If you’re a property owner, seller, or investor in New Zealand, the conversation around introducing a capital gains tax on residential investment properties is likely top of mind. To help you navigate the uncertainty and make informed decisions, we have broken down what you need to know and how Land Law can help you plan ahead.

Why is a Capital Gains Tax Being Considered?

The New Zealand Government is discussing a new tax focused on profits from selling investment properties (but not family homes or farms). This proposed tax aims to generate revenue while creating a fairer property landscape. If implemented, it could come into effect from July 2027 and would apply a flat 28% tax rate on your property’s capital gains at sale, after eligible expenses.

Immediate Actions for Property Investors

Start tracking asset values and improvements: Record your property’s value as of July 1, 2027 (or purchase date) as your potential CGT starting point.
Keep documentation for all costs: Things like renovations and upkeep are deductible. Strong records will help you reduce future tax.
Consult with a property lawyer: They can review your portfolio and advise you on conveyancing under the proposed new rules.

How Does Capital Gains Tax Change Existing Property Taxation?

Capital Gains Tax would apply to all investment property sales regardless of ownership duration. Bright-line uses your personal income tax rate (which can be much higher), while the proposed Capital Gains Tax is a flat 28%.

Will it Affect Property Values and Market Trends?

Many factors influence the New Zealand property market, including interest rates and land supply. Experts anticipate that Capital Gains Tax could slow—but not stop—house price increases. If you’re unsure whether to buy or sell now, seek tailored strategy from our house solicitors who specialise in property sales and purchases.

Offsetting Losses – What If Your Property Sells at a Loss?

It’s expected that Capital Gains Tax won’t penalise you for losses—that is, you’ll likely be able to carry forward any losses and offset them against future property gains (but not get an instant refund). This makes good record-keeping and legal advice essential.

What Should You Do Next?

Evaluate your property portfolio with an online property lawyer: Understand your exposure and get compliance-ready.
Discuss subdivision plans with our subdivision lawyers. The tax on development projects may differ, so get advice early.
Get an online quote for your NZ property law needs — every client’s situation is different, whether you’re a first-home buyer, a seller, or an experienced investor.
As New Zealand considers new capital gains tax rules for investment properties, property refinancing with the support of an experienced property lawyer is more important than ever—ensuring your property’s value, documentation, and legal structure are all optimised and compliant for future policy changes.

Ready to Make Informed Decisions?

At Land Law, our property lawyers in New Zealand guide you through policy changes, help you maximise eligible deductions, and handle transactions with fixed, transparent fees. Whether buying, selling, subdividing, or structuring your investments, we’ll tailor solutions for every stage of your journey.

Contact Law Law today to stay ahead of legislative changes and protect your property wealth with expert legal advice—wherever you are in New Zealand.