Authored by the expert who managed and guided the team behind the Tanzania Property Pack
Everything you need to know before buying real estate is included in our Republic of the Congo Property Pack
Zanzibar has become one of East Africa's most attractive destinations for foreign property buyers, offering beachfront villas, Stone Town apartments, and modern developments across its stunning coastline.
In this guide, we explain exactly what foreigners can and cannot buy in Zanzibar in 2026, how ownership actually works, and what costs you should expect.
We constantly update this blog post to reflect the latest rules, prices, and practical realities of buying property in Zanzibar as a foreigner.
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 Zanzibar.
Insights
- Foreigners cannot own freehold land in Zanzibar because all land is legally public property, so buyers receive long-term registered interests (typically 33, 66, or 99 years) rather than permanent ownership.
- Annual property tax in Zanzibar runs at just 0.1% of assessed value, meaning a $200,000 home costs roughly $200 per year in property tax, making Zanzibar one of the lowest-tax property markets in East Africa.
- Closing costs for property purchases in Zanzibar typically range from 6% to 10% of the purchase price, with stamp duty and registration fees making up the largest share.
- Foreign mortgage rates in Zanzibar in 2026 sit between 12% and 18% per year for Tanzanian shilling loans, while USD mortgages (where available) range from 8% to 12%.
- The biggest mistake foreign buyers make in Zanzibar is paying deposits on properties with unclear registration status, which can leave them with no legal recourse if problems arise.
- Buying property in Zanzibar does not automatically grant residency, though investment-linked residence permits are available through the Zanzibar Investment Promotion Authority (ZIPA) pathway.
- Foreign rental income in Zanzibar is subject to withholding tax at source, so owners should budget around 10% of gross rent for immediate tax collection, with total effective rates potentially reaching 15% to 30%.
- Bank lending to foreigners in Zanzibar is selective, with diaspora-focused products from banks like CRDB, Absa, and NMB being the most accessible options for non-resident buyers.
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
What can I legally buy and truly own as a foreigner in Zanzibar?
What property types can foreigners legally buy in Zanzibar right now?
Foreigners can legally buy apartments, villas, houses, townhouses, and serviced apartment units in Zanzibar, though they receive a registered long-term interest rather than outright freehold ownership.
The single most important limitation is that all land in Zanzibar is public land, so foreign buyers get a registrable right of occupancy or lease (often for 33, 66, or 99 years) instead of permanent land ownership.
For condos and apartments in approved developments, you typically own the unit itself as a registered property interest while the land remains under Zanzibar's public land framework, which still gives you enforceable and transferable rights.
For villas and standalone houses in Zanzibar, your ownership is structured as a long-term leasehold-style interest that must be properly registered with the land registry to be legally protected.
Finally, please note that our pack about the property market in Zanzibar is specifically tailored to foreigners.
Can I own land in my own name in Zanzibar right now?
No, foreigners cannot own land as freehold property in their own name in Zanzibar because all land is legally classified as public land vested in the state.
The legal alternative that foreigners use in Zanzibar is a registered right of occupancy or long-term lease, which gives you enforceable rights to use and develop the land for the duration of your registered interest (commonly 33, 66, or 99 years).
Some foreigners try to use local "nominee" arrangements where a Tanzanian citizen holds the land on their behalf, but this approach is risky because it weakens your legal position if any dispute arises and is generally discouraged by property lawyers in Zanzibar.
By the way, we cover everything there is to know about the land buying process in Zanzibar here.
As of 2026, what other key foreign-ownership rules or limits should I know in Zanzibar?
As of January 2026, the most important rule affecting foreign buyers in Zanzibar is that your property interest must be properly registered to be legally enforceable, and registration can be blocked if you have not completed required tax compliance steps like stamp duty payment.
Zanzibar does not have a foreign ownership quota system for apartments or condos like some countries do, so there is no cap on how many units in a building can be sold to foreigners.
Foreign buyers typically need to complete stamp duty payment and obtain tax clearance from the Zanzibar Revenue Authority before their transfer documents can be accepted for registration at the land registry.
There are no major regulatory changes announced for 2026 that would alter the basic framework, though buyers should always verify current requirements since procedures can be updated administratively.
What's the biggest ownership mistake foreigners make in Zanzibar right now?
The biggest ownership mistake foreigners make in Zanzibar is paying a large deposit on a property whose underlying land or unit interest is not cleanly registrable, hoping to "fix the paperwork later."
If you make this mistake, the likely consequence is that you end up with no legal protection for your investment because unregistered interests are very difficult to enforce in disputes, and you may lose both your deposit and any ability to recover it.
