Economic Growth Minister Nicola Willis said the change, which came into effect on Monday, was part of a plan to boost the economy.
"Making the country more attractive to 'digital nomads' - people who work remotely while travelling - will boost New Zealand's attractiveness as a destination," she said.
Tourism was NZ's second-largest export earner, generating revenue of almost $NZ11 billion and creating almost 200,000 jobs, Ms Willis said.
However, Statistics New Zealand data showed the sector had not yet completely bounced back from the COVID-19 pandemic border closures, with international visitors at 86 per cent of 2019 levels.
"This is a brand-new market of tourist New Zealand can tap into," Erica Stanford says. (Mark Coote/AAP PHOTOS)
Immigration Minister Erica Stanford said the visa change reflected the realities of the modern, flexible working environment.
"This is a brand-new market of tourist New Zealand can tap into," she said.
"We want people to see our country as the ideal place to visit and work while they do it."
Those wanting to work remotely for more than 90 days should look at possible tax implications, Ms Stanford said.
"The change will enable many visitors to extend their stays which will lead to more money being spent in the country."
NZ consists of two main islands and is a top destination for many travellers thanks to its unspoilt nature, huge glaciers, fjords and volcanoes.