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Purchasing Land in Zanzibar as a Foreigner: Process, Restrictions, Advantages & Considerations

Writer's picture: Africa Luxury PropertiesAfrica Luxury Properties

aerial photo of land for sale in zanzibar

At Africa Luxury Properties, we frequently receive inquiries from international investors looking to purchase land in Zanzibar. However, Zanzibar has strict regulations governing land ownership, and foreigners cannot own land in their personal name. This document provides a comprehensive overview of the process, restrictions, advantages, and key considerations for expats, foreigners, and non-citizens interested in purchasing empty plots of land in Zanzibar.


Understanding Zanzibar’s Land Ownership Laws


Zanzibar follows a leasehold system, meaning all land is government-owned. The government issues long-term leases (typically 33 years), which are renewable one year before expiry.


Can Foreigners Buy Land in Zanzibar?


✅ Yes, but only through a registered company.Foreigners and expats cannot own land directly in their personal name. Instead, they must:


  • Register a company in Zanzibar

  • Obtain ZIPA (Zanzibar Investment Promotion Authority) approval

  • Purchase land through the company

  • Apply for a land lease under the company’s name


Expats are allowed to own 100% of a ZIPA-approved company, which then holds the land lease issued by the Ministry of Land.


Benefits of ZIPA Approval


Once a company is ZIPA-certified, its directors receive:


A land lease (granting official rights of occupancy over the land)

Residency permits in Zanzibar

Freedom of travel within Tanzania


Lease Renewals


Land leases are typically granted for 33 years and can be renewed starting 12 months before expiry.


Process for Purchasing Land in Zanzibar


Step 1: Establishing a ZIPA-Approved Company


To purchase land, the first step is setting up a company in Zanzibar and securing ZIPA certification.


ZIPA Certification Requirements:


Register a company in Zanzibar

Propose a minimum investment of $2,500,000.00

Provide a detailed feasibility study outlining the project’s impact

Show proof of funds for the proposed investment


Step 2: Land Acquisition Process


1️⃣ Secure ZIPA certification & company registration

2️⃣ Source property of interest

3️⃣ Conduct site inspection

4️⃣ Sign Broker Agreement with Africa Luxury Properties (5% broker fee)

5️⃣ Introduction to the owner or their legal representative

6️⃣ Submit an official offer to purchase

7️⃣ Offer is accepted by the seller

8️⃣ Conduct due diligence checks

9️⃣ Draft & sign a sales agreement (collaboration between buyer & seller)

🔟 Make payment (as per agreed terms – installments, escrow, deposit, or full amount)

1️⃣1️⃣ Secure approval from Municipal Office / Sheha’s Office

1️⃣2️⃣ Secure approval from District Commissioner’s Office

1️⃣3️⃣ Submit a land transfer application to the Ministry of Land

1️⃣4️⃣ Obtain land transfer approval from the Ministry of Land

1️⃣5️⃣ Submit land lease application to the Ministry of Land

1️⃣6️⃣ Receive official land lease certificate from the Ministry of Land


Legal Assistance


Since the ZIPA process is designed for large-scale investors, we strongly recommend working with a Tanzanian (preferably Zanzibari) legal advocate to navigate the intricacies of the investment, documentation, and legal requirements.


Advantages & Disadvantages of Buying Land in Zanzibar as a Foreigner


✅ Advantages


100% foreign ownership through a ZIPA-registered company

Long-term lease (33 years) with renewal rights

Access to residency permits for company directors

Investment-friendly legal framework

Strategic location in a booming tourism & real estate market


❌ Disadvantages & Challenges


Cannot own land in a personal name – Must establish a company

High financial entry barrier – Minimum investment of $2,500,000.00

Complex process – Requires ZIPA approval, government approvals, and legal assistance

Leasehold system – Ownership is limited to lease duration and requires renewal


4. Is Buying Land in Zanzibar the Right Choice for You?


To help determine if this investment structure aligns with your goals, answer the following Yes/No questions:


  1. Are you prepared to register a company in Zanzibar? (Yes / No)

  2. Can you meet the minimum $2,500,000 investment requirement? (Yes / No)

  3. Are you looking to invest in a long-term development project (e.g., hotel, resort, or residential development)? (Yes / No)

  4. Are you comfortable navigating the ZIPA approval process? (Yes / No)

  5. Do you want to secure residency status in Zanzibar? (Yes / No)

  6. Would you prefer a freehold ownership structure instead? (Yes / No)


Your Results


✔ If you answered YES to most of these questions, purchasing land in Zanzibar through a ZIPA-approved company may be a suitable investment for you.


❌ If you answered NO to multiple questions, you may want to explore alternative ownership options, such as purchasing a villa or apartment within a Residential Development Project.


Alternative Investment Options


For those who prefer a simpler and more affordable investment structure, purchasing a villa or apartment within a ZIPA-approved Residential Development Project may be a better option.


At Africa Luxury Properties, we offer:


🏡 Luxury Villas – High-end properties with private pools & ocean views

🏢 Beachfront Apartments – Fully managed residences with hassle-free ownership

🌊 Exclusive Resort Properties – Investment properties with guaranteed returns

📩 Contact us today to explore available listings & personalized investment solutions!


Next Steps & How to Get Started


For more information on purchasing land in Zanzibar or alternative investment opportunities, reach out to Africa Luxury Properties:


📞 Phone/WhatsApp: [+255 719 385 829]

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