Living overseas but have a house in NZ? You may be tax resident
Many business owners in our community live in two places. Your business is in Auckland, but your partner and kids are in Sydney. Or you spend most of the year in your home country and fly back to New Zealand a few times a year to check on the shop. You keep a house here because it's easier than booking a hotel every trip.
A common belief is that as long as you're in New Zealand for fewer than 183 days, you're not tax resident here. That isn't always true.
The short answer You are New Zealand tax resident if you have a "permanent place of abode" here, even if you also have one overseas and even if you're here for fewer than 183 days a year. A house you go back to regularly and stay in for a good part of the year, plus real business and social ties here, can be enough.
What makes someone NZ tax resident?
Under the Income Tax Act 2007, there are two main tests for individuals:
The permanent place of abode test: you have a permanent home in New Zealand.
The 183-day rule: you are in New Zealand for more than 183 days in total in any 12-month period.
You only need to meet one of them, and the permanent place of abode test comes first. If you have a permanent home here, being in New Zealand for fewer than 183 days doesn't change anything. You're still tax resident.
What is a "permanent place of abode"?
In everyday words, it means a home in New Zealand that you keep coming back to. The law doesn't define the term, so the test comes down to two questions.
1. Do you have somewhere to live in New Zealand?
This means a house, apartment or similar place that you can stay in whenever you're here. It doesn't have to be yours. It could be rented, owned by your family trust, or a family member's home where you always have a room. A hotel room you book now and then doesn't count.
Words you may see: this is often called a "dwelling" or a "place of abode" that is "available" to you.
2. Is it a real, ongoing home for you, not just a stopover?
This is the harder question. Following the Court of Appeal, the question is whether you regularly come back and live there as your home, even if you spend long periods overseas in between.
Think of the difference between:
a home: you keep going back to the same place year after year, your things are there, and you settle in when you arrive, and
a stopover: you stay somewhere once or twice for a short visit, or the place is just somewhere to sleep during a one-off trip.
"Permanent" doesn't mean you plan to live there forever, or that you live there all year. It means the arrangement is ongoing and long-term, not a short, one-off arrangement.
Owning a house in New Zealand isn't enough on its own either. A house you never use, or one that's rented out to tenants, usually won't make you resident by itself. What counts is how you actually use the place and how connected you are to New Zealand overall.
Words you may see: the Court of Appeal described this as a place where you "habitually reside" from time to time, with "permanent" meaning "enduring rather than temporary". The leading case is CIR v Diamond (2015).
What gets looked at?
Your whole situation is weighed up, not just one fact. The main factors are:
How often you're in New Zealand and how long you stay
How you use the house and how long you've had it
What you plan to do (this matters, but it doesn't decide the answer on its own)
Family and social ties, such as clubs, community and sporting groups
Business, work and money ties, such as companies, investments and bank accounts
Personal belongings you keep here
No single factor decides it, and the list isn't closed.
Can I be tax resident in NZ and Australia at the same time?
Yes. You can have a permanent home in New Zealand and another one overseas. The test doesn't ask which country you're more connected to, only whether your New Zealand home counts as a permanent home in its own right.
If you end up tax resident in both New Zealand and a country that has a double tax agreement with New Zealand (such as Australia), the agreement has extra tests to decide which country gets first right to tax you. That's a separate step with its own rules.
Words you may see: the agreement is a "double tax agreement" (DTA), and its extra tests are called "tie-breaker" tests.
Worked example: Li
Li is a New Zealand citizen with businesses in New Zealand and Australia, and a house in each country. Neither house is rented out. His family lives in Australia, and he spends most of his time there.
He flies to New Zealand regularly for business, for trips of 2 days to several weeks. In total that's up to 5 months a year, or roughly 150 days, so well under 183. He stays in his own house while he's here. He also has significant investments here and belongs to cultural and sporting groups.
Inland Revenue's conclusion: Li is New Zealand tax resident. Each trip is short, but he keeps coming back to the same house for months every year, so it's a real home rather than a stopover. His business and community ties back that up. His Australian house doesn't change the answer, and the 183-day rule doesn't help him because the permanent place of abode test comes first.
Why it matters
New Zealand tax residents are generally taxed on their worldwide income, not only what they earn here. If you've assumed you're non-resident because of a day count, you may be leaving out income you should have declared. Getting it wrong can mean tax to pay later, plus interest and possibly penalties.
What this means for you
Don't rely only on the 183-day count if you keep a home in New Zealand.
Keep a simple log of when you arrive in and leave New Zealand, and where you stay.
Note what ties you keep here: house, business, investments, clubs, family.
If you have homes in two countries, check whether a double tax agreement applies.
Review your position when anything changes: you sell or rent out the house, your family moves, or your business changes.
If your situation is like Li's, or you're not sure which side of the line you're on, get in touch with H-
Twice and we can work through it together.
This article is general information only and is not tax advice for your situation. Tax rules change, and the right answer depends on your facts. Last reviewed November 2026.
Comments