The Digital Nomad

What is the difference in New Zealand between a Working Holiday Visa and the new “Digital Nomad” Visa you ask? Well, both allow you to live and work (and travel of course!!) in New Zealand, but they do cater to different types of travelers and work arrangements.

In very short words, The Digital Nomad visa is simply enabling those who work remotely to work remotely in NZ whilst travelling our beautiful country for up to 92 days without having to address any tax obligations in NZ (Note, they may have obligations in other tax jurisdictions). They simply are unable to “work” for any NZ based business.

Highly likely in todays age this is already happening, the Digital Nomad in New Zealand, travelling and working. This announcement we think, is just aligning visa’s and legislation to what is already happening in New Zealand.

It’s early days still, but here's a breakdown of the key differences as we currently see it.

Digital Nomad Visa

Purpose: Designed for remote workers who can perform their job from anywhere in the world, typically for a foreign employer or their own business/clientele.

Duration: Allowed to work remotely (in NZ) for up to 92 days in a 12 month period while visiting the country, without having any tax obligations in New Zealand.

Anything longer exposes you to NZ tax obligations.

Requirements: You must NOT

• work for a New Zealand employer

• provide goods or services to people or businesses in New Zealand

• do work that requires them to be physically present at a workplace in New Zealand.

  Tax: No New Zealand tax obligations as long as you stay under the 92 day rule.

  Tax implications in other jurisdictions will depend on your own personal circumstances.
  

  Working Holiday Visa

  Purpose: Intended for young travelers (usually aged 18-30 or 35) who want to travel and work temporarily to fund their stay.

  Duration: Typically valid for up to 12 months, with some countries offering extensions. For example, Canadians can stay for up to 23 months, and UK citizens for up to 36 months

  Requirements: Age restrictions, proof of sufficient funds, and sometimes health insurance. You must be a citizen of a country that has a reciprocal agreement with New Zealand

  Flexibility: Allows you to take up short-term or seasonal jobs while traveling around New Zealand. You cannot accept a permanent job from a NZ employer while on this visa.

  Tax: Income Tax (via our PAYE system) is deducted from wages paid to you. Depending on any Double Tax agreement, this income tax may offset your tax due in your home country.

  You may also be eligible for a tax refund in New Zealand, if the income tax deducted at source is in excess of your tax requirements in New Zealand. Often the case if you are only working for a part year.