New Zealand Real Estate Succession: A Complete Guide

Published on October 5, 2025 and written by Cyril Jarnias

Real Estate Succession in New Zealand

Real estate succession in New Zealand is a meticulous process that requires particular attention to legal and regulatory details specific to the country. Understanding the key steps of this procedure, from obtaining the death certificate to the equitable distribution of assets, can often prove complex for heirs.

Through a combination of modern legislation and traditional practices, managing a real estate succession requires not only adequate legal skills but also a thorough understanding of associated tax obligations.

In this article, we demystify the complete procedure by providing practical advice to effectively navigate this administrative maze, ensuring a smooth property transition for all involved parties.

Anticipating Cross-Border Transfers

In New Zealand, real estate succession is governed by laws that apply to all property owners with assets located within the territory, regardless of their nationality or place of residence. The New Zealand High Court holds exclusive jurisdiction to rule on inheritance matters concerning these properties.

Key Principles of Real Estate Succession in New Zealand:

• No inheritance tax is levied on real estate located in New Zealand.
• Non-resident heirs are subject to the same rules as New Zealand citizens.
• Any succession decision primarily falls under the local judicial system.
• Land ownership is typically freehold and can therefore be passed to heirs without time limitations.

Specifics for Overseas Properties Owned by New Zealand Residents:

Successions involving properties located outside New Zealand primarily fall under the law of the country where the property is situated. However, upon death, it is essential that the succession is closed in each concerned country before any final transfer. For example:

Situation	Applicable Jurisdiction	Required Documents
Property located in NZ	NZ Law and High Court	Death certificate + foreign notarial report
Property outside NZ	Foreign local law	Death certificate + local documents

Legal Steps for Non-Resident Heirs:

1. Official notification of death to the law firm handling the succession in New Zealand.
2. Submission of supporting documents (certified passport, translated proof of address).
3. Presentation of the original death certificate and its official translation.
4. Obtaining and submitting a “notarial report” proving that all succession procedures have been finalized in the other concerned country/countries.
5. Formal opening of the succession file with a local lawyer or estate executor.

Bilateral Agreements and International Taxation:

New Zealand does not impose estate tax, but some foreign states may apply different taxation to their nationals owning real estate in New Zealand or vice versa.

A French resident inherits a house in New Zealand: no inheritance tax due in Wellington but potential declaration/tax obligation to the French tax authorities since this type of tax convention does not specifically cover real estate inheritance between these two jurisdictions.

To date, there is no specific bilateral agreement between France and New Zealand aimed at avoiding double taxation in real estate succession matters; each jurisdiction therefore applies its own tax regime in parallel.

Potential Problems Encountered:

• Risk of double taxation if multiple tax authorities claim separate inheritance taxes;
• Discrepancies in the legally recognized order of heirs according to each state;
• Administrative delays linked to the prior requirement of complete closure in each state before effective transfer;
• Strict application of AML/CFT obligations (anti-money laundering), sometimes significantly lengthening the documentary process;
• Possibility for some third countries (e.g., France) to impose exhaustive declaration even when the inherited property is located exclusively outside national territory;

Recommended Strategies to Anticipate/Resolve These Challenges:

• Draft a will compliant with the applicable law(s), ideally separate according to each geographical asset location;
• Systematically consult a local notary/lawyer specialized both in the country where the property is located and in the usual tax domicile;
• Prepare all required certified multilingual official documents as soon as possible to accelerate their mutual recognition by various administrations;
• Consider appropriate international asset structuring via holding companies/trusts if necessary;

Concrete example:
A French family collectively inherits – via a will drafted before a French notary – a villa near Auckland acquired by their expatriate parents; after obtaining all French notarial attestations proving complete local closure, they submit these with sworn translations to the New Zealand law firm then responsible before the local High Court for the official transfer to their respective names without additional taxation on site but with a declaration obligation to the French tax administration.

Key takeaway: Cross-border legal anticipation is essential to minimize fiscal/administrative conflicts during international transfers involving real estate assets located outside or within New Zealand itself.

