# A Guide to Buying Land in Zanzibar as a Foreigner

> - All land in Zanzibar is public land, and a foreigner can't get a Right of Occupancy straight from the government.
> - You can buy from a Zanzibari who holds the right, through the Sheha, a contract, registration and a government survey.
> - Expect 10% stamp duty, 1% land transfer tax and a yearly lease fee on a 99-year lease.
> - If you may sell later, put the land into a company and sell the company instead.

By emin.de AI Desk. AI-written, human-supervised: not yet reviewed. Published 2024-07-10. Updated 2024-07-10.
Canonical: https://emin.de/posts/a-guide-to-buying-land-in-zanzibar-as-a-foreigner
First published: https://medium.com/@em/a-guide-to-buying-land-in-zanzibar-as-a-foreigner-b43a096e1fc7 (2024-07-10)
Category: culture. Format: guide. Language: en.
Provenance: ai_generated. AI-assisted: true. Reviewed by a human: false.

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Zanzibar is a semi-autonomous region of Tanzania. It has two main islands, Unguja and Pemba, and about 1.3 million people, with a lot of culture and history. People know Zanzibar for its white beaches, turquoise water, coral reefs, spice farms and the old Stone Town.

## How land works in Zanzibar

Zanzibar has its own land system, and it is different from mainland Tanzania. Under the Land Tenure Act 1992 all land in Zanzibar is public land. The Minister responsible for land affairs runs it on behalf of the President. Land inside the Free Economic Zones is run by the Zanzibar Investment Promotion Authority (ZIPA).

The same law knows three kinds of land rights. A Right of Occupancy is the right to own an interest in land. The President can grant it for up to 99 years. A Customary Right of Occupancy is the right to use and live on land under customary law and practice. It can be inherited or passed on. A Derivative Right is the right to use land for one purpose, like farming, grazing or mining. The Minister or ZIPA can grant it for up to 5 years.

As a foreigner you cannot get a Right of Occupancy straight from the government. But you can buy land or property from a Zanzibari who has a Right of Occupancy, or who legally owns the land through inheritance or purchase. This post walks through the steps for buying land in Zanzibar as a foreigner. It also has some tips for selling the land later, if you want to.

**Basically,** All land is public. Foreigners buy from a Zanzibari who holds a Right of Occupancy.

## Buying from a Zanzibari seller

Step 1 is to check that the seller really owns the land and has the Right of Occupancy. This is the first and most important step. You can check the land registry or ask the local Sheha. The Sheha is the village leader and keeps the land records. He gives you a written confirmation that the seller owns the land, with the names and IDs of the four neighbours who own the land around it. You need this confirmation for everything that follows.

Step 2 is the sale/purchase contract. It is the legal document with the terms of the deal. Put in the names and IDs of buyer and seller, where the land is and how big it is, the price and how you pay, the date and place of signing, the names and IDs of the four neighbouring landowners, and the signatures of buyer, seller and two witnesses. The contract also has to follow the Land Tenure Act 1992 and the Land Transfer Tax Act 1995. A lawyer or a land agent can help you write and check it.

**Basically,** Start with the Sheha's written confirmation of ownership and the four neighbours, then the contract.

## Registering the contract and paying the taxes

Step 3 is handing the contract to the government so it gets approved and registered. You need the original contract and two copies, the confirmation letter from the Sheha, the seller’s land title or certificate, your passport or residence permit, the seller’s tax clearance certificate and the receipt for the stamp duty.

Stamp duty is a tax the buyer pays to the government when buying land in Zanzibar. It is 10% of the purchase price. You can pay it at any bank or post office and get a receipt.

The documents go to three offices. The District Commissioner's Office checks and endorses the contract. The Valuation and Taxation Office assesses and collects the land transfer tax. The Land Registry Office registers the contract and gives you a registration number.

The land transfer tax is a second tax the buyer pays. It is 1% of the purchase price. You pay it at the Valuation and Taxation Office and get a receipt.

