Banking and paying in New Zealand: the account in advance, the IRD number and 45% on your interest

Yes, you can have a bank account in New Zealand quickly, and with some banks even from the Netherlands, depending on your visa and your arrival date. That is more than a convenience. Anyone applying for an IRD number, New Zealand's tax number, from abroad must show a fully functioning New Zealand bank account. And doing it the other way round costs money. The finding at the source: if your bank does not have your IRD number, it deducts 45% tax from the interest you receive. With the number you choose a rate that suits your income.

Can I open an account from the Netherlands?

With some banks, yes. Immigration New Zealand writes that it may depend on your visa and when you arrive, and advises checking with your preferred bank. You can transfer money into it before you arrive. On arrival you usually need to activate the account, and for that the bank often asks for your identity and your permanent address. Since you will not have that address in your first weeks, it pays to ask in advance what the bank will accept instead.

An account before arrival has another advantage: you can give your employer your account number sooner, so your first salary arrives without delay. Some banks ask for an IRD number to open an account.

You can transfer money through your Dutch bank, a foreign exchange broker or an online money transfer service. If you use your bank, the first transfer sometimes has to be made in person, for security reasons; check this before you leave.

Which route do I choose for my IRD number?

Route	When	What you need	Processing
From overseas	before departure	passport, proof of address, your Dutch tax number, the reason for applying, and a fully functioning New Zealand bank account or form IR997	target 20 days
As a new arrival	after arrival, by the final arrival date on your visa at the latest	passport details, your Immigration New Zealand application number and, with a work or student visa, your most recent overseas tax number	Inland Revenue checks your identity with Immigration New Zealand

A fully functioning account means your bank has verified your identity; you prove that with a statement or letter from the bank, or with form IR997 completed by a New Zealand institution.

The deadline for the new-arrival route. Your visa has a final date by which you must enter New Zealand. That is also the deadline for applying for your IRD number as a new arrival. If you are later, you fall back on the ordinary route for people living in New Zealand, and must supply your documents yourself after all. So apply for the number in your first days. What happens to your pay while your employer does not have the number is in your first weeks in New Zealand.

How much tax comes off my interest?

Banks deduct resident withholding tax (RWT) from interest. The rate depends on what you have given your bank:

Situation	Deducted from your interest
Your bank does not have your IRD number	45%
IRD number given, no rate chosen	33%
IRD number given, rate chosen	10.5%, 17.5%, 30%, 33% or 39%

Choose the rate that matches your income tax. If it does not match, you may receive a tax bill at the end of the year.

May I bring cash?

Yes, there is no limit on how much foreign currency you bring. But from NZ$10,000 or the equivalent you complete a Border Cash Report. Online this is only possible within 72 hours before your trip, and even then you speak to a Customs officer on arrival. If you have not completed the form before passport control, you are given it there.

Does my Dutch credit history count?

Not automatically. For a credit card or a loan in New Zealand you need a credit rating. Immigration New Zealand advises bringing evidence of your credit history and asking a few banks in advance which documents they want to see. Anyone giving financial advice in New Zealand must be licensed; ask about that before you let someone invest your savings.

Keep your Dutch account; why is explained in keeping your bank account and DigiD. The full order is at /nieuw-zeeland.

In Vertrekklaar this is phase 5 of 5 of the journey, step 5.1: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to New Zealand or go straight to step 5.1 in the open plan.