your online banking login details. Keep in mind that not all banks offer overseas account opening, and account features may vary depending on the provider.

EFTPOS card and debit card: What’s the difference?

When dealing with banking in New Zealand, you’ll soon come across the term Electronic Funds Transfer at Point of Sale (EFTPOS) cards, which are commonly offered as part of your account. These cards are similar to debit cards as they both use funds from your account. However, there are some differences:

• EFTPOS is a system native to Australia and New Zealand, which means you may have difficulty using it outside of these countries.
• You can’t pay online with EFTPOS cards.
• EFTPOS cards are free of charge unlike most debit cards.

What are the best banks for expats in New Zealand?

There are many options for banks in New Zealand. The main ones are:

• ANZ
• ASB Bank
• BNZ Bank
• Kiwibank
• Westpac

These offer some of the best online banking options in New Zealand, as well as no-fee bank accounts.

While some New Zealand banks offer free accounts, you may still encounter costs such as international transfer fees, ATM withdrawal charges, or one-time setup fees.

Some international banks in New Zealand

Although many of the popular banks in the country are national, you can still find the following international or foreign banks in New Zealand:

• BNP Paribas
• Citibank, N.A.
• The Bank of Tokyo-Mitsubishi UFJ

For a complete list of all the banks registered in New Zealand, refer to the .

The New Zealand tax system explained

The tax system in New Zealand is administered nationally by the Inland Revenue Department (IRD) and is quite simple compared to many countries. It is mostly based on personal income, business income, and goods and services Tax (GST). New Zealand does not have inheritance taxes, local or state taxes, social security taxes, general capital gains (except for specific investments), or even healthcare taxes (except for a low levy for the ACC).

In general, most people in New Zealand do not need to file a tax return each year, as tax is automatically deducted through the PAYE (Pay As You Earn) system. However, if you earn income that isn’t taxed at sources such as income through self-employment or from overseas, you may be required to file a return. The IRD will usually notify you if this applies.

The tax year starts on 1 April and ends on 31 March. The tax rates are progressive, which means the more you earn, the more taxes you pay.

Who is considered a tax resident in New Zealand?

You are considered a New Zealand tax resident if you meet any of the following criteria:

• You spend more than 183 days in New Zealand in any 12-month period (the days do not need to be consecutive).
• You have a permanent place of abode in New Zealand, meaning you have a home you habitually return to, and strong personal or economic ties to the country.
• You are working overseas for the New Zealand government.

What is an IRD number?

An IRD number in New Zealand is your Inland Revenue Department (IRD) tax identification number. It’s a unique number that the government uses to track your tax obligations and entitlements.

You’ll need an IRD number when you:

• Start a job (so you’re taxed correctly)
• Open a bank account
• Receive government payments or tax credits
• File a tax return
• Invest in property or shares

Without an IRD number, any income you earn will be taxed at a higher rate of 45%.

What are the requirements to apply for an IRD number?

You can either apply for your IRD number after you arrive in New Zealand or from overseas, which may save time if you plan to work shortly after arrival.

Documents you need if you’re applying from overseas:

• a valid ID
• proof of address such as a utility bill
• your overseas tax identification number (if you have one)
• proof of your reason for applying (e.g. work visa, student visa, or intent to buy property)
• a fully functional New Zealand bank account or a completed IR997 form from a reporting entity

If any of your documents are not in English, they must be translated. For overseas applications, documents must be scanned and emailed to the Inland Revenue. Applications are typically processed within 8–10 working days, and your IRD number will be sent by text, email, or post.

If you’ve recently arrived in New Zealand, you can make use of a simplified application process based on your visa. You’ll then only need:

• your passport details
• the Immigration Application Number (which can be found on the visa approval letter from Immigration New Zealand)

If you’re applying with a work or student visa, you’ll also need:

• your most recent overseas tax number (if applicable)

You’ll usually receive your IRD number within 2 working days by text or email, or within 10 working days if sent by post. You can apply online through .

What types of taxes are there in New Zealand?

These are the different types of taxes in New Zealand, and their corresponding rates:

Personal income tax: There’s a progressive tax rate system for individuals, ranging from 10.5% to 39% based on income brackets. (Find out more below)

Business tax: Most companies are taxed at a flat rate of 28% on their net profits.

Accident Compensation Corporation (ACC): This is charged at a flat rate on your liable income each year, and the rate may change annually. It helps fund New Zealand’s accident insurance scheme. You can check the for the latest rate.

Capital gains tax: Capital gains are generally not taxed in New Zealand, but certain gains such as from property, shares, or financial instruments may be taxable under specific rules.

