Buying a house in Zanzibar: a lease from the state, and what ZIPA arranges
In Zanzibar all land belongs to the state. A foreigner cannot own land, only obtain a lease: by law at most 49 years, renewable. For a home in a real estate project approved by ZIPA there is a separate scheme: from USD 100,000 it can bring a residence permit and half off the stamp duty.
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Written and checked by Auke on , against the sources at the bottom. Is something no longer right? Report it below and I'll fix it.
As a foreigner you cannot own land in Zanzibar. All land belongs to the state, and under the Land Tenure Act of 1992 a non-Zanzibari can only obtain a lease: a right to use public land, for at most 49 years and renewable. For homes in a real estate project approved by ZIPA, the law has a separate scheme. ZIPA is the Zanzibar Investment Promotion Authority, the island's investment office. If your home there costs at least USD 100,000, you can apply for a Class C-11 residence permit, and you pay half of the 1 % stamp duty.
What is fixed?
| Topic | What the source says | Source |
|---|---|---|
| Owner of the land | the state: all land is public land | Land Tenure Act, section 3 |
| What a foreigner can obtain | a lease of public land | section 46 |
| Term of a lease | at most 49 years, renewable | section 47 |
| Selling or subletting a lease | not allowed; it does pass on at death | section 47(3) |
| Stamp duty on a transfer | 1 % of the value, paid by the buyer | Stamp Duty Act |
| Home in a ZIPA project from USD 100,000 | 50 % off the stamp duty | Investment Act 2023 |
| Class C-11 residence permit | USD 500, home worth at least USD 100,000 | Tanzania Immigration |
| Property tax on an apartment | TZS 10,000 a year per unit or floor | ZRA |
Can you buy land as a foreigner?
No. The Land Tenure Act distinguishes between a Zanzibari and a non-Zanzibari. Section 46 says the minister may lease public land "to any person, Zanzibari or non-Zanzibari". What you get, then, is a lease. Under section 47 it lasts at most 49 years, and it may be renewed.
A lease is not ordinary ownership. You may not sell, transfer, sublet or divide it. It does pass to your heirs. You pay an annual land rent for it, according to the contract. The Zanzibar Revenue Authority (ZRA, the Zanzibari tax office) collects it.
If a seller mentions a term longer than 49 years, have a lawyer check what it is based on. The law we were able to read says at most 49 years.
How does the ZIPA housing scheme work?
The Zanzibar Investment Act of 2023 has a separate scheme for anyone who buys a home in a real estate project approved by ZIPA. If the home costs at least USD 100,000, the buyer "may" receive the following:
- a residence permit for the buyer, the partner and four children under twenty;
- 50 % off the stamp duty;
- permission for full foreign ownership;
- the right to transfer the full sale proceeds after tax abroad.
It is a possibility, not a right. The detailed conditions are in implementing regulations that we could not read.
At the immigration service this is the Class C-11 permit, "Buyer of a real estate". It costs USD 500 and is valid for at most two years, with renewal. You apply with:
- a certificate of good conduct from the Netherlands;
- a letter of recommendation from ZIPA;
- proof that the home is worth at least USD 100,000;
- your title deed;
- a tax clearance, a statement that you owe no tax.
According to the immigration service, family members get a dependant pass, at USD 550 per person.
What you legally buy in a ZIPA project is not clear from the sources we could read. The act speaks of "full ownership" of the home, but the land stays with the state. Under the same act the developer receives a land lease of 33 years. Have a lawyer in Zanzibar whom you choose yourself check what exactly you are buying and how long the lease under the project still runs, before you pay anything.
What does the purchase cost?
On a transfer you pay stamp duty to the ZRA as the buyer: 1 % of the total value. In an approved ZIPA project from USD 100,000 you get half off. A transfer without payment on inheritance, or between parent and child, is exempt.
What registration with the land administration costs, we could not verify with an official source. Ask your lawyer, and have it put in the quote.
Which taxes do you pay as an owner?
The owner pays property tax once a year to the ZRA. For a residential building with storeys or an apartment it is TZS 10,000 per storey or per unit. An ordinary single-storey house is not on the ZRA list; ask what applies to it. You also pay the annual land rent from your lease contract.
If you let the home to tourists, including via Airbnb, you pay hotel levy: 15 % of the rental value.
Does a house give you a right of residence?
Only through the Class C-11 permit, and for that you need a letter of recommendation from ZIPA. Whether ZIPA also issues it for a home outside an approved project, we could not verify. For anyone aged 55 or over with an assured income there is also the permit for retired persons, Class C-2, for which you do not need to buy a home.
Buy, or rent first?
Renting first gives you time to get to know the island, to find a lawyer you trust, and to check the project and the developer. With a lease of public land, that is no unnecessary luxury.
In Vertrekklaar this is phase 2 of 5 of the journey: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Zanzibar or look inside the open plan first.
What this rests on
The facts in this article come from these official pages. Rules change. When in doubt, go by the source, not this article.
- Land Tenure Act No. 12 of 1992, sections 3, 46 and 47 — public land, the lease for a non-Zanzibari and its term (scan via FAOLEX) — faolex.fao.org
- Zanzibar Investment Act No. 10 of 2023, sections 3 and 51 and the Fifth Schedule — the home buyer in an approved project (scan via FAOLEX) — faolex.fao.org
- Tanzania Immigration — Residence Permit Guidelines, Class C for buyers of real estate and the fees — immigration.go.tz
- Zanzibar Revenue Authority — stamp duty, 1 % on a transfer — zanrevenue.org
- Zanzibar Revenue Authority — Stamp Duty Act No. 7 of 2017 (consolidated 2023), with the exemption on succession — zanrevenue.org
- Zanzibar Revenue Authority — land rent and property tax — zanrevenue.org
- Zanzibar Revenue Authority — hotel levy, 15 % on letting a home to tourists — zanrevenue.org
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