Fiji Islands: Investing
The political situation in Fiji has returned to normal, enabling more favorable conditions for FDI: after a series of military coups, elections took place in 2014 and 2018, which improved investors’ confidence. According to data from the World Investment Report 2023 by UNCTAD, FDI inflows to Fiji in 2022 decreased to USD 104 million, down from USD 407 million one year earlier. At the end of the same period, the total stock of FDI stood at USD 5.7 billion, around 119% of the country’s GDP, making Fiji the region's largest recipient. In 2023, Investment Fiji received approximately 1,100 foreign investment inquiries from investors to set up businesses on the island. The top sectors that garnered significant attention from foreign investors include services, tourism, energy, real Estate & construction, manufacturing, agriculture, and business process outsourcing (data Investment Fiji). Foreign direct investment in Fiji has played a significant role in the country's economic development, and the island has been attracting FDI from a variety of countries, including Australia, New Zealand, China, India, Japan, and the United States. More recently, China has begun to invest in Fiji (loans for the construction of roads, dams, hotels, etc., including two bridges) and is also interested in gold mining and sugarcane. The major sectors attracting FDI include tourism, manufacturing, agriculture, forestry, and fisheries. In recent years, there has been an increasing interest in renewable energy and information technology as well (in 2022, Australia-based telecommunications company Fibre Network Engineering Communications set up its operations in Fiji).
Foreign investment in the Fiji Islands remains very controlled, and tourism is the archipelago’s largest foreign exchange earner. Most of the transfers are subject to long and burdensome administrative procedures. The acquisition of local companies by foreigners, though authorized, is not well-developed due to the bureaucratic burden. All businesses with foreign investors are required to register and obtain a Foreign Investment Registration Certificate, and foreign investors have to seek approval prior to any changes in the ownership structure of the business. From 2022, foreign investors need to invest a minimum of USD 135,000 to undertake activities in Fiji (foreign investors are required to bring the minimum threshold capital into the island within three months of registration, with the remaining capital to be paid within a year of registration). Nine investment activities are subject to stricter restrictions, with larger minimum thresholds for investments. These restricted activities, requiring a minimum threshold of USD 225,000 (FJD 500,000), encompass retail businesses, nightclub and liquor bar operations situated away from hotels or resorts, and logging. For investments in fishing, manufacturing of tobacco products, homestay and backpacker operations, hotels or resorts, and real estate activities, the minimum threshold ranges from USD 449,500 (FJD 1 million) to USD 899,000 (FJD 2 million). Furthermore, the complexity of administrative procedures makes it difficult for foreign investors to have access to land ownership. In 2021, Fiji approved a new Investment Act (act 5 of 2021), introducing a broader range of treatment and protection guarantees for foreign investors. Currently, 17 activities are wholly reserved for Fiji citizens, mostly in the services sector, while eight sectors are restricted. Restricted activities in forestry, tobacco production, tourism, real estate development, construction, earthmoving, and inter-island shipping or passenger service require minimum investments ranging from USD 250,000 to 2.5 million; whereas investment in the fisheries sector also requires a 30% local equity in the project. Fiji ranks 53rd among the 180 economies on the 2023 Corruption Perception Index and 94th out of 184 countries on the latest Index of Economic Freedom.
| Fiji Islands | East Asia & Pacific | United States | Germany | |
|---|---|---|---|---|
| Index of Transaction Transparency* | 2.0 | 5.9 | 7.0 | 5.0 |
| Index of Manager’s Responsibility** | 8.0 | 5.2 | 9.0 | 5.0 |
| Index of Shareholders’ Power*** | 7.0 | 6.7 | 9.0 | 5.0 |
Source: Doing Business - Latest available data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
| Foreign Direct Investment | 2020 | 2021 | 2022 |
|---|---|---|---|
| FDI Inward Flow (million USD) | 241 | 407 | 104 |
| FDI Stock (million USD) | 5,730.4 | 5,914.4 | 5,754.8 |
| Number of Greenfield Investments* | 0.0 | 1.0 | 4.0 |
| Value of Greenfield Investments (million USD) | 0 | 3 | 41 |
Source: UNCTAD - Latest available data
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
| Personal income tax (Resident individuals) | Progressive rates |
| From FJD 0 to FDJ 30,000 | 0 Social responsibility tax (SRT) and environment and climate adaptation levy (ECAL) are levied at 0% |
| From FJD 30,001 to FDJ 50,000 | 18% of excess over FJD 30,000 Social responsibility tax (SRT) and environment and climate adaptation levy (ECAL) are levied at 0% |
| From FJD 50,001 to FDJ 270,000 | FJD 3,600 + 20% assessed on amounts over FJD 50,000 Social responsibility tax (SRT) and environment and climate adaptation levy (ECAL) are levied at 0% |
| From FJD 270,001 to FDJ 300,000 | FJD 47,600 + 20% assessed on amounts over FJD 270,000 SRT: 13% assessed on amounts over FJD 270,000 ECAL: 10% assessed on amounts over FJD 270,000 (5% for 2021) |
| From FJD 300,001 to FDJ 350,001 | FJD 53,600 + 20% assessed on amounts over FJD 300,000 SRT: FJD 3,900 plus 14% assessed on amounts over FJD 300,000 ECAL: 10% assessed on amounts over FJD 270,000 (5% for 2021) |
| From FJD 350,001 to FDJ 400,000 | FJD 63,600 + 20% assessed on amounts over FJD 350,000 SRT: FJD 10,900 plus 15% assessed on amounts over FJD 350,000 ECAL: 10% assessed on amounts over FJD 270,000 (5% for 2021) |
| From FJD 400,001 to FDJ 450,000 | FJD 73,600 + 20% assessed on amounts over FJD 400,000 SRT: FJD 18,400 plus 16% assessed on amounts over FJD 400,000 ECAL: 10% assessed on amounts over FJD 270,000 (5% for 2021) |
| From FJD 450,001 to FDJ 500,000 | FJD 83,600 + 20% assessed on amounts over FJD 450,000 SRT: FJD 26,400 plus 17% assessed on amounts over FJD 450,000 ECAL: 10% assessed on amounts over FJD 270,000 (5% for 2021) |
| From FJD 500,001 to FDJ 1,000,000 | FJD 93,600 + 20% assessed on amounts over FJD 500,000 SRT: FJD 34,900 plus 18% assessed on amounts over FJD 500,000 ECAL: 10% assessed on amounts over FJD 270,000 (5% for 2021) |
| FJD 1,000,001 and above | FJD 193,600 + 20% assessed on amounts over FJD 1,000,000 SRT: FJD 124,900 plus 19% assessed on amounts over FJD 1,000,000 ECAL: 10% assessed on amounts over FJD 270,000 (5% for 2021) |
| Non-residents | 20% |
| Fiji Islands | East Asia & Pacific | United States | Germany | |
|---|---|---|---|---|
| Number of Payments of Taxes per Year | 38.0 | 23.4 | 10.6 | 9.0 |
| Time Taken For Administrative Formalities (Hours) | 247.0 | 195.1 | 175.0 | 218.0 |
| Total Share of Taxes (% of Profit) | 32.1 | 33.8 | 36.6 | 48.8 |
Source: Doing Business - Latest available data.
| Setting Up a Company | Fiji Islands | East Asia & Pacific |
|---|---|---|
| Procedures (number) | 11.00 | 7.25 |
| Time (days) | 40.00 | 29.73 |
Source: Doing Business.
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Latest Update: May 2024
