An LTC is a company structure where owners are treated as holding the assets directly for tax. How it works for property investors.
A Look-Through Company (LTC) is a New Zealand tax structure in which the company's income, expenses and assets are treated as belonging directly to its shareholders in proportion to their shareholding, rather than to the company itself.
It combines the limited liability of a company with the tax transparency of a partnership. Profits and losses flow through to the owners at their own marginal rates, rather than being taxed at the company rate.
An LTC files an IR7 return, similar to a partnership.
Ring-fencing still applies. An LTC does not let you offset residential rental losses against your salary. That was a feature of the old LAQC regime, which ceased in 2011, and the ring-fencing rules introduced from the 2019–20 year removed it entirely regardless of structure.
If someone recommends an LTC on the basis that it will reduce the tax on your salary, that advice is out of date.
LTCs have eligibility rules covering the number and type of shareholders. There are also loss limitation rules restricting how much loss an owner can claim.
Structure should be decided before you buy, not after. Changing ownership structure later can trigger a disposal for tax purposes, including potentially a bright-line event. Get the structure right at the outset.
An LTC is not automatically better than personal ownership or a trust. It depends on your income, your portfolio, your other investments and your intentions. This is a decision for a qualified accountant.
Last reviewed: 1 August 2026 · General information only, not tax advice.
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