K3 Insights

Government Initiative to Attract Digital Nomads

Last month, the government relaxed visitor visa conditions to allow tourists to stay in New Zealand as remote workers or digital nomads while keeping in touch with work back home, without breaching their visa conditions. All visitor visas applied for on or after 27 January 2025 allow individuals to work remotely in New Zealand. There is no limit to the amount of remote work that can be conducted during the visa's validity period.

This initiative is part of the government's broader strategy to enhance New Zealand’s appeal as a long-term tourist destination. Introduced by the Economic Growth Minister, Immigration Minister, and Tourism Minister, the policy aims to attract digital nomads who can contribute to the local economy without occupying domestic job opportunities. Tourism remains New Zealand’s second-largest export industry, generating almost $11 billion in revenue and creating nearly 200,000 jobs.

What Constitutes Remote Work?

The new conditions apply to all visitors, including tourists (both visitor visa holders and those entering with an NZeTA—New Zealand Electronic Travel Authority), as well as those visiting family or accompanying partners and guardians on longer-term visas.

Remote work includes activities conducted for gain or reward for an overseas company, employer, or client. This encompasses any work done for payment or benefits valued in monetary terms, such as accommodation, food, or services. Self-employed individuals and freelancers can also work remotely for international clients while in New Zealand.

According to the Immigration Act 2009, ‘work’ is defined as “(a) any activity undertaken for gain or reward; but (b) does not include an activity excluded, or excluded for a particular purpose, from this definition by immigration instructions.” The instructions do not exclude ‘work’ from working remotely for an overseas entity/employer.

Examples of remote work include:

• Answering emails and phone calls
• Coding and testing
• Writing reports
• Attending meetings or giving presentations to colleagues outside New Zealand
• Creating content as a social media influencer – as long as you are not promoting an activity, event, or product for gain or reward from a New Zealand business or person in New Zealand.

Visitor visa holders must not:

• Work for a New Zealand employer
• Provide goods or services to people or businesses in New Zealand
• Perform work that requires them to be physically present at a workplace in New Zealand

Tax Implications for Remote Workers

Tax obligations depend on the duration of the visitor's stay and their home country's tax treaties with New Zealand.

Generally, if a visitor’s income is taxed elsewhere, New Zealand will exempt it from tax if the individual does not spend more than 92 days in New Zealand in a 12-month period.

If the visitor is a tax resident of one of the 40+ countries with which New Zealand has a tax treaty (such as Australia, most of Europe, the UK, the US, and much of Asia), this period can often be extended to 183 days.

If the visitor is present in New Zealand for longer than the relevant limit for exemption, New Zealand will tax their income from providing services. This tax will apply from the first day of their presence in New Zealand and will be imposed at the same rates that apply to New Zealand residents.

A Global Trend Toward Digital Nomad Visas

Digital nomad visas are becoming increasingly common worldwide. Estonia is believed to have introduced the world’s first digital nomad visa in 2020, and by 2024, approximately 60 countries or regions had implemented similar programs, allowing remote professionals to live and work legally while traveling.

New Zealand’s move to accommodate remote workers reflects this global trend, making the country an attractive option for professionals seeking a flexible, digitised work environment.

Conclusion

New Zealand’s new visa conditions provide greater flexibility for remote workers and tourists, reinforcing the country’s reputation as an ideal destination for extended stays.

If you require assistance with a visitor visa application, tax advice, or broader immigration guidance, our dedicated legal and accounting teams are here to help.