Kiwis with rental property and strong family links back home are being warned of a court decision that could have tax implications for them.

Rebecca Armour, head of KPMG's international expatriate services tax team, said a recent ruling from New Zealand's Taxation Review Authority had found that a man who had been out of the country for 10 years was still considered a resident for tax purposes.

Experts are warning that expat New Zealanders now need to break all ties with their homeland to avoid being liable for tax there. Credit:Brendon O'Hagan

The case involved a former soldier who left New Zealand permanently in 2003 to work as a security consultant.

He had separated from his wife a decade earlier and later divorced, but continued to visit and financially support his children in New Zealand.