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Foreigners cannot own land outright in Zanzibar but can acquire substantial rights through long-term leaseholds for 33, 66, or 99 years. This comprehensive guide explains everything you need to know about buying land in Zanzibar as a foreigner in 2025.
Land purchases in Zanzibar require government approval through the Zanzibar Investment Promotion Authority, and all transactions must go through registered leasehold agreements rather than direct ownership.
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Foreigners can buy land in Zanzibar through long-term leasehold agreements (33-99 years) but cannot own land outright, with prices ranging from $20-120 per sqm depending on location.
All purchases require government approval through ZIPA, with total costs including 5% stamp duty and additional fees typically reaching 7-10% of the purchase price.
| Aspect | Details | Cost/Requirements |
|---|---|---|
| Ownership Type | Leasehold only (33, 66, or 99 years) | No outright ownership allowed |
| Prime Beachfront Land | Nungwi, Kendwa areas | $100-120 per sqm |
| Southeast Coast | Bwejuu, Jambiani areas | $45-60 per sqm |
| Inland Residential | Non-beachfront areas | $20-35 per sqm |
| Stamp Duty | Government tax on purchase | 5% of purchase price |
| Total Transaction Costs | All fees combined | 7-10% of purchase price |
| Approval Authority | Zanzibar Investment Promotion Authority | Certificate of no objection required |
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
Can foreigners buy land in Zanzibar?
Foreigners cannot own land outright in Zanzibar but can acquire substantial usage rights through long-term leasehold agreements.
The Zanzibar government retains all land ownership and grants foreigners usage rights via leases lasting 33, 66, or 99 years. These leaseholds provide significant control over the property, including the right to develop, rent, and sell the remaining lease term to other parties.
As of September 2025, all foreign land acquisitions must go through the Zanzibar Investment Promotion Authority (ZIPA) and comply with local regulations. The leasehold system offers foreigners practical ownership benefits while maintaining government control over the underlying land.
Most international investors find the 99-year leasehold terms provide sufficient security for both personal use and investment purposes.
What types of land can foreigners buy in Zanzibar?
Foreigners can acquire leaseholds on developed residential and commercial land, plus units in government-approved condominium developments through 99-year leases.
Permitted land types include beachfront plots for villa development, urban land in Stone Town for commercial projects, and designated residential areas for housing construction. Government-approved condominium developments offer unit purchases with long-term lease arrangements.
Restricted areas include direct agricultural land, zones near military installations, and customary village land reserved for local communities. Some development projects require additional community and governmental permissions beyond standard ZIPA approval.
The most popular purchases involve coastal plots for tourism development and urban properties for boutique hotels or commercial ventures.
Are there any restrictions on foreigners buying land in Zanzibar?
Yes, several significant restrictions apply to foreign land purchases in Zanzibar beyond the leasehold-only structure.
All transactions must receive approval from the Zanzibar Investment Promotion Authority (ZIPA) before completion. Certain land classifications including agricultural zones, strategic areas, and properties designated for nationals only remain completely off-limits to foreigners.
Foreign buyers must acquire land through existing leaseholders or ZIPA-approved developers rather than direct government allocation. The government reserves the right to revoke leases for violation of terms or failure to develop within specified timeframes.
As of September 2025, buyers must demonstrate legitimate investment purposes and may need to commit to specific development timelines depending on the property type and location.
What is the process for buying land as a foreigner in Zanzibar?
The land purchase process involves eight distinct steps requiring government approvals and professional assistance.
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- Find suitable property through a reputable local real estate agent
- Engage a qualified lawyer for due diligence and title verification
- Negotiate purchase price and draft a preliminary sale agreement
- Conduct official survey and beaconing for precise plot demarcation
- Apply for ZIPA certificate of no objection and land transfer approval
- Pay required fees including 5% stamp duty, registration, legal, and survey costs
- Complete lease registration and receive title documents in your name
- Apply for residence permit if investing $100,000+ in ZIPA-approved projects
The entire process typically takes 3-6 months depending on property complexity and government processing times. Professional legal representation is essential for navigating local regulations and ensuring proper documentation.
