New Zealand’s diverse landscape encompasses beaches, mountains, rainforests, deserts, and plains. This geographical variety allows for a unique lifestyle where one can engage in skiing in the morning and sunbathing in the afternoon, all within the same day.
Moreover, beyond its stunning scenery, New Zealand boasts a reputation for hosting some of the world’s most amiable inhabitants. If you appreciate a relaxed way of life, savoring delectable cuisine, and relishing ample outdoor activities, New Zealand beckons as an ideal destination for you to call home.
What does it Cost to Live in New Zealand (in USD)?
New Zealand, home to over 5 million people, boasts a rich landscape divided into two main islands and numerous smaller isles. Its largest urban area, Auckland, attracts a significant portion of the population due to its vibrant lifestyle and economic opportunities.
The choice of residence within New Zealand heavily influences living costs, dictated by whether one opts for the urban convenience of cities like Auckland and Wellington or the tranquility of rural areas. Understanding the financial implications of such choices is vital for those considering relocating.
Relocating to a new country can induce apprehension, particularly if it’s unfamiliar territory. However, acquainting yourself with pertinent information about your prospective home before the move can significantly ease the cultural transition.
In this comprehensive guide, discover the anticipated living expenses in New Zealand, coupled with essential insights into taxation, healthcare, and real estate matters.
Below, peruse a breakdown of expenditures, ranging from groceries and utilities to rent, transportation costs, and more, providing an overview of the average cost of living in New Zealand.
Groceries/Cost of Food
International Living advises adopting local shopping habits to economize on groceries and other food items. For instance, opting for seasonal produce at farmer’s markets rather than conventional grocery stores can lead to significant savings.
On average, the cost of groceries and food items ranges from $560.00 USD to $730.00 USD, depending on the size of your household.
To illustrate, in the United States, a 12-ounce bottle of Coke/Pepsi typically costs around $1.89 USD, whereas in New Zealand, it’s approximately $2.29 USD. Similarly, a gallon of milk is priced around $3.22 USD in the United States, whereas in New Zealand, it averages around $6.76 USD.
Rent in New Zealand
In New Zealand, rental prices can vary widely depending on the location, size, and level of furnishing of the property. For example, the rental costs for a one-bedroom apartment in city centers can range from NZD $1,250 to $5,360 monthly.
If you’re looking for a two-bedroom house, you might spend between NZD $2,500 and $3,000 monthly on average, depending on the region and specifics of the property
Internet and Utility Costs
For internet services, the cost ranges depending on the speed and type of service you choose. For basic fiber or cable internet, you can expect to pay between NZD $50 and $93 monthly.
Utility costs, which include electricity, heating, cooling, and sometimes water, can vary but typically range from NZD $148 to $402 monthly for a standard apartment
Transportation Costs
Transportation costs also differ based on your choice of transport and frequency of travel. The cost of a new car, such as a Toyota Corolla, could range from NZD $31,000 to $37,395. If you prefer public transportation, a monthly pass can cost between NZD $80 and $240.
For taxis, the starting fare is typically around NZD $3 to $8, with additional costs per mile
Related: Is The Philippines a Cheap Place to Live?
Clothing Costs
In New Zealand, the costs for clothing reflect the wide range of options available, influenced by both local and international market trends. For example, a pair of mid-range Nike running shoes is priced between approximately NZD $100 and $250. Jeans, such as Levi’s 501, can cost between NZD $70 and $180, while a summer dress from popular chain stores like Zara or H&M may range from NZD $40 to $150
Childcare Costs
The cost of childcare in New Zealand varies significantly depending on the type of institution and the specific services provided. For instance, monthly fees for private kindergarten can range from NZD $800 to $1,950, while international primary school tuition fees per year can span from NZD $14,000 to $28,000
Dining Out Costs
New Zealand’s diverse food culture offers a range of dining experiences. Costs for dining out can vary, with an average meal for two at a mid-range restaurant costing between NZD $80 and $180. More casual dining like a combo meal at a fast-food restaurant such as McDonald’s might cost around NZD $13.58 to $18
Healthcare Costs
New Zealand provides a robust national health care system with various funding mechanisms to minimize out-of-pocket expenses for residents. In general, primary healthcare services, including GP visits, are subsidized, making healthcare accessible and affordable.
For example, visiting an after-hours healthcare center typically incurs a charge, but this is usually reduced through subsidies or covered for children under 13 and those with a high-use health card or community services card, which are designed to lower costs for frequent healthcare users and low-income individuals
Entertainment Costs
In New Zealand, the current price of a movie ticket varies, but typically you can expect to pay around NZD $20 for a standard adult ticket on a weekday. The cost can be slightly higher on weekends and for premium viewing experiences such as IMAX or 3D screenings
The Reality of Island Country Living
Living in New Zealand offers access to a plethora of outdoor activities and stunning vistas, thanks to its unique geographical setting.
