Fiji: Overview
Country Rating » 
In Depth
- Overview
- Taxes and Costs
- Tax on Rent (Example)
- Buying Guide
- Inheritance
- Living There
- Country Statistics
Directory
Global Statistics
Regional Statistics
- Capital Gains Tax
- GDP Per Capita
- GDP/Cap Growth 1 yr
- GDP/Cap Growth 5 yrs
- Economic Freedom
- Ec. Freedom 5 yrs
- Property Rights Index
- Currency +/- Value
Fiji has limited land, and is not open to foreign ownership
The 333 islands of Fiji (pop. 854,000, GDP/cap US$3,415) are a top destination for tourists. In the olden days Fiji was known as The Cannibal Isles and carefully avoided by mariners because of its fierce warriors, treacherous waters and the natives’ cannibalism
Now people come in their thousands to dive and swim. Fiji has a coolish heat, but is very humid. Fiji imposes certain restrictions on land purchases. Foreigners must obtain a residency permit and/or work permit. If the land to be bought is bigger than 1 acre (approx. 4,000 sq. m.), the purchase is subject to the approval of the Ministry of Lands.
Foreigners are not allowed to rent out their properties, except through a corporation. However, under the Foreign Investment Act 1999 real estate management and development are restricted activities, and the company must be at least 51% owned by Fiji citizens.
RENTAL YIELDS
No yields figures for Fiji
In recent years several old plantations have been subdivided, offering beautiful pieces of property at reasonable prices.
Large 300-acre (and more) coconut plantations can be bought for around US$250,000. There are also plots of 1-5 acres from approximately US$20,000-US$95,000.
There are entire islands for sale for around US$1 million. Apartments and flats rent for around US$250 to US$350 per month, while luxury flats and homes can rent for US$3,500.
TAXES AND COSTS
Rental income tax in Fiji is high
Effective Tax Rate on Rental Income |
|||
| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 15.5% | 20.7% | 21.2% |
| Click here to see a worked example | |||
Source:
Disclaimer |
|||
Rental Income: Net rental income of nonresidents is taxed at progressive rates. Nonresidents are subject to special tax rates, from 20% to 31% depending on their taxable income.
Capital Gains: The government of Fiji does not impose taxes on capital gains, but levies income tax on profits from the sale of land.
Inheritance: There are no inheritance taxes in Fiji.
Residents: Residents are taxed on their worldwide income at lower progressive rates.
BUYING GUIDE
Fiji's simple but slow transaction process
Freehold or land tenure is via the Torrens title land-registration system, with the title guaranteed constitutionally by the State.
The process of transferring title is relatively simple but slow. Buyers are required to fill out forms, submit police verification, and accomplish various other tasks such as paying duties. To have a sale finalized usually takes from 3 - 6 months.
LANDLORD AND TENANT
Tenancy Laws
Research is ongoing.
ECONOMIC GROWTH
Ethnic tension in island paradise
Ethnic tensions flared up in 1987 between Fiji's two largest groups, indigenous Fijians and Indo-Fijians, descendants of laborers brought from India by British colonizers. This led to temporary international isolation.
Mixing between the two groups is minimal as they live separately on the two largest islands, Viti Levu and Vanua Levu. Informal segregation runs deep in almost all aspects of society.
In the 1987 coup indigenous Fijians overthrew the elected Indian-dominated coalition. In 2000, the country’s first ethnic Indian prime minister, his cabinet and several MPs were held hostage for several weeks.
This severely affected tourism, the country’s main source of foreign currency. The country is still very dependent on foreign aid.
RESIDENTIAL PROPERTY AROUND THE WORLD
Asia & Pacific
Bubble fears prompt foreign ownership limits in China
America & Caribbean
The slowdown of the U.S. housing market
Middle East and Africa
Bahrain is open to foreigners and sizzling hot
 |
|
 |
|
| RESIDENTIAL PROPERTY FACTS | |
| Price (sq.m): n.a. | Rental Yield: n.a. |
| Rent/month: n.a. | Income Tax: n.a. Assumptions: Owners are a non-resident couple drawing US$ / €1,500 per month in rent, with no other local income. |
|
Roundtrip Cost:
n.a.
The total cost of buying and then reselling an apartment. Includes: * all transaction taxes and charges: * lawyers' and notaries' fees * agents' fees Assumptions: The buyers are non-resident foreigners. The apartment cost US$250,00 / €250,000. |
Cap Gains Tax: 0.0 Assumptions: The property was bought for US$250,000 / €250,000, and sold 10 years later, after a 100% appreciation. |
| Landlord & Tenant Law: n.a. Rating is based on a detailed study of each country’s law and practice. | |
AUGUST 2007
- Interest lever bad option - The Fiji Times
- Fiji rental rates decline - Asia Property Report
JUNE 2007
- Dreams of Fiji - IHT
APRIL 2007
- Fiji, a money laundering destination - Fuji Live
MARCH 2007
- Real estate prices drop in Fiji’s once lucrative market - Fiji Times online
Subscribe to our Newsletter!
Enter your email address to sign up.
