Moving to NZ: Financial Guide for New Residents

You need four things sorted in your first few weeks in NZ: a bank account, an IRD number, an understanding of how PAYE works, and a plan for transferring money. Everything else (KiwiSaver, insurance, cost of living adjustments) flows from there. This guide covers the full financial setup for skilled migrants and returning Kiwis, from arrival through to your first year.

Your first-month financial checklist

Do these roughly in order. Some steps depend on earlier ones.

Priority	Task	When to do it	What you need
1	Open a NZ bank account	Before or immediately after arrival	Passport, visa, proof of address
2	Apply for an IRD number	Within your first week	Passport, visa, NZ bank account number
3	Give your IRD number to your employer	Before your first payday	IRD number, tax code declaration (IR330)
4	Understand your PAYE deductions	First payslip	Your employment agreement
5	Set up a savings account	First month	NZ bank account
6	Review KiwiSaver auto-enrolment	By week 4 of employment	Provider choice (or opt-out decision)
7	Transfer overseas funds to NZ	When you're ready	NZ bank account, overseas bank details
8	Get contents and car insurance	First month	Address, vehicle details (if applicable)

Opening a NZ bank account

You can open a bank account with one of NZ's five major banks before you arrive or within your first few days. The big five are ANZ, ASB, BNZ, Westpac, and Kiwibank.

What you'll need:

• Passport (and visa documentation)
• Proof of NZ address (a tenancy agreement or utility bill works, though some banks accept a temporary address initially)
• Tax identification number from your home country (for FATCA/CRS compliance)

Before arrival: ANZ, ASB, BNZ, and Westpac all offer online account opening for people moving to NZ. You can start the application from overseas and activate the account when you arrive. Kiwibank requires you to visit a branch in person (bank websites, as at March 2026).

After arrival: Walk into any branch with your passport and visa. Most accounts are open within 30 minutes. You'll get a debit card within 5 to 10 business days.

Which bank to choose: The big five are broadly similar for everyday banking. All offer free everyday transaction accounts, internet banking, and mobile apps. The differences are mainly in savings account rates, mortgage rates, and branch/ATM networks. Kiwibank is government-owned (through NZ Post) and often positions itself as the "Kiwi" option.

There's no real penalty for starting with one bank and switching later. Pick whichever has a branch near your home or work, and sort the optimisation later.

Getting an IRD number

An IRD number is your tax identification number in NZ. You need it to work legally, pay the right amount of tax, join KiwiSaver, and open interest-bearing accounts.

How to apply:

1. Go to ird.govt.nz and complete the online application (IR742 form for non-residents arriving in NZ)
2. You'll need your passport, visa details, NZ bank account number, and your overseas tax identification number
3. Processing takes 8 to 10 working days (IRD)

Important: Until you have an IRD number, your employer will deduct tax at the no-notification rate, which is the highest rate (45% on all income). Once you provide your IRD number and tax code, your employer adjusts the deductions and any overpaid tax is corrected (IRD).

Apply as soon as you have a NZ bank account. Don't wait until you start work.

Understanding PAYE

NZ uses a Pay As You Earn (PAYE) system. Your employer deducts income tax, ACC earner's levy, and KiwiSaver contributions from your pay before you receive it. There's no need to file a quarterly or annual tax return in most cases, IRD does an automatic assessment after 31 March each year (IRD).

2025-26 income tax rates:

Income bracket	Tax rate
$0 to $15,600	10.5%
$15,601 to $53,500	17.5%
$53,501 to $78,100	30%
$78,101 to $180,000	33%
$180,001 and above	39%

(IRD, 2025-26 tax year.)

On top of PAYE, you'll pay:

• ACC earner's levy: Currently 1.67% of your gross income, up to $152,790 (2025-26). This rate changes annually — see ACC levy explained. It funds NZ's universal accident compensation scheme.
• KiwiSaver: 3% to 10% of your gross pay if you're enrolled (see below). The default rate is 3% (rising to 3.5% from April 2026 and 4% from April 2028).

Example: On a salary of $90,000, your annual PAYE is approximately $18,520. Add ACC ($1,503) and KiwiSaver at 4% ($3,600), and your take-home is roughly $66,377 per year or $1,276 per week. Run your exact numbers. (Example uses 4% KiwiSaver, the rate from April 2028.)

