Foreign Trust

A trust settled by a non-New Zealand resident settler with a New Zealand resident trustee is categorised as a foreign trust for tax purposes in New Zealand.

The non-New Zealand sourced income of a Foreign Trust is exempt from New Zealand taxation, whether that income is accumulated or is distributed to non-New Zealand resident beneficiaries.

The benefits include:

• The foreign Trust, its trustees, or beneficiaries are not exposed to New Zealand tax on foreign-sourced income.
• The Foreign Trust is resident in a reputable OECD member country, with a stable legal, political and economic environment.

In summary, the foreign trust regime allows a trust to be established and operate in New Zealand in a similar manner to a tax haven trust, but without the adverse connotations often associated with a tax haven.  Contact us and we can assist in this process