Do I pay tax on KiwiSaver when I live overseas? It’s a common question for Kiwis who’ve moved abroad or are planning to leave New Zealand. The short answer is: it depends on your tax residency and what you’re doing with your KiwiSaver funds.
If you’re living offshore, your KiwiSaver account doesn’t just disappear—but the tax rules around it can shift. You might still be liable for tax in New Zealand, in your new country, or even in both. That’s where things like double tax agreements and withdrawal types come into play.
In this guide, we’ll walk you through the key rules, common scenarios, and what you need to do to stay on top of your KiwiSaver tax obligations while living overseas.
Understanding how KiwiSaver works
Before diving into overseas tax rules, it’s important to understand how KiwiSaver works while you’re living in New Zealand. This will give you a solid base to compare what changes when you move abroad.
What is KiwiSaver?
KiwiSaver is a voluntary, government-supported retirement savings scheme. If you’re employed in New Zealand, a percentage of your salary is usually deducted and paid into your KiwiSaver account—along with employer contributions and annual government top-ups.
- You can join KiwiSaver if you’re under 65 and living in NZ.
- It’s designed to help build long-term savings for retirement or to buy your first home.
- Your money is invested in funds of your choice, and the returns are subject to investment performance and tax.
How contributions and earnings are taxed in New Zealand
In NZ, your KiwiSaver is taxed at two levels:
- Contributions: Your contributions come from your after-tax income. Your employer’s contributions are taxed at your Employer Superannuation Contribution Tax (ESCT) rate, which depends on your income level.
- Investment earnings: Taxed via Prescribed Investor Rate (PIR), usually between 10.5%, 17.5%, or 28%, depending on your income in the past two years.
Your KiwiSaver provider deducts PIR tax automatically from the fund’s earnings. You don’t need to declare it in your individual tax return—as long as your PIR is correct.
What happens to your KiwiSaver when you move overseas?
Moving overseas doesn’t mean your KiwiSaver vanishes—but your relationship with it might change. Your ability to contribute, withdraw, or manage taxes depends on both New Zealand rules and the tax laws in your new country.
For personalised help with your tax situation abroad, check out our moving overseas tax advice guide.
Can you keep your KiwiSaver account while living abroad?
Yes, you can. There’s no requirement to close your account or transfer the funds. However:
- You generally can’t keep contributing unless you remain employed by a New Zealand-based company.
- Government contributions stop once you’re no longer a NZ tax resident.
- Your funds remain invested in your chosen scheme and continue to grow (or shrink) based on market performance.
Many expats leave their KiwiSaver untouched until retirement age—especially if it’s still earning returns.
What if you want to withdraw your funds?
There are two common ways to access KiwiSaver from overseas:
- Emigration withdrawal: If you’ve permanently left New Zealand and aren’t moving to Australia, you can apply to withdraw your funds after one year.
- Retirement withdrawal: Once you turn 65, you can withdraw your savings regardless of where you live.
⚠️ Keep in mind: Withdrawing your funds might trigger tax obligations in your new country—we’ll explain this further below.
Do you pay tax on KiwiSaver overseas?
Here’s where things get tricky. You might not owe tax in New Zealand anymore—but your new country could see your KiwiSaver differently. It all depends on your tax residency, the type of withdrawal, and whether your new country has a double tax agreement (DTA) with New Zealand.
Tax rules for New Zealand non-residents
Once you become a non-resident for tax purposes, you typically:
- Stop receiving NZ government contributions
- Stop contributing through a NZ employer
- Still pay PIR tax on your investment earnings—unless you update your KiwiSaver provider about your non-residency
Tip: If you’re a non-resident, your PIR may need to be set to 28%, unless you switch to a zero-rated fund. Some providers let you switch—others don’t, so it’s worth asking.
Double tax agreements (DTAs) and KiwiSaver
New Zealand has DTAs with many countries to avoid taxing the same income twice. These agreements define which country gets taxing rights over different types of income, including retirement savings.
- In some cases, NZ won’t tax your KiwiSaver withdrawal—but your new country might.
- In other cases, you could be taxed twice—unless the DTA lets you claim foreign tax credits.
For official guidance, you can browse New Zealand’s DTA list on the IRD website.
Real-life example: KiwiSaver tax treatment in Australia
If you move to Australia, you can’t withdraw your KiwiSaver unless you’ve permanently emigrated somewhere else—or you’ve reached retirement age. Australia has a DTA with NZ, but KiwiSaver withdrawals may still be treated as taxable income in Australia, depending on your personal tax status.
Key points:
- Aussie residents may need to declare KiwiSaver withdrawals as foreign income.
- You won’t be taxed again in NZ on the withdrawal, but investment earnings may still be taxed via PIR in NZ.
Every country is different, so speaking with a cross-border tax expert is crucial.
Withdrawing your KiwiSaver when living overseas
Accessing your KiwiSaver from overseas isn’t as simple as hitting a withdrawal button. The rules depend on your age, your reason for withdrawing, and where you live now. In some cases, it’s allowed—but it could trigger tax in your new country.