Your tax code: Most new arrivals on a single job use "M" (main income, no student loan). If you have a NZ student loan, it's "M SL". Your employer will ask you to fill in a Tax code declaration (IR330) form (IRD).

KiwiSaver: auto-enrolment for new arrivals

KiwiSaver is NZ's workplace retirement savings scheme. If you're employed and aged 18 to 64, your employer must enrol you after your first 4 weeks of work. You can opt out between weeks 2 and 8 by submitting a KiwiSaver opt-out request (KS10) form to IRD (KiwiSaver Act 2006).

Key facts for new arrivals:

Feature	Detail
Contribution rates	3%, 4%, 6%, 8%, or 10% of gross pay (your choice)
Default rate	3% (rising to 3.5% from 1 April 2026, and 4% from 1 April 2028, IRD)
Employer contribution	At least 3% (rising to 3.5% from April 2026 and 4% from April 2028)
Government contribution	50c per $1 you contribute, up to $521.43/year (IRD)
When you can withdraw	Age 65, first home purchase, significant financial hardship, serious illness, or permanent emigration
Eligibility	NZ citizens or permanent residents living in NZ, or people on a visa that permits 2+ years of work

Opt out or stay in? If you're planning to stay in NZ long-term, the employer contribution (free money on top of your salary) and government contribution make KiwiSaver worth it for most people. If you're on a temporary visa and plan to leave within a few years, you can withdraw your KiwiSaver when you permanently emigrate (after being away for 1 year), but you'll only get your own and your employer's contributions, not the government contributions (IRD).

If you don't actively choose a KiwiSaver provider, your employer's chosen default provider is assigned to you. The default fund is usually conservative, which may not suit someone with a long time horizon. Choosing your own provider and fund type takes 15 minutes and makes a meaningful difference over decades.

ACC: what it covers and what it costs

ACC (Accident Compensation Corporation) is NZ's universal accident insurance scheme. It covers everyone in NZ, including visitors, for accidental injuries. There's no separate insurance to buy, it's funded through levies on your income and on businesses (ACC, Accident Compensation Act 2001).

What ACC covers:

• Treatment costs for accidental injuries (doctor visits, surgery, physiotherapy)
• Weekly compensation of 80% of your pre-injury income (up to a cap) if you can't work due to an accident
• Rehabilitation costs

What ACC does not cover:

• Illness (only injuries caused by accidents)
• Dental work not caused by an accident
• Elective procedures

The cost to you: The ACC earner's levy (currently 1.67% of your income for 2025-26) is deducted automatically through PAYE. On $90,000, that's $1,503/year. The rate changes annually. Your employer also pays a separate ACC work levy based on industry risk (ACC).

The trade-off: Because ACC covers all accidental injuries, you cannot sue for personal injury in NZ the way you can in other countries. The system replaces the right to sue with a no-fault compensation scheme.

Transitional tax residency

If you're becoming a NZ tax resident for the first time (and you haven't been one before), you may qualify for transitional tax residency. This is a 4-year exemption on most types of foreign income (IRD).

What it covers:

• Overseas investment income (interest, dividends, rental income from overseas properties)
• Foreign superannuation transfers (in certain cases)
• Income from overseas trusts

What it doesn't cover:

• Employment income earned overseas while you're a NZ tax resident
• Income from overseas employment services performed while in NZ

Who qualifies: People who become NZ tax residents for the first time and haven't previously been NZ tax residents. Returning Kiwis who have been non-resident for 10+ years may also qualify (IRD, Income Tax Act 2007, s HR 8).

Why it matters: Without transitional residency, NZ taxes your worldwide income from the day you become tax resident. With it, most foreign investment income is exempt for 4 years, giving you time to restructure your overseas affairs.

This is a complex area with significant financial implications. If you have substantial overseas assets or income, getting professional tax advice before you arrive is worth the cost.

Transferring money to NZ

Moving a lump sum to NZ (or sending regular transfers) involves foreign exchange, and the rate you get makes a real difference on large amounts.

Your options:

Method	Typical fee	Exchange rate margin	Best for
Bank-to-bank international transfer	$15 to $30 per transfer	1% to 3% above mid-market rate	Convenience if you don't want to set up another account
Specialist FX provider (e.g., Wise, OFX)	$0 to $15 per transfer	0.3% to 1.0% above mid-market rate	Large transfers, regular transfers, best value
Cash/traveller's cheques	High	3% to 5%	Avoid for large amounts

(Provider websites, March 2026. Rates and fees vary by currency pair and amount.)