However, this isolation also means that many goods, including essential items like food, clothing, and fuel, must be imported, leading to higher costs compared to countries with more access to international trade routes.
One practical way to mitigate these higher living costs is by purchasing second-hand goods. The culture in New Zealand is very accepting; people generally do not judge others based on their material possessions. This ethos supports a more sustainable lifestyle through the reuse of items, which can also be cost-effective.
In essence, while living in New Zealand does come with its set of challenges due to its remoteness, it also fosters a community-oriented, inclusive environment where one can enjoy a high quality of life amidst beautiful surroundings.
Sample Budget
Here is a sample budget for one month of living expenses for two people living in New Zealand:
- Rent: For a two-bedroom apartment, monthly rent can vary widely based on location and amenities. On average, expect to pay between NZD $2,000 and $3,000 (approximately $1,300 to $1,950 USD).
- Groceries: Monthly grocery costs for two people eating mostly at home might range from NZ$800 to NZ$1,200 (around $520 to $780 USD).
- Internet/Utilities: For utilities including internet, electricity, and water, budget around NZ$150 to NZ$300 per month (about $100 to $200 USD).
- Transportation Costs: If relying on public transportation, monthly costs could be around NZ$160 to NZ$480 (approximately $105 to $310 USD) for two people.
- Clothing Costs: Expect to spend around NZ$278 to NZ$372 (around $180 to $240 USD) for two people, depending on needs and shopping choices.
- Dining Out Costs: Dining out approximately three times a month for two people could cost between NZ$160 to NZ$360 (approximately $105 to $235 USD), depending on the choice of restaurants.
- Healthcare Costs: Budget for occasional out-of-pocket expenses such as doctor’s visits; for example, a short visit to a private doctor might cost around NZ$57 (about $37 USD).
- Entertainment Costs: Including gym memberships and movie tickets, set aside about NZ$126 to NZ$315 (approximately $80 to $205 USD) per month.
- Total: The total estimated monthly expenses could range between NZ$3,582 to NZ$6,125 (approximately $2,320 to $3,970 USD), depending on lifestyle choices and specific local costs
You can always make adjustments to your budget by dining out less, purchasing fewer clothing items, reducing your grocery budget, and reducing your entertainment costs.
What is the Average Income in New Zealand?
As of 2024, the median income for wage and salary workers is approximately NZ$61,828 per year, indicating the middle point of income distribution across the workforce.
Your income will depend mostly on your education, training, and employment opportunities.
If you have the training and education, you can apply for a higher paying job.
These jobs include:
- IT professionals – NZ$82,976/annually
- Cybersecurity specialists – NZ $105,000/annually
- Finance manager – NZ $100,000/annually
- Architects – NZ $85,000/annually
- Engineers – NZ $85,000/annually
- Accountants – NZ $75,000/annually
If you’re a student or someone without extensive career training, you can apply for one of these jobs:
- Housekeeping – NZ $33,000/annually
- Wait staff – NZ $35,000/annually
- Receptionist – NZ $36,000/annually
- Security – NZ $37,000/annually
- Kitchen staff – NZ $32,000/annually
- Administrative – NZ $40,000/annually
- Machine operator – NZ $36,000/annually
Immigration Costs
To work in New Zealand, you will need to apply for a visa.
According to New Zealand Shores Immigration Consultants, the types of visa you can apply for along with the average application costs include:
- Visitor Visa – starting at NZ $211.00
- Work Visa – NZ $495.00 – NZ $635.00
- Student Visa – NZ $275.00 – NZ $330.0
- Partnership Visa – NZ $495.00 – $635.00
- Resident Visa – NZ $1,480.00 – $3,310.00
In addition to applying for a visa, you will have to also provide various types of personal documentation such as a copy of your birth certificate, passports, driver’s license, and other types of identification.
If you plan to practice law, teach, perform plumbing or other contracting duties, or you wish to work in the medical field, you will have to register with a specific agency or local municipality. Additional registration fees will apply.
Paying Taxes when Living in New Zealand
The types of taxes New Zealand residents must pay include:
- Income Tax – this tax, also called Pay As You Earn (PAYE) comes out of your paycheck.
If you earn NZ $70,000 or more, the highest personal tax rate is 33 percent. If you earn up to NZ $14,000, the lowest personal tax rate is 10.5 percent.
A flat tax of 28 percent applies to companies and corporations.
- Real Estate and Property Tax – New Zealand does not impose a real estate tax. However, if you own property, you will have to pay property taxes set by the local jurisdiction.
- Goods and Service Tax – also called GST is the tax you must pay on the goods and services that you purchase. GST has a flat rate of 15 percent.
