Moving to New Zealand from the UK is a big step, and the money side needs as much planning as the visa. Your pensions, savings and tax position all change when you become a New Zealand resident. However, the rules are clear once you break them down.
In this guide, we explain how New Zealand decides who is tax resident and how the four-year exemption for new arrivals works. We also cover what happens to UK pensions and the State Pension. Finally, we set out the UK steps to take before you leave.
Moving to New Zealand: visas and residency first
Your visa decides what you can do in New Zealand. For example, you need the right visa to work, study, invest or join family. Immigration New Zealand sets these rules, so start with its guidance before you make financial plans.
According to the UK government’s Living in New Zealand guidance, you may be able to apply for permanent residency after at least 2 years on a resident visa. New Zealand also recognises dual citizenship. So you do not have to give up British citizenship to become a New Zealand citizen.
There are some practical points too:
- You can drive on a UK licence for up to 18 months for cars. After that, you must convert it.
- You will need an IRD number to work, and it helps when you open a bank account.
- The UK and New Zealand have a reciprocal health agreement. It gives some cover to UK citizens visiting for up to 2 years.
- Once you are eligible for public health services, you get the same access as New Zealand citizens.
Check your health cover carefully. If you are not yet eligible for public services, private insurance fills the gap.
New Zealand tax residence when moving to New Zealand
Tax residence and immigration status are separate tests. Inland Revenue (IRD) treats you as a New Zealand tax resident from the earlier of two dates:
- the date you have been in New Zealand for more than 183 days in any 12-month period, or
- the date you have a permanent place of abode in New Zealand.
The 183 days do not need to run in a row. Part days count as whole days. Also, once you pass 183 days, your residence is backdated to the first of those days.
A permanent place of abode simply means a home where you usually live. You do not need to own it. IRD also looks at your ties, such as family, work and investments in New Zealand.
As a resident, New Zealand can tax your worldwide income. That is why the timing of your move matters so much. In addition, the UK will look at your position under the statutory residence test.
If you are tax resident in both countries
Sometimes you can be resident in both countries for a period. In that case, the UK–New Zealand double tax treaty has tie-breaker tests. These look first at where you have a permanent home, then at your centre of vital interests. Next come your habitual abode and, finally, your nationality.
The four-year transitional resident exemption
This is one of the most valuable rules for anyone moving to New Zealand. New migrants can be “transitional residents” for about four years. During that time, most types of foreign income are exempt from New Zealand tax.
You qualify automatically if you:
- are a new migrant or a New Zealander returning home,
- became tax resident on or after 1 April 2006, and
- were not a New Zealand tax resident at any time in the previous 10 years.
The exemption covers most passive overseas income. For example, IRD lists interest, dividends, foreign investment fund income and rent. IRD also says regular pension payments are usually covered. However, income from work or personal services is not exempt.
You only get the exemption once. It can also end early. For instance, it ends if you claim Working for Families tax credits or choose to report exempt income in your return. It can also end if you confirm to a foreign tax authority and IRD that you pay New Zealand tax on overseas income for that period. So take advice before you file treaty forms during these four years.
UK pensions when moving to New Zealand
For many people, pensions are the largest asset to plan for. The rules depend on whether you take regular income or a lump sum.
Regular pension income
Under the current treaty, pensions paid to a New Zealand resident are taxable only in New Zealand. This includes pensions paid under UK social security law, such as the State Pension. To stop UK tax being deducted, you can claim relief on HMRC’s form New Zealand-Individual. You send it to IRD, which certifies your residence and passes it to HMRC.
After the transitional period, New Zealand taxes regular pension income through your annual return. Bear in mind that exchange rates will move what you receive in New Zealand dollars. Our guide to currency risk on a UK pension explains this in more detail.
Lump sums and pension transfers
New Zealand has its own rules for lump sums from foreign superannuation, which includes UK pensions. Withdrawals or transfers within the four-year exemption period are not taxed in New Zealand. After that, IRD taxes part of the lump sum using either:
- the schedule method, which taxes a percentage that rises the longer you have been resident, or
- the formula method, which taxes the actual gains and usually needs a tax professional.
If you transfer into a New Zealand scheme that offers “scheme pays”, the scheme can pay 28% tax on the taxable portion for you. As a result, timing a transfer or withdrawal inside the exemption window can make a real difference. Read our guides to New Zealand QROPS and the tax-free lump sum abroad before you decide.
A new treaty is on the way
The UK and New Zealand signed a new double taxation convention on 1 June 2026. However, HMRC lists it as not yet in force. The 1983 treaty still applies for now, so check the position again before you act.
Your UK State Pension in New Zealand
You can claim your UK State Pension while living in New Zealand. It can be paid into a UK or overseas account. However, New Zealand is not on the list of countries where the UK pays yearly increases. So your State Pension is frozen at the rate you first receive abroad.
Over a long retirement, that frozen rate can fall well behind prices. Our frozen State Pension calculator shows how the gap can grow. Also, check your National Insurance record before you go. Since 6 April 2026, you can no longer pay Class 2 for time abroad. Class 3 is still possible, but only if you have 10 consecutive years of UK residence or 10 years of qualifying contributions.
