Planning on buying or selling property? Here’s something you need to know.
The bright-line property rule has changed.
From 29 March 2018, people who sell a house in New Zealand within five years of buying it must pay income tax on any gains, unless it’s their main home or another exemption applies.
If you bought a house 1 October 2015 to 28 March 2018, the original two year bright-line rule still applies for you. That means if you sell your house within two years of buying it you’ll pay income tax on any gains, unless an exemption applies.
All existing property tax rules still apply. So even if the bright-line rule doesn’t apply in your situation, that doesn’t necessarily mean you won’t need to pay tax on your property profits.