Renting out property in New Zealand: landlord guide

Costs of buying

• There is no stamp duty or transfer tax; buying costs are mainly legal fees, a building inspection and a valuation.
• Councils charge rates every year, usually paid in instalments.

Buying as a foreigner

• Most overseas people cannot buy existing homes under the Overseas Investment Act. Australian and Singaporean citizens and holders of residence class visas who live in New Zealand are treated like New Zealanders.
• Since an amendment passed in December 2025, Active Investor Plus visa holders can buy or build one home worth at least NZ$5 million, with consent from the Overseas Investment Office.

Official guidance: Land Information New Zealand: Overseas Investment Office · Inland Revenue: Property

How rental income is taxed

• Rental profit is taxed at your marginal rate (10.5–39%). The tax year runs from 1 April to 31 March, and the IR3 return is due by 7 July (later with a tax agent).
• Rental losses are ring-fenced: they can only be set against future rental profit, not your other income.
• Selling a residential property within two years of buying it (the bright-line test, from 1 July 2024) makes the gain taxable, unless it was your main home.
• Non-resident landlords are taxed on New Zealand rent and file a return each year.

Expenses claimable against rental income

• Mortgage interest, fully claimable again from 1 April 2025 (80% in the 2024–25 year).
• Council rates, insurance, repairs and maintenance, and property management fees.
• Depreciation on chattels such as appliances and carpets. Buildings themselves can't be depreciated.

Tenancy rules

• The bond is at most four weeks' rent and must be lodged with Tenancy Services within 23 working days.
• Rent can be raised once every 12 months, with 60 days' written notice.
• Since 30 January 2025 landlords can end a periodic tenancy without giving a reason, with 90 days' notice.
• Rental homes must meet the healthy homes standards for heating, insulation, ventilation, moisture and draughts.

Key dates

• 31 March: Tax year ends
• 7 July: IR3 tax return if you file it yourself
• Within 23 working days of receiving it: Lodge the tenant's bond with Tenancy Services
• Set by your council: Rates instalments

Questions landlords ask

What is a good rental yield in New Zealand?

Gross yields of 3.5–5% are common in Auckland and Wellington, higher in some regional towns. Rental losses are ring-fenced, so check the cash flow with the loan in the rental yield calculator for New Zealand.

Can foreigners buy property in New Zealand?

Most overseas people can't buy existing homes. Australians, Singaporeans and resident visa holders living in New Zealand can, and since December 2025 Active Investor Plus visa holders can buy one home worth NZ$5 million or more with consent.

Can I claim mortgage interest on a New Zealand rental?

Yes. Interest is fully claimable against rental income from 1 April 2025, after being limited in earlier years.

What is the bright-line test in New Zealand?

If you sell a residential property within two years of buying it, the gain is taxable income unless it was your main home. The two-year period applies to sales from 1 July 2024.

Official sources

• Inland Revenue: Property
• Tenancy Services
• Land Information New Zealand: Overseas Investment Office