Other classic pitfalls in Zanzibar include using informal nominee arrangements with local citizens, buying properties with unclear boundary surveys, purchasing in areas with unresolved planning or zoning issues, and failing to verify that the seller actually has authority to sell.
We have made this infographic to give you a quick and clear snapshot of the property market in Tanzania. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Zanzibar?
Do I need a specific visa to buy property in Zanzibar right now?
You do not need a specific visa to buy property in Zanzibar, and you can start the purchase process (viewings, negotiations, signing preliminary documents) while on a tourist visa, though completing registration and long-term presence typically requires more appropriate status.
The most common administrative hurdle for buyers without local residency in Zanzibar is completing the tax registration and clearance steps required before your transfer documents can be accepted for registration.
In practice, you should expect to need some form of tax identification or clearance during the stamping and registration process in Zanzibar, even if there is no single upfront "get a TIN first" requirement.
Foreign buyers in Zanzibar typically need to present a valid passport, proof of funds, the signed sale agreement, evidence of stamp duty payment, and any required ZIPA documentation if the purchase is through an approved investment project.
Does buying property help me get residency and citizenship in Zanzibar in 2026?
As of January 2026, buying property in Zanzibar does not automatically grant you residency or citizenship, though investment-linked residence permits are available through channels like the Zanzibar Investment Promotion Authority (ZIPA).
Zanzibar is sometimes marketed as having a "Golden Visa," but the reality is that residence permits are available through recognized investment routes rather than simply from purchasing any property.
For citizenship, there is no direct property-to-passport pathway in Zanzibar since citizenship is governed by national Tanzanian law, and anyone promising "guaranteed citizenship through property purchase" should be treated as a red flag.
Can I legally rent out property on my visa in Zanzibar right now?
Your visa status does not directly prevent you from renting out property in Zanzibar, but you will be taxed on rental income as Tanzanian-source income regardless of where you live or what visa you hold.
You do not need to live in Zanzibar to rent out your property, and many foreign owners manage their rentals remotely through local property managers or agents.
Foreign owners renting out property in Zanzibar must be aware that rental income may be subject to withholding tax collected at source, and if you operate a villa with hotel-like services (nightly rentals, meals, cleaning), you may drift into regulated tourism territory requiring additional permits.
We cover everything there is to know about buying and renting out in Zanzibar here.
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How does the buying process actually work step-by-step in Zanzibar?
What are the exact steps to buy property in Zanzibar right now?
The standard sequence to buy property in Zanzibar is: choose your ownership structure, make an offer with a term sheet, conduct due diligence on title and planning compliance, sign the sale agreement with conditions, pay stamp duty and obtain tax clearances, register your interest at the land registry, and then handle post-completion tasks like utilities and insurance.
You do not need to be physically present for every step in Zanzibar because many buyers use a properly executed power of attorney for signing and filing, though first-time buyers often prefer to attend key moments like viewing, signing, and handover in person.
The step that makes the deal legally binding in Zanzibar is typically the signing of the sale agreement, but your rights only become fully enforceable once your interest is registered at the land registry.
The typical timeline from accepted offer to final registration in Zanzibar ranges from 4 to 12 weeks for a clean transaction, though complications with title, approvals, or tax clearances can extend this significantly.
We have a document entirely dedicated to the whole buying process our pack about properties in Zanzibar.
Is it mandatory to get a lawyer or a notary to buy a property in Zanzibar right now?
Using a lawyer is not strictly mandatory by law in Zanzibar, but it is practically essential for foreign buyers because the consequences of a bad title or failed registration are expensive and difficult to reverse.
Zanzibar does not have the same notary system as some European countries, so lawyers handle the functions that notaries would perform elsewhere, including document drafting, verification, and ensuring proper execution.
Your lawyer's engagement scope for a Zanzibar property purchase should explicitly include conducting a registry search, verifying the seller's identity and authority to sell, reviewing planning compliance, handling stamp duty and registration filings, and holding funds in escrow until conditions are met.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Tanzania 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 checks should I run so I don't buy a problem property in Zanzibar?
How do I verify title and ownership history in Zanzibar right now?
The official authority to verify title and ownership history in Zanzibar is the Land Registry, where you (or your lawyer) can request an official search or office copy extract for the specific parcel or unit you are considering.
The key document to request is the registry extract showing the current registered proprietor, the exact description of the parcel or unit, and any recorded interests or encumbrances against it.
A realistic look-back period for ownership history checks in Zanzibar is at least 10 to 15 years, which helps you identify any irregular transfers, disputes, or claims that might affect your purchase.
