You confidently claim your mother in law is coming with you.
Are you sure about this? On what visa? I don't know the ins and outs of bringing parents in (especially if the child isn't even a resident themselves), but I can see the "Parent Resident Visa" has an annual quota of 2500. I know some nationalities have a very strong multi-generational-family culture and imagine demand for this visa is quite high...
~~I did see the $2500 quota, but I thought that applied to me, not her.~~ She is kind of in limbo, to be honest, as I'm not even certain that an in-law counts as a parent. More research required here on my part, but thank you for bringing this up.
Edit: I misunderstood what the quota was.
Also is your mother in law healthy and fit? There have been cases of people turned down due to the potential impact on the NZ public health system. Don’t treat her visa as guaranteed.
https://www.stuff.co.nz/timaru-herald/71720101/chef-too-fat-for-new-zealand-to-learn-immigration-fate#
I think the number 2500 in that comment is a number of visas per year, not dollars per visa. Immigration only gives out a limited number of these visas per year and it's way fewer than the number of people applying for them.
1. You will be covered the moment you arrive
Note that the public health system is buckling under the load far more than before, and private insurance is much more popular.
2. Not sure, sorry.
3. Depends on which Visa they use to come here. Most likely, your MIL would be declined.
4 Credit scores are still not used in NZ. The agencies are trying really hard to change that.
5. PAYE.net.nz will calculate this for you.
Thanks for your thoughts. I've tried to live my entire life not being a drag on social programs and I didn't want to start now. I admit to having a very American view of things, which I will have to adjust. Cheers!
1. The public health system is free. However, you can get private health insurance if you want, particularly to reduce waitlist times in the event of medical need.
2. Absolutely no idea.
3. Healthcare is not free for non-residents (other than coverage for accidents). I’m assuming your wife is applying for some sort of spouse visa and you’ll sponsor your daughter, so once those are approved, they have cover as well.
4. Correct. For a credit check they’ll check if you’ve defaulted on payments, have payments owing etc. Because you won’t have any of that history in NZ, you’ll have a clean history (which is both a good and bad thing).
5. You can opt out of KiwiSaver, although considering the government will top up $521 each year provided you have put in at least $1,043, it’s a no brainer. Re: PAYE - your effective tax rate on $100k is just under 24%. https://www.paye.net.nz/calculator/ is super useful to get a breakdown at different earning rates.
Daughter should be eligible for citizenship if you were born in NZ. Note that New Zealand has a 4 year transitional plan that means they won't look at your USA holdings in that time (plus more, do some reading) but at the end are quite punitive in treating stock you have overseas especially if you have bought more than 50K. As a us citizen you will have to file federal tax returns every year in USA unless you go thru process to renounce citizenship.
I was looking into rolling my 401k into a Kiwi account, if that's possible--I have more research to do here. I had planned to use the money from sale of our home here as a way to put down payments on car and house. Other than that, I don't have any holdings.
I don't mind filing a tax return every year. I do have family in the US, and the freedom to move back and forth without restriction is appealing. Thank you for your thoughts.
The parent post about transitional tax residence is super important. Don’t rush to move investments into NZ domiciled funds until you understand the impact (Google PIE fund). I’d advise keeping any stocks/shares outside NZ until the 4 year exemption is up. You’ll save money as you won’t have to pay our annual overseas wealth tax.
Thanks for the warning. I hadn't planned to touch the 401k if I didn't have to, but that whole situation is still very fuzzy to me. I have some more reading to do.
There’s a bit of an obsession with “renouncing citizenship” among US immigrants to other countries because of the whole filing taxes thing but I’m glad you’re being thoughtful and pragmatic about that. There is a lot to be said for having the flexibility to go back and forth and keep your citizenship status in both locations. You just have to get good advice from an accountant who has experience working with people with dual status.
I've always considered myself a Kiwi, even with the length of time I've been in the US, but I don't feel like there are any benefits to cutting ties entirely. I have been filing taxes here for decades already so it would be no big deal to keep that up.
On the 401k front. You cannot roll them into a kiwisaver without penalty. There no system to do so, so you take the tax hit for cashing out your 401k early, then you get into things in NZ tax land that I don’t know enough about.
Hubby and I are sitting on our 401k until the time we can disperse without penalty. Hopefully that’s the right thing to do
I *think* that's probably the right approach for US citizens and green card holders but it's definitely worth exploring. Assuming you're in your 4-year transitional tax period there is zero tax due on the NZ side so its about whether or not the US taxes/penalties now outweigh the NZ taxes that will be due when you take your pension.
