Buying property in Zanzibar as a foreigner or diaspora buyer

All land in Zanzibar is public land, vested in the President under the Land Tenure Act of 1992. That means nobody, local or foreign, owns land as freehold. What people hold is a right to use the land for a set period.

• Zanzibaris hold a right of occupancy.
• Foreign nationals hold a lease, for up to 99 years, usually in blocks of 33 years.

For a foreign buyer there are two legal routes:

1. An apartment, townhouse or villa unit in a project approved by ZIPA (the Zanzibar Investment Promotion Authority), bought under the Condominium Act of 2010. This is the most common and simplest route.
2. A lease over land or a whole property for an approved investment, applied for through ZIPA and the Commission for Lands. It takes longer and suits people building their own project.

Be very careful with any offer to buy in a local person's name, or on a "handshake" with a private owner outside these routes. If anything goes wrong, you have no legal protection.

Diaspora buyers: If you are a Zanzibari or Tanzanian citizen living abroad, you buy as a citizen. Tanzania does not allow dual citizenship, so if you have taken another nationality you are generally treated as a foreign buyer. Special arrangements for the diaspora have been discussed, so ask me for the current position before you plan around them.

Buying a unit in an approved project. The developer already holds the project approvals. You buy a unit title, which is registered in your name, can be sold or inherited, and can be mortgaged. Check that the project really is approved: ask for the developer's ZIPA certificate and confirm it.

Taking a lease over land or a villa. You, or a company you set up, apply to ZIPA for a Certificate of Investment with a project plan. The Land Transfer Board has to approve the transaction, and the lease is issued through the Commission for Lands. This route takes months, not weeks.

Residence. Buying a unit in an approved project above a minimum value (currently reported as USD 100,000) can make you, your spouse and your dependants eligible to apply for a residence permit. The rules and amounts change, so confirm them with ZIPA and Immigration before you rely on them.

You'll meet a few different documents. It's worth knowing which one you're being offered:

• Right of occupancy: held by Zanzibaris. A foreigner cannot take this over directly.
• Government lease: granted for a set term (33, 66 or up to 99 years) with conditions attached.
• Condominium unit title: your title to one unit inside an approved project, plus a share of the common areas.

Whatever the document, ask these questions:

• How many years are left on the lease, and what are the conditions for renewing it?
• What use is allowed: residential, tourism, commercial?
• Are there development conditions, such as a deadline to build?
• How much is the annual land rent, and is it paid up to date?
• For a unit: what are the service charges, and who manages the common areas?

1. Shortlist and view. Visit in person, or I can walk you through by live video.
2. Appoint your own lawyer. Choose one qualified in Zanzibar who works for you, not for the seller or developer.
3. Official search. Confirm at the land registry who holds the title and whether there is any mortgage, caveat or dispute.
4. Independent valuation. Know what the property is really worth before you agree a price.
5. Sale agreement. Your lawyer reviews it before you sign. Pay only into a lawyer's client account or the developer's registered project account, never into a personal account.
6. Approvals. ZIPA and, where needed, the Land Transfer Board.
7. Duties and registration. Pay stamp duty and fees, then register the lease or unit title in your name.
8. Handover. Collect the original documents, keys, land rent receipts and utility accounts.

A resale unit in an approved project can complete in a matter of weeks. Land and villa leases usually take several months.

Don't pay a deposit until you have seen and checked:

• The seller's title or lease document, and an official search that matches it
• The surveyed plan, with beacons you have seen on site
• A land rent clearance showing nothing is owed
• The building permit and approved drawings, including for any extensions
• For a project: the developer's ZIPA certificate and company registration
• The seller's identity, or a company resolution authorising the sale
• Confirmation that there are no disputes: ask neighbours and the local Sheha too
• For off-plan units: a payment schedule tied to construction stages, and what happens if the project is late

If a seller won't show a document, treat that as your answer.

As a rough guide, budget about 3–7% on top of the price for buying costs. The exact figure depends on the property and the route. The main items are:

• Stamp duty on the transfer
• Registration and approval fees: land registry, and ZIPA and Land Transfer Board where they apply
• Your lawyer's fees
• Valuation and survey fees
• VAT on some new units bought from developers, so ask whether the price includes it

Once you own the property, you'll keep paying:

• Annual land rent to the Government
• Property tax and service charges for units in a project
• Tax on rental income if you let the property out

Ask for every cost in writing before you commit. I can give you a figure for a specific property.

If you live abroad, from here I can:

• Show you properties by live video, including the surroundings and the access road
• Give you an independent valuation as a fully registered valuer, so you know if the price is fair
• Check documents at the registry and flag anything that doesn't match
• Work alongside your lawyer through approvals and registration
• Visit off-plan projects and send you progress updates before each payment

If you can't travel for signing, your lawyer can arrange a power of attorney, signed before a notary where you live and legalised for use in Tanzania.

One rule protects you more than any other: never send money because of an email or a message alone. Always confirm bank details by phone with someone you know, and pay only into accounts your lawyer has checked.