jmh

From today's Independent:

New Zealand

This economy has always been fairly steady, neither booming nor busting. “New Zealand has not escaped the effects of the credit crisis, but it has been hit less hard than many European and North American nations,” says Mark Bodega of the currency trader HiFX. com.

http://www.independent.co.uk/money/i...s-1628041.html

NakiMan

Hasn't that always been the case?

The "new" capital that immigrants bring in has always been crucially important to the NZ ecomomy.

And add to that the tax that they are required to pay on overseas income (even if that income is never brought to NZ) and you'll see why.

Lets face it, something has got to replace what 36,000 Kiwis a year are taking off to Australia.

jennifer45

Hi there, NK,
Could you expand on the above quote.
I was under the silly misapprehension that new migrants were being given a 4 year holiday[]from tax on overseas income. Has that been changed now or did I misunderstand it in the first place?
Jennie

NakiMan

Yes, you're quite correct. New Migrants are exempt from paying tax on most types of overseas income for the first four years.

But I seem to remember reading that if you take up this option, you're excluded from most types of social security benefits (This needs to be verified with NZIR)


Eventually (after 4 years) you will have to pay tax on it, of course. The main point I was making is that you have to pay NZ tax on overseas income, even if that income remains in the source country and is never bought to NZ

CatherineF

What does this mean? Are skilled migrants asked about their funds? There is no mention of funds on the EOI form and I couldn't find any information on this.

NakiMan

I wouldn't worry about it. This was only an opinion expressed by a UK journalist

I don't think it represents any sort of official policy of either the NZ Government or NZIS

Didn't I read the other day that the UK plans to introduce rules that a job cannot be offered to a potential immigrant unless the employer can prove that they cant find a UK citizen to fill it?

planty

When we filled in the forms 3 years ago nothing was asked about our financial state, however when we got the telephone interview we were asked for an approximate amount, (which we didn't have to send proof of), and this I believe is because as new immigrants we wouldn't be entitled to any benefits for 2 years, so they just wanted to be sure we could support ourselves and not be a drain on the local benefit system.

Hope that helps.

southerner

Yep - after you've been here 4 years you have to pay tax on worldwide income, just like any other kiwi. Note that the 4 year window is a concession available to immigrants only, its not even available to returning kiwis.

On balance I'm expecting net migration to NZ to pick up again over the next 24 months, due mainly to returning kiwis from Australia, but also as the housing market finally starts moving again in places like the UK and the ratrace exit queue starts moving again.

BEVS

No. They are not.

SMC is about skills.

CatherineF

Thanks for the replies. That is good to know.

NakiMan

Good point, and I'm sure that this can only be to NZ's benefit.