If you buy an IP in New Zealand how does the tax work

If an Australian buys an investment property in New Zealand I assume they have to pay income tax to the Australian government?
But what about the New Zealand government?
Which government takes the tax if the property makes a profit?
And then what about capital.gains.tax is that paid to the Australian government or the New Zealand government?

Actually I am in New Zealand citizen but not resident maybe if I could have it taxed in New Zealand it would be better because I wouldn't have any other New Zealand income.

I'm not actually buying right now but just noticing the New Zealand market getting some pretty big falls so it might be ready before some Australian cities.

 

the tax implications are quite different for certain New Zealand citizens.

You might well be classed as a temporary resident for tax purposes and this can be a significant benefit if it applies.

 

Thanks
I was born in Australia (became Australian Citizen by birth) but also became a NZ citizen but have not lived there for 15 years (living in Australia instead).
So I have both citizenships.
Have family in NZ.

 

ok that removes that potential benefit.

 

But if i had an IP there who would I pay the tax to? The NZ government or Australian?

 

NZ doesn't have a CGT regime. ...Australia does

 

They actually do now....for property. Its complex and being worked on now after announced in budget.
Profits from residential investment property sales can be taxable at 39% when sold within certain periods of time. The tax may only be up to half creditable in Australia. NZ also adopt a far harsher view to revenue activities v Australia and even a few airbnbs can be considered business income v here. Business income, profit making etc will not produce exempt gains. Many ways for property profits to be taxed....
Does New Zealand have a Capital Gains Tax on property? - MYOB Pulse

Also consider the new NZ rules which deny interest deductions so a neg geared property would be subject to foreign resident tax rates on net income. They have replicated the UK rent to buy tax rules. Applies to new acquiistions and then also will phase in over 4 years for all others.

IMO this is how Albo will act when he gets in. He hasnt promised not to "change" existing taxation laws.