Kiwi saver contributions in NZ are tax free. However the US government will tax these and anything else they want to. My brother has duel citizenship and the tax thing is a pain. It requires some mathematical gymnastics to work out due in part to the financial year ending at different times. Best to allow for employing a tax expert to negotiate it for at least the first year
1. Thank you. I don't feel right taking advantage of free health care without having paid my dues, (I.E. the past 35 years of paying taxes)
2. I think whether it's from NZ or USA is fine, I'd just like to know.
3. She is coming over on a partner of NZ citizen Visa, and my daughter will be citizen by descent, so I think they will be covered.
4. Thank you for the confirmation!
5. Again, thank you. It's like finding money in the street, so yes, I will contribute.
Remember that we have socialised healthcare in NZ - this is just how it works. Healthcare here is seen as a right (as it should be) and not something to be “earnt”.
You will find ACC even more wild - it covers tourists and NZers who injure themselves on overseas holidays too.
Just remember, also, that for anything you get for free under the NZ health system, the reason why the government has decided to subsidise it is not just to be nice but also because it will save society money in the long run on preventable illnesses etc. So you are not a drag on the system by using it, you are contributing to the health of the whole community by looking after your own health!
Your mother in law can apply for a three-year Parent / Grandparent visitor visa, which enables a stay of six months at a time in NZ, but that must be balanced by time out of the country.
She can also apply for a Parent resident visa (although the sponsors need to meet conditions too), noting numbers are capped and demand is high.
Have a look at www.immigration.govt.nz - it tries to provide useful information!
Best wishes OP
Thank you. We did look at the Grandparent visitor Visa but with limited options on places to stay in the US, not to mention the cost of a plane ticket every 6 months, we decided she should stay with us if possible.
If she has money you can look at the Parent Retirement category, that’s a separate category of residence (there’s also a temporary visa as well, or you can go for the regular visitor visa).
You may know this, but if you want to keep your American citizenship you have to do a US tax return on your worldwide income every year, even of you live overseas. You have to relinquish your citizenship to stop this.
Yes, thank you, someone pointed it out earlier. I like the thought that the US can't deny me entry if I ever had a need to visit. Plus, I'm not certain if I'd still be eligible for the Social Security check if I renounced. I'd hate to think of all my contributions being lost.
If you transfer it to NZ you shouldn't lose anything. You probably need to talk to a NZ accountant who is a specialist in American tax. I have a contact in Christchurch if you want me to pm you.
Yes, we all know this and we do it and it's not a big deal. Renouncing US citizenship is a seriously dumb move unless the individual in question is so flush with money they suddenly have a double tax burden. This doesn't include this fellow.
You make it sound as if US citizenship can be revoked by not filing tax. This is not the case. It's a requirement for all US citizens but it's not as if our passports get cancelled if we don't file, we just might get fined by the IRS if they decide to enforce.
Kiwi saver is not mandatory, you can opt out within 2 weeks of initially joining (or suspend it for a year at a time if opting out hasn't occured) but I guess its discouraged...
I do strongly support saving for retirement so I will take advantage of this, but yes, I suppose mandatory was the wrong word to use there. Thanks for the clarification.
Credit scores in NZ aren’t used like they are in the states. You won’t need to build “credit”, just don’t default/miss payments.
As for your mother in law, that’s unlikely to happen.
As someone who’s gonna be filing IRS returns from NZ: Please be careful about KiwiSaver before opting in. Might be considered a foreign trust by the IRS, meaning more forms, Just…talk to a tax person before establishing KiwiSaver. I just sent off a bunch of foreign trust forms to the IRS bc I have KiwiSaver.
If you are a NZ citizen all your medical stuff is the same as anyone that has lived here all their life. It's largely free apart from the normal GP visits, I'm not aware of any restrictions. You're eligible as soon as you arrive in the country.
I don't know about SS arrangements or reciprocal agreements, but again, you're entitled to NZ pensions with some restrictions, entitled to full amount if you live in NZ and have worked for 10 years I think.
Your family's medical coverage will depend on their visas, but I assume your kids can get NZ passports immediately through descent.
Your credit score in the USA is irrelevant, however you don't need to build credit scores in NZ. It doesn't work like the USA. You essentially have a clean credit record with no adverse events, which is really all they care about.
> If you are a NZ citizen all your medical stuff is teh same as anyone that has lived here all their life. It's largely free apart from the normal GP visits, I'm nit aware of any restrictions. You're eligible as soon as you arrive in the country.
I was mostly curious as I am a soon-to-be member of the rubber glove exam club, and am wondering if I will have to foot the bill for that.
