Authored by the expert who managed and guided the team behind the Mozambique Property Pack
Everything you need to know before buying real estate is included in our Mozambique Property Pack
Buying property in Mozambique as an American citizen is absolutely possible, but the system works differently from what you might expect in the United States.
All land in Mozambique belongs to the state, and what you actually purchase is a building along with land-use rights called DUAT, which stands for Direito de Uso e Aproveitamento da Terra.
This guide covers everything you need to know about property ownership laws, taxes, mortgages, and US tax implications when buying residential property in Mozambique in 2026.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Mozambique.
Fact-checked and reviewed by our local expert
Alexia Vieira
Founder and President of Fundacion Khanimambo and Humbi Farm
Can a US citizen legally buy residential property in Mozambique right now?
Can I buy a home in Mozambique as a US citizen in 2026?
As of early 2026, US citizens can legally purchase residential property in Mozambique, including apartments, houses, villas, and condos, though the land underneath remains owned by the Mozambican state.
The standard buying process requires you to work with a local lawyer, obtain a Mozambican tax identification number (NUIT), sign a notarized sales agreement, pay the SISA transfer tax, and then register the property at the Land Registry, which typically takes two to three months from start to finish.
When you buy property in Mozambique, you are purchasing the building itself plus the associated DUAT land-use rights, which can last up to 50 years and are renewable for another 50 years, giving you long-term security over the property.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in Mozambique.
Are there many Americans buying property and living in Mozambique in 2026?
As of early 2026, an estimated 1,500 to 2,500 Americans live in Mozambique, with a midpoint around 2,000 residents, and roughly 30 to 90 Americans purchase residential property in the country each year, concentrated heavily in the capital Maputo.
The neighborhoods with the highest concentration of American expats and property owners in Mozambique include Sommerschield, Polana, Coop, and Costa do Sol in Maputo, as well as beachfront areas in Inhambane Province, Wimbe in Pemba, and select gated communities in Matola on the outskirts of Maputo.
The top three reasons Americans choose to buy property and relocate to Mozambique are the affordable cost of living compared to the US, the stunning tropical beaches along the Indian Ocean coastline, and growing employment opportunities in the energy sector linked to major LNG projects.
The American expat community in Mozambique is slowly growing, driven primarily by energy sector investments, development work, and retirees seeking an affordable coastal lifestyle, though the numbers remain small compared to other popular expat destinations.
Do foreigners have the same buying rights as locals in Mozambique?
Foreigners and Mozambican nationals have broadly similar rights when purchasing residential buildings in Mozambique, since neither group can own land outright, but foreigners face additional requirements for obtaining new DUAT grants directly from the state, including a five-year residency requirement for individual applicants.
There are no property types or locations in Mozambique that are completely off-limits to Americans or other foreign buyers for residential purchases, though properties that were nationalized after independence in 1975 cannot be acquired, and beachfront or coastal properties may require additional environmental approvals and face zoning restrictions on construction.
We cover all these things in length in our pack about the property market in Mozambique.
Can I buy property in Mozambique without a residence permit?
Yes, you can purchase property in Mozambique without being a resident, as long as you have local legal representation and complete all the required documentation, including obtaining a Mozambican tax identification number (NUIT) which is available to non-residents.
The process for buying property while living abroad typically involves hiring a Mozambican lawyer, granting them power of attorney to act on your behalf, and having all foreign documents apostilled and translated into Portuguese by certified translators before submission.
Buying a home in Mozambique does not grant you any visa or residency rights, as the country does not have a golden visa or investment-for-residency program tied to real estate purchases, so you would need to pursue residency through separate channels like employment or business investment.
The main practical challenge non-resident buyers face is the extensive documentation verification process, which requires multiple certifications, tax clearances, and municipal approvals that can take two to three months and often involves unexpected delays due to bureaucratic procedures.
Can US citizens own land in Mozambique?
No, US citizens cannot own land outright in Mozambique because all land belongs to the state under Mozambican law, and this restriction applies equally to Mozambican nationals, meaning nobody can hold freehold land ownership in the country.
Mozambique does not have a traditional freehold versus leasehold distinction like in the US or UK, but instead uses the DUAT system where you acquire land-use rights that can last up to 50 years and are renewable for another 50 years, functioning somewhat like a very long-term protected lease backed by constitutional guarantees.