Example: On a $100,000 transfer from GBP to NZD, the difference between a bank (2% margin) and a specialist provider (0.5% margin) is roughly $1,500 in your pocket. On $50,000, it's about $750. The numbers are large enough to justify spending 15 minutes setting up an account with a specialist provider.

Timing: Exchange rates fluctuate daily. If you're transferring a large amount, consider splitting it into two or three transfers over a few weeks to average out the rate, rather than transferring everything on a single day.

Cost of living in NZ by city

Housing is the biggest variable. Auckland is the most expensive city, Wellington second, and regional cities are significantly cheaper.

City	Median weekly rent (3-bed house)	Median house price	Weekly groceries (couple)	Monthly transport
Auckland	$650	$950,000	$200 to $250	$200 to $300
Wellington	$580	$780,000	$190 to $240	$150 to $250
Christchurch	$480	$620,000	$180 to $220	$130 to $200
Hamilton	$470	$680,000	$175 to $215	$120 to $180
Tauranga	$520	$750,000	$180 to $220	$130 to $200
Dunedin	$400	$520,000	$170 to $210	$100 to $150

(MBIE Tenancy Services median rents Q4 2025, REINZ median house prices January 2026, Stats NZ Household Economic Survey 2023 for grocery and transport estimates.)

Other costs to budget for:

• Power and gas: $150 to $250/month for a 2 to 3 bedroom house (Powerswitch.org.nz)
• Internet: $70 to $100/month for fibre (provider websites)
• Mobile phone: $20 to $60/month (provider websites)
• Contents insurance: $20 to $40/month (insurer websites)
• Car insurance (if applicable): $60 to $120/month depending on vehicle and location (insurer websites)
• Health insurance (optional, private): $50 to $150/month per adult (insurer websites)

Public healthcare is free or heavily subsidised for NZ residents. Private health insurance is optional and mainly used for faster access to elective surgery and specialist appointments.

Worked example: Financial setup for a skilled migrant on $95,000

The situation: A 32-year-old software engineer moving from the UK to Auckland on an Accredited Employer Work Visa. Salary of $95,000. No NZ student loan. Planning to stay long-term. Transferring GBP 30,000 in savings.

Week 1 to 2:

• Open ANZ bank account (started online from UK, activated on arrival)
• Apply for IRD number online (received within 10 working days)
• Set up Wise account for GBP to NZD transfers

First payday (week 3 to 4):

• PAYE: $19,640/year. ACC: $1,587/year. KiwiSaver at 4%: $3,800/year
• Take-home pay: $69,973/year or $1,346/week (IRD 2025-26 rates, KiwiSaver at 4% — the rate from April 2028)
• Auto-enrolled in employer's default KiwiSaver scheme

Month 1 to 2:

• Transfer GBP 30,000 via Wise (approximately NZD 57,000 at 0.5% margin, saving roughly $850 vs bank transfer)
• Choose own KiwiSaver provider and switch to a growth fund
• Set up $100/week automatic transfer to on-call savings account for emergency fund
• Get contents insurance ($30/month) and car insurance ($90/month)

Month 3 to 6:

• Emergency fund at $2,600+ from weekly savings (plus the GBP transfer provides a buffer)
• Transitional tax residency confirmed with IRD (UK investment income exempt for 4 years)
• Budget settled: rent $550/week (2-bed apartment, central Auckland), total fixed costs approximately $850/week, $515/week for everything else

End of year 1:

• Emergency fund fully funded at $10,000 (3 months expenses in Auckland)
• KiwiSaver growing with employer match and government contribution
• Overseas investments managed under transitional residency rules
• Total cost of living in Auckland: approximately $70,000/year including rent

Common questions

How do I get an IRD number when I first arrive in NZ?

Apply online at ird.govt.nz using the IR742 form. You'll need your passport, visa details, NZ bank account number, and your tax identification number from your home country. Processing takes 8 to 10 working days. Until you have one, your employer deducts tax at 45% (the no-notification rate), which gets corrected once you provide your IRD number (IRD).

Can I open a bank account before I move to NZ?