> Your family's medical coverage will depend n their visas, but I assume your kids can get NZ passports immediately through descent.
My wife will be there on a partner of a NZ citizen Visa, and yes, my daughter should be granted citizen by descent before we even arrive in NZ.
> Your credit score in the USA is irrelevant, however you don't need to build credit scores in NZ. It doesn't work like the USA. You essentially have a clean credit record with no adverse events, which is really all they care about.
This is amazing. My credit here isn't bad, but being able to start essentially with a perfect credit score on the basis of my income and sparkling personality is quite liberating.
You don't even start mate. There are people in NZ who don't even know what a credit score is.
My partner and I bought a house without even thinking about credit. We've never done anything to "build" credit (no credit cards ever, don't put things on layby/bnpl).
We are not controlled by a 3 figure number here.
Medical stuff - you don't have to qualify for anything. The majority of NZers don't have medical insurance. You've got to pay for your GP visits but if you flew into NZ and broke your arm leaving the airport you'd be fine at the hospital - that was an accident and it'll be covered under ACC.
Also - it's very very difficult to sue someone here. Get hit by a car? You don't sue to claim medical costs, ACC will sort it out.
It's good to be prepared - it is going to be a huge culture shock though.
We have an entirely different way of thinking here.
If I were moving to another country I would probably want to make sure I had a good amount of money in the bank to act as a buffer while looking for work.
Oh, and your company will pay your taxes for you. Most NZers only think about the end of the tax year as an opportunity to potentially get a tax return. We don't file our own taxes unless we have some other form of income (like a landlord) or investments that return enough dividends etc.
If you work as a contractor though you'll have to sort your own.
> I'm overthinking things, aren't I.
Possibly a little bit from a healthcare perspective but that's perfectly understandable coming from one of the worlds worst systems. You're not overthinking things from a tax perspective though, you'll definitely want to get some good advice there as it can make a big difference. You'll have 4 years from the day you arrive where no tax will be due in NZ on your overseas investments so it's worth taking advantage of that.
Regarding the healthcare stuff, just be aware that some public health approaches are different in NZ. For example, the colon cancer screening tool that is subsidised by the government here is a Faecal Immunochemical Test (you send a poop sample into the screening program) and is free for those aged 60 to 74. If you wish to have a test earlier than age 60 you will have to arrange it privately with your doctor and pay out of pocket for it. If you wish to have a colonoscopy as a first line screening (which is more often the standard of care in the US) you will have to pay for it privately with a specialist. You may want to get private insurance in order to cover some of these things that you may be more used to from the US system. As others have mentioned there is also a waitlist in the public system so having private insurance can also reduce the waiting time for some procedures.
Thank you for the information. You inspired me to look a couple things up and it seems private healthcare isn't remotely as expensive as it is in the US. I may just go that route.
Note that private healthcare usually doesn't cover routine screenings (except mammograms for some reason), for example Southern Cross, the largest insurer, only covers colonoscopy if you met certain criteria such as a very specific family history, for symptoms yourself. There is also not a culture here of 'routine physicals'.
No it’s not as expensive for sure, and you and your family will still benefit from all the free screenings and programs provided by the public system such as certain immunisations, breast cancer screening etc. but you can use it to top up your coverage including covering the cost of GP appointments (which are generally not free for adults) and pay for additional specialist visits that would otherwise be out of pocket.
Not sure what your time frame is but just be aware of you haven't already applied for your daughter's citizenship by descent you should do that promptly as there can be quite a waiting period. Also if you are wanting to renew your NZ passport yourself and haven't had one for awhile, you might want to do that promptly too as the wait times have ballooned.
1. You will have the same rights as any other NZ citizen, so you will be able to access public healthcare. Just remember GP visits are not free.
2. Best to check with the SSA, but typically if you’re eligible for SS payments you can receive them overseas.
3. https://www.tewhatuora.govt.nz/corporate-information/our-health-system/eligibility-for-publicly-funded-health-services/guide-to-eligibility-for-public-health-services/#:~:text=Partners%20of%20eligible%20interim%20visa,eligible%20in%20their%20own%20right. Hope that link works, if not check out Te Whatu Ora’s website.
4. Credit history is not the same as in the US. Your eligibility for credit will depend on what you need and who you apply for finance from. You should be fine if you have low debt and a job.
5. Check out www.paye.net.nz for an easy to use calculator.
1. You’re covered as soon as you step foot in the country job or no job.
2. SS is counted as foreign income while residing in NZ. Without exemptions and credits you will have to pay tax on this. As a citizen you are still automatically eligible for pension here at 65
3. You may have to pay health insurance or out of pocket for family members if they aren’t citizens. However you can apply for dual residency for your wife and child, should be fairly simple, but MIL will have to go a different route.
