Buying and owning property in Maputo as a foreigner

Authored by the expert who managed and guided the team behind the Mozambique Property Pack

Yes, the analysis of Maputo's property market is included in our pack

Who is the author of this content?

THE AFRICANVESTOR

A team specialized in real estate investing in African countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Maputo. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The AfricanVestor, we explore the Mozambican real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Maputo, Beira, and Nampula. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

✓✓✓

Alexia Vieira

Founder and President of Fundacion Khanimambo and Humbi Farm

Thanks to her extensive work across Mozambique, Alexia Vieira has developed a solid understanding of the real estate dynamics specific to Maputo, where urban development and social impact often intersect. Through her leadership in projects that involve infrastructure, education, and sustainable initiatives, she brings valuable insight into how investment can align with the city's evolving community needs.

What kinds of properties can foreigners legally buy in Maputo, and what restrictions apply?

Foreigners can legally purchase buildings, apartments, and commercial properties in Maputo, but they cannot own land outright.

All land in Mozambique belongs to the state, and foreigners obtain long-term land use rights called DUAT (Direito de Uso e Aproveitamento da Terra). These rights are typically valid for up to 50 years and are renewable upon expiration.

There are specific restrictions that apply to foreign buyers. Certain nationalized, unfinished, or decrepit properties cannot be sold to non-Mozambican citizens. Additionally, national tenants are prohibited from selling these restricted properties to foreigners.

Foreign investors can purchase residential apartments, commercial buildings, office spaces, and retail properties in Maputo. However, they must understand that their ownership extends only to the structure itself, not the underlying land.

It's something we develop in our Mozambique property pack.

Do foreigners need to obtain residency, a visa, or special permits before purchasing property?

Foreigners do not need to obtain residency, a visa, or special permits to purchase property in Maputo.

However, acquiring real estate does not automatically grant residency rights. Foreign property owners who wish to reside in Mozambique long-term must apply for a residence permit separately through the appropriate immigration channels.

The property purchase process is independent of immigration status, making it accessible to non-resident foreign investors. This means you can buy property in Maputo even if you live abroad and have no intention of relocating to Mozambique.

As of September 2025, the Mozambican government maintains this policy to encourage foreign investment while keeping property ownership and residency requirements separate.

Is it necessary to be physically present in Mozambique during the purchase process?

Physical presence in Mozambique is not mandatory for purchasing property in Maputo.

Foreign buyers can complete the entire purchase process remotely by granting a notarized Power of Attorney to a local representative. This representative can be a lawyer, real estate agent, or trusted local contact who will act on your behalf throughout the transaction.

The Power of Attorney must be properly notarized and authenticated according to Mozambican legal requirements. Your local representative will handle document signing, payments, and registration procedures at the relevant government offices.

While remote purchasing is possible, many foreign investors choose to visit Maputo at least once to inspect the property personally and meet with their legal representatives. This approach helps build confidence in the investment and ensures direct oversight of the transaction process.

What are the step-by-step procedures and required documents for buying property as a foreigner?

The property purchase process in Maputo involves several sequential steps and specific documentation requirements.

First, you must obtain a valid passport and ensure it remains valid throughout the transaction period. Next, your lawyer or representative will draft a comprehensive purchase agreement that outlines all terms and conditions of the sale.

The documentation process includes reviewing the property title deed, securing the DUAT certificate for land use rights, and acquiring tax clearance from the seller. You'll also need property survey documentation to verify boundaries and measurements.

Financial obligations include paying the required SISA transfer tax (2% of purchase price or official valuation), public deed fees, and notary charges. The final step involves registration of the sale through a notary and at the Land and Property Registration Office.

It's something we develop in our Mozambique property pack.

Is hiring a local lawyer mandatory or strongly recommended, and what role do they play?

Hiring a local lawyer is not strictly mandatory by law, but it is strongly recommended for foreign property buyers in Maputo.

A local lawyer typically acts as a conveyancer, handling due diligence, document verification, registration procedures, and legal protection throughout the transaction. They understand complex local laws, bureaucratic procedures, and potential pitfalls that foreign buyers might encounter.

Your lawyer will verify property titles, ensure DUAT certificates are legitimate, conduct searches for liens or encumbrances, and confirm that the seller has the legal right to transfer ownership. They also handle all interactions with government agencies and registration offices.

Given the complexity of Mozambican property law and the potential for disputes, legal representation provides essential protection for your investment. The cost of legal services is minimal compared to the financial risks of proceeding without proper legal guidance.

What taxes, fees, and other costs are involved in buying, owning, and eventually selling property?

Cost Category	Rate/Amount	When Applied
SISA Transfer Tax	2% of purchase price or official valuation	At purchase
IPRA Property Tax	0.4% of registered value annually	Annual ownership
Public Deed/Registration Fees	Varies by property value	At purchase
Notary Fees	Varies by transaction	At purchase
Stamp Duty	Variable rate	At purchase
Annual Ownership Costs	3-5% of property value	Ongoing (excluding mortgage)
VAT on Property Sales	Not charged	Not applicable

Are mortgages available for foreigners, and what terms should buyers expect?

Mortgages are available for foreign buyers in Maputo, but they are limited and expensive compared to international standards.

