Property developer accountant for New Zealand developers and subdividers

Developing, subdividing or building to sell is usually a taxable business in New Zealand. Getting the tax and GST right from the start helps you avoid problems later. We work with small developers, builders and first-time subdividers across the country.

Chartered Accountant (CA) · CA ANZ member · Xero Certified Advisor · Fully online, New Zealand-wide

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How we help developers

  • Check whether your project is taxable before you start
  • GST registration and GST returns, including land sales
  • Project cost tracking in Xero - land, consents, earthworks, building, interest
  • Year-end accounts and tax returns for development companies
  • Tax on sale of sections and new builds
  • Inland Revenue correspondence

When is a property sale taxed?

  • You bought the land intending to sell it or develop it for sale
  • You are a dealer, developer or builder (or associated with one)
  • You subdivide or develop land within 10 years of buying it and the work is more than minor (for example earthworks, roading or drainage)
  • The bright-line test applies (residential property sold within 2 years, for sales from 1 July 2024)

Each case depends on the facts, so talk to us early - ideally before you buy.

GST on property development

You may need to register for GST if you are in the business of buying, selling, developing or building property, or if your turnover is more than $60,000 (including property sales). A land sale by a registered seller is zero-rated only if, at settlement, the buyer is GST-registered, will use the land for taxable supplies, and it will not be the home of the buyer or a relative - otherwise GST is charged at 15%. Long-term residential rent is exempt from GST, which matters if you build to rent instead of sell.

Interest on development loans

Interest on land held in a land business, or on a development that creates a new build, falls under exemptions to the interest limitation rules, so it can stay deductible where the normal tax rules allow it. We set up your records so costs are tracked by project.

Common questions

I am subdividing my back section. Will I pay tax?

Possibly. It depends on why you bought the property, how much work is done and timing. We will look at your situation.

Do I need a company for my development?

Many developers use one. We explain the tax side; we recommend legal advice for structure and contracts.

Can you help with a single build-and-sell project?

Yes - from GST registration through to the final tax return.

Talk to a property accountant today. Call 021 0234 6659, email ysm@yugrajca.co.nz, or book a call. We work with property owners all over New Zealand by phone, email, WhatsApp, Microsoft Teams and Google Meet, in English, Punjabi and Hindi.

Disclaimer: This page is general information only, based on Inland Revenue guidance as at October 2026. It is not tax, legal or financial advice for your situation, and tax rules can change. Please talk to us, or another qualified adviser, before acting. Yugraj Singh Mahil Chartered Accountants Limited does not provide financial, investment or mortgage advice. Last reviewed: October 2026.