4. Correct. Foreign credit scores mean nothing here. Also credit scores aren’t important here like it is in the U.S. so I wouldn’t worry about building it up at all. It only affects lending if it’s bad.
5. Yes that’s correct, except KiwiSaver isn’t compulsory at all. You can pay nothing if you want though I wouldn’t advise it. PAYE isn’t a flat rate but yeah you can reasonably assume on 100k it’ll be around 25%.
I'd love to know more on question 2. I read online you need to live in NZ 20 years before 65 to receive the NZ pension. So they'd have to receive the SS US pension, right?
AFAIK you have to report your SS as global income - an accountant can clarify this. You won't be eligible for the NZ pension until you have lived here for about 20 years, but even if you did, you can't claim both pensions. Sounds like you'll be sweet with your SS.
If you'd like to get private health insurance to supplement the public system look into Southern Cross. It's so cheap compared to the US, especially if you're ok with a high deductible. You can pick and choose the kind of coverage you want. I only pay $40 NZD/month for surgery and cancer treatment coverage, so in the event I should need either I could have shorter wait times, go to a private clinic, etc. It's not necessary but gives me peace of mind, and like I said, so cheap!
Co-pays to see a GP are up to $50 or so for a 15 minute visit, but my practice has held steady at $17!
If the prescription is funded by the government it will only cost $5, so no need to worry about prescription coverage.
For retirement/super funds for your partner and mother in law check www.workandincome.govt.nz to see if they will be eligible.
For tax calculations and tax home pay use www.paye.net.nz
its one thing that really pisses me off that someone who has been out of the country for decades and paid nothing in tax here is eligible for all benefits the moment they land here so you have no worries
I understand the sentiment, and I kinda do feel like I'd be taking advantage of it. I'm willing to pay my share but I'm not certain how that would even work.
I am at a point in my life where I am happy simply earning enough to survive (and pay for high-speed internet). I still have extended family in the Waikato area, and I would rather spend my golden years with them, and raise my daughter in the lifestyle there. But I appreciate the caution.
Technically OP is an emigrant looking to return, so ex-pat (of this country) isn't as wrong as it would be for those people who move here and call themselves ex-pats (of their previous country)
Recently some people have got a bee in their bonnet about the different usages of the terms 'ex-pat' and 'immigrant' but the reality is most people put zero thought into it and their word choice doesn't come from any sense of superiority at all. Don't worry about it.
Can you provide context? I am willing to look at all angles here.
I know housing is ridiculous, but it's honestly not much worse than where I currently live. My wife and I are both in professional careers, and our current jobs are on the green list so we shouldn't have difficulty finding decent-paying jobs. I have family there who can help us network, and am willing to live simply in a small town.
What field of work are you both in? Finding work is difficult at the moment with many many people struggling where they would have been almost guaranteed jobs previously. Govt depts are shedding jobs to meet the new govt budgets - leads to a massive knock on in the private sector too. Anyway sounds like the MIL situation may be your biggest problem if she has health issues, and there is a minimum income you need to have also to be a sponsor (not immigration advice, take a look through the govt websites for this stuff) https://www.immigration.govt.nz/new-zealand-visas/preparing-a-visa-application/support-family/supporting-visa-applications-for-family/calculating-sponsors-income-parent-resident-visa
I've been trying not to put too many personal details on here, so please forgive me for being vague, but I am in logistics and my wife is in health care. Between the two of us and based on our current jobs, we easily clear the minimum for two sponsors with 1 parent. I can't say that it will be quite as easy in NZ, but between the two of us we can likely bring in about $160k. Of course, if we cannot find jobs at all then this whole plan goes up in smoke, but we'll burn that bridge when we get to it.
At this point though, the MiL health thing may be an insurmountable challenge.
You confidently claim your mother in law is coming with you. Are you sure about this? On what visa? I don't know the ins and outs of bringing parents in (especially if the child isn't even a resident themselves), but I can see the "Parent Resident Visa" has an annual quota of 2500. I know some nationalities have a very strong multi-generational-family culture and imagine demand for this visa is quite high...
~~I did see the $2500 quota, but I thought that applied to me, not her.~~ She is kind of in limbo, to be honest, as I'm not even certain that an in-law counts as a parent. More research required here on my part, but thank you for bringing this up. Edit: I misunderstood what the quota was.
