Here’s a concise summary of the New Zealand tax treatment on US stock investments. New Zealand in general does not tax capital gains on shares unless you are trading or primarily buying to resell. If your total foreign shares cost NZD $50,000 or more, the Foreign Investment Fund (FIF) rules apply, taxing 5% of the portfolio’s opening value annually as income.
For portfolios under NZD $50,000, tax applies only on actual dividends received. The US withholds 15% tax on dividends, which you can claim as a foreign tax credit in NZ. Currency gains/losses are generally not taxed for typical investors. Overall, New Zealand offers a favourable, straightforward tax environment for US stock investors, especially with no capital gains or wealth tax.
NZ does not have a capital gains tax on shares unless:
You are a share trader (buying with the intent to sell for a profit), or
You invest with the primary purpose of resale.
Most long-term investors don’t pay tax on capital gains.
This means if you buy US stocks or ETFs and sell them later at a profit, you usually keep 100% of the gain, tax-free.
If your total cost of foreign shares (excluding Australian shares listed on the ASX) is NZD $50,000 or more, you fall under the FIF rules.
FIF rules apply to: US shares and ETFs
You pay tax on 5% of the opening value of your portfolio, regardless of actual gain or loss.
This 5% is treated as income and taxed at your marginal tax rate.
Example: You have US shares worth $100,000 at the start of the tax year.
5% of $100,000 = $5,000
If you’re in the 30% tax bracket, you pay $1,500 in tax, even if your shares dropped in value.
The FIF regime does not apply if your total cost of foreign shares stays under $50,000 — then you are taxed only on actual dividends received.
The US automatically withholds 15% tax on dividends (with W-8BEN in place).
You then pay NZ income tax on the gross dividend amount.
But you can claim a foreign tax credit for the 15% US tax paid, to avoid double taxation.
Foreign exchange gains/losses may be taxable on larger investments or structured products, but for standard share investing, it’s usually not taxed separately.
However, be mindful when converting between NZD and USD — it can impact your returns.
Situation & Tax Treatment
US shares < NZD $50,000: Taxed only on actual dividends received
US shares ≥ NZD $50,000: FIF regime applies (taxed on 5% of portfolio)
Selling shares at a gain: No capital gains tax, unless you’re a trader
Dividend Payments: US withholds 15%; taxable in NZ (credit available)
New Zealand as a country is favourable for investing in US stocks
No capital gains tax
No wealth tax
Full access to US ETFs and stocks
Simple, clean tax reporting (especially under the $50,000 threshold)
No forced declarations unless asked
FIF tax is predictable and efficient for high-value investors