A clear red-flag finding that should stop or pause your purchase in Zanzibar is discovering unrecorded or informal transfers in the chain, multiple claims to the same parcel, or any caveat, restriction, or pending litigation noted on the registry extract.
You will find here the list of classic mistakes people make when buying a property in Zanzibar.
How do I confirm there are no liens in Zanzibar right now?
The standard way to confirm there are no liens or encumbrances on a property in Zanzibar is to run an official registry search and specifically look for any registered charges, mortgages, caveats, or restrictions recorded against the parcel or unit.
The most common type of lien that buyers should specifically ask about in Zanzibar is a registered mortgage or charge from a bank, as properties sometimes remain encumbered from previous financing that was never formally discharged.
The best form of written proof showing lien status in Zanzibar is an up-to-date registry extract that either shows no encumbrances or, if there is a mortgage, a formal discharge document from the lender confirming the debt has been cleared.
How do I check zoning and permitted use in Zanzibar right now?
The authority to check zoning and permitted use for a property in Zanzibar is the relevant planning department, which administers the Town and Country Planning Act and maintains zoning maps and development permits.
The document that confirms zoning classification in Zanzibar is typically a planning certificate or zoning confirmation letter from the planning authority, along with any development permits or approvals issued for the specific property.
A common zoning pitfall that foreign buyers frequently miss in Zanzibar is purchasing beachfront or coastal property assuming it can be developed as-is, when in reality coastal areas often have stricter setbacks, environmental constraints, and permit requirements that limit what you can actually build.
Buying real estate in Zanzibar can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Zanzibar, and on what terms?
Do banks lend to foreigners for homes in Zanzibar in 2026?
As of January 2026, yes, some banks in Tanzania do lend to foreigners for homes in Zanzibar, but the market is selective and most foreigner-friendly products are aimed at Tanzanian diaspora rather than pure non-residents with no local ties.
The realistic loan-to-value (LTV) range that foreign borrowers typically see in Zanzibar is 50% to 70%, meaning you should plan to bring a down payment of at least 30% to 50% of the purchase price.
The most common eligibility requirement that determines whether a foreigner qualifies for a mortgage in Zanzibar is having documentable income that the bank can verify, whether that comes from local employment, a local business, or a structured diaspora banking relationship.
You can also read our latest update about mortgage and interest rates in Tanzania.
Which banks are most foreigner-friendly in Zanzibar in 2026?
As of January 2026, the most foreigner-friendly banks for mortgages in Zanzibar are Absa Tanzania, CRDB Bank, and NMB Bank, all of which have diaspora-oriented mortgage products and experience handling non-local documentation.
What makes these banks more foreigner-friendly in Zanzibar is that they have dedicated diaspora banking units or explicit mortgage products for Tanzanians living abroad, which means their systems are set up to process foreign income verification and cross-border customers.
These banks will generally lend to non-residents who fit their diaspora criteria (typically Tanzanian citizens or those with strong Tanzanian ties), but pure foreign nationals with no local connection will face stricter screening or may be pushed toward cash purchases.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Zanzibar.
What mortgage rates are foreigners offered in Zanzibar in 2026?
As of January 2026, foreign borrowers in Zanzibar typically see mortgage interest rates between 12% and 18% per year for Tanzanian shilling loans, with most strong profiles landing in the 14% to 16% range, while USD mortgages (where available) range from 8% to 12%.
Most mortgages in Tanzania are offered on a variable-rate basis tied to bank reference rates, and fixed-rate options are less common and typically carry a premium of 1% to 2% above variable rates when they are available.
We made this infographic to show you how property prices in Tanzania compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in Zanzibar?
What are the total closing costs as a percent in Zanzibar in 2026?
The typical total closing cost for a property purchase in Zanzibar in 2026 is around 6% to 10% of the purchase price for a standard residential transaction.
The realistic range covering most transactions is 6% on the low end (for a clean, straightforward purchase) up to 10% or more if there are complications with title, approvals, or if you are financing through a bank.
The specific fee categories that make up total closing costs in Zanzibar include stamp duty and registration-related taxes (2% to 5%), legal fees (1% to 2%), valuation and survey fees (0.5% to 1.5%), and agent commissions (varies, often seller-paid).
The single biggest contributor to closing costs in Zanzibar is usually stamp duty and related statutory fees, which can account for half or more of your total transaction costs.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Zanzibar.
What annual property tax should I budget in Zanzibar in 2026?
As of January 2026, the annual property tax for a standard owner-occupied home in Zanzibar is 0.1% of the property's assessed value, so a home valued at $200,000 would cost roughly $200 per year (around 500,000 TZS or 185 EUR at current rates), plus any separate service charges in managed developments.
