I have just come home from Steves Melb Masterclass. An absolute must for those who are serious about investing of any sort.
Anyway my question is does know the process and costs for setting yourself up as a seperate business identity in NZ in order to qualify for property finance
Thanks
CKHRCKHR,
I also have just come from the Masterclass and interested in similar information. Get on board and do the Kiwi trip in July!
Regards,
LW
(1 post to go)LW
C ewe in July in the land of the long white cloud.
Booked on the day. Should be fantastic
Cheers
CKHRas little as about $650
masteraccountants.co.nz
company – online for $55 bucks
NZ companies registerbut might be better to do this through an accountant if you don’t live there
Thanks MiniMogul
Shall followup with an accountant
Cheers
CKHR
I have read somewhere that an Aussie investor can set up a trust in NZ to invest in property and the trust will only pay 33% tax in NZ. Then as long as you leave the money in NZ and reinvest it then you won’t have to pay tax in Australia on the earnings.
I have also read conflicting views – that you have to pay your marginal rate on earnings in NZ no matter whether you repatriate them or not.
I am interested in any opinions/experience out there.
Andrew
HI
We are also heading to NZ july for Masterclass. We have a trust/co in Aus, does anyone know if we can invest in NZ under our Aus trust? Do we have to set up another trust in NZ[confused]CKHR,
I also have just come from the Masterclass and interested in similar information. Get on board and do the Kiwi trip in July!
Regards,
LWin Regards to the above the answer is yes you can use your aus com/trust to invest in nz. Indeed an australian cannot setup a comp in nz unless there is at least one nz cit. as a director. kind a rules us aussies out ….
you can setup a nz trust but to my undertanding is that there is little fin. addvan.
but as always check with accountant.
Have recently set up a Family Trust in NZ to buy properties. However, the ATO says if you have control of the trust then it is deemed to be an Australian Trust and will need to have tax returns done here as well as in NZ. (I think this is to stop Australians hiding income in overseas Trusts).
To overcome this, we have setup a NZ Corporate Trustee to be the trustee of the trust and have our solicitors as the directors/shareholders of the Corporate Trustee company. This all seems to be a very grey area and no-one can tell me for sure that the ATO will accept this as being controlled by NZers and not Australians, but hopefully it won’t be tested.
Ultimately as we are the appointors of the Trust, we haven’t lost total control of the Trust as we can of course sack the Trustees if we are not happy with them.
If you are only buying 1-2 properties in NZ, then I don’t think it is worth setting all this up but if buying afew then it is worthwhile.
The good thing is that as there is no stamp duty in NZ, you can buy the properties in your own name initially and then transfer them to the Trust at a later date at not too much cost.
Hope this helps.
Shar
Shar,
Yeah – I’m not too sure about that central management and control test that determines residency…
Even if the company is deemed to be nonresident, maybe it would be possible that as appontors, that you have ultimate control as well…need to ask about that one…
Just out of curiosity, how much does it cost to set up a trust/company in NZ and what sort of ongoing compliance costs are involved ?
andrew.
Hi Aptam
My costs were as follows:
All NZ $ plus GST
Setup Trust $850
Setup company $600
Transfer property to trust $600 each
Ongoing administration costs approx $500p.a.Shar
Hi Shar,
thanks for the stats – much appreciated.
Also, one other quick one – how long did the whole process take to set up from start to finish ?
cheers,
andrew.[cap]Hi Andrew
I really couldn’t say how long it took as actually bought 2 properties while in the process of setting up (which were bought in the Trust name). Also wasted alot of time to-ing & fro-ing with emails to solicitor and accountant in NZ, speaking to Sydney accountants and ATO trying to work out if it was the correct way to go. Probably took about 4-6 weeks in all. However, I reckon you could do it in a couple of weeks if you know what structure setup you want from the start.
Cheers
Shar
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