**Basically,** Three offices, the original contract plus two copies, 10% stamp duty and 1% transfer tax.

## Inspection, gazette notice and the 99-year lease

Step 4 is waiting for government officials to come and check and re-measure the land. You cannot skip this. It makes sure the land information is right and stops disputes later. The District Land Officer checks the borders and the neighbours. The Surveyor measures the land again and updates the map. The Land Registrar records the details and issues a new land title or certificate. This can take weeks or months, depending on how available and fast the officials are. Stay in touch with them and keep following up.

Step 5 is waiting for the government to start the official land transfer. This is the last and most important step. It finishes the purchase and gives you the right to use and live on the land. The government starts it once the checking and re-measuring is done and the new title or certificate is out. Then the government publishes a notice in the official gazette and the local newspapers, says it wants to transfer the land to you and invites objections or claims from the public. It waits 30 days so objections or claims can come in and get resolved. Then it gives you a lease agreement with the right to use and live on the land for 99 years, renewable before it runs out. And it registers you as the new landowner in the land registry and updates the records.

The lease agreement is the legal document that sets the terms of your land right. It should have the names and IDs of the lessee and the lessor, where the land is and how big it is, the lease period and the renewal options, the lease fee and how you pay it, the rights and duties of both sides, and the signatures of lessee, lessor and two witnesses.

The lease fee is a yearly payment to the government for using the land. The government sets it by location, size and value of the land. You can pay it at any bank or post office and get a receipt.

**Basically,** Officials re-measure, the gazette waits 30 days for objections, then you get a 99-year lease.

## Selling the land as a foreigner

If you own land in Zanzibar as a foreigner and want to sell it, it gets harder. Under the Land Tenure Act 1992 a foreigner cannot sell land directly to another foreigner, unless the land is inside the Free Economic Zones. And a foreigner cannot sell land to a Zanzibari without approval from the President, who can add conditions or limits.

So if you want to sell later, think about registering a company and moving the land into the company. Then you sell the company and not the land. That is easier and faster.

The good side. You avoid the restrictions and the trouble of selling land directly. You can sell the company to anyone, whatever their nationality or wherever they live. And you skip the checking and re-measuring, the land transfer tax and the lease agreement, so you save time and money.

The bad side. You pay to register and run a company, like the registration fee, the annual fee, the audit fee and the corporate tax. You have to follow the rules for running a company, like accounting and reporting standards, labour and environmental laws and the anti-money laundering rules. And you have to show possible buyers the company’s financial and operating numbers, which can change the price and the negotiation.

If you go this way, first register a company with the Business Registration and Licensing Authority (BRELA). That is the agency that registers and regulates businesses in Tanzania. Then move the land from your own name into the company’s name. You follow the same steps as buying from a Zanzibari seller, only now you are the seller and the company is the buyer. Then you sell the company to the buyer the way you sell a company in Tanzania. You find a buyer and agree on price and terms. You prepare and sign a sale/purchase contract for the company. You get a tax clearance certificate from the Tanzania Revenue Authority (TRA). You hand the contract and the tax clearance certificate to BRELA for approval and registration. You transfer the company shares and assets to the buyer. And you tell the relevant authorities and stakeholders that the owner changed.

**Basically,** Foreigners can't easily sell land, so register a company with BRELA and sell the company.

## Sources and references

That is the guide for buying and selling land in Zanzibar as a foreigner. Here are the sources and references I used, if you want to read more or need help.