Do you need to be in the country to purchase land in Zanzibar?
Physical presence in Zanzibar is not strictly required for land purchases, but remote transactions require careful legal arrangements.
Buyers can conduct purchases remotely through a notarized power of attorney appointing a local representative such as a qualified lawyer or authorized agent. This representative handles all paperwork, government interactions, and transaction completion on the buyer's behalf.
However, a personal site visit is highly recommended for due diligence purposes including property inspection, boundary verification, and meeting with local authorities. Many investors visit during the negotiation phase to assess the property firsthand.
Remote purchases carry additional risks requiring thorough vetting of local representatives and comprehensive title searches before commitment.
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What documents are required to buy land in Zanzibar as a foreigner?
Land purchases require comprehensive documentation for legal compliance and government approval.
| Document Type | Purpose | Issuing Authority |
|---|---|---|
| Registered Sale Agreement | Legal purchase contract | Lawyer/Notary |
| ZIPA Certificate | Government approval for foreign purchase | Zanzibar Investment Promotion Authority |
| Land Search Report | Title verification and ownership history | Land Registry Office |
| Survey Certificate | Official plot demarcation and boundaries | Licensed Surveyor |
| Lease Transfer Document | Government approval for lease assignment | Ministry of Lands |
| Payment Receipts | Proof of stamp duty and fee payments | Tanzania Revenue Authority |
| Power of Attorney | Legal representation for remote purchases | Notary Public |
Additional documents may include building permits for development projects, environmental clearances for coastal properties, and residence permit applications for qualifying investments.
Where do foreigners typically buy land in Zanzibar?
Foreign buyers concentrate in specific high-value areas offering tourism potential and investment returns.
Nungwi and Kendwa in northern Zanzibar attract the most foreign investment due to pristine beaches and established tourism infrastructure. These areas command premium prices but offer the highest rental yields for vacation properties and boutique hotels.
Bwejuu and Jambiani on the southeast coast appeal to investors seeking eco-tourism opportunities and expat-friendly communities with lower entry costs than northern beaches. Stone Town draws buyers interested in heritage properties and boutique hotel conversions.
Emerging areas including Makunduchi, Pongwe, and Uroa offer opportunities for long-term appreciation as infrastructure development expands. These locations provide more affordable entry points while maintaining beach access and development potential.
What are the most common uses for land by foreigners in Zanzibar?
Foreign land purchases in Zanzibar primarily focus on tourism-related developments and luxury residential projects.
- Tourism developments including beach resorts, boutique hotels, and eco-lodges targeting international visitors
- Luxury villa construction for personal vacation use and high-end rental markets
- Investment holdings for land appreciation and future resale to developers or other investors
- Boutique business ventures such as beachfront cafés, wellness retreats, and cultural experiences
- Mixed-use developments combining residential and commercial elements in strategic locations
Agricultural land use remains uncommon among foreign buyers due to government restrictions on direct agricultural land ownership and leasing complexities. Most successful foreign investments focus on properties that can generate tourism revenue or serve as luxury retreats.
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Can foreigners finance the purchase of land with a mortgage in Zanzibar?
Mortgage financing for foreign land purchases is possible but uncommon, with most international buyers paying cash.
Local Tanzanian banks occasionally offer mortgages to foreigners with strong financial credentials and established banking relationships. International financing through offshore banks or home country institutions requires complex arrangements and often higher costs.
Successful mortgage applications typically require local guarantors, substantial down payments, and comprehensive documentation of income sources. The process involves extensive due diligence by lenders given the leasehold nature of land ownership.
Most foreign investors find cash purchases more straightforward and cost-effective than navigating complex financing arrangements. Those requiring financing often arrange private loans or equity partnerships rather than traditional mortgages.
What are the typical mortgage rates and conditions for foreigners in Zanzibar?
