No Stamp Duty in New Zealand
Good news: New Zealand abolished stamp duty in 1999. Unlike Australia (where you can pay tens of thousands in stamp duty) or the UK, NZ home buyers do NOT pay a state tax on property purchases.
But There ARE Other Costs
While you won't pay stamp duty, there are several costs first home buyers need to budget for. Expect to spend $2,000 — $5,000 in addition to your deposit.
1. Solicitor / Conveyancer Fees
- Cost: $1,000 — $2,500
- Your solicitor handles the sale and purchase agreement, checks the title, arranges KiwiSaver withdrawal, and manages settlement
- Some conveyancers charge a flat fee, others charge hourly
2. Building Report (Builder's Report)
- Cost: $500 — $900
- Essential for older homes. A registered builder inspects the property for structural issues, weathertightness, and maintenance problems
- Can save you from expensive surprises: well worth the cost
3. LIM Report (Land Information Memorandum)
- Cost: $250 — $400
- Obtained from the local council. Shows consents, property boundaries, zoning, flood/earthquake risks
- Your solicitor should review this before you go unconditional
4. Property Valuation
- Cost: $600 — $1,000
- Your bank may require a registered valuation to confirm the property is worth what you're paying
- Not always needed if the LVR is low and the CV (capital value) supports the price
5. Home Insurance
- Cost: $1,000 — $2,500 per year (often required to be paid upfront at settlement)
- Your bank will require home insurance before settlement
- Shop aroundremiums vary significantly between providers
6. Moving Costs
- Cost: $500 — $2,000
- Professional movers, truck hire, packing supplies
- Also budget for any immediate repairs, painting, or cleaning before move-in
7. Lender's Legal Fees and Bank Charges
- Cost: $200 — $500
- Some banks charge application fees, document fees, or legal administration fees
- Ask your lender for a full breakdown upfront
Other NZ-Specific Taxes to Know About
- Brightline test: If you sell within 2 — 10 years, you may pay income tax on capital gains: see our Brightline guide
- Rates (council tax): Ongoing annual cost: varies by property value and council. Typically $2,000 — $5,000/year
- No land tax: NZ has no broad-based land tax (unlike some other countries)
Summary Table: Buying Costs
| Cost Item | Typical Amount |
|---|---|
| Stamp Duty | $0 — NZ doesn't have it! |
| Solicitor | $1,000–$2,500 |
| Building Report | $500–$900 |
| LIM Report | $250–$400 |
| Valuation | $600–$1,000 |
| Home Insurance (first year) | $1,000–$2,500 |
| Moving Costs | $500–$2,000 |
| Bank Fees | $200–$500 |