Government Toughens Stance on Property Gains
May 18, 2015 New Zealand Taxation
Property investors will now be eligible to pay tax for any capital gains made from the sale of their investment property.
Over the weekend the government announced that new rules will be instated regarding the taxation of the sale of investment properties, in an effort to help control the upward spiralling property market.
Under the new regulations any profits earned from the sale of investment property within two years of its original purchase will be taxed at the seller’s marginal tax rate.
The new regulations are intended to work in tandem with currently active rules stating that profits made from the sale of properties by a professional investor, or anybody trading property for profit, shall be taxed at their own tax rate.
Alongside the new rules, additional regulations were established for the purchase of property by foreign investors, with a new requirement of having New Zealand IRD number in order purchase property.
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