NZ LTBV & Business Forum

[cocteau3]

Hi,

I have a simple question that perhaps someone can answer. I am interested in coming to NZ to license as a Realtor (sales agent). Schooling currently takes about 1 month. The problem is, I cannot get NZIS to properly or thoroughly answer my questions regarding the nature of the business. Since agents are considered contractors, and are self-employed, I think I could qualify under the LTBV category, as opposed to Skilled Migrant Category. There is no "shortage" of Realtors. However, NZIS will not commit to an answer, and insist I have to submit before any assessement can be made. To me, it's a simple question. If I am a solo business owner, have no employees, and work under a brokerage, am I considered a business worthy of obtaining a LTBV. I could expect to hear from them after applying and spending $2000 that my business will not benefit New Zealand since I'm not creating new jobs, or spending huge amounts of capital. That seems to be their only interest. Does anyone have any advice or experience in this?

Many thanks!

[JamieSmith]

Hi Cocteau3

I think you'll get knocked back. As a contractor the tax department would expect no more than 80% of your income to come from one source, and you would have to supply your own resources (desk, car etc.) Furthermore, you would need to generate your own income for the other 20% and that would probably have to go through the employer as per the contract.

So IRD would say you're probably an employee and INZ would defer to caution and agree.

INZ would decline you on the basis that employment is not self employment and you're not in charge of other staff, managing more than commission and expenses in finances, doing the marketing for your own business, or actually managing anything as you'll be spending most of your time doing the leg work and not managing per se.

If you owned a part of the agency it would be a different story.
_________________
Regards
Jamie Smith
Business plans for LTBV in NZ
www.businessplans.co.nz
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www.statesponsorship.com.au

[cocteau3]

This is helpful, thanks. Unfortunately, it confirms my intuition. If tax requires no more than 80% from one source to qualify as a "contractor" (as the brokerages want you to be as their agent), then it would not be possible to show income from another source - all commissions would be through one brokerage.

Here in the US, an agent is always always always considered self-employed, even by the tax people, because it doesn't matter how/when one obtains income, even if through a single brokerage. It's just a matter of how I file taxes and whether the brokerage has one on staff (administration, etc.) or as a licensed agent. Seems New Zealand should change lots of rules if NZIS is to succeed in snagging talented, motivated, capitalized immigrants.

thanks again,

John