The short answer – Yes, foreigners can buy property in Zanzibar.
As of March 2018, foreign investors were able to buy offshore property on the beautiful Tanzanian archipelago of Zanzibar.
How to buy property in Zanzibar
Understanding property ownership in Zanzibar can help when considering investing, here’s how it works:
- Long Lease Ownership – Property in Zanzibar is usually sold with a 99 year lease, that is often issued gradually in 33 year phases.
- Condominium Act – Previously foreign buyers were unable to buy property in Zanzibar, the Condominium Act has enabled overseas purchasers to buy properties and has their interests protected.
- Title Deed – Buyers now receive a clear title deed for the lease term. The title deed is inherited by law.
- Lease Renewal: The property owner will have the ability to renew the lease when the term is expiring.
This security when buying a property in Zanzibar makes the country a hugely appealing prospect.
Benefits of buying in Zanzibar
When considering why to buy in Zanzibar vs buying in other offshore locations a savvy investor will look at the whole picture – one of the key attractions are the tax benefits available to investors.
The Strategic Investment Project status given to certain developments by the Government of Zanzibar allows owners to receive a number of resident benefits:
- Residents permit given upon purchase to the buyer, their partner and children under 25 – residency to be renewed every 3 years and valid for the length of property ownership
- No minimum length of stay
- No stamp duty on property purchase
- No capital gains tax on properties
- No inheritance tax on property
- Zero tax due on income outside of Tanzania
- Personal local income tax of just 15%
If you’re thinking about investing overseas we’ve recently released an article on Why Zanzibar should be your next investment location alternatively contact us to discuss your plans.