NZ Super and KiwiSaver
New Zealand’s state pension is called New Zealand Superannuation, or NZ Super. You can get it from age 65 if you meet the residence test. You must also be a citizen, permanent resident or hold a residence class visa.
The residence test is getting longer. For people turning 65 from 1 July 2024, it rises in steps from 10 to 20 years lived in New Zealand since age 20. Anyone born on or after 1 July 1977 needs 20 years. In addition, at least 5 of those years must be after age 50.
KiwiSaver is New Zealand’s workplace savings scheme. You can join if you are a citizen or entitled to live in New Zealand indefinitely, and you normally live there. You cannot join on a temporary, visitor, work or student visa.
ISAs, investments and property after moving to New Zealand
UK tax wrappers do not travel well. You can keep an ISA after you leave the UK, but you cannot add new money while non-resident. Moreover, the ISA’s tax-free status is a UK rule. New Zealand may tax the income and gains once your exemption ends.
Overseas shares and funds also need care. If your foreign shares cost more than NZ$50,000 in total, the foreign investment fund (FIF) rules may apply. These rules can tax you on a deemed return rather than on dividends you actually receive. Capital is at risk with any investment, so review your portfolio with this in mind.
Property brings its own questions:
- New Zealand’s bright-line test can tax profits on residential property, including overseas property, sold within 2 years. A main home exclusion may apply.
- If you keep a UK home and let it out, the UK can still tax the rent. See our guide to the non-resident landlord scheme.
- Selling UK property as a non-resident has its own UK reporting rules, so plan the sale date carefully.
UK inheritance tax after you leave
Leaving the UK does not end UK inheritance tax straight away. Since 6 April 2025, the test is long-term UK residence. Broadly, this means being UK resident for 10 of the previous 20 tax years. After you leave, worldwide assets can stay in scope for between 3 and 10 years. Your will should also work in both countries, so speak to a lawyer in each.
Worked example: a hypothetical move
Imagine Claire, aged 60, is moving to New Zealand on a resident visa. She is a fictional example, not a real client. Claire has a UK defined contribution pension, a stocks and shares ISA and a flat she plans to sell.
Claire arrives on 10 March 2027. Then, on 22 April 2027, she moves into a house she has bought. Under IRD’s rules, her exemption period starts on 10 March 2027. It ends four years after the end of the month she gained a permanent place of abode, so on 30 April 2031.
That gives Claire a planning window. First, she can review whether to draw or transfer pension money before April 2031. Next, she can decide whether to keep the ISA, given that New Zealand may tax it after the exemption. Finally, she sells the UK flat with advice on UK reporting and the bright-line test. These are general illustrations, not recommendations.
Practical steps before moving to New Zealand
- Confirm your visa route and when you expect to become tax resident.
- Tell HMRC you are leaving, usually with a P85 form.
- Get a State Pension forecast and review voluntary National Insurance.
- List every pension and check its transfer and withdrawal options.
- Map out your four-year transitional resident window.
- Review ISAs and overseas funds against the FIF rules.
- Decide whether to sell, keep or let your UK home.
- Update your will and check UK inheritance tax exposure.
Our leaving the UK checklist covers bank accounts and savings in more detail.
FAQs about moving to New Zealand from the UK
Will I pay tax twice on my UK pension?
Usually not. Under the current treaty, pensions paid to a New Zealand resident are taxable only in New Zealand. You can claim UK relief with form New Zealand-Individual. However, check how this interacts with your transitional exemption.
Does my UK State Pension go up in New Zealand?
No. The UK does not pay yearly increases to State Pension recipients living in New Zealand. Your payment stays at the rate you first receive there. It is uprated again only if you return to the UK.
How long does the transitional resident exemption last?
It lasts about four years. It ends four years after the end of the month you first meet the residence test. You only get it once, and certain actions can end it early.
Can I keep my ISA after moving to New Zealand?
Yes, you can keep it, but you cannot pay in while non-resident. New Zealand may tax the income and gains once your exemption ends. So review it as part of your plan.
Plan your move with us
Moving to New Zealand works best when the pension, tax and investment pieces fit together. We help UK expats plan across both countries, from pension options to long-term investing. You can read more about our financial advice for expats in New Zealand, or book a free discovery call to talk through your plans.
This article is general information only and is not personal financial or tax advice. Tax rules can change and depend on your circumstances. Investments can fall as well as rise, and your capital is at risk. Please take specialist tax advice in both countries before acting. Information correct as at November 2026.
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Henry Temple-Baxter
Henry Temple-Baxter is the founder of Investments for Expats and is CISI Level 4 qualified. A long-term expat himself, he has lived and worked in Kuala Lumpur, Beijing, Bangkok, Hong Kong and Ho Chi Minh City. He set up the firm in 2018 to give UK expats fee-only, transparent advice on pensions, tax and investing abroad.
This guide is general information, not personal advice. Tax rules can change and their effect depends on your circumstances. Capital at risk.