Annual property tax in Zanzibar is assessed as a percentage of the property's value rather than a fixed schedule, making it straightforward to calculate once you know your property's assessed valuation.
How is rental income taxed for foreigners in Zanzibar in 2026?
As of January 2026, foreign owners should budget around 10% of gross rent as an immediate cash-flow hit through withholding tax collected at source, with total effective tax on net rental profit potentially reaching 15% to 30% depending on deductibility, structure, and filing position.
The basic requirement for foreign owners in Zanzibar is that rental income is treated as Tanzanian-source income and may be subject to withholding tax mechanisms, meaning tax can be collected before you receive the funds, and you may also need to file returns to finalize your position.
What insurance is common and how much in Zanzibar in 2026?
As of January 2026, the typical annual insurance premium for a standard home policy in Zanzibar ranges from 0.15% to 0.6% of property value, meaning a $200,000 home would cost roughly $300 to $1,200 per year (750,000 to 3,000,000 TZS or 280 to 1,100 EUR).
The most common type of property insurance coverage that owners carry in Zanzibar is building insurance covering fire and perils, often bundled with contents insurance if the property is furnished for rental.
The biggest factor that makes insurance premiums higher or lower in Zanzibar is location and exposure, with beachfront and coastal properties typically paying more due to weather risks, while properties in managed developments with security features may get better rates.
Get the full checklist for your due diligence in Zanzibar
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
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 Zanzibar, 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 |
|---|---|---|
| Zanzibar Land Tenure Act | Primary statute explaining how land rights work in Zanzibar. | We used it to anchor the "no freehold ownership" point and describe what foreigners actually get. We also used its definitions to keep legal terms consistent. |
| Land Tenure Amendment Act 2010 | Official Zanzibar House of Representatives act updating land tenure. | We used it to confirm the post-2010 legal architecture and ZIPA's role. We avoided relying on market lore about what changed. |
| Zanzibar Registered Land Act | Official statute governing land registration and recorded interests. | We used it to explain title verification and due diligence steps. We structured our checklist based on what the registry requires. |
| Town and Country Planning Act | Government-hosted copy of the planning statute used by regulators. | We used it to explain zoning and coastal development constraints. We kept zoning advice specific to Zanzibar rather than generic. |
| Zanzibar Investment Promotion Authority (ZIPA) | Official government body certifying approved investment projects. | We used it to explain when foreigners need the "approved project" pathway. We connected property choices with residence permit processes. |
| Zanzibar eRegulations | Official procedural portal consolidating requirements and legal references. | We used it to describe step-by-step permit and registration processes. We grounded visa section content in its legal references. |
| Tanzania Immigration e-Services | Official government portal describing permit application routes. | We used it to confirm where and how residence permits can be applied for. We avoided over-claiming "golden visa" marketing language. |
| Zanzibar Revenue Authority (ZRA) | Official tax authority for Zanzibar's non-union taxes and levies. | We used it to ground closing-cost components and stamp duty requirements. We explained why tax clearance can block registration. |
| Zanzibar Stamp Duty Act (consolidated 2023) | Consolidated version of the governing act from the revenue authority. | We used it to identify chargeable instruments and stamping timing. We kept fee discussion tied to law rather than anecdotes. |
| Zanzibar Property Tax Act (No. 14 of 2008) | Statutory basis for annual property tax rates in Zanzibar. | We used it to give a confident annual property tax estimate. We separated property tax from other charges like land rent. |
| Bank of Tanzania Mortgage Market Update | Central bank's official reporting on mortgage market size and lenders. | We used it to support whether banks lend for homes and justify rate ranges. We grounded estimates in observed banking context. |
| CRDB Bank Diaspora Mortgage | Primary source from a major bank describing mortgage eligibility. | We used it to show what "foreigner-friendly" means in practice. We informed mortgage document expectations from their requirements. |
| NMB Bank Mortgage | Primary source from a major bank explicitly including diaspora citizens. | We used it to support that mainstream banks offer mortgages to diaspora. We triangulated typical borrower profiles banks prefer. |
| Absa Tanzania Home Loan | Primary bank source listing fees and eligibility including diaspora. | We used it to quantify insurance costs bundled with mortgages. We estimated realistic bank fees and down payment requirements. |
| PwC Worldwide Tax Summaries - Tanzania | Reputable global tax reference summarizing resident vs non-resident rules. | We used it to frame rental income taxation for non-residents. We cross-checked against local guidance for accuracy. |
| Zanzibar Insurance Corporation | Local insurer confirming standard home insurance availability. | We used it to verify that home insurance is a standard product locally. We triangulated with bank insurance requirements. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Tanzania. 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.
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