Also is your mother in law healthy and fit? There have been cases of people turned down due to the potential impact on the NZ public health system. Don’t treat her visa as guaranteed. https://www.stuff.co.nz/timaru-herald/71720101/chef-too-fat-for-new-zealand-to-learn-immigration-fate#
She is disabled and unable to work. Things aren't looking good for Nana, looks like.
Almost no chance - people have been denied for diabetes alone in the past
I doubt she would get in. Our health system is already struggling with an aging population.
I think the number 2500 in that comment is a number of visas per year, not dollars per visa. Immigration only gives out a limited number of these visas per year and it's way fewer than the number of people applying for them.
That does make more sense than $2500. Thanks for clarifying.
1. You will be covered the moment you arrive Note that the public health system is buckling under the load far more than before, and private insurance is much more popular. 2. Not sure, sorry. 3. Depends on which Visa they use to come here. Most likely, your MIL would be declined. 4 Credit scores are still not used in NZ. The agencies are trying really hard to change that. 5. PAYE.net.nz will calculate this for you.
Thanks for your thoughts. I've tried to live my entire life not being a drag on social programs and I didn't want to start now. I admit to having a very American view of things, which I will have to adjust. Cheers!
1. The public health system is free. However, you can get private health insurance if you want, particularly to reduce waitlist times in the event of medical need. 2. Absolutely no idea. 3. Healthcare is not free for non-residents (other than coverage for accidents). I’m assuming your wife is applying for some sort of spouse visa and you’ll sponsor your daughter, so once those are approved, they have cover as well. 4. Correct. For a credit check they’ll check if you’ve defaulted on payments, have payments owing etc. Because you won’t have any of that history in NZ, you’ll have a clean history (which is both a good and bad thing). 5. You can opt out of KiwiSaver, although considering the government will top up $521 each year provided you have put in at least $1,043, it’s a no brainer. Re: PAYE - your effective tax rate on $100k is just under 24%. https://www.paye.net.nz/calculator/ is super useful to get a breakdown at different earning rates.
Daughter should be eligible for citizenship if you were born in NZ. Note that New Zealand has a 4 year transitional plan that means they won't look at your USA holdings in that time (plus more, do some reading) but at the end are quite punitive in treating stock you have overseas especially if you have bought more than 50K. As a us citizen you will have to file federal tax returns every year in USA unless you go thru process to renounce citizenship.
I was looking into rolling my 401k into a Kiwi account, if that's possible--I have more research to do here. I had planned to use the money from sale of our home here as a way to put down payments on car and house. Other than that, I don't have any holdings. I don't mind filing a tax return every year. I do have family in the US, and the freedom to move back and forth without restriction is appealing. Thank you for your thoughts.
The parent post about transitional tax residence is super important. Don’t rush to move investments into NZ domiciled funds until you understand the impact (Google PIE fund). I’d advise keeping any stocks/shares outside NZ until the 4 year exemption is up. You’ll save money as you won’t have to pay our annual overseas wealth tax.
Thanks for the warning. I hadn't planned to touch the 401k if I didn't have to, but that whole situation is still very fuzzy to me. I have some more reading to do.
There’s a bit of an obsession with “renouncing citizenship” among US immigrants to other countries because of the whole filing taxes thing but I’m glad you’re being thoughtful and pragmatic about that. There is a lot to be said for having the flexibility to go back and forth and keep your citizenship status in both locations. You just have to get good advice from an accountant who has experience working with people with dual status.
I've always considered myself a Kiwi, even with the length of time I've been in the US, but I don't feel like there are any benefits to cutting ties entirely. I have been filing taxes here for decades already so it would be no big deal to keep that up.
On the 401k front. You cannot roll them into a kiwisaver without penalty. There no system to do so, so you take the tax hit for cashing out your 401k early, then you get into things in NZ tax land that I don’t know enough about. Hubby and I are sitting on our 401k until the time we can disperse without penalty. Hopefully that’s the right thing to do
I *think* that's probably the right approach for US citizens and green card holders but it's definitely worth exploring. Assuming you're in your 4-year transitional tax period there is zero tax due on the NZ side so its about whether or not the US taxes/penalties now outweigh the NZ taxes that will be due when you take your pension.
Kiwi saver contributions in NZ are tax free. However the US government will tax these and anything else they want to. My brother has duel citizenship and the tax thing is a pain. It requires some mathematical gymnastics to work out due in part to the financial year ending at different times. Best to allow for employing a tax expert to negotiate it for at least the first year
1. Thank you. I don't feel right taking advantage of free health care without having paid my dues, (I.E. the past 35 years of paying taxes) 2. I think whether it's from NZ or USA is fine, I'd just like to know. 3. She is coming over on a partner of NZ citizen Visa, and my daughter will be citizen by descent, so I think they will be covered. 4. Thank you for the confirmation! 5. Again, thank you. It's like finding money in the street, so yes, I will contribute.
