What happens if you live overseas, but move back to New Zealand? In most cases, if you are in New Zealand for 183 days, or more, you can be treated as a New Zealand resident and new interest won't be charged to your account. During the 183 days you are allowed to be overseas for up to 31 days in total without losing the benefit of no interest.
If you have a large loan, moving back to New Zealand could be financially worthwhile.
If you are someone who has had periods of moving in and out of New Zealand, you should check that the IRD has the right information on file. We have seen many cases where people have been wrongly charged interest even though they have been in New Zealand for more than 183 days. There are also many cases where the IRD didn't know that the person had left New Zealand and interest wasn't charged until many years later at which point the IRD generally adds a catastrophically large amount of interest and penalties to the person's account.
Please contact us if we can help.