Can Foreigners buy property in Fiji?
YES, Foreigners Can Buy Properties in Fiji!
So, you fell in love with Fiji on holiday, and now you are dreaming of purchasing your very own slice of paradise. Let us make your dreams become reality!
While the idea of buying property in a foreign country is certainly exciting, we know that you have a lot of questions. Luckily you have found Fiji’s best real estate agency to answer those questions and to guide you through the entire process with our expertise, dedication, high standard of ethics and integrity, and our passion for exceeding our client’s expectations.
Here is what you need to know about land in Fiji, before you start searching for your dream property here in the beautiful Fiji Islands. There are 3 types of land in Fiji:
FREEHOLD LAND
This is the same as “fee simple”, meaning you will own it outright and have the right to sell it freely forever. Outright ownership makes this the most desirable type of land for non-residents. Freehold Land makes up approximately 8 percent of all land in Fiji.
The majority of Freehold Land is located in the northern islands of Vanua Levu (especially popular around Savusavu) and Fiji’s 3rd largest island of Taveuni. Fiji’s main island of Viti Levu also has many Freehold Land opportunities, especially along the beautiful Coral Coast.
SOME RESTRICTIONS APPLY:
Fiji’s Land Sales Act of 2014 prohibits the sale of Freehold “Residential” properties within city/town boundaries to non-citizens.
There are some exceptions to this rule:
1) “Strata” or Unit Title, essentially apartments/condos
(like the resort villas available on Denarau Island)
2) “Industrial” or “Commercial” purposes
3) “Residential” purposes within an Integrated Tourism Development
(such as Denarau and Naisoso Islands, where there are subdivided lots for sale within a master planned hotel/tourism development)
4) Operation of a Hotel
For any Freehold Land purchased by a non-citizen, the Land Sales Act of 2014 requires that you build a “new residential dwelling within 24 months” which “incurs building costs not less than $250,000 FJD”For any purchase of Freehold Land over one acre, approval will be required by the Minister of Fiji’s Lands Department.
NATIVE LEASE
About 87% of all land in Fiji is Native Land, meaning it is owned by the indiginous people of Fiji. Native Land can be leased but never owned. Leases are usually for a period of 99 years, granting the right to exclusively occupy land for a period of time. While you still pay a “normal purchase price”, you are not purchasing, but only leasing the land, usually for a long time. Leases are typically granted a renewal and annual land lease payments are usually very low. Leases usually carry development conditions that require lessees to develop within a certain time period. Leases may be sold or transferred, but these deals are subject to approval. Native Land leases in Fiji are overseen by the TLTB (iTaukei Land Trust Board).
CROWN LEASE
Crown/State Land is owned by the Fiji Government and can be leased directly from the government. Approximately 5 percent of land in Fiji is State owned and is administered by the Department of Lands.
The same Land Sales Act of 2014 provisions above apply to Crown Land Leases.
Fiji operates under a Torrens Title land registration system, with the title guaranteed constitutionally by the State.
Real estate can be owned by individuals, companies, partnerships, joint ventures or trusts. Yes, a Non-Resident CAN sell a property to another Non-Resident, but needs to acquire consent from the Ministry of Lands. You should get this approval before entering into a binding contract. An application should be submitted by each party.
VAT (Value Added Tax) is currently at 15%. Whether VAT applies or not, is totally dependent on if the vendor (seller) is registered for VAT. We can advise you personally and introduce you to the VAT Leadership Team at Fiji Revenue and Customs office to get formal (and final) verification on whether or not VAT will apply.
CAPITAL GAINS TAX is 10% on profits from the sale of properties in Fiji.
STAMP DUTY for real estate transactions WAS 10% for Non-Residents and 3% for Residents/Citizens. But NOW, you will gain that as an instant savings because Stamp Duty on real estate WAS ELIMINATED in the 2020 Budget!
So, BUY NOW BEFORE THEY CHANGE THEIR MINDS!
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