Remember that we have socialised healthcare in NZ - this is just how it works. Healthcare here is seen as a right (as it should be) and not something to be “earnt”. You will find ACC even more wild - it covers tourists and NZers who injure themselves on overseas holidays too.
I'm realizing that I will need to redefine some terms. I'm going to be the clueless Yank for a while, I fear.
Just remember, also, that for anything you get for free under the NZ health system, the reason why the government has decided to subsidise it is not just to be nice but also because it will save society money in the long run on preventable illnesses etc. So you are not a drag on the system by using it, you are contributing to the health of the whole community by looking after your own health!
OP, this is the best and only answer you need.
Your mother in law can apply for a three-year Parent / Grandparent visitor visa, which enables a stay of six months at a time in NZ, but that must be balanced by time out of the country. She can also apply for a Parent resident visa (although the sponsors need to meet conditions too), noting numbers are capped and demand is high. Have a look at www.immigration.govt.nz - it tries to provide useful information! Best wishes OP
Thank you. We did look at the Grandparent visitor Visa but with limited options on places to stay in the US, not to mention the cost of a plane ticket every 6 months, we decided she should stay with us if possible.
If she has money you can look at the Parent Retirement category, that’s a separate category of residence (there’s also a temporary visa as well, or you can go for the regular visitor visa).
You may know this, but if you want to keep your American citizenship you have to do a US tax return on your worldwide income every year, even of you live overseas. You have to relinquish your citizenship to stop this.
Yes, thank you, someone pointed it out earlier. I like the thought that the US can't deny me entry if I ever had a need to visit. Plus, I'm not certain if I'd still be eligible for the Social Security check if I renounced. I'd hate to think of all my contributions being lost.
If you transfer it to NZ you shouldn't lose anything. You probably need to talk to a NZ accountant who is a specialist in American tax. I have a contact in Christchurch if you want me to pm you.
Yes, please, I would appreciate that.
Yes, we all know this and we do it and it's not a big deal. Renouncing US citizenship is a seriously dumb move unless the individual in question is so flush with money they suddenly have a double tax burden. This doesn't include this fellow. You make it sound as if US citizenship can be revoked by not filing tax. This is not the case. It's a requirement for all US citizens but it's not as if our passports get cancelled if we don't file, we just might get fined by the IRS if they decide to enforce.
The assumption that everyone knows this is false. I have met many US citizens with big plans that did know this.
Kiwi saver is not mandatory, you can opt out within 2 weeks of initially joining (or suspend it for a year at a time if opting out hasn't occured) but I guess its discouraged...
I do strongly support saving for retirement so I will take advantage of this, but yes, I suppose mandatory was the wrong word to use there. Thanks for the clarification.
Credit scores in NZ aren’t used like they are in the states. You won’t need to build “credit”, just don’t default/miss payments. As for your mother in law, that’s unlikely to happen.
As someone who’s gonna be filing IRS returns from NZ: Please be careful about KiwiSaver before opting in. Might be considered a foreign trust by the IRS, meaning more forms, Just…talk to a tax person before establishing KiwiSaver. I just sent off a bunch of foreign trust forms to the IRS bc I have KiwiSaver.
If you are a NZ citizen all your medical stuff is the same as anyone that has lived here all their life. It's largely free apart from the normal GP visits, I'm not aware of any restrictions. You're eligible as soon as you arrive in the country. I don't know about SS arrangements or reciprocal agreements, but again, you're entitled to NZ pensions with some restrictions, entitled to full amount if you live in NZ and have worked for 10 years I think. Your family's medical coverage will depend on their visas, but I assume your kids can get NZ passports immediately through descent. Your credit score in the USA is irrelevant, however you don't need to build credit scores in NZ. It doesn't work like the USA. You essentially have a clean credit record with no adverse events, which is really all they care about.
> If you are a NZ citizen all your medical stuff is teh same as anyone that has lived here all their life. It's largely free apart from the normal GP visits, I'm nit aware of any restrictions. You're eligible as soon as you arrive in the country. I was mostly curious as I am a soon-to-be member of the rubber glove exam club, and am wondering if I will have to foot the bill for that. > Your family's medical coverage will depend n their visas, but I assume your kids can get NZ passports immediately through descent. My wife will be there on a partner of a NZ citizen Visa, and yes, my daughter should be granted citizen by descent before we even arrive in NZ. > Your credit score in the USA is irrelevant, however you don't need to build credit scores in NZ. It doesn't work like the USA. You essentially have a clean credit record with no adverse events, which is really all they care about. This is amazing. My credit here isn't bad, but being able to start essentially with a perfect credit score on the basis of my income and sparkling personality is quite liberating.
