Land is state-owned, so foreigners hold leases and unit titles. How it works, what ZIPA does, what it costs and what to check.
Zanzibar is part of Tanzania but has its own land, investment and tax law. The first thing to understand is the form of the right you are buying — because it is not freehold land.
The land belongs to the state
Under the Zanzibar Land Tenure Act of 1992, land is held by the state. A foreigner cannot be granted a right of occupancy directly. What a foreigner can do is acquire a long lease, or an apartment or villa that is registered as a unit in an approved development.
What you actually hold
Published guides describe three routes:
- a lease transferred from a local owner, followed by government approval and a new lease issued in your name;
- a unit in an approved project under the Condominium Act of 2010 — you hold the unit and a share of the leased land;
- a local company that holds the lease, which is the route for someone who wants to build or hold a whole project.
Lease terms are often advertised as 99 years. Guides describe leases of up to 99 years, commonly structured in renewable blocks of 33 years, and warn that the real document may say 33 years renewable, 66 years or another term. Read the term in the lease, not in the brochure.
What ZIPA does
ZIPA, the Zanzibar Investment Promotion Authority, registers investment projects and, according to published guides, any transfer of land or property to a non-citizen needs its no-objection clearance. The simplest purchase is a unit in a ZIPA-approved project.
Do not confuse two different thresholds. The capital thresholds for an investment certificate under the Zanzibar Investment Act of 2023 — reported as US$2.5 million for foreign-owned hotel and real-estate projects — are for the company that builds or holds a project. A person buying a unit is not subject to that figure. The figure that matters to a buyer is the residence-permit threshold below.
The steps
- a search report on the owner and encumbrances;
- a sale agreement that is attested and registered;
- a survey, only for unregistered land;
- ZIPA clearance and approval by the Land Transfer Board, which issues a transfer certificate;
- a government lease from the Land Commission in your name.
As a guide, allow 2–3 months from the signed contract to the registered lease.
Residence
According to published guides, buying property worth US$100,000 or more in a ZIPA-approved development 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, and requiring title documents, tax and police clearance and a ZIPA recommendation. It does not give citizenship or permanent status. These terms are published by consultants citing the immigration service; confirm them directly.
Costs and taxes
- stamp duty on transfer — about 1% according to consultants' guides; confirm it for your deal;
- registration, legal and agent costs; consultants quote the whole range differently, roughly 4–10% of the price;
- annual property tax — on the official ZRA schedule (Legal Notice No. 78 of 2023) a residential building is charged TZS 10,000 per storey or unit;
- annual ground rent under the lease;
- VAT may apply when buying from a developer.
Capital gains: mainland Tanzania taxes gains on land and buildings at 10% for residents and 20% for non-residents, but that is the mainland authority. We could not confirm the Zanzibar treatment from public sources, so ask a tax adviser before you rely on any figure.
What to check
- that the project is registered with ZIPA and the seller can transfer a lease or a unit;
- the lease term actually recorded;
- that seller, plot number and boundaries match the official records, with no charges or service-charge arrears;
- the permitted use — whether letting is allowed under the lease and zoning;
- that nobody offers to register «ownership» in your name outside the lease system: the press has reported ZIPA warnings about unlawful land acquisition by foreigners.
Checked in October 2026. Rules and rates change; this is information, not legal advice. Confirm with a lawyer in Zanzibar before you buy.