Commercial property rental in Fiji operates under a different legal and tax framework than residential tenancy. Whether you own a shop in Suva, an office suite in Nadi, or a warehouse in Lautoka, the rules around VAT, lease structure, stamp duty, and TLTB consent differ significantly from residential letting. This guide covers what every Fiji commercial landlord needs to know.

💰

VAT Rate

12.5%

Standard-rated from August 2025 — commercial landlords must charge VAT on rent

🔒

Typical Bond

2–3 months

Commercial bonds are typically higher than residential

📋

Stamp Duty

Leases over 3 years attract 2% stamp duty on the total rent payable

🏛️

TLTB Consent

Required

iTaukei land commercial leases require TLTB consent for all subletting and transfers

How Commercial Leases Differ from Residential

The Landlord and Tenant Act (Cap. 240) applies to both commercial and residential tenancies, but the practical differences are significant. Commercial leases are typically longer, more complex documents — negotiated between parties rather than using a standard form — and they carry different VAT, stamp duty, and TLTB obligations.

🏠 Residential tenancy

✓VAT-exempt — no VAT charged to tenant
✓Bond typically 1–2 months rent
✓Short form lease document common
✓Landlord and Tenant Act protections stronger for tenant
✓Lower stamp duty threshold

🏢 Commercial tenancy

✗Standard-rated at 12.5% VAT
✗Bond typically 2–3 months rent
✗Formal lease deed with make-good clause standard
✗More negotiating latitude on terms
✗2% stamp duty on leases over 3 years

VAT on Commercial Rent — What Every Commercial Landlord Must Charge

Commercial rental is a standard-rated supply for Fiji VAT purposes. If you are VAT-registered — or once your gross rental income (across all properties, commercial and residential) exceeds FJ$100,000 in any rolling 12-month period — you must charge 12.5% VAT on top of commercial rent and remit it to FRCS quarterly.

✓Commercial rent: FJ$3,000/month → FJ$375 VAT → FJ$3,375 total invoice to tenant

✓All VAT invoices must show your VAT registration number, invoice number, date, net rent, VAT amount, and total

✓Commercial tenants can usually claim back the VAT you charge them (input tax credit)

✓Input VAT on your expenses — repairs, insurance, agent fees — can be claimed back against output VAT

✓Quarterly VAT returns are due 21 days after each quarter end: Dec, Mar, Jun, Sep

⚠️ Residential income still counts toward the threshold

If you own both residential and commercial properties, your residential rental income counts toward the FJ$100,000 VAT registration threshold — even though residential rent is exempt. Once you cross the threshold on combined income, you must register and charge VAT on commercial rents.

Stamp Duty on Commercial Leases

Under the Stamp Duties Act, commercial leases with a term exceeding 3 years attract stamp duty at 2% of total rent payable over the lease term (or 3 years if the term is uncertain). This must be paid to FRCS within 30 days of signing.

✓Lease for 5 years at FJ$3,000/month: total rent = FJ$180,000 → stamp duty = FJ$3,600

✓Stamp duty is normally paid by the lessee (tenant), but this is negotiable in the lease

✓Unstamped leases are not admissible as evidence in court — never skip stamping

✓Leases of 3 years or less attract a lower flat duty — structure lease terms carefully

✓Extensions or renewals that create a new lease attract fresh stamp duty obligations

Fit-Out Clauses and TLTB Consent for Commercial Properties

Commercial leases on iTaukei land require TLTB consent not just for the original lease but for any significant structural alterations or fit-out work by the tenant. This is commonly misunderstood — landlords assume the tenant manages their own fit-out, but the leaseholder (you) remains responsible for ensuring TLTB consent is obtained for structural changes.

✓Include a fit-out clause specifying what alterations require your prior written consent

✓Your written consent to fit-out should be conditional on TLTB consent where required

✓Keep records of all consented fit-out work — relevant at lease end for make-good assessment

✓Improvements made by the tenant may revert to you at lease end under some TLTB lease terms

End of Lease — Make Good Obligations

Commercial leases almost always include a make-good clause requiring the tenant to return the property to its pre-tenancy condition at lease end. This is the source of more commercial landlord-tenant disputes than any other issue in Fiji. Protect yourself:

✓Commission a professional condition report with photographs at lease commencement

✓Define "make good" specifically in the lease — general language creates disputes

✓Specify whether tenant improvements must be removed or can be left

✓Bond should be calculated to cover realistic make-good costs — not just one month's rent

✓Engage a valuer to assess make-good cost at lease end before releasing the bond

Commercial Lease Best Practice: Getting it Right from Day One

Engage a solicitor experienced in Fiji commercial leasing

Commercial leases are complex documents — template residential agreements will not cover make-good, TLTB consent, fit-out, and VAT provisions adequately.

Commission a pre-tenancy condition report

Photographs and a written schedule of condition, dated and signed by both parties. This is your baseline for make-good assessment.

Include VAT, stamp duty, and TLTB consent obligations clearly

Specify who pays stamp duty, that rent is stated exclusive of VAT, and the process for seeking TLTB consent for alterations.

Set up BulaLease to track the lease

Log the lease expiry, TLTB consent numbers, bond amount, and VAT registration status. Track cumulative income approaching the FJ$100,000 threshold.

File VAT returns quarterly and income tax annually

Commercial landlords with VAT obligations file quarterly returns and annual Form B. BulaLease generates both a VAT Summary and a Rental Income Summary for your accountant.

ℹ️ BulaLease VAT threshold tracker

BulaLease monitors your cumulative rental income across all properties — residential and commercial combined. When you approach FJ$100,000, you receive an advance alert giving you time to register before mandatory threshold breach.

Commercial Property Rental in Fiji: A Complete Landlord Guide