The France-New Zealand tax treaty, article by article

The tax treaty between France and New Zealand was signed in Paris on November 30, 1979, and has been in force since March 19, 1981. It caps withholding tax at 15% on dividends and 10% on interest and royalties. To eliminate double taxation, France generally exempts income taxable in New Zealand, except for dividends, interest, royalties, and certain other income that qualify for a tax credit. This page reads the official text and explains what it does not cover.

A text from 1979, the MLI since 2019

The convention. Signed in Paris on November 30, 1979 with a protocol which forms an integral part thereof, it entered into force on March 19, 1981, approved by law no. 80-1011 of December 17, 1980 and published by decree no. 81-548 of May 8, 1981. The administrative list of conventions (BOI-ANNX-000306, of April 29, 2026) classifies it as "IR", income tax, without mention of inheritance or donation.

The application dates. In France, its provisions apply to taxes for the tax year beginning on or after January 1, 1982. In New Zealand, they apply to all income for the year beginning on or after April 1, 1982.

The MLI. The multilateral convention signed in Paris on June 7, 2017, ratified in France by Law No. 2018-604 of July 12, 2018, entered into force on October 1, 2018, for New Zealand and on January 1, 2019, for France. The BOI-ANNX-000511 list (April 29, 2026) gives, for New Zealand, January 1, 2019, for taxes withheld at source and July 1, 2019, for other taxes. The consolidated text includes the "Right to Benefits" clause.

Maximum deductions and key rules

Who is a resident?

Article 4, paragraph 1, defines a resident of a State as any person who, under the laws of that State, is liable to tax therein. For an individual resident in both States, paragraph 2 applies four criteria in order: (a) the State in which they have a permanent home available to them, and then, if they have one in both, the State of their closest personal and economic ties (centre of vital interests); (b) the State in which they habitually reside, if the centre of vital interests cannot be determined or if they have no permanent home available to them in either State; (c) the State of which they are a national; (d) failing that, an agreement between the competent authorities. For a person other than an individual, residence is that of the place of effective management (paragraph 3).

Dividends: a single cap of 15 %

The tax of the source state may not exceed 15% of the gross amount of dividends if the recipient is the beneficial owner (Article 10, paragraph 2). This paragraph does not provide for a reduced rate for parent companies. Article 10 contains other paragraphs, including one dealing with the payment of tax credits by the French Treasury to New Zealand residents and another concerning permanent establishments; these are not detailed on this page.

Interest and royalties: 10 % each

Article 11 caps withholding tax at 10% of the gross amount of interest. Paragraph 3 exempts, in the source State, certain interest paid to the other State, its local authorities, or certain public bodies, or received in respect of a "loan made or guaranteed" or a "credit granted or guaranteed" by the other State (Article 11, paragraph 3(b)). Article 12 caps withholding tax at 10% of the gross amount of royalties.

Capital gains: the 50 % threshold for real estate value

Income from immovable property is taxable in the state where the property is situated (Article 6, paragraph 1), as are gains from its disposal (Article 13, paragraph 1). Gains on shares or similar rights are taxable in the other state if, during the 365 days preceding the transfer, these securities derive more than 50% of their value from immovable property situated in that state (Article 13, paragraph 4). Gains on other property are taxable only in the state of which the transferor is resident (Article 13, paragraph 5).

Salaries: 183 days in the fiscal year

Wages are taxable only in the State of residence, unless the employment is exercised in the other State (Article 15, paragraph 1). The exception in paragraph 2(a) applies to a stay not exceeding a total of 183 days "during the tax year in question." Two further conditions apply: the employer is not a resident of the other State, and the remuneration is not borne by a permanent establishment or fixed base.

Pensions and other income

Pensions paid to a resident for previous employment are taxable only in the State of residence, subject to Article 19, paragraph 2, and the provisions of paragraph 3 of Article 18, which are not detailed on this page (Article 18, paragraph 1). Social security payments are taxable only in the paying State (Article 18, paragraph 2). Income not covered by the preceding articles is taxable only in the State of residence; income from the other State is also taxable there (Article 22, paragraph 2).

Eliminating double taxation: the French exemption

The rule. France has opted for exemption in most cases: income taxable in New Zealand under the convention "is exempt from French taxes" (Article 23 § 1 a). The calculation of French tax on the remaining income taxable in France takes into account the rate corresponding to the total taxable income under French law: this is the effective tax rate rule.

The exceptions. The income referred to in Articles 10, 11, 12, 14, 16, 17 and 22 is taxable in France on its gross amount (Article 23 § 1 b). The New Zealand tax then gives rise to a tax credit, capped at the corresponding French tax.

New Zealand side. New Zealand grants a tax credit for French tax "paid under French law and in accordance with the Convention" (Article 23 § 2). The limits of this credit are set out in the text, which this page does not detail.

What this page does not cover

The tax credit under Article 10, permanent establishments, Articles 17 and 19 in detail, business profits, the mutual agreement procedure, and the exchange of information are not detailed. New Zealand domestic law (rates, withholdings, residency rules) is not addressed. The administrative list does not mention any inheritance or gift agreements with New Zealand; this page does not derive any rules from them.

Dividends, interest and royalties: a numerical example (fictitious profile)

Situation. A fictitious individual, residing in France, receives €10,000 in gross dividends, €6,000 in gross interest, and €3,000 in gross royalties from New Zealand sources in one year. He also plans to undertake business trips to New Zealand totaling 150 days during the fiscal year.

Issue. He wants to know the maximum deductions that New Zealand can apply, and its margin in relation to the 183-day threshold.

Strategy. He applies the convention's limits: 15 % for dividends, 10 % for interest, and 10 % for royalties. He keeps a record of his days worked during the fiscal year and then verifies the two other conditions of Article 15.

Result. The maximum withholdings are €1,500 on dividends, €600 on interest, and €300 on royalties, totaling €2,400. With 150 days, the margin is 33 days below the 183-day threshold; at 190 days, the threshold would be exceeded by 7 days, which is insufficient to draw a conclusion: the employer and the permanent establishment still need to be examined. The amounts and profile are fictitious.

What changes depending on your situation

• Your residence as defined in the convention, and the tie-breaking stage that concerns you.
• The nature of the income: dividend, interest, royalty, pension, salary, capital gain.
• The number of days spent in each state during the fiscal year.
• The composition of the assets of the companies whose shares you are selling, with regard to the 50 % real estate value threshold.
• New Zealand law, which must be validated with a local professional.

An article should be read in light of the facts in your case, and no result is guaranteed in advance.