- VAT Tax – tax you must pay on goods and services. VAT tax in New Zealand sits at 13 percent.
New Zealand does not collect the following taxes:
- Inheritance tax
- Payroll tax
- Social security tax
- General healthcare tax
- General capital gains tax
- Local or regional taxes (other than property tax)
New migrants do not have to pay taxes on overseas income for the first four years of living in New Zealand. You will only pay income tax on what you earn in New Zealand.
Real Estate Prices in New Zealand
To purchase property in New Zealand, individuals must either be residents or hold residential status.
Prospective buyers will find that real estate prices are higher in major urban areas such as Auckland. According to recent data from GlobalPropertyGuide, the average house in Auckland now commands approximately NZ $586,000. Conversely, properties in more rural locations are generally less expensive.
For instance, a residence on the West Coast is typically priced around NZ $125,000, while a home in Southland may cost about NZ $217,000.
Over the past several years, real estate values have experienced a noticeable increase. This trend was influenced by the 2018 enactment of the Overseas Investment Amendment Act by the New Zealand parliament, which prohibits foreign ownership of residential real estate in the country.
Although this legislation has not significantly altered the market dynamics, it has spurred a rise in local interest in homeownership, subsequently boosting property values.
How Do I Apply for New Zealand Residential Status?
To apply for New Zealand Residential Status, you are required to reside in New Zealand for a minimum of two years under a Work to Residence Visa. Additionally, you must satisfy specific health and character standards.
Furthermore, eligibility hinges on fulfilling one of two designated pathways to residency. These pathways include securing either a Long Term Skill Shortage List Work Visa or a Talent (Accredited Employer) Work Visa. Each visa demands compliance with certain employment and income requirements and imposes age limitations.
Can I Use USD in New Zealand?
Although it is advisable to keep some USD on hand for emergencies while residing in New Zealand, it is unlikely that local businesses will accept it for everyday transactions. You will need to exchange some of your USD into NZD (New Zealand dollars) upon arrival.
Places to Convert Currency
You have the option to exchange USD into NZD either before your departure or once you arrive in New Zealand. Auckland International Airport offers currency exchange services, as do most hotels and banks. Be aware that conversion rates may vary, and many outlets charge a conversion fee.
To circumvent these fees and the need to compare different currency exchange services, consider using your ATM card for purchases.
Debit/Credit Cards
In New Zealand, it is commonplace to use debit or credit cards for a wide range of purchases, including minor items such as newspapers and coffee.
Before relocating to New Zealand, notify your bank or credit card company to ensure they do not mistakenly flag purchases made in New Zealand as fraudulent. Such flagging can temporarily freeze your account, hindering access to your funds.
ATMs are readily available throughout New Zealand, allowing you to withdraw cash in NZD as needed, thus reducing the necessity to carry large amounts of USD.
How Much Cash Can I Bring into New Zealand?
You are permitted to carry any amount of USD when traveling to New Zealand; however, you must declare any sum exceeding NZ $10,000 at customs.
It is advisable not to travel with large amounts of cash on your person. If it is necessary to carry significant sums, distribute the cash in smaller portions across your luggage, wallet or purse, and pockets for added security.
Although New Zealand enjoys a relatively low crime rate compared to other countries, remaining vigilant and cautious with your belongings, especially cash, is crucial to prevent theft.
How Much Money do I Need to Live Comfortably in New Zealand?
The amount required to live comfortably in New Zealand largely depends on your lifestyle choices.
Making prudent financial decisions is essential to maximize the utility of your resources.
For instance, purchasing a car may be beneficial if you frequently travel across various parts of New Zealand. Conversely, if you predominantly stay within urban centers, utilizing public transportation or renting a car occasionally can be more cost-effective.
Regular dining out will generally increase your monthly food expenses compared to cooking at home.
Your primary expenditures will likely include rent, utilities, and food. While you can modify your food budget, fixed costs such as rent and utilities are less flexible.
If relocating to New Zealand with your family, additional considerations include schooling, clothing, extra food, vehicle expenses, and possibly renting a larger home. It is important to account for all these factors in your budget planning before the move.
Wrapping Up
Now that you are informed about the typical cost of living in New Zealand, you can start organizing your finances accordingly. Establish a realistic budget tailored to your lifestyle preferences and the employment opportunities available to you. It’s advisable to save sufficiently before relocating so that you can secure a rental for a condo or house immediately upon arrival.
Ensure you allocate funds for visa application fees and other expenses required to reside and work legally in New Zealand.
Overall, the cost of living in New Zealand aligns closely with that in many other nations. By adhering to your budget, you can enjoy a comfortable life in New Zealand, minimizing concerns about day-to-day financial pressures.
