What is a NEW ZEALAND FOREIGN TRUST?
A New Zealand Foreign Trust (NZFT) is an offshore trust under the heritage of British Common Law and similar to trusts in all British heritage jurisdictions. It can be a testamentary, estate or trading (Business) trust. It is a tool for those who wish to have a Foreign Vehicle in a non Tax Haven associated country for the purposes of:
- Banking/Brokerage Accounts – If you want to set up bank accounts or brokerage accounts in a foreign jurisdiction and you need an offshore entity to do that.
- Operating a Business (A trading trust can be set up without or with a corporate trustee – both of which you own and neither of which are taxed in New Zealand for non New Zealand Sourced income)
- Financial Services Delivery (New Zealand Law does not prohibit New Zealand entities from operating financial institutions offshore to New Zealand – this applies to;
- banking, broking, Investment advice, means of payment services, financial guarantees, insurance, financial exchanges, gambling, foundations, trust companies, escrow companies, etc.)
- Tax Planning (New Zealand does not tax a properly structured NZFT nor its New Zealand corporate trustee on its non New Zealand sourced income for non New Zealand resident beneficiaries.) In addition
- There are No Forced Heirship Provisions in New Zealand taxation legislation- no part of the estate has to be passed to next-of-kin.
- There are no Capital Gain taxes or Inheritance taxes in the New Zealand taxation legislation.
- Privacy – There is no registration of a NZFT if the trustee is also foreign based. No one will even know your trust exists unless you tell them. With a New Zealand trustee, if the settlor is not Australian, only the NAME of the trust is revealed and no tax filings have to be done, though records have to be kept by the New Zealand trustee in case of a governmental request by an offshore Government with whom New Zealand has a double tax treaty. (This is mainly aimed at Australians). A non New Zealand trustee who is also not based in your country can be supplied if needed, thereby removing the requirements imposed on a New Zealand Trustee.
- Asset Protection – Protect your assets from foreign creditors by legally removing ownership to New Zealand Trustee.
- Franchising – New Zealand has no franchising law and franchises can be set up easily and quickly without local registration.
NEW ZEALAND FOREIGN TRUST FORMATION FEES (USD)
Formation of Trust – $ 2,400.00 New Zealand address – $ 600.00/annual Optional * Nominees – $ 500.00/annual New Zealand Corporate Trustee Formation and registered office – $1000 New Zealand Corporate Trustee registered office Annual – $ 500 Offshore Corporate Trustee Formation and registered office – $1000 Offshore Corporate Trustee registered office Annual – $1000 Assistance for opening Corporate Bank account – $ 600.00
Exclusive telephone number in NZ – $200.00/annual + usage Exclusive fax line in NZ, – $200.00/annual + usage
(*) 1st year optional fees will be payable together with incorporation fees. First year – Fees are considered from the date of formation until the 31st December same year. Second and subsequent years – All annual fees marked above as “Annual” become due from the 1st January each year, and are payable until the 31st of January.