Tax on interest and dividends (resident withholding tax): In New Zealand, interest earned from savings accounts, and some dividends are taxed through Resident Withholding Tax (RWT). This is a tax deducted at source by your bank or investment provider and sent directly to Inland Revenue. Rates typically range from 10.5% to 39%, depending on your income level.

Fringe Benefit Tax (FBT): Employers pay this tax on non-cash employee benefits, with rates up to 63.93% or an alternate rate of 49.25%.

Goods and services tax (GST): A flat 15% tax applies to most goods and services.

Excise Tax:  Alcohol, fuel, and tobacco products made and consumed in New Zealand are subject to excise duty.

Other: Motorists pay a levy with their annual vehicle registration. Employers may pay insurance cover based on industry risk.

Income tax in New Zealand

Income in New Zealand is taxed on a pay-as-you-earn basis (PAYE). Tax residents are taxed on their worldwide income, while non-residents are taxed only on income earned from New Zealand sources. If you do not have an IRD (New Zealand’s tax number), you will be paying tax at the highest rate.

Generally, taxes apply to the following types of income:

• salary and wages
• ACC compensation for loss of earnings
• bonuses, whether lump sum or recurring
• employer allowances (travel, accommodation, relocation)
• payments for services done in NZ for overseas employers

Income tax is calculated using two key components: tax codes and tax rates.

Tax code

Tax codes tell your employer how much they need to deduct from your salary. You will need to inform your employer of your correct code, otherwise, you’ll be charged the higher non-declaration rate of 45%.

Tax codes are made up of letters (like M, ME, or M SL) and you can use the IRD website to .

Tax rates

Tax rates are the percentages of taxes you must pay. These are calculated based on your yearly income in a given tax year.

Since your income as an employee is deducted at source through the PAYE system, you may not need to pay any additional tax at the end of the year. In some cases, you might even receive a refund if you’ve overpaid.

If you’re using the correct tax code and all your income is taxed through PAYE, you generally don’t need to file a tax return. However, if you do need to file one, you can either submit it yourself or IRD may notify you.

What are the income tax rates in New Zealand?

The rates on personal income are as follows:

What is KiwiSaver & how does it work?

KiwiSaver is a voluntary, work-based retirement savings scheme available to New Zealand citizens and permanent residents. It’s designed to help you save for retirement, and you can still receive New Zealand Superannuation at age 65 even if you’re in KiwiSaver.

If you’re between 18 and 65 and start a new job, you’ll likely be automatically enrolled, though you can choose to opt out. Contributions come from both you and your employer, with a default employee rate of 3% (though you can choose higher), and a minimum employer contribution of 3%. If you’re self-employed or not working, you can still join by signing up with a KiwiSaver provider directly.

Your savings are managed by independent KiwiSaver providers, who invest your money and can offer financial advice. The government may also contribute to your savings each year if you meet certain income and contribution requirements.

Taxes for self-employed people in New Zealand

Self-employed individuals in New Zealand, including contractors, freelancers, sole traders, and small business owners, are taxed as individuals. You pay tax on your net profit by filing an individual income tax return at the end of the tax year. For tax purposes, you are considered a one-person business.

If your annual income exceeds 60,000 NZD (approx. 35,000 USD), you must register for Goods and Services Tax (GST).

To manage your taxes, make sure you:

• Keep accurate records of your income and expenses
• Claim business expenses to reduce your taxable income
• Charge GST on your invoices if you are required to register

How to complete your individual tax return if self-employed

If you’re self-employed in New Zealand, you’re responsible for filing your own income tax return each year. Unlike employees on PAYE, you must track your income, calculate your expenses, and report everything directly to Inland Revenue (IRD). This process is completed using the IR3 Individual Income Tax Return, usually filed through your myIR account.

To complete your IR3 return, gather the following documents and details:

• IRD number
• bank account details
• total income for the year (from all sources: self-employment, PAYE jobs, rental income, interest, etc.)
• business expense records (including receipts and asset depreciation)
• any provisional or withholding tax already paid
• relevant forms, such as:
  - IR3 (standard income tax return)
  - IR3B (business income schedule for self-employed) - IR3R (rental income) - IR3F (for farming income, if applicable) - IR3NR (if you are a non-resident)

Depending on your situation, you may also need:

• invoices or payment summaries from clients
• records of scheduler payments
• GST returns (if registered for GST)
• previous years’ tax returns (for reference)
• a summary of income

The deadline to hand in your return is 7 July. Other timings could apply if you have a tax agent or are entitled to an extension. If you submit your taxes late, you may have to pay a fine.

After you submit your return, you’re informed by the IRD of any amount you may have to pay or receive. You’ll be glad to know any mistakes can be fixed after filing your return either by amending it through your myIR account or by contacting IRD directly. You can also read on the IRD website for more information.