The logistics of transferring money back to New Zealand
When you return home to New Zealand, your foreign currency will need to be converted into New Zealand dollars and then transferred to your nominated bank account. So, you’ll need to find someone who can arrange the money transfer, this could be a bank or a specialist international money transfer provider.
Banks v Money Transfer Providers
It’s best to use a specialist provider rather than a bank for three reasons:
- You are likely to get a better exchange rate.
- You are likely to pay lower transaction fees.
- The transfer will likely be completed faster.
Even a small difference in exchange rates and transaction fees can make a BIG difference to the amount of New Zealand dollars you will receive when you do your international currency transfer. The more foreign currency you are transferring, the more crucial the exchange rate and fees are to the amount of New Zealand dollars you will receive. The table below shows you the difference between transferring different amounts of Australian dollars into New Zealand dollars at different exchange rates.
As you can see, an exchange rate difference of just two cents results in:
| Transfer Amount – Australian Dollars | Exchange Rate | Transfer Amount – NZ Dollars | Currency Gain |
| $10,000 | $1.11 | $11,100 | |
| $10,000 | $1.13 | $11,300 | NZD 200 |
| $50,000 | $1.11 | $55,500 | |
| $50,000 | $1.13 | $56,500 | NZD 1,000 |
| $100,000 | $1.11 | $111,000 | |
| $100,000 | $1.13 | $113,000 | NZD 2,000 |
Transaction Fees
Any of these transfer amounts would be reduced by transaction fees you are charged. However, it’s possible to find international money transfer specialists who either:
a) charge no fees at all regardless of the transfer amount,
or b) charge no fees provided you transfer a certain amount of funds.
The table below shows you the difference between transferring different amounts of British pounds into New Zealand dollars at different exchange rates.
| Transfer Amount – British Pounds | Exchange Rate | Transfer Amount – New Zealand Dollars |
| £10,000 | $1.96 | $19,600 |
| £10,000 | $1.98 | $19,800 |
| £50,000 | $1.96 | $98,000 |
| £50,000 | $1.98 | $99,000 |
| £100,000 | $1.96 | $196,000 |
| £100,000 | $1.98 | $198,000 |
Specialist international money transfer providers
See below for specialist money transfer providers who can arrange the transfer of your international funds back to New Zealand:
| International Money Transfer Provider | Fees |
| OFX | NZ$12 for amounts below NZ$10,000. Nil for amounts above NZ$10,000. |
| Send | Nil (regardless of transfer amount). |
| TorFX | Nil (regardless of transfer amount). |
| XE | Nil for amounts above NZ$500. |
| Wise | NZ$0.26 + variable origin currency fee that depends on the currency. |
| World First | NZ$10 for amounts between NZ$2,000 and NZ$10,000. Nil for amounts above NZ$10,000. |
| Currency Fair | The equivalent of €3. |
| Revolut | 0.3% capped at min NZ$0.3 – max NZ$8 |
Will I be taxed on money transferred to New Zealand?
If you’re a New Zealand tax resident, you will likely need to pay tax on any worldwide income — this includes even if tax has already been deducted in the country the money was earned in. There are some circumstances where you may qualify for an exemption to get around the money being taxed upon entry into New Zealand:
Possible Tax Exemptions
- You are a new tax resident.
- You are returning to New Zealand after ten years.
- New Zealand has a double taxation agreement with the country you are moving from.
Possible Income Exempt from Tax
Certain types of income can be exempt, you can check this on the IRD website. Some examples of exempt income include:
- Income attributed under NZ’s controlled foreign company rules or foreign investment fund rules.
- Withdrawals from foreign superannuation funds.
- International income subject to non-resident withholding tax or approved issuer levy.
- Income from international employee share options.
- Accrual income from overseas financial arrangements.
- International royalties, interest, dividends or rental income.
If you are unsure of the taxation implications of transferring money to New Zealand, please seek advice from a qualified financial adviser or accountant. When transferring money to New Zealand, it always pays to do your research on a provider’s exchange rate and transaction fees before arranging an international money transfer.
- Most importantly, ask for a quote and the compare what each transfer will cost you across the different providers!