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Residential property
Ngā whare rīhi me ngā whare haumi

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Residential property

Buying property

If you're buying residential property, make sure you know what your tax obligations will be when you come to sell the property.

New Bright-line test

The bright-line test only applies to residential properties bought on or after 1 October 2015. Under this rule you'll pay tax on income you earn if you buy and sell a property within two years, unless you're selling your family (main) home or another exclusion applies.

All existing property tax rules still apply.

Things you need to know

As a general rule, if you're buying a property with the intention of selling it, you will probably have tax to pay on any profit you make. There are different rules associated with buying a:

It's important that you think carefully about your intentions when you first agree to buy a property because this will determine your tax situation when you come to sell. Under the bright-line test you'll pay tax when you buy and sell a property within two years regardless of your intention at the time of purchase.

If you're in the property industry (for example you're a builder, developer, a dealer) or associated with someone from within the industry, then you'll be subject to different rules as well. We recommend you get professional advice from a tax advisor.

When buying property you will need to provide information to your property lawyer or conveyancer. This may include your IRD number and taxpayer identification number (another country’s equivalent of an IRD number) if you have one. 

Find out about applying for an IRD number

Rental property

If you're buying a rental, you also need to know your tax obligations while you're renting out the property.

Find out more about managing a rental

Useful information

Property tax compliance requirements - LINZ website
Register for myIR to manage your tax and entitlements securely online