The Cameron Story

James Cameron and family relocated to Wairarapa, New Zealand around 2012. He purchased substantial farmland and has been NZ-based since. He famously described the decision as partly politically motivated, partly lifestyle, partly environmental.

New Zealand offers High Net Worth residents:

• Transitional resident tax exemption (4 years exemption on most foreign-source income for new residents)

• Zero Capital Gains Tax for all companies/investment vehicles

• Political stability and safety (one of the safest and most stable countries in the world)

• English-language environment

• Path to citizenship after 5 years

• Beautiful rural and coastal options

The Tax Framework

New Zealand’s Transitional Resident Exemption applies to genuinely new residents (not previously NZ tax resident in the past 10 years). Provides 4 years of exemption on:

• Foreign investment income

• Foreign employment income

• Foreign business income

• Foreign trust distributionsVarious exceptions and exclusions apply.

After 4 years, worldwide taxation applies to personal income. However, capital gains remain tax free permanently (NZ has no general capital gains tax), making it very attractive for investors and wealthy families who already own significant appreciating assets (shares, real estate, bonds, crypto, etc.) and have surpassed the financial need to pay themselves a significant personal income/salary to maintain their lifestyle - if they need money, they can just sell off some of their assets and get the profits tax free.

The Non-Tax Reasons

Cameron’s decision (and similar decisions by other US and European HNW moving to NZ) reflects:

• Political stability → perceived low political risk

• Environmental values → clean environment, low pollution

• Physical safety → low crime, no adjacent geopolitical threats

• Cultural fit → English-language, Western democratic institutions, very culturally similar to the UK/Australia and not at all uncomfortable for Americans

• Lifestyle — outdoor access, sub-9 million population

For HNW individuals valuing Plan-B insurance against home-country political or environmental deterioration, NZ ranks among the world’s top options.

The Practical Reality

NZ requires:

• Investment visa route (NZD $5M investment typical) OR

• Skilled migration OR

• Cameron-style exceptional circumstances (rare), PLUS

• Physical presence - Meaningful integration expected

Cost of living in New Zealand: high compared to global averages (property especially expensive), but lower than major cities in the UK or US. Similar cost of living to smaller US cities (or non-Paris French cities for EU context) in most parts outside of Auckland. Accessing a very good quality of life should be not an issue for high net worth individuals, and the relative safety, stability, and strong public institutions are particularly attractive for families/parents.

Distance from other HNW markets: substantial (long flights to Europe, moderate to US West Coast, moderate to Asia). There’s nothing but ocean surrounding NZ for thousands of kilometres.

The Alternatives

For HNW individuals valuing NZ-similar attributes:

• Australia: very similar culture and values, more urban (Greater Sydney alone has more people than all of NZ), higher taxes (capital gains in particular), less rural-friendly for non-locals, more expensive to enter (e.g. Sydney is indisputably one of the most expensive cities in the world)

• Uruguay: Latin American alternative, more developed and secure than much of Europe, favourable decade-long tax holiday on arrival (see Article B21), cheapest option on this list

• Portugal: European stability, EU access (though tax appeal reduced post-NHR)

• Switzerland: European stability, more expensive, lump-sum available