Cook Islands capital gains tax: none unless you deal or buy to sell
The Cook Islands has no capital gains tax, so the tax on your investment gain is zero. Shares, funds, crypto and property alike, a private disposal carries no tax on the gain, whatever the holding period. Income tax reaches only the heads listed in section 46 of the Income Tax Act 1997, and only a dealer or a buyer-to-sell pays tax on the profit of a sale.
Rates current as of 2026-09-30, from the Income Tax Act 1997 of the Revenue Management Division.
Current rules
Taxes on selling shares, crypto and property in Cook Islands
What you pay when you sell
| Asset | Tax on the gain |
|---|---|
| Shares (personal investment) | Nothing. The Income Tax Act 1997 does not tax an investor's gain on shares |
| Crypto | Nothing on the gain |
| Funds and ETFs | Nothing on the gain |
| Property (personal investment) | Nothing on the gain |
| Dealing, or buying to sell | Section 46(1)(c) makes the profit income, taxed on the scale: nothing to NZ$14,600, 17% to NZ$30,000, 27% to NZ$80,000 and 30% above |
| VAT | 15%, charged on supplies and imports, never on a gain |
Questions
Cook Islands capital gains tax questions
Does the Cook Islands have a capital gains tax?
No. The Income Tax Act 1997 charges income tax on the heads of assessable income listed in section 46: business profits, salaries, dealing profits, land revenues, royalties, dividends and annuities. A capital gain is not one of them. Whether you sell shares after a week or land after twenty years, the gain itself is not taxed.
When is a gain on a sale taxed?
When you deal in the asset or bought it to sell. Section 46(1)(c) makes profits from selling property assessable where your business comprises dealing in that property or you acquired it for the purpose of selling it, and it also reaches profits from a scheme entered into to make a profit. Those profits go on the income tax scale.
What is the income tax scale?
Income up to NZ$14,600 is exempt, reduced pro rata by days spent outside the Cook Islands. Above that the rate is 17% to NZ$30,000, 27% to NZ$80,000 and 30% beyond. The tax year is the calendar year, returns for salary and wages are due on 1 March and any balance is payable by 1 November.
Is crypto taxed in the Cook Islands?
Not as a capital gain. Crypto held as a private investment is a capital asset like any other and its gain is outside the Act. Crypto bought to sell, or traded as a business, produces income under section 46(1)(c).
What does the Income Tax Act 1997 say about capital gains?
The Cook Islands has no capital gains tax. The Income Tax Act 1997 charges income tax on assessable income, and section 46 lists the heads: business profits, salaries and wages, dealing and scheme profits, land revenues, royalties, dividends and annuities. A capital gain on holding and selling shares, crypto, funds or land is not a listed head. Source: https://www.cookislands.gov.ck/images/RMD/Tax_Acts_and_Regulations/Income_Tax_Act_1997.pdf
When do profits on a sale become income?
Section 46(1)(c) taxes profits from selling property only where the taxpayer's business comprises dealing in that property, or the property was acquired for the purpose of selling it, and profits from an undertaking or scheme entered into for the purpose of making a profit. Those profits are assessable income taxed on the income tax scale. Source: https://www.cookislands.gov.ck/images/RMD/Tax_Acts_and_Regulations/Income_Tax_Act_1997.pdf
Are capital gains inside a company taxed when distributed?
Section 4(3) of the Act excludes a company's capital profit or capital gain from the definition of dividends when it is distributed to shareholders, so a gain realised by a company on a capital asset does not become taxable dividend income for the shareholder. Source: https://www.cookislands.gov.ck/images/RMD/Tax_Acts_and_Regulations/Income_Tax_Act_1997.pdf
What income tax scale applies?
Residents are taxed on income in the calendar year (1 January to 31 December). Income up to $14,600 is exempt, pro-rated by days of residence in the Cook Islands, and the scale above it is 17% to $30,000, 27% to $80,000 and 30% beyond. Sources: https://www.mfem.gov.ck/_files/ugd/0c25ee_418239cd632149dd8b71dc643b02b8c0.pdf and https://www.cookislands.gov.ck/images/documents/RMD_Docs/Guides/Income_Tax_Quick_Reference_Guide.pdf