Inheriting Property in New Zealand: What You Need to Know

Legal Framework of Real Estate Succession in New Zealand

• The main laws governing real estate succession include the Wills Act, the Administration Act, and the Trustee Act. Anyone owning property in New Zealand, whether resident or not, is subject to these laws.
• The Overseas Investment Act 2005 (OIA) applies if the heir is a non-resident or foreign investor; there may be restrictions on acquiring certain types of properties.
• The New Zealand High Court oversees succession procedures and rules on the validity of the will as well as the appointment of an estate executor.

Inheritance Process: Administrative Steps

1. Establishment of death and official notification to the law firm handling the succession.
2. Provision of necessary documents: original death certificate (and translation), proof of identity (passport), proof of address to satisfy anti-money laundering obligations.
3. If the deceased also held assets outside New Zealand, proof that the succession has been closed in the other concerned countries via a notarial report submitted by the foreign notary is required.
4. Assets are typically frozen for approximately six months under lawyer/executor trust management to settle all administrative and tax matters before effective transfer to heirs.
5. Legal transfer of the property title with the land registry after validation by authorities.

Inheritance Rights and Applicable Taxation

Country	Inheritance Tax	Specific Tax to Pay
New Zealand	No national tax	No estate tax on real estate since 1992
France	Yes	Subject to progressive scale based on family relationship

New Zealand currently does not levy any specific national or regional tax on real estate successions; this represents a notable difference from many other countries like France where this type of taxation still exists.

However, if the heir is a French tax resident or also owns assets in France, those remain subject to French inheritance tax; no bilateral tax convention currently allows for cross-exemption in this area.

Essential Responsibilities of Heirs

• Quickly contact a competent local law firm to officially open the succession file.
• Satisfy AML/KYC requirements during any succession transfer (provide supporting documents).
• Ensure all potential local or foreign taxes are settled before final transfer – even though no official “inheritance tax” exists in NZ, some local property-related taxes may remain temporarily until effective transfer (annual land tax…).
• Properly maintain any received property during the entire transitional period where they are legally responsible for it.

Available Resources to Support This Process

Indicative list:

• Law firms specialized in New Zealand property law
• Official institutional websites such as Land Information New Zealand
• French consular services for Franco-New Zealand administrative assistance
• Foreign notaries authorized to establish necessary notarial reports

Typical Illustrative Example

A French national dies while owning a secondary home near Auckland:

• Their family contacts a local lawyer who officially opens the file after receiving the international certificate and notarial report attesting French closure.
• Funds from bank accounts, if any, are frozen for six months under fiduciary management before redistribution according to the will validated by the local High Court.
• After verifying no unpaid local debts/taxes, cadastral transfer is made to the designated heirs who can then decide to either keep or sell their share without having paid any specific New Zealand tax but must declare this operation to the French tax authorities if applicable.

In summary, even though no inheritance tax is directly levied in New Zealand today: vigilance is required regarding strict compliance with local administrative procedures as well as potential international tax obligations depending on the actual tax residence of the beneficiaries.

Understanding Inheritance Rights for Foreigners in New Zealand

In New Zealand, the legal framework concerning inheritance rights for foreigners is based on specific principles that apply regardless of the nationality of the deceased or the heirs. Here is a detailed exposition addressing the requested points:

Specific Legal Framework and Taxation

• Succession in New Zealand is governed primarily by the High Court, which has jurisdiction over all assets located in the country, including those belonging to foreigners.
• Unlike many other jurisdictions, there are no inheritance taxes (estate tax) in New Zealand. Foreign heirs are therefore not subject to paying an inheritance tax upon the transfer of real estate or other assets located in New Zealand.
• However, the succession itself is considered a separate tax entity: income generated by these assets (rents, bank interest) must be declared and may be taxable during the succession process.

Documents Required for Settling a Succession Involving Non-Residents

For a foreigner to settle a succession in New Zealand, several documents are essential:

• Original death certificate accompanied by an official translation if necessary.
• Proof of identity and proof of residence (e.g., certified compliant passport and proof of address) to satisfy legal anti-money laundering (AML) requirements.
• If the deceased also owned assets outside New Zealand, a “notarial report” or equivalent document issued by a local notary attesting that the succession has been closed in that/those other country/countries will be required. This document is indispensable for New Zealand authorities to validate the transfer of locally situated assets.