Yes. ANZ, ASB, BNZ, and Westpac all allow online applications from overseas. You provide your passport, visa, and overseas address to start the process, then activate the account in person (or by video call, depending on the bank) after you arrive. Kiwibank requires a branch visit. Having a NZ bank account ready makes everything else faster, especially your IRD number application (bank websites).

Do I have to join KiwiSaver as a new migrant?

If you're employed in NZ and aged 18 to 64, your employer automatically enrols you after 4 weeks. You can opt out between weeks 2 and 8. Whether to stay in depends on how long you plan to be in NZ. If you're staying long-term, the employer match (at least 3% of your pay, rising to 3.5% from April 2026 and 4% from April 2028) and government contribution (up to $521.43/year) make it worth it. If you leave NZ permanently, you can withdraw your KiwiSaver after 1 year away (KiwiSaver Act 2006, IRD).

What is transitional tax residency and do I qualify?

If you're becoming a NZ tax resident for the first time (or returning after 10+ years away), you get a 4-year exemption on most foreign-sourced income, including overseas interest, dividends, rental income, and certain superannuation transfers. You still pay NZ tax on NZ-sourced income and on overseas employment income. It's automatic if you qualify, but check with IRD or a tax adviser if you have significant overseas assets (IRD, Income Tax Act 2007).

What's the best way to transfer a large sum of money to NZ?

A specialist foreign exchange provider (like Wise, OFX, or XE) typically offers exchange rates 1% to 2% better than a standard bank transfer. On $100,000, that's $1,000 to $2,000 saved. For very large amounts ($200,000+), some providers offer dedicated dealers who can lock in rates or provide forward contracts. Compare rates on the day, as margins vary (provider websites).

How much does it cost to live in Auckland?

A single person renting a 1-bedroom apartment in central Auckland can expect to spend approximately $1,100 to $1,400/week on all costs (rent $400 to $550, food $150, transport $50, utilities and insurance $80 to $100, personal spending $200 to $300). A couple sharing costs will spend roughly $1,500 to $1,900/week combined. Auckland is NZ's most expensive city, roughly 15% to 20% higher than Wellington and 30% to 40% higher than Christchurch for overall living costs (Stats NZ, MBIE Tenancy Services, Numbeo).

Do I need private health insurance in NZ?

Public healthcare covers most essential treatment for NZ residents, including hospital care, at no cost. Private health insurance (typically $50 to $150/month per adult) is mainly useful for faster access to elective surgery, specialist appointments, and private hospital rooms. If you're coming from a country with fully private healthcare, the NZ public system will feel different but it covers the essentials. Many employers offer subsidised group health insurance as a benefit (Ministry of Health, insurer websites).

Is NZ income taxed differently from my home country?

NZ taxes individuals, not couples or families. There's no income splitting, no joint filing, and no capital gains tax on most personal assets (including your home). The top marginal rate is 39% on income above $180,000. If you're coming from the UK, US, or Australia, the tax rates are roughly comparable, but the system is simpler because most deductions and credits are handled automatically through PAYE. If you have income from both NZ and overseas, a double tax agreement (DTA) between NZ and your home country usually prevents you from being taxed twice (IRD).

What happens to my overseas pension or superannuation?

If you have a pension or superannuation from your home country, the treatment in NZ depends on the type of scheme, the country, and whether you transfer it to NZ. Some transfers are exempt under transitional residency. Others may be taxable. NZ has reciprocal social security agreements with several countries (including the UK and Australia) that affect how overseas pensions interact with NZ Super (MSD, IRD). This is complex enough that professional advice is worth the cost if significant amounts are involved.

What to do next

• Calculate your NZ take-home pay on your NZ salary
• NZ tax brackets explained for the full breakdown of income tax rates
• Choose a KiwiSaver fund if you're staying and want to pick the right fund
• KiwiSaver contribution rates to understand the cost and benefit of each rate
• Emergency fund guide to build your financial buffer in NZ
• ACC levy explained for more detail on what ACC covers and costs

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Last updated: 28 March 2026. Sources: IRD (ird.govt.nz), Immigration NZ (immigration.govt.nz), ACC (acc.co.nz), RBNZ (rbnz.govt.nz), Stats NZ (stats.govt.nz), MBIE Tenancy Services (tenancy.govt.nz), REINZ (reinz.co.nz), Ministry of Health (health.govt.nz), MSD (msd.govt.nz), bank websites, provider websites. Rates and data are indicative and change frequently. This is educational content, not financial advice.