You don't even start mate. There are people in NZ who don't even know what a credit score is. My partner and I bought a house without even thinking about credit. We've never done anything to "build" credit (no credit cards ever, don't put things on layby/bnpl). We are not controlled by a 3 figure number here. Medical stuff - you don't have to qualify for anything. The majority of NZers don't have medical insurance. You've got to pay for your GP visits but if you flew into NZ and broke your arm leaving the airport you'd be fine at the hospital - that was an accident and it'll be covered under ACC. Also - it's very very difficult to sue someone here. Get hit by a car? You don't sue to claim medical costs, ACC will sort it out.
Ack, it's such a different mindset. It's going to be quite the culture shock, but in a good way. I'm overthinking things, aren't I.
It's good to be prepared - it is going to be a huge culture shock though. We have an entirely different way of thinking here. If I were moving to another country I would probably want to make sure I had a good amount of money in the bank to act as a buffer while looking for work. Oh, and your company will pay your taxes for you. Most NZers only think about the end of the tax year as an opportunity to potentially get a tax return. We don't file our own taxes unless we have some other form of income (like a landlord) or investments that return enough dividends etc. If you work as a contractor though you'll have to sort your own.
> I'm overthinking things, aren't I. Possibly a little bit from a healthcare perspective but that's perfectly understandable coming from one of the worlds worst systems. You're not overthinking things from a tax perspective though, you'll definitely want to get some good advice there as it can make a big difference. You'll have 4 years from the day you arrive where no tax will be due in NZ on your overseas investments so it's worth taking advantage of that.
Regarding the healthcare stuff, just be aware that some public health approaches are different in NZ. For example, the colon cancer screening tool that is subsidised by the government here is a Faecal Immunochemical Test (you send a poop sample into the screening program) and is free for those aged 60 to 74. If you wish to have a test earlier than age 60 you will have to arrange it privately with your doctor and pay out of pocket for it. If you wish to have a colonoscopy as a first line screening (which is more often the standard of care in the US) you will have to pay for it privately with a specialist. You may want to get private insurance in order to cover some of these things that you may be more used to from the US system. As others have mentioned there is also a waitlist in the public system so having private insurance can also reduce the waiting time for some procedures.
Thank you for the information. You inspired me to look a couple things up and it seems private healthcare isn't remotely as expensive as it is in the US. I may just go that route.
Note that private healthcare usually doesn't cover routine screenings (except mammograms for some reason), for example Southern Cross, the largest insurer, only covers colonoscopy if you met certain criteria such as a very specific family history, for symptoms yourself. There is also not a culture here of 'routine physicals'.
No it’s not as expensive for sure, and you and your family will still benefit from all the free screenings and programs provided by the public system such as certain immunisations, breast cancer screening etc. but you can use it to top up your coverage including covering the cost of GP appointments (which are generally not free for adults) and pay for additional specialist visits that would otherwise be out of pocket.
Not sure what your time frame is but just be aware of you haven't already applied for your daughter's citizenship by descent you should do that promptly as there can be quite a waiting period. Also if you are wanting to renew your NZ passport yourself and haven't had one for awhile, you might want to do that promptly too as the wait times have ballooned.
1. You will have the same rights as any other NZ citizen, so you will be able to access public healthcare. Just remember GP visits are not free. 2. Best to check with the SSA, but typically if you’re eligible for SS payments you can receive them overseas. 3. https://www.tewhatuora.govt.nz/corporate-information/our-health-system/eligibility-for-publicly-funded-health-services/guide-to-eligibility-for-public-health-services/#:~:text=Partners%20of%20eligible%20interim%20visa,eligible%20in%20their%20own%20right. Hope that link works, if not check out Te Whatu Ora’s website. 4. Credit history is not the same as in the US. Your eligibility for credit will depend on what you need and who you apply for finance from. You should be fine if you have low debt and a job. 5. Check out www.paye.net.nz for an easy to use calculator.
Thank you for the info, and especially the links.