Restrictions and Specifics Related to Real Estate Inheritance

• Foreigners can freely inherit real estate located in New Zealand; they are subject to the same rules as local residents regarding their properties.
• However, since 2018, a strict law called the “Overseas Investment Act” controls certain land investments made by non-residents. This law may require prior authorization if the inheritance subsequently involves a sale or additional purchase related to the inherited real estate.

Administrative Steps to Receive and Manage a Real Estate Inheritance

1. Opening the succession file with a local law firm, with official death notification.
2. Prompt provision of required documents cited above for formal identification.
3. Possible obtaining of a grant of probate, i.e., the judicial authorization allowing the estate executor or legal heirs to officially manage the property and other succession assets.
4. Possible prior closure of foreign successions, via presentation of the notarial report proving that no open procedure is still active outside New Zealand.
5. Once this rigorous administrative step related notably to compliance with the AML/CFT Act 2009 (anti-money laundering/terrorism financing) is validated, the heir can proceed with current management: collecting rents, maintaining the real estate property, etc.

Key Points	Details
Judicial Jurisdiction	NZ High Court competent for all locally situated assets
Inheritance Rights	No direct inheritance rights or taxes
Taxation	Succession taxable on income generated during procedure
Required Documents	Death certificate + translation; ID + proof of address; foreign notarial report
Restrictions	Overseas Investment Act 2018 controls investments related to properties
Main Administrative Steps	Death notification → file opening → AML docs provision → obtaining grant of probate

This framework thus allows foreign beneficiaries of a real estate succession in New Zealand clear management without direct taxation on their inheritance rights but demands administrative rigor particularly regarding international anti-money laundering obligations.

The Role of the Notary in an International Succession in New Zealand

In New Zealand, the legal framework for international successions is based on several distinct principles, particularly when real estate assets are involved.

Applicable Laws in International Succession Matters

• The law applicable to the succession generally depends on the last habitual residence of the deceased, in accordance with international developments in law (EU Regulation No. 650/2012), although this regulation directly applies only to European Union Member States. Nevertheless, this rule also influences New Zealand practices to harmonize cross-border procedures.
• For real estate assets located in New Zealand, New Zealand law imperatively applies to their succession transfer.
• Movable assets (bank accounts, furniture, etc.)原则上 follow the law of the last domicile of the deceased.

Asset Type	Applicable Law
Real Estate Assets	Location of the asset
Movable Assets	Last domicile/residence of the deceased

Specific Role of the Notary in International Successions

The notary plays a central and multifunctional role in these procedures:

• Verification and authentication of legal documents necessary for opening and processing the succession (original death certificate with official translation; identity attestations; proof of address…).
• Coordination with foreign jurisdictions: the notary acts as an interface between New Zealand and foreign authorities to ensure all formalities are completed. For example, a “notarial report” is often required proving that the succession has been closed in the foreign country before initiating or finalizing the one in New Zealand.
• Assistance in asset administration: they advise on equitable distribution according to the applicable local law and ensure strict compliance with New Zealand succession laws.
• Protection of heirs’ rights: they verify their identity and rights to avoid any future dispute or involuntary omission.

Specific Responsibilities of the Notary

Non-exhaustive list:

• Ensure all legitimate heirs are identified
• Guarantee impartial administration of assets
• Prevent any legal risk related to money laundering or documentary fraud
• Ensure all taxes due upon real estate transfer are paid

Frequently Encountered Challenges

• The potential multiplicity of applicable laws depending on the geographical or movable/immovable nature of the assets;
• The necessity for certified translations;
• Administrative delays linked to international exchanges;
• The risk of conflicts between heirs from different jurisdictions;
• The potential obligation to wait for complete closure of foreign procedures before any local step.

Differences Compared to Purely National Successions

Comparative summary table:

Aspect	National Succession	International Succession
Applicable Law	New Zealand law	Possible foreign law
Timelines	Generally shorter	Often longer
Documentary Formalities	Standardized	Complex/multilingual
Inter-jurisdictional Coordination	Not necessary	Essential

To navigate these cross-border complexities, the notary must demonstrate increased rigor in documentary verifications, maintain regular communication with foreign counterparts, and anticipate each step to avoid any administrative blockage that could significantly lengthen the overall timeline.