New Zealand May Look At Stamp Tax on Property
July 28, 2015 Taxation in New Zealand
WELLINGTON – The New Zealand government may impose a tax on overseas investors purchasing property int he country, in an effort to cool escalating house prices.
In a statement made on July 28th the Prime Minister of New Zealand John key indicated that the government may consider imposing a stamp duty, or other similar tax, on foreign citizens buying property.
Currently there is significant controversy in New Zealand caused by rising property prices, especially in Auckland, with a portion of the blame being put on foreign investors.
The government is currently claiming that there is not enough data to verify whether the rising prices of houses can truly be attributed to an influx of foreign buyers.
However, data on the residence of property buyers will be collected by national tax authorities later on this year.
The prime minister indicated that the government would rather impose a tax on foreign land ownership, as opposed to banning foreign purchases outright, as some politicians are demanding.
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