Retiring abroad: New Zealand

If you dream of retiring abroad like many UK pensioners, it's a big decision that can affect your pensions. In a poll carried out in 2006, the majority of Britons, 53%, would consider emigrating. Indeed, more than 300,000 individuals leave the UK each year to start a new life overseas.

Estimates suggest that up to 5.5 million British nationals now live abroad. New Zealand is the sixth largest expat destination for Britons. According to United Nations data. France and South Africa follow this. 

The total number of British citizens estimated to be living in New Zealand in 2019 was 272,436. 

Ranking British expats by country

• Australia
• USA
• Canada
• Spain
• Ireland
• New Zealand
• France
• South Africa
• Germany
• Italy

 

Retiring abroad New Zealand: Parent Retirement Resident Visa

Suppose you have children who are permanent residents of New Zealand. You also have NZ $1.000,000 to invest in New Zealand for 4 years. In that case, you can apply for a Parent Retirement Resident Visa. 

Other conditions include having a minimum NZ $500,000 settlement fund. Together with an annual income of NZ $60,000. Your child must also be a resident or citizen of New Zealand. 

The fee for the application is NZ $5,260, which includes the partner in this fee. Around 80% of applications are processed within 6 months. This is fast compared to Australia.

Unlike Australia, you can work and study in New Zealand under the Parent Retirement Resident Visa.

The Parent Retirement Resident Visa lasts for 4 years. It is assessed at 2 years to ensure you meet its conditions. Notably, the investment is still invested. 

A permanent resident visa may be granted if you've met all the conditions by the end of the 4-year investment. 

A permanent resident visa allows travel in and out of New Zealand free from conditions.

Retiring abroad New Zealand: Temporary Retirement Visitor Visa

Suppose you do not have children who are residents of New Zealand. In that case, the Temporary Retirement Visitor Visa might be your option. 

You must be at least 66 years old and willing to invest NZ $750,000 in New Zealand. You can stay for 2 years but must have a minimum NZ $500,000 settlement fund and an annual income of NZ $60,000.

The application fee is NZ $3,790, and this includes the partner's fee. Around 80% of applications are processed within 5 weeks, which is very fast compared to Australia.

Other conditions include relevant medical certificates, police certificates and medical insurance.

You must leave New Zealand before your visa expires. Although you can apply for another 2 years.

Retiring abroad New Zealand: taxation advice

New Zealand residents, including retiree expats, are subject to income tax and tax on their worldwide income. 

Retired expats are subject to a reporting regime for all foreign-held investments. Suppose a retired expat has a foreign savings or investment account that exceeds a certain threshold. In that case, this must be declared to the Inland Revenue.

The tax complexities for retired expats could be a concern. To determine if retiring to New Zealand can work in your favour. Speak to a financial advisor who specialises in this area.

Qualifying Recognised Overseas Pensions Scheme (QROPS)

The setting up of a foreign exchange account should address currency risk.

Alternatively, expats often consider transferring their pensions to a QROPS, avoiding currency transfer risks.

Retiring abroad:  Australia | New Zealand | USA | Canada | Spain | Portugal | Italy | France | Germany | Ireland