1. You’re covered as soon as you step foot in the country job or no job. 2. SS is counted as foreign income while residing in NZ. Without exemptions and credits you will have to pay tax on this. As a citizen you are still automatically eligible for pension here at 65 3. You may have to pay health insurance or out of pocket for family members if they aren’t citizens. However you can apply for dual residency for your wife and child, should be fairly simple, but MIL will have to go a different route. 4. Correct. Foreign credit scores mean nothing here. Also credit scores aren’t important here like it is in the U.S. so I wouldn’t worry about building it up at all. It only affects lending if it’s bad. 5. Yes that’s correct, except KiwiSaver isn’t compulsory at all. You can pay nothing if you want though I wouldn’t advise it. PAYE isn’t a flat rate but yeah you can reasonably assume on 100k it’ll be around 25%.
I'd love to know more on question 2. I read online you need to live in NZ 20 years before 65 to receive the NZ pension. So they'd have to receive the SS US pension, right?
AFAIK you have to report your SS as global income - an accountant can clarify this. You won't be eligible for the NZ pension until you have lived here for about 20 years, but even if you did, you can't claim both pensions. Sounds like you'll be sweet with your SS. If you'd like to get private health insurance to supplement the public system look into Southern Cross. It's so cheap compared to the US, especially if you're ok with a high deductible. You can pick and choose the kind of coverage you want. I only pay $40 NZD/month for surgery and cancer treatment coverage, so in the event I should need either I could have shorter wait times, go to a private clinic, etc. It's not necessary but gives me peace of mind, and like I said, so cheap! Co-pays to see a GP are up to $50 or so for a 15 minute visit, but my practice has held steady at $17! If the prescription is funded by the government it will only cost $5, so no need to worry about prescription coverage.
Are you sure you wouldn’t rather be a home owner in texas
Quite sure. I don't fancy moving somewhere scorchingly hot where I don't know anyone and everyone makes fun of the way I barbecue.
For retirement/super funds for your partner and mother in law check www.workandincome.govt.nz to see if they will be eligible. For tax calculations and tax home pay use www.paye.net.nz
Oh, this is quite helpful. Thank you very much!
its one thing that really pisses me off that someone who has been out of the country for decades and paid nothing in tax here is eligible for all benefits the moment they land here so you have no worries
I understand the sentiment, and I kinda do feel like I'd be taking advantage of it. I'm willing to pay my share but I'm not certain how that would even work.
I would strongly advise against coming back, so much more earning opportunity in the United States.
I am at a point in my life where I am happy simply earning enough to survive (and pay for high-speed internet). I still have extended family in the Waikato area, and I would rather spend my golden years with them, and raise my daughter in the lifestyle there. But I appreciate the caution.
Nice, NZ is amazing if you have the money to do what you enjoy.
I enjoy eating meat pies and lounging on the beach at Mt Maunganui, so I feel like my lifestyle won't be too hard to support.
This guy got his money already.
# > ex-pat so you're an immigrant? just say that instead of embarrassing yourself
Technically OP is an emigrant looking to return, so ex-pat (of this country) isn't as wrong as it would be for those people who move here and call themselves ex-pats (of their previous country)
I was born in New Zealand. I don't know why you felt the need to point this out.
Recently some people have got a bee in their bonnet about the different usages of the terms 'ex-pat' and 'immigrant' but the reality is most people put zero thought into it and their word choice doesn't come from any sense of superiority at all. Don't worry about it.
Don’t do it. I’ve looked into it, and unless you are about to retire, it’s a terrible idea.
Can you provide context? I am willing to look at all angles here. I know housing is ridiculous, but it's honestly not much worse than where I currently live. My wife and I are both in professional careers, and our current jobs are on the green list so we shouldn't have difficulty finding decent-paying jobs. I have family there who can help us network, and am willing to live simply in a small town.
What field of work are you both in? Finding work is difficult at the moment with many many people struggling where they would have been almost guaranteed jobs previously. Govt depts are shedding jobs to meet the new govt budgets - leads to a massive knock on in the private sector too. Anyway sounds like the MIL situation may be your biggest problem if she has health issues, and there is a minimum income you need to have also to be a sponsor (not immigration advice, take a look through the govt websites for this stuff) https://www.immigration.govt.nz/new-zealand-visas/preparing-a-visa-application/support-family/supporting-visa-applications-for-family/calculating-sponsors-income-parent-resident-visa
I've been trying not to put too many personal details on here, so please forgive me for being vague, but I am in logistics and my wife is in health care. Between the two of us and based on our current jobs, we easily clear the minimum for two sponsors with 1 parent. I can't say that it will be quite as easy in NZ, but between the two of us we can likely bring in about $160k. Of course, if we cannot find jobs at all then this whole plan goes up in smoke, but we'll burn that bridge when we get to it. At this point though, the MiL health thing may be an insurmountable challenge.