Property in Zanzibar: how a foreigner buys

Annual property tax on the official ZRA schedule is nominal (TZS 10,000 a year for a residential unit); land rent follows the lease agreement. Stamp duty on transfer is about 1% according to consultants' guides. Capital gains tax in Zanzibar could not be confirmed from public sources — verify.

On top of the price, budget for: — stamp duty on transfer — about 1% according to consultants' guides (confirm the rate for your deal); — registration and legal costs, and the agent's commission; — consultants quote the overall range differently, roughly 4–10% of the price, so ask for a calculation for your specific deal; — VAT may apply when buying from a developer — check before signing. Every year: property tax (on the official ZRA schedule, TZS 10,000 for a residential unit) and ground rent under the lease. Rental income is taxable; confirm the rate for a non-resident owner in Zanzibar with a tax adviser.

1. Choose a project: confirm it is approved by ZIPA and request the developer's documents. 2. Search report: owner and encumbrances (land registry; for free economic zones, ZIPA). 3. A sale agreement, attested and registered; a payment schedule. 4. A survey — only for unregistered land. 5. A ZIPA no-objection letter and approval by the Land Transfer Board with a transfer certificate. 6. A government lease in your name (Land Commission). As a guide, allow 2–3 months from signing the contract to the registered lease.

We found no public information on a mortgage programme for non-residents in Zanzibar. For off-plan purchases the usual route is the developer's payment schedule — read the terms in the contract.

According to published guides, buying property worth $100,000 or more in a ZIPA-approved project lets you apply for a Class C residence permit: valid for up to two years and renewable, covering a spouse and up to four children. You need title documents, tax and police clearance and a ZIPA recommendation. It is not citizenship and not permanent status. The terms are published by consultants citing the immigration service — confirm them directly before you buy.

The key question is the income after handover. Marketing in this market quotes very different yields (some public project materials promise up to 26% a year), so compare only the stated basis: gross or net, guaranteed or expected, and what occupancy is assumed. Buying off-plan carries completion and operator risk: check the management contract, the payment schedule and the developer's track record. Check whether the land lease and zoning permit letting, and who manages it.

What to check before the deal: — that the project is registered with ZIPA and the seller can transfer a lease or a unit; — the term of the lease actually recorded: marketing says «99 years», the document may say 33 years renewable, 66 or another term; — that the seller, plot number and boundaries match the official records, and there are no charges or service-charge arrears; — that the deal does not register «ownership» in your name in place of a lease: the press has reported ZIPA warnings about unlawful land acquisition by foreigners; — the permitted use: whether you may let the property; — completion and operator risk, and the exit and resale terms. Checked in October 2026. Thresholds, rates and programme terms change — confirm the current requirements with a lawyer in Zanzibar before you buy. For Zanzibar specifically, the stamp-duty rate and the treatment of capital gains could not be confirmed unambiguously from public sources — verify them separately.