For New Zealand nationals investing in a US business on an E-2 visa

E-2 Investors From New Zealand: Tax on the Business, the Investment and You

An E-2 move from New Zealand creates two US taxpayers: the company you invest in and, usually within the first year, you. This page sets out both, from official sources, and shows where residence starts.

E-2 treatyForm 1120Form 5472BE-13Tax residence
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Quick answer

Is an E-2 investor from New Zealand a US tax resident?

Usually yes, once living in the US for most of the year. E-2 is not an exempt-individual category under IRS Pub 519, so your days count under the substantial presence test, and a resident is taxed on worldwide income. If New Zealand also treats you as resident, Article 4 (Residence) of the treaty breaks the tie. Your company files its own returns: Form 1120, and Form 5472 while it is foreign-owned.

Prepared by Illuminous Accounting · Sources checked November 11, 2026

At a glance

E-2 treaty with New Zealand
In force since June 10, 2019 (State Department)
Company
US corporation (Form 1120) or LLC; Form 5472 while foreign-owned
Your tax residence
Substantial presence test; E-2 days are not excluded
Treaty tie-breaker
Article 4 (Residence)
Social security agreement
None on the SSA list

The E-2 treaty with New Zealand

The E-2 route for New Zealand rests on a treaty that has been in force since June 10, 2019 (State Department list). According to USCIS, the investor must be a New Zealand national (for this treaty), must put a substantial amount of capital at risk in a real US business, must not be running a marginal enterprise, and must hold at least 50% or operational control. There is no published minimum amount (USCIS).

Immigration questions belong with your immigration lawyer. We handle the tax side: the company, the money you put in, and your own US returns.

The company: corporation or LLC

Most E-2 businesses are a US corporation or an LLC.

  • Corporation: files Form 1120 every year, with or without taxable income (IRS). While a foreign person owns 25% or more, it also files Form 5472 for transactions with related parties, including loans to or from you; the penalty for missing it is US$25,000 (IRS).
  • LLC: classified under Treas. Reg. section 301.7701-3. One owner means a disregarded entity and two or more a partnership, unless it elects corporate treatment (IRS).
  • BE-13: generally due within 45 days when a foreign person sets up or buys a US business (BEA rule).

Are you a US tax resident on an E-2 from New Zealand?

This is where E-2 investors from New Zealand are most often surprised. The visa is nonimmigrant, but tax residence is decided only by Code section 7701(b), and E-2 days are not excluded (IRS Pub 519). Live here most of the year and you are a US resident, taxed on worldwide income from your residency starting date. If New Zealand also treats you as resident, Article 4 (Residence) of the treaty is the tie-breaker; relying on it on a US return needs Form 8833 under Treas. Reg. section 301.7701(b)-7 (IRS). There is no US social security agreement with New Zealand on the SSA list (SSA), so US social security applies to US work.

Putting your money in

Capital or loan? Both fund the E-2 business, but they are reported differently. Amounts the company borrows from a foreign owner, and interest on them, are reportable on Form 5472 while the company has a foreign owner (IRS). Capital stays in the company as equity. Document each transfer from New Zealand so the books and the returns tell the same story.

Dividends and interest while you live in New Zealand

Before you move, or in any year you are not a US resident, money the US corporation pays you is taxed by withholding. The statutory rate on US-source dividends and interest paid to a nonresident is 30% unless a treaty lowers it (IRS Pub 515).

Payment to a resident of New ZealandGeneral treaty rate (IRS Table 1)Treaty citation
Dividends from a US corporation15%Article 10(2)
Interest on a loan you made to the company10%Article 11(2)

Rates from IRS Tax Treaty Table 1 (Rev. May 2023). The IRS notes the table is not a complete guide to eligibility; the treaty's conditions, including any limitation on benefits, must be met. Once you are a US resident these rates no longer apply to you.

Ongoing US filings for an investor from New Zealand

  • Once you are a US resident you are no longer a foreign person for Form 5472, which the IRS defines as an individual who is not a citizen or resident (IRS). Whether the company still files depends on who else owns it.
  • Form 1040 on worldwide income every year you are resident, including income from New Zealand.
  • FBAR and Form 8938 for accounts you keep in New Zealand; see FBAR and FATCA and Form 8938.
  • Form 5471 if you keep control of a company in New Zealand: a US person controlling more than 50% of a foreign corporation is a Category 4 filer, with a US$10,000 penalty per year for not filing (IRS). See Form 5471.
  • Funds held in New Zealand can be PFICs; see PFIC and Form 8621 for how the rules work.

Treaty and law references

Treaty

  • The IRS lists the 1982 income tax treaty, signed July 23, 1982, amended by a 2008 protocol. General effective date (IRS Table 3): treaty Jan. 1, 1984; protocol Jan. 1, 2011 (IRS treaty documents for New Zealand; treaty text; IRS Table 3).
  • Residence and tie-breaker: Article 4 (Residence).
  • Article 7 (Business Profits), business profits.
  • Article 10 (Dividends), dividends.
  • Article 22 (Relief from Double Taxation), relief from double taxation.

US law and E-2 rules

  • E-2 status: State Department treaty countries (E-2 with New Zealand in force since June 10, 2019); USCIS E-2 Treaty Investors, 8 CFR 214.2(e).
  • Tax residence: Code section 7701(b) (Pub 519). Treaty residence: Treas. Reg. section 301.7701(b)-7 and Form 8833 (IRS).
  • Company filings: Code section 6038A and Treas. Reg. section 1.6038A-1 for Form 5472 (IRS); Treas. Reg. section 301.7701-3 entity classification (IRS); 15 CFR 801.7 BE-13 (eCFR).
  • Foreign companies you control: Form 5471 (IRS).

The tax rules of New Zealand on leaving or keeping assets there also apply; a local adviser covers that side.

How we help

Send us the company documents, the funding records and your travel dates. We confirm when you became a US tax resident, prepare the company and personal returns, and coordinate with your immigration lawyer where the records overlap. Gurleen Kaur, CPA licensed in British Columbia and Washington State, signs.

E-2 investors from other countries

All countries: E-2 investor tax by country. From Canada: E-2 taxation for Canadian founders. Moving without an E-2: moving to the US, by country.

Common questions

Is there a minimum investment for an E-2 visa from New Zealand?

USCIS does not set a fixed minimum. The investment must be substantial in relation to the total cost of the business, and the lower the cost, the higher the proportion expected. The enterprise may not be marginal. Your immigration lawyer advises on this.

Does an E-2 investor from New Zealand pay US tax on worldwide income?

Usually yes, once resident. E-2 is not an exempt-individual category, so the substantial presence test applies, and a US resident is taxed on worldwide income from the residency starting date.

What if New Zealand also treats me as resident?

Article 4 (Residence) of the treaty decides residence for treaty purposes; claiming it on a US return needs Form 8833.

Does the E-2 company file Form 5472?

A US corporation that is 25% or more foreign-owned files Form 5472 with Form 1120, and a single-member LLC files it while its owner is a foreign person. Once you are a US resident you are no longer a foreign person for this purpose.

Sources

Every rule and figure on this page links to the IRS, CRA or other official source it comes from. Amounts change; we re-check them before each engagement.

Gurleen Kaur, CPA licensed in British Columbia and Washington State. Last updated November 11, 2026. This page is general information, not tax or legal advice for your situation.

Related guides: E-2 for Canadian founders, For immigration lawyers, Moving from New Zealand.

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