Reasons to invest in New Zealand -

Reasons to Invest in
New Zealand

From a highly qualified workforce to strategic ties with Asia-Pacific and worldwide markets, New Zealand offers many benefits for astute investment.

A competitive and transparent tax system

According to the US-based Tax Foundation’s most recent International Tax Competitiveness Index, New Zealand’s overall tax system is ranked third in the developed world for competitiveness, second for property taxes, and sixth for individual (or personal) taxes due to its low compliance and competitive tax structure.
Payroll tax, social security tax, stamp duty, estate tax, and general capital gains tax are all nonexistent in New Zealand, though they may be applicable to certain particular assets. Additionally, communication with public tax authorities is clear and simple.

Home to Australasia’s fastest growing city

The economic development of Auckland and New Zealand has surpassed that of the majority of wealthy nations since 2010. Over one-third of New Zealand’s population lives in Auckland, which is expected to grow from about 1.7 million in 2023 to 2 million by the early 2030s (medium forecast).
New business, commercial, and industrial areas and services are being constructed in Auckland and around the country to support New Zealand’s expanding population and internationally competitive industries; investors stand to gain from these developments.

A highly developed financial hub

One of the world’s most advanced financial systems is that of New Zealand. Since the nation’s stock exchange opens first on each trading day, you can be the first person on the stock market here. In addition to agents and sales offices representing numerous foreign banks, this location is home to a number of significant trading banks and other banking organizations. To maintain the nation’s financial stability, the Reserve Bank of New Zealand keeps an eye on the banking sector.

The gateway to booming Asia-Pacific markets

New Zealand is a strategic location to establish a business catering to the Asia-Pacific and western economies, while simultaneously gaining preferential access to international markets (such as Australia, China, Singapore, Hong Kong, Indonesia, Malaysia, Thailand, and Vietnam), given that Asia is influencing global trade and investment flows. New Zealand’s signing of free trade agreements with key Asia-Pacific economies is the reason for this.

A time zone advantage

In addition to being between two and six hours ahead of Australia and several major Asian cities, New Zealand is twelve hours ahead of the United Kingdom. The nation is ideally situated for international corporations to provide round-the-clock customer support, including to clients in the US, UK, and other European countries.

A global talent hub

Investors can benefit from the highly skilled and educated population in New Zealand. The labor market in Australasia is flexible and mobile, thanks to its largest recruitment bases of highly trained workers and a sizable pool of researchers from both the public and private sectors.

Globally connected

With more and more international airlines operating flights into and out of Auckland Airport, New Zealand is reestablishing itself as a significant international tourist destination in the post-pandemic age. However, because of the current global supply chain issue, deep water ports now handle both regional and international shipping lines at a higher expense.

A fair labour environment an competitive costs

In addition to offering extremely competitive wage rates and minimal overhead and on-costs, New Zealand’s labor laws also support business owners and employees, which are all significant benefits over similar investment locales. Income tax and accident compensation coverage are included in the nation’s simple pay as you earn (PAYE) tax deductions.

System of Government

The Treaty of Waitangi (Te Tiriti o Waitangi), which was initially signed on February 6, 1840, between representatives of HM Queen Victoria of the United Kingdom of Great Britain and Ireland and Māori chiefs representing various iwi (tribes), is considered to be the foundational document of New Zealand.

The Treaty resulted in the declaration of British sovereignty over New Zealand by Lieutenant Governor William Hobson in May 1840, and guaranteed certain rights to Māori, including the rights of a British subject. New Zealand became fully independent during the 20th century. The final practical constitutional link to Britain of New Zealand’s Parliament was removed by the Constitution Act in 1986. The Treaty remains an important document in New Zealand’s constitution recognising the special position of Māori as indigenous people. Today, New Zealand’s Government is formed from a democratically elected House of Representatives. The Government advises the Sovereign (Head of State) HM King Charles III as King of the Realm of New Zealand. By convention, the Sovereign is the source of all executive legal authority in New Zealand and acts on the advice of the Government. Power is distributed across three branches of Government – Parliament, the Executive, and the Judiciary. Parliament makes the laws, the Executive (Ministers of the Crown, also known as the Government) administers the law, and the judiciary interprets the law through the courts. New Zealand is a common law country, meaning law is developed and shaped through the decisions of the judiciary.

System of Government

The current government of New Zealand is governed by Labour. The prime minister of New Zealand at the moment is Rt Hon. Chris Hipkins, who leads the Labour Party.

Parliament and Government

The New Zealand Parliament examines, debates, and passes bills to create laws. Every bill goes through multiple stages where the public and Members of Parliament (MPs) can voice their opinions.
The House of Representatives (the House) is the only chamber of Parliament. This implies that a bill must be approved by the House, which is currently composed of 120 MPs, in order to become law. Currently serving as the Governor-General, Her Excellency As the Sovereign’s representative in New Zealand, the Right Hon. Dame Cindy Kiro fulfills a formal constitutional role by approving Acts after the House has passed them.
The Mixed Member Proportional (MMP) system, which took the place of the First Past the Post (FPP) system in 1996, is used to elect Parliament every three years.
MMP uses two votes to function. The “electorate vote,” which chooses the representatives of each geographic electorate in Parliament, comes after the “party vote,” which establishes each party’s proportion of seats in Parliament. To govern, a majority of seats are needed, which might be held by a single dominant party or by a coalition of parties.
Alliance between the parties. Following an election, a government is formed by the party (or group/coalition of parties) that holds the majority of seats in the House. Usually, the head of the biggest party in power will serve as prime minister and head a Cabinet made up of about 20 ministers. In actuality, the prime minister serves as the country’s leader.
Minor parties are permitted to participate in government under the MMP system. Both the center-left Labour Party and the center-right National Party, the two biggest parties since the advent of MMP, have continuously needed the backing of smaller parties in order to form a government.
New Zealand is a common law nation, which means that court rulings shape and create the law.
A Labour-led government now governs New Zealand after the general election in October 2020. New Zealand’s prime minister at the moment is Rt Hon. Chris Hipkins, who leads the Labour Party. The date of the upcoming general election is October 14, 2023.
The Green Party and the Labour Party formed a coalition to form the government.
By interpreting the laws established by Parliament, the judiciary upholds the law and supports the functions of the Executive Government and Parliament. It conducts judicial review of administrative decisions in addition to hearing cases and rendering conclusions based on the applicable legislation. In general, the judiciary functions within an open system and is autonomous. New Zealanders are free to voice their opinions on the results of any dispute resolution procedure, and the majority of courts are open to the public. The purpose of this feature is to increase process accountability and public trust.
The Supreme Court of New Zealand, which was created by the Supreme Court Act 2003 and took the position of the UK-based Judicial Committee of the Private Council, is the court of final appeal. The Chief Justice serves as the head of the Supreme Court, which has six judges.