The sources are:

- Land Tenure Act 1992, available at [https://landportal.org/library/resources/land-tenure-act-1992](https://landportal.org/library/resources/land-tenure-act-1992)
- Buying Property in Zanzibar, available at [https://www.zanzibar.net/buying-property-in-zanzibar/](https://www.zanzibar.net/buying-property-in-zanzibar/)
- How to Buy Land in Zanzibar, available at [https://www.zanzibarproperty.com/how-to-buy-land-in-zanzibar/](https://www.zanzibarproperty.com/how-to-buy-land-in-zanzibar/)
- Selling Property in Zanzibar, available at [https://www.zanzibar.net/selling-property-in-zanzibar/](https://www.zanzibar.net/selling-property-in-zanzibar/)

The references are:

- BRELA, Business Registration and Licensing Authority, available at [https://www.brela.go.tz/](https://www.brela.go.tz/)
- TRA, Tanzania Revenue Authority, available at [https://www.tra.go.tz/](https://www.tra.go.tz/)
- ZIPA, Zanzibar Investment Promotion Authority, available at [https://zipa.go.tz/](https://zipa.go.tz/)

**Basically,** The Land Tenure Act, three property guides and the BRELA, TRA and ZIPA sites.

## The TLDR this is based on, by Emin Mahrt and Copilot

To buy land from someone in Zanzibar as a foreigner, follow these steps.

1) Verify the seller's ownership by visiting the local Sheha, who will provide written confirmation including the names and IDs of the four neighboring landowners.
2) Create a sale/purchase contract for the land, including the names of the neighboring owners.
3) Submit the contract to the government authorities.
4) Government officials will visit the land to verify and re-measure it.
5) The government initiates the official land transfer process.
6) The government issues a title to the buyer as the new landowner and registers them in the land registry.
7) As the new owner, the buyer is usually required to pay a yearly land lease tax to the government for 99 years.

If the buyer, as a foreigner, intends to sell the land, it is advisable to first register a company and transfer the land ownership to the company. This makes it easier to sell the company rather than directly selling the land, as there are certain restrictions for foreigners to prevent speculation.

**Basically,** The original seven-step short version that the whole guide grew out of.

## Fact-check with GPT-4 AI

This is what Bing answered when I asked it to fact-check the TLDR, from its web search.

According to the Land Tenure Act 1992, all land in Zanzibar is public land administered by the Minister responsible for land affairs on behalf of the President¹. The land within the Free Economic Zones is administered by the Zanzibar Investment Promotion Authority (ZIPA)¹.

No foreigner can be granted a Right of Occupancy, which is the right to own an interest in land, by way of acquisition or purchase¹². However, a foreigner can buy land or property from a Zanzibari who has a Right of Occupancy or a legal ownership of the land through inheritance or purchase²³.

The steps were mostly correct, with three corrections. In step 1 you also need to verify the seller's Right of Occupancy or legal ownership of the land by checking the land registry or the local Sheha². In step 6 the government does not issue a title to the buyer as the new landowner, but rather a lease agreement for 99 years, which can be renewed before expiry²³. In step 7 the buyer is not only required to pay a yearly land lease tax, but also a stamp duty of 10% of the purchase price and a registration fee of 1% of the purchase price²³.

The advice for selling the land as a foreigner is also correct. It is easier to register a company and transfer the land ownership to the company, as there are restrictions for foreigners to sell land directly²⁴.

**Basically,** Bing confirmed most steps, but it's a 99-year lease, not a title, plus stamp duty and fees.

## Source: Conversation with Bing, 17/01/2024

(1) Guide to Buying Land and Property in Zanzibar - TanzaniaInvest. https://www.tanzaniainvest.com/construction/realestate/acquiring-land-in-zanzibar.
(2) Land Purchase in Zanzibar - Eden Law Chambers. https://www.edenlawchambers.co.tz/2022/04/12/land-purchase-in-zanzibar/.
(3) Can Foreigners Buy Zanzibar Land For Sale. https://www.africaluxproperties.com/post/can-foreigners-buy-zanzibar-land-for-sale.
(4) A Guide to Owning Property in Zanzibar for Foreigners. https://www.thetradeadviser.com/post/a-guide-to-owning-property-in-zanzibar-for-foreigners.

**Basically,** The four web pages Bing cited when it checked the short version in January 2024.