Foreign individuals who want to apply for a new DUAT directly from the state (rather than acquiring existing DUAT rights through a property purchase) must have been legal residents of Mozambique for at least five years, though foreign-owned companies registered in Mozambique can bypass this residency requirement and apply immediately.
What documents will I need to buy in Mozambique?
The essential documents a US citizen needs to purchase property in Mozambique include a valid passport, a notarized power of attorney if buying remotely, a Mozambican tax ID (NUIT), the notarized sales agreement, proof of funds, and a tax clearance certificate showing no outstanding obligations.
Yes, a Mozambican tax identification number called NUIT (Numero Unico de Identificacao Tributaria) is required for foreign buyers because you need it to pay the SISA transfer tax and complete the property registration, and you can apply for it through the Autoridade Tributaria de Mocambique with assistance from your local lawyer.
A local bank account is not legally mandatory to complete a property purchase in Mozambique, but it is extremely common in practice because you will need it to pay local taxes, transfer funds to sellers, and manage ongoing property-related expenses.
Proof of funds is typically required by sellers and lawyers to confirm you can complete the transaction, and while a local address is not strictly mandatory, your lawyer will usually set up a service address in Mozambique for receiving official notices and correspondence.
We have a whole section dedicated to all the documents you need in our Mozambique property pack.
Can a foreign-owned company buy property in Mozambique?
Yes, foreign-owned companies that are registered or incorporated in Mozambique can legally purchase residential property and hold DUAT land-use rights, and this structure allows foreigners to bypass the five-year residency requirement that applies to individual foreign applicants seeking new DUAT grants.
Some Americans do use Mozambican company structures to hold property, particularly when co-owning with partners, planning for succession, or operating rental businesses, though the most typical entity is a Limitada (Lda), which is similar to a US limited liability company.
Owning property through a company structure does not automatically lower taxes in Mozambique because companies face different treatment on rental income, capital gains, accounting obligations, and ongoing compliance costs that can outweigh the benefits for a single residential unit used as a personal home.
The main drawback of using company ownership for residential property in Mozambique is the added complexity and cost of maintaining a registered company, including annual accounting requirements, corporate tax filings, and the need for local directors or registered agents.
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What taxes and fees will I pay in Mozambique in 2026?
What are buyer taxes in Mozambique in 2026?
As of early 2026, the total buyer tax on a property purchase in Mozambique is typically around 2% to 2.5% of the purchase price, which on a $100,000 property (about 6,400,000 MZN or 92,000 EUR) would mean roughly $2,000 to $2,500 in taxes alone.
The main tax component is SISA (property transfer tax) at 2% of the property value for residents, plus stamp duty (Imposto do Selo) at 0.2% on the transfer, and these taxes must be paid before the property can be registered in your name.
Buyer tax rates can differ for foreigners in certain situations, with SISA potentially increasing to 10% if the buyer lives in a country classified as having a privileged tax regime, though standard US residents typically pay the normal 2% rate, and there is no distinction between primary residences and investment properties for SISA purposes.
If you want to go into more details, we also have a page detailing all the property taxes and fees in Mozambique.
What are other closing costs in Mozambique in 2026?
As of early 2026, the total closing costs excluding taxes that a buyer should budget for in Mozambique is around 4% to 6% of the purchase price, which on a $100,000 property (about 6,400,000 MZN or 92,000 EUR) means roughly $4,000 to $6,000 in additional fees.
The main closing cost categories in Mozambique include notary and public deed fees at around 1% to 2% of the property value ($1,000 to $2,000 on a $100,000 property), Land Registry registration fees at roughly 0.5% to 1%, and legal fees typically around 1% to 2% depending on complexity.
Legal fees are somewhat negotiable depending on the scope of work and the complexity of your transaction, and real estate agent commissions are typically paid by the seller in Mozambique, though you should confirm this in any specific deal.
The closing cost item that tends to surprise foreign buyers the most in Mozambique is the cost and time required for DUAT verification and registry cleanup, especially when properties have incomplete documentation or overlapping claims that require additional legal work to resolve.
Are there hidden fees foreigners miss in Mozambique right now?
The estimated total of commonly overlooked fees foreign buyers encounter in Mozambique typically ranges from $1,500 to $4,000 (about 100,000 to 250,000 MZN or 1,400 to 3,700 EUR), depending on the complexity of the property's documentation and DUAT status.
