New Zealand
Foreign Trust
(NZFT)

Why have NZFT?
- 0% tax on income
- 0% tax on income from investments
- 0% tax on final withdrawals from the trust
- 0% inheritance tax
- 100% confidentiality
- 100% secure asset protection
- tax optimisation and increase in profits

Trust is an effective instrument for tax management, asset protection and transfer of assets to designated beneficiaries. A trust is a fiduciary relationship in which one party, known as a settlor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. Trusts are established to provide legal protection for the settlor's assets, to make sure those assets are distributed according to the wishes of the settlor.

The Trust requires 4 different parties: Settlor, Trustee, Beneficiary and Protector.

The benefits of opening the Trust:

• New Zealand is not categorised as a tax haven by any jurisdiction in the world and continues to be recognised as a respectable jurisdiction;
  
• The absence of open registers provides total confidentiality for the Trust and its parties;
  
• Trust income and capital are not subject to New Zealand taxes as long as the trust income is not derived from New Zealand;
  
• Low Costs - settlor does not have to pay any annual costs to preserve the Trust (except for trustee services fees, government fees for initial registration).

Requirements to open the Trust:

• Assets of the trust should be derived from anywhere but New Zealand and should be located outside of New Zealand;
  
• Trust income should be derived from outside of New Zealand;
  
• Settlor and Beneficiaries must NOT be residents of New Zealand;
  
• The trustee must be a resident of New Zealand.
  
  

Contact us at +443300271860 or enquiries@personafinance.co.uk for more information about NZFT formation.

Problems that NZFT solves:

1. High cost and complexity for asset protection and tax optimisation.
   
2. High Capital Gains Tax encourages people to invest their funds, which involves more risk than the preservation of the funds in a trust.
   
3. Double Taxation Regime - transactions between international companies may be subject to tax in two different jurisdictions simultaneously.
   
4. Lack of Confidentiality - information about the companies and the parties are available in public registers.