Real Estate Agent

Tax guide for New Zealand self-employed real estate agents and salespeople

Allowable Expenses

• Advertising & listing costs — Trade Me, realestate.co.nz listings, photography
• Vehicle expenses — Property viewings — km rate or logbook
• Professional fees — Real Estate Authority (REA) licence fees, annual renewal
• Marketing materials — Brochures, signage, business cards
• Professional development — REA-approved CPD courses, industry conferences

Tax Tips

• REA licence renewal fees are a deductible business expense
• Vehicle costs for showing properties to clients are deductible
• Photography costs for property listings you manage are deductible
• Client entertainment at lunches or property events is 50% deductible — keep receipts with business purpose noted

Frequently Asked Questions

How is real estate commission taxed in NZ?

Commission income received by self-employed real estate agents is taxable income included on the IR3. Your expenses — vehicle costs, advertising, REA fees — reduce your taxable profit.

Are REA licence fees deductible for NZ real estate agents?

Yes. Annual REA (Real Estate Authority) licence renewal fees and any registration costs are deductible professional expenses for self-employed real estate agents and salespeople.

Can I claim photography and staging costs for property listings?

Yes. Professional photography, drone footage, and home staging costs paid by you for property listings are deductible marketing expenses. If the vendor reimburses these costs, they cancel out — only costs you absorb yourself are deductible.

Do NZ real estate agents charge GST on their commissions?

Yes. If you are GST-registered, your commission fees are subject to 15% GST. Given commission levels, most active agents will exceed the NZ$60,000 threshold quickly and must register. Charge GST on invoices and claim back GST on business purchases.