Can you run a business from a residential property in New Zealand? The short answer is yes — but it’s not always as simple as setting up your laptop and printing business cards.
If you’re a freelancer, contractor, or small business owner looking to work from home, there are a few important rules you need to know. Zoning restrictions, council consents, and limits around noise, parking, and signage can all come into play. And while many home-based businesses operate quietly under the radar, doing it right means avoiding fines, neighbour complaints, or legal issues down the track.
In this article, we’ll walk you through what’s allowed, what’s not, and what to check before turning your spare room into your HQ. You’ll also get tips on tax deductions, insurance, and a checklist to help you stay compliant.
Let’s break it down.
Is it legal to run a business from a residential property in NZ?
Yes, it’s legal to run a business from your home — but only under certain conditions. Councils across New Zealand allow home-based businesses as long as they don’t disrupt your neighbours or significantly change the residential character of the property.
Residential zoning and permitted activities
Your ability to operate from home depends first on your property’s zoning. Most urban areas are zoned “Residential,” and each council has its own rules on what business activities are allowed without consent.
Typically, small-scale operations like bookkeeping, consulting, tutoring, or online sales are fine — especially if there’s no customer traffic or noise. But if you plan to run something like a café, hair salon, or auto repair shop from home, you’ll probably need formal permission.
What councils typically allow
Most councils allow home-based businesses if you meet criteria like:
- No more than one full-time staff member (besides residents)
- Limited or no customer visits
- Minimal noise and signage
- No hazardous materials or industrial activity
When resource consent is required
You may need to apply for resource consent if your business:
- Increases traffic or affects street parking
- Has visible signage or structural changes
- Employs multiple non-resident staff
- Generates commercial noise
Each council is different, so it’s worth checking your local rules (see section below for links). If you’re planning to invest in a home with business potential, check out our guide on the benefits of investing in residential property.
Common rules for home-based businesses
There are a few rules that pop up across most city and district plans in New Zealand. Even if you’re just operating online, it’s good to know what your limits are.
Limits on customer visits, staff, and signage
Local councils often limit how many people can visit your property for business purposes. For example:
- Up to 1 customer at a time (and only during business hours)
- No more than 3 or 4 client visits per day
- 1 staff member max, who doesn’t live at the property
- Signage must be under a certain size (often 0.2–0.5m²)
These rules are designed to keep the residential feel of your neighbourhood intact.
Noise, parking, and traffic considerations
You can run into trouble if your business creates too much:
- Noise (machinery, deliveries, customer conversations)
- Street congestion or blocked driveways
- After-hours activity (like late-night meetings)
In short: if your business runs like an office but looks and sounds like a house, you’re probably in the clear.
Renting vs owning – does it matter?
Yes. If you’re renting, you’ll need your landlord’s permission. Your tenancy agreement may restrict any commercial use of the premises. If you’re an owner-occupier, you’ll still need to check zoning rules, but you have more flexibility.
👉 IMAGE suggestion: Table: “Allowed vs Not Allowed” for typical home-based activities
Do I need to register my business at home?
Yes — if you’re starting a business, you’ll need to provide a physical address for legal and tax purposes. That can be your home, a virtual office, or a commercial property.
Can I use my home address as a business address?
Absolutely. Many freelancers and sole traders register their New Zealand Business Number (NZBN) or company using their residential address. Just be aware that this address will become public, unless you use a privacy service.
PO Box vs physical address
You can use a PO Box for mailing, but legal entities (like companies and trusts) must still have a registered physical address. If you’re running your business as a sole trader, using your home address is totally fine.
Sole trader vs company: what changes?
A sole trader can use their home address with minimal setup. If you register as a company, your home will become the official registered office — and must be available for inspection of records.
Not sure how to get started? We’ve covered that in our guide: Can I get a loan to start my own business?
Tax, insurance and privacy considerations
There’s more to running a home-based business than zoning and council rules. Let’s talk money, risk, and what happens when your personal space becomes your workplace.
Can I claim home office expenses?
Yes — and it’s one of the key advantages of working from home. You can claim a portion of:
- Internet and electricity
- Mortgage interest or rent
- Rates and insurance
- Office furniture and repairs
You’ll need to calculate the business-use percentage based on the area used. IRD’s home office guide is a good place to start.
Impact on home insurance and mortgage
Your standard home insurance might not cover you if you’re using your property for business. Some insurers require commercial coverage or an add-on. Similarly, if you have a mortgage, check with your bank — you may need to disclose that you’re operating a business from home.
Protecting your privacy
When you register your business using your home address, it becomes searchable on the NZBN register. That means clients, competitors, and even strangers can look it up. Consider using a virtual office or postal redirect if privacy matters to you.
👉 IMAGE suggestion: Checklist graphic: “Have you covered these 3 home business risks?”
Council consents and where to check
Before starting anything, check your local council’s district plan or unitary plan. Most make it easy to search by address or zoning.
Where to check zoning rules
- Auckland Council: https://unitaryplan.aucklandcouncil.govt.nz
- Wellington City Council: https://wellington.govt.nz
- Christchurch City Council: https://ccc.govt.nz
If you’re unsure what to look for, just call your local council and ask:
“I’m looking to operate a business from my home. Do I need consent under the current zoning for [your address]?”
They’ll let you know whether you’re fine to proceed or if a resource consent application is required.
How to apply for consent if needed
Resource consent involves submitting:
- A site plan
- Business activity description
- Traffic and noise assessment (if applicable)
Fees vary but expect to pay $500 to $2,000+ depending on your location and business type.
Bonus: Home business compliance checklist
Here’s a quick checklist to keep your home-based business compliant:
- ✅ Your business fits the permitted zoning use
- ✅ You’re not generating excessive traffic or noise
- ✅ You have landlord permission (if renting)
- ✅ You’ve informed your insurer and/or bank
- ✅ You’re claiming eligible home office expenses
- ✅ You’ve reviewed local signage and visitor rules
- ✅ You’ve checked your privacy settings on NZBN
Conclusion
So, can you run a business from a residential property in New Zealand? Absolutely — as long as you play by the rules.
Most councils support small home-based businesses, especially if you’re not disturbing your neighbours or changing the residential vibe of your street. But zoning restrictions, visitor limits, and signage rules still apply. And beyond council regulations, you’ve also got tax, insurance, and privacy to think about.
If you’re starting out or unsure what’s allowed in your area, it’s always a good idea to check with your local council or reach out to a professional. We’ve helped plenty of clients turn their spare rooms, garages, and sleepouts into compliant and profitable workspaces.
Need help sorting the admin or connecting with the right advisor? Contact us — we’ll point you in the right direction.
FAQ about running a business from a residential property
Can I sell products from home in NZ?
Yes, but it depends on your council’s rules. Small-scale online sales with no regular customer visits are usually fine. If customers are coming to collect products, consent might be needed.
What if customers visit my house regularly?
Most councils limit the number of visitors per day. If you’re exceeding that (e.g. running a salon or tutoring), you may need resource consent.
Can I run a hair salon or daycare from my home?
It’s possible, but usually requires council approval due to noise, signage, and parking impact. Always check your zoning and apply for consent if needed.
Will I get in trouble if I don’t apply for consent?
Potentially, yes. Complaints from neighbours can trigger an investigation, and operating outside the permitted rules may lead to enforcement action.
Can I use a virtual address for my business?
Yes. This is a great option if you want to keep your home address private, especially for NZBN or company registration purposes.