The top three hidden fees that foreign buyers most often fail to budget for in Mozambique are registry cleanup costs when DUAT documentation is incomplete ($500 to $2,000), power of attorney fees and document apostille/translation costs ($300 to $800), and unexpected municipal fees or administrative charges during registration ($200 to $500).
Ongoing annual costs that foreign property owners often underestimate after purchase in Mozambique include the annual property tax IPRA at 0.4% of the assessed value (roughly $400 per year on a $100,000 property or 25,500 MZN), property management fees if you are an absentee owner, and maintenance reserves for tropical climate wear and security systems.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in Mozambique.
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.
Can I get a mortgage as a US citizen in Mozambique in 2026?
Do banks lend to US citizens in Mozambique in 2026?
As of early 2026, some banks in Mozambique do offer mortgage financing to foreigners including US citizens, but approval is significantly harder than for local salaried borrowers, and most international buyers end up purchasing with cash due to the high interest rates and strict requirements.
US citizens do not receive better treatment than other foreign nationals when applying for mortgages in Mozambique, and in fact, American applicants can face additional scrutiny due to FATCA compliance requirements that some banks find burdensome to manage.
The main reason some banks in Mozambique are hesitant to lend to American borrowers specifically is the US government's FATCA reporting requirements, which create extra compliance work for foreign financial institutions and lead some to avoid US clients altogether.
The typical approval rate for US citizens applying for property loans in Mozambique is quite low, with most successful applicants having either local income sources, an existing banking relationship in Mozambique, or residency status that demonstrates commitment to the country.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in Mozambique.
What down payment do American people need in Mozambique in 2026?
As of early 2026, the realistic minimum down payment for US citizens seeking a mortgage in Mozambique is around 30% to 50% of the property value, which on a $100,000 property (about 6,400,000 MZN or 92,000 EUR) means putting down $30,000 to $50,000 upfront.
The typical down payment range for foreign buyers in Mozambique goes from a minimum of around 15% at some banks for the most qualified applicants with local income, up to 50% or more for non-resident foreigners with offshore income who represent higher risk.
Yes, a larger down payment does improve your mortgage terms in Mozambique, as banks view higher equity as reducing their risk exposure, which can translate to slightly better interest rates and more favorable loan conditions.
You can also read our latest update about mortgage and interest rates in Mozambique.
What interest rates do US citizens get in Mozambique in 2026?
As of early 2026, the typical mortgage interest rate for US citizens in Mozambique ranges from 18% to 26% per year on loans denominated in Mozambican meticais, which is why most international buyers choose to pay cash rather than finance locally.
Interest rates for foreign buyers in Mozambique are generally similar to or slightly higher than rates offered to local residents, as banks apply a prime rate plus spread model where the spread reflects the borrower's risk profile, and foreigners often fall into higher-risk categories.
Most mortgages offered to foreign buyers in Mozambique are variable-rate loans tied to the bank's prime rate, with typical terms of 15 to 20 years, though some banks offer shorter terms for non-resident borrowers.
The single factor that has the biggest impact on the interest rate a US citizen will be offered in Mozambique is whether you have local income and an existing banking relationship with the lending institution, as these factors dramatically reduce the perceived risk compared to offshore-only income.
Can I use US income to qualify in Mozambique right now?
Some banks in Mozambique will accept US-sourced income for mortgage qualification, but this is evaluated case-by-case and typically requires extensive documentation, with banks often applying a discount to offshore income or requiring higher down payments to compensate for the added risk.
Banks in Mozambique typically require American applicants to provide two to three years of US tax returns, recent bank statements showing income deposits, employment letters or business documentation, and sometimes notarized or apostilled copies of all documents translated into Portuguese.
If standard US documentation is insufficient, some banks may accept alternative verification such as accountant letters confirming income, proof of assets that could serve as additional security, or a co-borrower with local Mozambican income who can strengthen the application.
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How do US taxes interact with owning property in Mozambique?
Do I have to declare the property to the IRS from Mozambique?
Owning foreign real estate in Mozambique does not by itself require filing a specific IRS form, but any rental income you earn or capital gains when you sell must be reported on your US tax return because the United States taxes citizens on their worldwide income regardless of where it is earned.
The main IRS reporting trap for US citizens owning property in Mozambique involves the bank accounts used for the purchase and any rental income, as foreign financial accounts exceeding $10,000 at any point during the year trigger FBAR reporting requirements with FinCEN.
