New Zealand’s foreign investment fund (FIF) rules are proposed to get a major update from 1 April 2026. The NZ government announced this in May 2026, with changes aimed at making the system simpler, fairer, and more globally competitive. Here’s what’s changing — and what it could mean for your investments. 

Major changes proposed to FIF tax include:

✅ An increase to the FIF threshold from $50,000 NZD to $100,000 NZD

✅ Expanded access to the revenue account method (RAM)

✅ Targeted changes for startup founders, migrants, and globally taxed investors

⚠️ The $50,000 NZD threshold still applies for previous financial years. Read more here.

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📈 The FIF threshold is proposed to increase to $100,000 NZD

One of the most impactful changes is the increase to the FIF de minimis threshold.

Old threshold: $50,000 NZD

New threshold: $100,000 NZD

Effective from: 1 April 2026

If the total cost of your overseas investments is below this threshold, you generally don’t need to apply FIF rules, and are taxed on dividends received. 

How does this impact me?

The $50,000 NZD threshold was set 24 years ago and looks like we’re getting a long overdue inflation adjustment. The consumers price index (CPI) calculator shows that $50,000 NZD in 2002, adjusted for inflation, would equal $97,000 NZD in 2026.

Increasing it to $100,000 NZD reflects this inflation, and reduces compliance for smaller investors who now have wider access to international share markets. In practice, more everyday investors would now avoid having to deal with complex FIF calculations at tax time.

💡Note: If your overseas investments are below $50,000 NZD you may still be covered by the existing threshold depending on your situation. See our guide to The $50,000 FIF threshold and how it works.

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💡 A new way to calculate FIF tax: the revenue account method (RAM)

Budget 2026 expands access to the revenue account method (RAM) — a new way to calculate FIF income for some investors which was introduced for the 2025/26 tax year. Previously, RAM was limited to New Zealand residents who arrived after 1 April 2024, however these changes would see all NZ tax residents being able to use RAM specifically for unlisted foreign shares.

Under RAM, you pay tax on:

• 70% of realised gains (when you sell)
• Any dividends received
• You don’t pay tax on unrealised gains.

If you’re also taxed in another country (like the US), you may be able to use RAM for both listed and unlisted shares. This helps reduce the risk of double taxation, where FIF tax isn’t creditable overseas.

🔁 FDR vs RAM vs CV: which is better?

Many investors currently use the fair dividend rate (FDR) method.

Under FDR:

• You’re taxed on 5% of your portfolio value each year
• Even if you don’t sell or receive income

FDR can create a mismatch where you owe tax, but haven’t received any cash. RAM removes that issue, especially for unlisted shares, startup investments, and employee share schemes.

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These changes are proposed to apply from 1 April 2026 (2026–27 tax year) and are based on current policy proposals.  They are subject to change as legislation progresses.

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Further reading

• Foreign Investment Fund Changes - Inland Revenue
• Tax system being strengthened - Beehive News
• Plenty of small, but meaningful, tax changes in Budget 2026 - Deloitte

I need more help!

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