Foreign residential rental property

If you own a foreign residential rental property, you may need to pay tax on the rental income in both New Zealand and in the country where the property is located.

This overview sets out guidance provided by the Commissioner, which may help you to identify your tax obligations.

The Commissioner issues different types of guidance items to cater for different customer needs. The different types of items are explained here.

Title	Summary	Date issued
Income tax - tax issues arising from owning foreign residential rental property IS 20/06	This IS explains how to translate your foreign income and expenses into the correct amount for New Zealand tax purposes.	3 Jul 2020
Application of the financial arrangements rules to foreign currency loans used to finance foreign residential rental property IS 20/07	This IS explains your obligations if your foreign residential rental property is financed with a foreign loan and you have to use the FA rules.	3 Jul 2020
Approval – foreign residential rental property amounts – currency conversion FX 20/01	This determination approves some simplified methods and foreign exchange rates sources that you can use to convert your foreign residential rental property income and expenses to New Zealand dollars.	3 Jul 2020

Title

Summary

Date issued

Income tax - tax issues arising from owning foreign residential rental property

IS 20/06

This IS explains how to translate your foreign income and expenses into the correct amount for New Zealand tax purposes.

3 Jul 2020

Application of the financial arrangements rules to foreign currency loans used to finance foreign residential rental property

IS 20/07

This IS explains your obligations if your foreign residential rental property is financed with a foreign loan and you have to use the FA rules.

3 Jul 2020

Approval – foreign residential rental property amounts – currency conversion

FX 20/01

This determination approves some simplified methods and foreign exchange rates sources that you can use to convert your foreign residential rental property income and expenses to New Zealand dollars.

3 Jul 2020