Property editor of the NZ Herald

Foreign property buying stats due soon

For the first time New Zealanders will be able to get an accurate pictures of the number of foreign property buyers.   Photo / Regan Schoultz
For the first time New Zealanders will be able to get an accurate pictures of the number of foreign property buyers. Photo / Regan Schoultz

Information on the number of foreigners buying New Zealand residential properties will soon be released.

A spokesperson for Land Information New Zealand Minister, Louise Upston, said the data would be out this month.

"LINZ is working to release data on property transfers and tax residency later this month," the spokesperson said.

"This data has been collected as a result of the 2015 property tax law change."

However, the first set of figures might be somewhat skewed towards the lower end of the scale.

That is because the property transactions could be dated before the new regime came into effect.

"For several months following the law change, high numbers of buyers and sellers have not had to provide the new information as their sale and purchase agreement was dated before the law change came into force, that is before October 1, 2015.

Because of this, we have gathered information for a six-month period. This gives us a larger sample size," Upston's spokesperson said.

Data from Inland Revenue indicated about 300 people a month are being issued with tax numbers for the purpose of buying or selling property here.

The October law change was aimed at tightening up the regime for foreigners buying residential properties in New Zealand.

Overseas non-resident buyers must now provide their IRD number and also have a New Zealand bank account.

A new "bright-line" test has also been introduced so that property owners must now pay tax on capital gains earned on a property which is sold within two years of purchase, although family homes are excluded.

Inland Revenue data showed that in the three months to January 31, it issued 1025 IRD numbers to foreigners who applied when they wanted to buy or sell a property here.

- NZ Herald

Get the news delivered straight to your inbox

Receive the day’s news, sport and entertainment in our daily email newsletter

SIGN UP NOW

© Copyright 2016, NZME. Publishing Limited

Assembled by: (static) on production bpcf05 at 02 Oct 2016 11:44:31 Processing Time: 518ms