Interest rates for foreign borrowers are reportedly around 24%, which significantly impacts affordability and investment returns. Local banks impose stringent qualification requirements, including proof of income, credit history, and substantial down payments.

Larger banks may offer mortgage products to foreigners who can demonstrate strong local ties, business activities in Mozambique, or significant relationships with the banking institution. The approval process can be lengthy and bureaucratic.

Most foreign investors choose to purchase properties with cash rather than financing, given the high interest rates and complex approval processes. This approach eliminates financing costs but requires substantial upfront capital investment.

Where do foreigners usually choose to settle in Maputo, and which neighborhoods are best?

Most foreigners settle in central Maputo, Sommerschield, Polana, and Costa do Sol, which offer the highest security levels and expat-friendly amenities.

These neighborhoods provide proximity to international schools, private hospitals, embassies, and high-quality restaurants and shopping centers. They also feature better infrastructure, including reliable electricity, water supply, and internet connectivity.

Central Maputo attracts professionals working in government, NGOs, and international organizations due to its convenient location and business district access. Sommerschield and Polana are popular among diplomats and expatriate families seeking residential tranquility with urban conveniences.

Costa do Sol appeals to investors seeking beachfront properties and tourism-related rental opportunities. These areas command premium prices but offer strong rental demand and capital appreciation potential, making them attractive for both living and investment purposes.

It's something we develop in our Mozambique property pack.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mozambique versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are the latest insights on liveability, rental yields, and growth forecasts for Maputo?

Maputo's property market remains attractive for expatriates and investors seeking high-demand rental properties, especially in prime central and coastal neighborhoods.

Gross rental yields for well-located apartments and houses can reach 8-10%, but these returns depend heavily on market cycles, professional property management, and effective rental strategies. Premium properties in Sommerschield and Polana typically achieve the highest yields due to consistent expatriate demand.

Tourism drives significant demand for short-term rental properties, particularly in Costa do Sol and central areas near business districts. However, regulatory changes and seasonal fluctuations can impact income potential, requiring careful market timing and management.

Infrastructure improvements and economic growth forecasts are cautiously optimistic for Maputo, but foreign investors should consider system risks including weak enforcement of property rights and slow legal processes. As of September 2025, the city continues developing its business district and coastal areas, supporting long-term appreciation prospects.

What are the current property price ranges across Maputo and how do they compare?

Apartments in central Maputo currently range from USD 1,200 to USD 2,800 per square meter, depending on location, quality, and amenities.

Houses in popular neighborhoods typically cost between USD 200,000 and USD 500,000, with variations based on size, location, and property condition. Larger properties with swimming pools and security features command premium prices.

Polana and Sommerschield command the highest prices due to their prestigious locations, security levels, and expatriate amenities. These areas can exceed the average price ranges for exceptional properties with prime locations or luxury features.

Peripheral areas and secondary cities offer significantly cheaper alternatives but come with reduced liquidity, longer selling times, and limited rental demand. Price comparisons show central Maputo properties cost 2-3 times more than equivalent properties in outer suburbs.

What common mistakes or pitfalls do foreigners make when buying property in Mozambique?

1. **Failing to verify DUAT and land rights properly** - Many buyers don't thoroughly investigate the legitimacy of land use certificates, leading to ownership disputes.2. **Purchasing nationalized or restricted properties** - Foreign buyers sometimes unknowingly attempt to buy properties that cannot legally be sold to non-Mozambican citizens.3. **Not conducting thorough due diligence** - Inadequate property inspections, title searches, and legal verification create significant risks for buyers.4. **Underestimating transaction and ownership costs** - Many investors fail to budget for the full 3-5% annual ownership costs plus all purchase-related fees.5. **Failing to account for bureaucratic delays** - The legal system moves slowly, and corrupt practices can delay transactions significantly beyond expected timeframes.6. **Not hiring competent legal counsel** - Attempting to navigate the complex legal system without qualified local representation often leads to costly mistakes.7. **Ignoring title dispute risks** - Properties with unclear ownership history or competing claims can result in lengthy legal battles and financial losses.

What are the fiscal and income tax implications of owning rental property as a foreigner?

Rental income from Maputo properties is subject to Mozambique's progressive income tax rates, which foreign property owners must pay annually.

Property owners must also pay the annual IPRA property tax at 0.4% of the property's registered value, regardless of whether the property generates rental income. All rental income must be reported for taxation purposes to avoid penalties.

Capital gains from property sales may be subject to additional taxation, depending on the ownership structure and the owner's residency status. Corporate property owners face IRPC corporate tax at a 32% rate on profits and rental income.

Foreign property owners should maintain detailed records of all rental income, expenses, and tax payments to ensure compliance with Mozambican tax authorities. Professional tax advice is recommended to optimize tax strategies and ensure full compliance with reporting requirements.

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.

Sources

1. The AfricanVestor - Mozambique Real Estate for Foreigners
2. Pam Golding - Mozambique Buyers Guide
3. The AfricanVestor - Moving to Mozambique
4. Pam Golding - Mozambique Buyers Guide 2023
5. Law Gratis - Property Law in Mozambique
6. The AfricanVestor - Maputo Property
7. TTA Advogados - Tax Rules for Property Sector
8. Arab MLS - Foreigner Property Purchase in Mozambique