# Locums Doctor considering move to NZ



## gogurt (Jul 10, 2020)

I am a GP currently based in the US and am looking into taking a yearlong position as a GP in rural NZ. I am confused about tax rates for non-residents and the DTA with the US and am trying to get an accurate sense of what percentage of my income would go to taxes in NZ and the US. Also wondering what realistic realistic rent and cost of living prices are for a small town near New Plymouth. I'd very much appreciate any help or advice from other folks who have navigated this.


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## escapedtonz (Apr 6, 2012)

Hi and welcome to the forum,
First of all, it is unlikely to be an easy process because of the current pandemic and restrictions to travel. Visa processing is taking a huge amount of time at the moment and it appears many individuals and offering employers alike have to jump through many many more hoops than normal to secure visas.

Income tax here will be:
Up to $14,000	10.5%
Over $14,000 and up to $48,000	17.5%
Over $48,000 and up to $70,000	30%
Remaining income over $70,000	33%

There is no free allowance. You pay these rates right from the first cent earned.

No idea how that will affect your US tax.
I do remember an ex. colleague of mine from the US had to complete an annual tax return in the US and always said there was an earning threshold that he could go up to in NZ without it costing him anything in the US but if his earnings went above that he would also be taxed in the US.......don't know if that is the case. I think it was around NZ $120k maybe ?

Cost of Living is high all across NZ. Living in rural NZ in the Taranaki region will certainly lower your rental costs and it all depends what type of accommodation you are looking for. Have a look on www.trademe.co.nz for an idea of rental property costs.
The current list for all rentals in New Plymouth starts at NZ $230 per week (1 bed), from $300 per week (2 bed) to $750 per week (4 bed).
You will need to pay approx 5 x the weekly rent before you move in then maintain 1 week in advance. 4 weeks of that initial payment is the bond lodged with the government and 1 week of that initial payment is your first weeks rent. The agents used to charge another week rent as a letting fee, but that was removed by the government and is now illegal to charge.


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