With it’s warm, rich culture, incredible scenery and vibrant cities, New Zealand is an appealing emigration destination. But whether you’re thinking of moving out there yourself to start a business or trading with New Zealand from a base overseas, there are some important factors to consider before you make the leap. 

Check you can overcome some logistical hurdles

Logistics are a key thing to consider when setting up a business in New Zealand as the cost and speed of travel can significantly impact your business. Will you need to regularly ship goods or fly staff to Europe or the US? If so, do a thorough affordability check as the vast distances make these travel routes expensive. Check that you can accommodate these long lead times or if they will make it difficult to remain competitive.

Internet speeds aren’t the fastest in New Zealand so that’s something to consider if you’re planning on running an online business. The average speed is faster than in Australia but still way behind Japan, the US and the UK. 

Budget carefully

As well as the value of the New Zealand dollar against the Australian dollar, there are a number of costs to consider when it comes to setting up a business in New Zealand. Here are some of the main expenses to factor into your cost analysis.

New Zealand corporate tax is pretty hefty as it’s 28%, although not as high as Australia’s 30%. If you’re trading in New Zealand from Australia, then you’ll need to pay New Zealand corporate tax on your income generated in New Zealand. If you base your business in New Zealand (ie it’s a resident company) then you’ll need to pay New Zealand corporate tax on your worldwide income. 

Generally speaking, wages appear to be higher in New Zealand compared to the global average, but it’s not a huge difference compared to Australia and depends on the role and region. If you’re planning on hiring a significant workforce then it’s going to be worth researching the exact increase compared to what you might expect to pay in the Australia.

Research your sector

Considering the costs and logistics of trading with a country as far away from Europe and the US as New Zealand, it’s worth checking how your sector performs to assess the viability of your business. To help you, here’s a rundown of some of the biggest industries in New Zealand.

With all that gorgeous countryside it may come as no surprise that agriculture is the biggest industry in New Zealand. Its lamb is famous around the world, but the country is also a major dairy supplier. Fruit is a huge export too, not least the kiwi fruit.

Another significant industry in New Zealand is the construction industry. Skilled construction workers are in demand and if your business is in this industry then you may find you can call upon the many backpackers who come to New Zealand for temporary, less-skilled roles like labourers.

Real estate services are a leading sector in New Zealand, which is likely to be a key driver in the demand for construction services. As well as the purchasing of real estate the rental and hiring sectors are big too, which may in part be down to New Zealand’s booming tourism industry and the demand for holiday rentals.