GST on property

⚠️ This entry contains figures or rules that change with government policy or RBNZ settings. Check the current position at the source link below before relying on it.

GST (Goods and Services Tax) applies to most goods and services in New Zealand at 15%. Its application to property depends entirely on the type of property and activity.

The key distinctions

Long-term residential rent is exempt. No GST charged on rent, and no GST claimed on expenses. Most residential investors never register for GST on their rental activity.

Commercial property is taxable. GST applies to commercial rent, and a registered owner claims GST on expenses.

Short-stay accommodation is a taxable activity, not exempt residential rent — see mixed-use asset rules.

Property development and dealing generally constitute a taxable activity.

Registration

Registration is required where turnover from a taxable activity exceeds the threshold (currently $60,000 in a 12-month period), and is optional below it.

Compulsory zero-rating

Where both parties to a land transaction are GST-registered and the land is being acquired for a taxable purpose, the supply is generally zero-rated — no GST changes hands at settlement. This exists to prevent large cashflow swings on commercial transactions.

Common misunderstanding

Registering for GST is a one-way door with consequences on sale. Once a property is in the GST net and you've claimed GST on the purchase or costs, the eventual sale generally attracts GST. Investors sometimes register to claim GST on a development or renovation without modelling the exit.

Changing use can trigger an adjustment. Moving a property between taxable and exempt use — say, from short-stay to long-term residential — can require a GST adjustment.

This is one to get advice on before acting, not after.

Related terms

Sources

• IRD — GST and property: ird.govt.nz

Last reviewed: 1 August 2026 · General information only, not tax advice.

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