Three Reasons Why New Zealand Ranks #1 in the World

For four years in a row, the World Bank ranked New Zealand as the #1 country in the world (out of 190 countries globally) in its Ease of Doing Business Index.

And for the 15 years the report was published, New Zealand never dropped below third place, consistently outperforming major economies like Australia (who’ve never been in the top 5) and the US.

New Zealand still ranks highly in the World Bank’s newer index, even after the report was discontinued in 2020 due to data manipulation issues (by countries who shall not be named…).

Here’s the summarised top 20 rankings.

“But it’s hard in New Zealand right now…”

I hear you. Our economy is struggling. Businesses are cutting back. Kiwis are feeling the pressure of rising costs and economic uncertainty.

But here’s something I remind myself often:

If its hard for you right now, its hard everywhere else too.

• Friends who moved to Australia recently told me car prices are much higher there. That shocked me.
• My family and friends in the Middle East and Subcontinent are constantly anxious about ongoing wars and political instability.
• In the US, Trump’s unpredictable policies are once again wreaking havoc, both nationally and globally.

Compared to much of the world, New Zealand is still a safe, stable, and resilient place to live, invest, build a business.

Well…at least until God decides to send the next natural disaster our way! But until then…we’re safe. And incredibly fortunate.

This article isn’t about the negatives.

It’s about the positives. And why I believe New Zealand is still #1 in the world.

It’s also, let’s be honest, one of the most beautiful places on Earth.

What You’ll Learn in This Article

• Why New Zealand is the world’s easiest place to do business
• The 3 unique tax advantages that set New Zealand apart globally
• 4 Practical ways to help you start or grow your business right now

Bonus download at the end:

• 7 Tax-Saving Tips Any Business Can Use
• 7 Key Questions to Ask Yourself Before Starting a Business

By the end, you’ll walk away with:

• Clarity on why New Zealand leads the world in business simplicity
• Motivation to start or expand your own venture
• Practical ways to take action, even in tough time

Reason 1. World-Class Ease of Doing Business

In many countries, you’d need weeks or months to get business approvals.

In New Zealand?

You could register a company today and start operations tomorrow. The system is fast, simple, and digital-first.

• Company registration takes just a few hours. No lengthy bureaucracy.
• Foreign investors can set up with ease and are welcome.
• Minimal red tape. Fewer regulatory hurdles compared to most countries.

If you’ve ever tried setting up overseas, you’ll appreciate how frictionless New Zealand is.

Reason 2. Open, Transparent System

New Zealand is consistently ranked among the least corrupt countries in the world. In Transparency International’s latest Corruptions Perceptions Index, NZ ranked #4 globally.

This isn’t just a bragging point.

• Low corruption means that you can operate your business without fear of bribery, nepotism, or unfair competition from those “buying” influence.
• Government decisions are generally made by the book, and regulations are there to create a level playing field. In practice, that means if you need a permit or a license, you follow the published steps and can expect a fair outcome without under-the-table dealings.

This kind of clean business environment is a huge relief for anyone who has experienced the opposite in other markets.

Reason 3. Three Unique Tax Advantages You’ll Love

1. No general Capital Gains Tax (CGT). When you sell assets, including businesses, shares, property or investments, you generally pay no CGT. Unlike Australia, US, or UK, where you lose 20%+ of your gains. This is unusual among OECD countries. NZ lets you keep more.
2. No inheritance, estate tax or wealth tax. Pass your wealth or business to your family without the Government taking a big cut. Your beneficiaries keep 100% of their inheritance. A global advantage, as many countries charge upto 50% inheritance tax. This makes New Zealand one of the best countries for generational wealth planning.
3. Simple, flat GST system. GST is 15%, applied broadly. Few exemptions. No complexity. Compliance is easier and cheaper. Also worth noting:

• No stamp duty
• No payroll tax
• No financial transaction taxes

That means fewer surprises and cleaner accounting for your business.

Note: Some transactions like property flipping may still be taxed under rules like the bright-line test.

4 Practical Tips To Take Action Today

Tip 1. Buy businesses at a discount. Many businesses are currently undervalued. If you’ve considered acquisition, now may be the time.

Tip 2. Consider property. It’s also a great time to buy a home or investment property while prices are down.

Tip 3. Take advantage of falling interest rates. Cheaper borrowing = better financing for growth or investment.

Tip 4. Think side hustles. A personal example below:

• Use a spare car as a rental vehicle. Three of my friends have successfully used their own spare car as a rental vehicle by partnering with a car rental company. Tourist hotspots like Queenstown have a consistent demand for rental cars, making this a great way to earn additional income with minimal effort.

Key Takeaways

Yes, it’s a tough time. But New Zealand still offers one of the best environments in the world to build something great. So if you’ve been thinking about starting something, this is your sign. New Zealand gives you the platform. The next move is yours.

Baqir Hussain, FCCA

Director, Finex Chartered Certified Accountants

P.S. Bonuses & free stuff below