You finally arrive in New Zealand. You plan to stay for three months on a visitor visa and continue working remotely for your overseas employer.
From 1 April 2026, new tax rules change how this income is treated for tax purposes. That means fewer unexpected tax consequences for some remote workers. These changes affect how your income is taxed. They do not change what you are allowed to do on a visitor visa. Under immigration rules, ‘work’ includes providing services for gain or reward. This can include remote work for an overseas employer, even if no New Zealand clients are involved.
These changes come from the Taxation (Annual Rates for 2025–26, Compliance Simplification, and Remedial Measures) Act 2025. The Act creates exemptions for non-resident visitors who provide services while in New Zealand, provided they remain non-resident for tax, are taxed in their home country, and stay within the 275-day limit. They will reduce compliance pressure and make longer stays in New Zealand more realistic for remote workers.
As at April 2026, Immigration New Zealand has not introduced a dedicated digital nomad visa. Working remotely for an offshore employer can still breach a standard visitor visa, even if your income is exempt from New Zealand tax.
Why the rules needed to change
Previously, foreign visitors, including people who travel while working remotely (digital nomads), who remained in New Zealand for over 183 days within any 12-month period were subjected to New Zealand income tax from day one.
Income may be exempted where the visitor stayed for less than 92 days or if a double tax agreement (DTA) applied, where two countries have agreed upon who is allocated taxing rights on income earned, they could stay for up to 183 days within 12 months.
Once your income was subjected to the New Zealand income tax or you became a tax resident, meaning Inland Revenue treats you as living in New Zealand for tax purposes, there were certain concerns that would arise. This would include potentially facing withheld taxes from your income, having to file income tax returns and GST obligations.
Your employer may also face tax, PAYE, GST and inadvertently becoming a taxable business presence in New Zealand (permanent establishment). These concerns complicated a company’s tax residency and compliance, leading to many restricting the length of time their employees could work in New Zealand.
The Inland Revenue department (IRD) identified significant problems with this policy. The most prevalent is how digital nomads were being discouraged from visiting due to tax obligations being imposed and the significant and disproportionate compliance costs. This would result in people shortening their stays to avoid any risks.
The non-resident visitor category
Under the recent changes, a new non-resident visitor (NRV) tax category has been introduced for those arriving in New Zealand on a visitor visa.
To be eligible for the NRV tax category you must:
• be in New Zealand for 275 days or less within any 18-month rolling period.
• be a tax resident in a comparable jurisdiction.
• not have been a New Zealand tax resident immediately before arriving.
• be working exclusively for offshore clients or employers.
• not be receiving working for families entitlements.
When you cease to be an NRV, but remain lawfully within New Zealand, you will be subjected to the standard tax residence rules, but these will only be applied from the date of cessation.
These changes remove much of the guesswork for remote workers and give you more certainty about how long you can stay without triggering New Zealand tax obligations.
What income is protected (and what isn’t)
Under the new rules there are certain income categories that are exempted for NRV, providing the amount earned is subjected to tax where you are tax resident.
• Employment income.
• Personal and professional services performed for a person who is not a New Zealand resident and meets the NRV criteria.
• Business income earned by a non-resident business or self-employed person.
The new rules also makes GST registration optional for remote workers providing zero-rated services to overseas clients, even when the turnover exceeds NZD $60,000.
It is important to understand what isn’t protected under the new rules. These include:
• Any work requiring the person to be physically present within New Zealand.
• Public entertainers, including sports people
• Any work for a New Zealand resident business or branch of a foreign business.
• Any work that requires selling any goods or services to New Zealand customers.
The new rules will only apply to those who are lawfully within New Zealand, remaining unlawfully will result in tax residence rules being applied retrospectively.
What this means for foreign employers
For businesses, there is much relief that comes from these changes. The actions of the NRV will be disregarded when deciding whether a company has a permanent establishment within New Zealand, helping businesses avoid inadvertently becoming a permanent establishment. A NRV will also no longer affect their employers’ outcomes for employment tax and compliance purposes.
It is important that businesses still maintain clear records and exercise due diligence, in particular confirming that the NRV meets the eligibility requirements and maintains accurate records of visits.
The watch-outs
While the tax rules are now in force, Immigration New Zealand has not yet introduced a dedicated digital nomad visa. More detail is expected, and visa conditions may change. But it is important to understand, despite the changes to the tax rules, any work can be in breach of your visa, it is crucial to ensure you remain compliant with your visa.
For those working freelance or are self-employed, tax relief does not override visa conditions. You must ensure that you do not offer goods or services to New Zealand businesses or people, these tax rules only apply to for those providing goods and services to businesses and people outside of New Zealand.
Breaching visa conditions can affect future visa applications and may result in cancellation of your current visa. Before travelling, confirm both your tax position and your visa conditions. These are separate assessments.
Moore Markhams is here to help
Travelling to New Zealand should feel exciting, not stressful. We help you understand your tax position clearly so there are no surprises. Our team works with globally mobile professionals every day and will guide you through what applies to you and what to watch for.
Reach out to your local Moore Markhams expert today.