Foreign mortgage rates in Zanzibar significantly exceed international standards due to local banking conditions and risk assessments.
| Mortgage Aspect | Typical Requirement | Additional Notes |
|---|---|---|
| Down Payment | 30-50% of purchase price | Higher than typical residential mortgages |
| Interest Rates | 10-18% per annum | Varies by bank and borrower profile |
| Loan Terms | 10-20 years maximum | Shorter than standard home loans |
| Income Requirements | 3-4x annual income verification | Must demonstrate stable income sources |
| Local Guarantor | Often required | Tanzanian citizen or permanent resident |
| Banking Relationship | Established account preferred | Local banking history improves approval chances |
Processing times for foreign mortgages extend 3-6 months beyond typical loan timelines. Currency exchange risks and leasehold complications further complicate financing arrangements for international buyers.
How much does land cost on average in Zanzibar?
Zanzibar land prices vary dramatically based on location, with beachfront properties commanding premium rates as of September 2025.
| Location Type | Price per Square Meter | Typical Plot Examples |
|---|---|---|
| Prime Beachfront (Nungwi/Kendwa) | $100-120 USD | 2,000 sqm plot: $200,000-240,000 |
| Southeast Coast (Jambiani) | $45-60 USD | 2,000 sqm plot: $90,000-120,000 |
| Stone Town Urban | $80-150 USD | 500 sqm plot: $40,000-75,000 |
| Inland Residential | $20-35 USD | 2,000 sqm plot: $40,000-70,000 |
| Central Farmland | $6-12 USD | 5,000 sqm plot: $30,000-60,000 |
| Large Beachfront Development | $100+ USD | 40,000+ sqm: $4-5 million+ |
Prime beachfront locations continue appreciating at 3-7% annually due to limited supply and strong tourism demand. Inland and emerging areas offer more affordable entry points with potential for future appreciation as infrastructure develops.
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What taxes, fees, and additional costs are involved in buying land in Zanzibar?
Total transaction costs typically reach 7-10% of the purchase price through various taxes and fees.
- Stamp duty of 5% of purchase price paid to Tanzania Revenue Authority
- Registration fees of 1-2% for official title transfer and government processing
- Legal fees of 1-2% for lawyer services, due diligence, and contract preparation
- Survey and beacon fees of $2,000-5,000 for official plot demarcation
- ZIPA application and project fees varying by development type and investment size
Additional costs include notary services, document translation, bank transfer fees, property valuation, and expedited processing charges that can add 1-3% to total expenses. Buyers should budget 10% above purchase price for comprehensive transaction costs.
Annual property taxes remain minimal but may increase as local government revenue needs grow. Development permits and construction approvals require separate fee payments beyond initial purchase costs.
What are the long-term market forecasts for land in Zanzibar?
Zanzibar's land market shows strong long-term growth potential driven by tourism expansion and infrastructure development.
Prime beachfront areas including Nungwi, Kendwa, and Stone Town demonstrate continued robust demand with annual price increases of 3-7% expected through 2030. Infrastructure improvements including airport expansion and road development support appreciation in previously remote areas.
Well-managed vacation rental properties generate yield projections of 10-15% annually in established tourist zones. Eco-tourism trends and government foreign investment incentives suggest continued appreciation for legally registered and properly titled leaseholds.
Emerging markets in southern and eastern coastal areas offer higher growth potential but require longer investment horizons. Climate change concerns may impact coastal property values long-term, making elevation and flood risk important considerations for future appreciation.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Foreign land ownership in Zanzibar operates through a leasehold system that provides substantial property rights while maintaining government control over underlying ownership.
Successful investments require proper legal guidance, ZIPA approval, and thorough due diligence, with prime beachfront properties offering the strongest appreciation potential and rental yields.
Sources
- CBC Worldwide - Can Foreigners Buy Property in Zanzibar 2025
- Sandbank Villas - Owning Property in Zanzibar as a Foreigner
- The African Investor - Foreigners Buy Land Zanzibar
- Tarishi - Foreigner Rights on Land in Zanzibar
- Zanzipalms - Comprehensive Guide to Buying Property in Zanzibar
- Eden Law Chambers - Land Purchase in Zanzibar
- Tanzania Investment Centre - Land Purchase Procedures
- The African Investor - Tanzania Real Estate Foreigner
- The African Investor - House Price Tanzania
- Zanzibar Lux Properties - Land for Sale