Early withdrawal due to emigration
If you’ve permanently moved to a country other than Australia, you can apply to withdraw almost all your KiwiSaver (excluding the $1,000 government kickstart if you got it).
Key conditions:
- You must have been living overseas for at least 12 months
- You’ll need to supply proof of your overseas residence (visa, utility bill, etc.)
- The funds are not taxed in NZ, but your new country may tax the lump sum
For Australia-based expats, the rules are different: you can’t withdraw your KiwiSaver unless you move to a third country or reach retirement age.
Retirement withdrawal while living offshore
Once you hit age 65, you’re entitled to full withdrawal, even if you’re no longer living in New Zealand.
But before you celebrate with a beachside pina colada, check with a local tax advisor. Some countries may classify this withdrawal as foreign pension income and expect you to pay tax on it.
How to declare KiwiSaver withdrawals in your new country
Each country has its own tax rules. In some cases, you’ll need to:
- Report the full amount as income in your local tax return
- Pay tax on investment gains, not just the withdrawal itself
- Provide evidence the funds were taxed in NZ to claim a foreign tax credit
If you’re planning to use your KiwiSaver to launch a new venture once you’re back in NZ, check out our guide on using KiwiSaver to start a business. It breaks down what’s allowed and how to apply.
Tips to manage your KiwiSaver tax obligations from overseas
Living abroad doesn’t mean ignoring your KiwiSaver. In fact, keeping an eye on it can save you from nasty tax surprises—both in New Zealand and in your new country.
Check your NZ tax residency status
Your tax treatment depends on whether Inland Revenue still considers you a New Zealand tax resident. Even if you’ve moved abroad, certain factors—like spending over 183 days in NZ in a year, or maintaining a permanent home here—could keep you on the hook for NZ tax.
- Use the IRD’s residency test to double-check your status.
- Notify your KiwiSaver provider of your non-residency to avoid incorrect PIR settings.
Talk to a cross-border tax expert
It’s worth the cost. A cross-border advisor can help you:
- Avoid double taxation on withdrawals
- Claim tax credits under double tax agreements
- Structure your income and retirement planning efficiently
Your situation may seem straightforward—until it isn’t. Tax rules between countries don’t always play nicely.
Keep your tax records up to date
Store documentation that shows:
- When and why you moved
- Your KiwiSaver contributions and withdrawals
- Evidence of taxes paid in New Zealand
This helps you if your new country audits your finances or asks for proof of foreign income declarations. It’s also useful when switching tax advisors or applying for tax relief.
Summary Table – KiwiSaver tax overview by residency
This table gives you a clear snapshot of how KiwiSaver is taxed depending on where you live and what you’re doing with your funds.
| Scenario | Tax in NZ? | Tax Overseas? | Details / Notes |
|---|---|---|---|
| Living in NZ and contributing | ✅ Yes | ❌ No | Contributions taxed via PAYE & PIR. No overseas tax if you’re an NZ tax resident. |
| Living overseas but not withdrawing | ✅ Maybe | ❌ No | PIR may still apply unless provider updated. No tax overseas unless earnings accessed. |
| Withdrawing after turning 65 (living abroad) | ❌ No | ✅ Maybe | NZ does not tax withdrawals; check if your new country treats it as income. |
| Early withdrawal due to emigration | ❌ No | ✅ Maybe | Allowed after 12 months overseas (except Australia). May be taxed as lump sum income. |
| Using KiwiSaver to start a business in NZ | ❌ No | ❌ No | Special scheme under strict rules. See KiwiSaver business guide. |
| Resident in Australia | ❌ No | ✅ Yes | Withdrawal not allowed unless you emigrate again or reach retirement age. |
Conclusion: What you should do before moving overseas
Do I pay tax on KiwiSaver when I live overseas? It all comes down to where you live, your tax residency status, and how you interact with your KiwiSaver account.
If you’re not making withdrawals, tax obligations are usually limited to NZ’s PIR rules—provided your provider is up to date. But if you withdraw your funds, your new country could tax that lump sum, even if New Zealand doesn’t. That’s why it’s crucial to check double tax agreements, your residency, and get advice.
Still unsure? We’re here to help. At BH Accounting, we can connect you with the best cross-border tax specialists so you don’t make costly mistakes.
Get in touch with us — or just ask your question, and we’ll point you in the right direction.
If you prefer to figure it out on your own, that’s fine too! But if you have more questions, we’re happy to answer them and help where we can.
FAQ about KiwiSaver and overseas tax
Do I have to close my KiwiSaver if I move overseas?
No. You can leave your funds in KiwiSaver indefinitely—even if you live overseas.
Will I be taxed twice on my KiwiSaver?
It’s possible, depending on your new country’s tax rules. A double tax agreement may prevent this.
Can I still contribute to KiwiSaver while living overseas?
Only if you’re working for a New Zealand-based employer. Otherwise, contributions generally stop.
Is KiwiSaver taxable in Australia?
It can be. Australia may treat KiwiSaver withdrawals as foreign income, even if NZ doesn’t.
Can I use my KiwiSaver overseas to start a business?
Not directly. But if you return to NZ, you may qualify to use your KiwiSaver under specific conditions. Learn more here.