Pre-Migration Trusts

Migrants coming (and New Zealanders absent for in excess of 10 years returning) to New Zealand can gain substantial benefits if they commence a Pre Migration Trust (a variety of the New Zealand Foreign Trust) before they and their family move to New Zealand. In this situation, providing the investments are outside New Zealand, the structure will attract no New Zealand tax on its income for between 4 and 5 years after arrival in New Zealand.

If you would like tailored advice for a Pre-Migration Trust to suit your circumstances, please complete the simple form below and we will get back to you ASAP.
Name*	(required)
Contact phone*	(required)
Email Address*	(required)
Comments or message

Many offshore jurisdictions will tax the trust if the Trustee is resident in that same country. However they will not normally attempt to tax the income earned assuming the New Zealand Foreign Trust has a New Zealand resident Trustee. The result will likely be that the trust will be completely tax free on its income sourced outside of New Zealand for a minimum of 4 years.

After a person and their family migrate to New Zealand, having prior to their departure transferred a substantial amount of their assets to a New Zealand Foreign Trust, no tax will be payable on income on investments sourced outside of New Zealand for 4 years from the date of the Settlor(s) of this Trust becoming a tax resident in New Zealand. The Settlor(s) has to elect within four years of becoming tax resident for the Trust to be classified as a Qualifying Trust. No tax is payable in New Zealand on the New Zealand Foreign Trust's foreign income earned up to the date of election.

From an asset security viewpoint this is especially advantageous for migrants who transfer assets into this Trust prior to migrating to New Zealand, as there will be no requirement to gift these assets in accordance with the New Zealand Gift Duty regime. (i.e. there is no gifting required, which for a N.Z. resident would be restricted to $27K per annum). We can assist clients to open New Zealand bank accounts, to facilitate the transfer of any cash to New Zealand prior to departing for New Zealand.

Once the individuals migrate, or return to New Zealand they can use this trust for purchasing their own home or any other appreciating assets.

If you require more information on setting up a pre-migration trust, please contact us.