Simply owning property in Mozambique does not trigger annual IRS reporting beyond your normal tax return, but once you start earning rental income, sell the property for a gain, or hold foreign financial accounts connected to the property, specific reporting obligations kick in.
Will I pay tax twice in the US and Mozambique in 2026?
As of early 2026, you can be exposed to tax in both Mozambique and the United States on rental income or capital gains from your property, but you often avoid full double taxation through the US Foreign Tax Credit, which allows you to offset taxes paid to Mozambique against your US tax liability.
The United States does not currently have an income tax treaty with Mozambique, so you cannot rely on treaty-based relief to reduce withholding rates or resolve double taxation issues, meaning the Foreign Tax Credit mechanism becomes your primary tool for avoiding paying tax twice on the same income.
The Foreign Tax Credit works by allowing you to claim a dollar-for-dollar credit on your US tax return for income taxes you paid to Mozambique, subject to limitations based on your foreign source income, which effectively means you pay the higher of the two countries' tax rates rather than both combined.
Property taxes (like IPRA) paid in Mozambique may be deductible on your US federal tax return under SALT provisions, but US rules and limits change frequently and depend on your specific filing situation, so this is definitely territory where consulting a CPA makes sense.
Do I need FATCA reporting when buying in Mozambique?
FATCA reporting is typically triggered by the foreign financial accounts you use to purchase and manage property in Mozambique rather than by the real estate itself, so if you open a Mozambican bank account to handle the transaction or rental income, you may have FATCA obligations.
FATCA reporting via Form 8938 is required when your specified foreign financial assets exceed $50,000 at year-end (or $75,000 at any point during the year) for single filers living in the US, with higher thresholds of $200,000 and $300,000 for those living abroad.
FATCA (Form 8938) and FBAR (FinCEN Form 114) are separate reporting requirements with different thresholds, filing locations, and penalties, and many US citizens with Mozambican bank accounts must file both forms, so do not assume filing one satisfies the other.
Yes, consulting a US CPA before buying property in Mozambique is strongly recommended, particularly one experienced with expat and foreign asset reporting, and you should specifically ask about FBAR thresholds, Form 8938 requirements, rental income reporting, and how to properly document foreign tax payments for credit purposes.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Mozambique. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Mozambique, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Banco de Mocambique (Central Bank) | It's Mozambique's central bank and the definitive source for interest rate benchmarks. | We used it to anchor what normal interest rates look like in early 2026. We also used its market documents to frame realistic mortgage rate ranges for foreigners. |
| World Bank Land Governance Note | The World Bank is a top-tier international institution with widely cited land studies. | We used it to explain how DUAT and registry processes work in practice. We also used it to highlight friction points that foreigners often underestimate. |
| Land Law (Law 19/97) English Text | It provides the actual legal text in English for non-Portuguese readers. | We used it to explain the state land ownership and DUAT system in plain English. We also used it to frame what foreigners can and cannot legally own. |
| PwC Mozambique Tax Summaries | PwC is a major global tax publisher with standardized and regularly updated summaries. | We used it to confirm the SISA transfer tax rate and structure. We also cross-checked it against local law firm summaries for consistency. |
| IRS FBAR Overview | It's official IRS guidance on FBAR obligations and thresholds for US citizens. | We used it to explain when a Mozambican bank account triggers US reporting. We kept the FATCA and FBAR section accurate and low-jargon. |
| IRS Tax Treaties A-Z | It's the IRS's official treaty list, definitive for checking if a treaty exists. | We used it to verify whether the US has an income tax treaty with Mozambique. We framed double-taxation planning around credits versus treaty relief. |
| UN DESA International Migrant Stock | UN DESA is the standard global source for cross-country migrant estimates. | We used it to ground the Americans in Mozambique estimate in an authoritative framework. We also used it to explain why any count is necessarily an estimate. |
| Autoridade Tributaria de Mocambique | It's Mozambique's tax authority and the most official source for stamp duty guidance. | We used it to confirm stamp duty applies to property transfers. We also supported our closing explanation that stamp duty is paid at closing. |
| Absa Mocambique Home Loans | Absa is a major bank in Mozambique with published mortgage product details. | We used it to verify current interest rates (22%) and minimum deposit requirements (15%). We also used it to identify which banks have foreigner-accessible processes. |
| DLA Piper Africa Legal Analysis | DLA Piper is a reputable international law firm with Mozambique expertise. | We used it to explain the legal validity requirements for property transfers. We also used it to emphasize why public deed and registry formality matters. |
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