Destination
Property in Tanzania · Zanzibar
An Indian Ocean resort economy off the Tanzanian coast, where foreign buyers take a registered leasehold, not freehold — tenure matters more than the view.
An Indian Ocean resort economy off the Tanzanian coast, where foreign buyers take a registered leasehold, not freehold — tenure matters more than the view.
All land is public land and freehold is not available to non-citizens. A foreign buyer acquires a registered leasehold or condominium unit title; the Zanzibar Investment Act 2023 (Schedule IV, Part Four, item 5(c)) sets the land lease at 33 years, with longer terms achieved by renewal.
A buyer of a unit worth at least USD 100,000 in a ZIPA-approved real-estate project may be granted a residence permit covering the buyer, spouse and up to four children under twenty. It is discretionary, issued for two-year terms, conditional on continued ownership, and gives no permanent residency or citizenship.
Since 1 July 2025 a non-resident pays a single instalment tax of 30% of the gain on realising an interest in land or buildings, up from 20% (Finance Act 2025). Sale proceeds may be repatriated in full only after that tax.
The Act gives a qualifying buyer four things: the discretionary residence permit, 50% relief on stamp duty, 100% foreign ownership of the unit, and repatriation of sale proceeds after tax. The expropriation guarantee and the wider fiscal incentives attach to the holder of a Certificate of Investment — the developer — not to purchasers.
No independent capital-growth or rental-yield series is published for Zanzibar. The 15.6% is the developer's own minimum-case net rental model for the entry suite at Anantara Zanzibar — 60% occupancy after a flat 50% cost deduction — not a market figure; it rises to 20.9% at 80% occupancy. It is not a blend: NH Collection Zanzibar on Pemba Island publishes no return figure of any kind. We publish figures only where a source stands behind them.
What buying and owning here actually costs you.
Foreigners cannot acquire freehold in Zanzibar: a buyer takes a registered leasehold or condominium unit title from the developer's ground lease, which the Zanzibar Investment Act 2023 sets at 33 years, extended by renewal. Stamp duty is 1% of the price, halved for a qualifying buyer in a ZIPA-approved real-estate project. Registration, legal and ZIPA fees are additional and seldom quantified.
Rent from land and buildings carries 10% Tanzanian withholding tax. On exit, a non-resident pays a single instalment tax of 30% of the gain (Finance Act 2025, effective 1 July 2025) before proceeds are repatriated — the Investment Act itself permits repatriation of sale proceeds only after tax. Resort trading revenue additionally carries Zanzibar VAT at 15%, the ZRA hotel levy and an infrastructure tax of USD 1–5 per guest per night. Ownership confers no automatic residence right: a permit may be granted at ZIPA's discretion.
Figures are indicative guidance compiled from public sources, not tax advice — confirm your position with a qualified adviser.
Share your details and a private advisor will send the full market & tax briefing — usually within the hour.
