Operator contract, payment plan, completion risk, exit, residency claims, currency and access — a buyer's checklist.
Branded beachfront residences — a hotel suite or villa managed by an international hotel operator — are the most visible way to invest in Zanzibar. They are also the product where marketing and legal reality are furthest apart. This checklist is about reading what you are really buying.
Why the market is attracting projects
According to published figures, Zanzibar recorded about 917,000 international arrivals in 2025, up roughly a quarter on 2024, and the airports of Zanzibar and Pemba handled over 2.4 million passengers. Demand for hotel rooms is real. That does not tell you what a particular unit will earn.
What you hold
You do not buy freehold land. You hold a lease or a unit with a share of leased land. Ask for the lease or the draft sale agreement and read three things: the real term, who the lessor is, and what happens at renewal. Advertised terms such as «99 years» can differ from the document.
ZIPA
Ask for evidence that the project is registered with ZIPA and for the investment certificate details. A transfer to a non-citizen needs ZIPA clearance; a project that cannot show its approval is a warning sign.
The operator contract
- who the contract is with — the developer or the unit owner — and who can end it;
- its length, renewal terms and what the operator charges: management fees, royalties, marketing and reserve contributions;
- whether you may use the unit yourself, and how many nights;
- whether you may let it outside the operator.
A brand name on the building is not the same as a contract with you. Ask for the management-agreement extract, not a summary.
Yield: compare the basis, not the number
Public marketing for projects in this market quotes very different returns, including promises of up to 26% a year in some materials. A figure means nothing without its basis:
- gross or net of operator fees;
- guaranteed or expected, and if guaranteed, by whom, for how long and what happens afterwards;
- what occupancy is assumed, and what comparable operating hotels actually achieve month by month.
In our listings we show only the yield stated by the developer, labelled as expected.
Payment plan and completion risk
- where your instalments go — into a protected account or to the developer;
- what happens if the handover date slips, and what compensation the contract gives;
- the developer's record on earlier projects;
- the status of construction and permits today, not at launch.
Completion dates move. Compare what different sources say about the same project and ask the seller to explain differences.
Residency claims
According to published guides, a purchase of US$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. It is a permit you apply for, with documents and a ZIPA recommendation — not an automatic result of buying, and not citizenship or permanent status. Treat any brochure that presents it as a guarantee with caution and confirm with the immigration service.
Money, taxes and fees
- prices are usually quoted in US dollars; running costs and taxes are in Tanzanian shillings;
- stamp duty on transfer is reported at about 1%, with total closing costs estimated at roughly 4–10% — ask for a calculation for your unit;
- the official annual property tax for a residential unit is small (TZS 10,000), but you will also pay ground rent under the lease and service charges;
- VAT may apply when buying from a developer.
We could not confirm Zanzibar's capital-gains treatment from public sources; ask a tax adviser before you model your exit.
Access and infrastructure
Check the real travel time from the airport, the state of the access road, and whether the resort is on the main island or on Pemba, which has its own airport and a different visitor profile. A project far from the main tourist flow can show a lower occupancy than the same brand elsewhere.
Exit
- can you resell, and to whom — does a buyer also need ZIPA clearance;
- does the operator have a right of first refusal or take a fee on resale;
- how a resale price is likely to be set when the lease is shorter every year.
Checked in October 2026. This is information, not legal or investment advice; confirm the documents with a lawyer in Zanzibar before you pay.