Buying and owning property in Zanzibar as a foreigner

Last updated on September 1, 2025

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

Foreigners can legally buy property in Zanzibar only through long-term leasehold arrangements, not freehold ownership. Lease terms typically range from 33 to 99 years and are subject to renewal, while properties worth $100,000+ can qualify buyers for renewable residence permits through the ZIPA investment program.

Zanzibar's property market offers beachfront land from $20-120 per square meter as of September 2025, with rental yields reaching 7-12% in popular tourist areas like Nungwi and Stone Town.

If you want to go deeper, you can check our pack of documents related to the real estate market in Tanzania, based on reliable facts and data, not opinions or rumors.

Quick Summary:

Foreigners can purchase leasehold properties in Zanzibar for 33-99 year terms, with mandatory government approvals and 5% stamp duty.

Properties worth $100,000+ qualify for renewable residence permits, while beachfront areas offer the strongest rental yields of 7-12%.

Aspect	Foreigners	Locals	Requirements/Notes
Property Ownership	Leasehold only (33-99 years)	Freehold via Right of Occupancy	Government approval required
Property Types	Homes, condos, commercial	All property types	No agricultural/military areas
Purchase Costs	9-14% total fees	Similar fees	5% stamp duty + legal costs
Residence Permit	$100k+ investment via ZIPA	Not applicable	2-year renewable permit
Remote Purchase	Possible via power of attorney	Usually in person	Physical presence advisable
Mortgage Access	Very limited	More available	Cash purchases preferred
Rental Yields	7-12% in tourist areas	Same yields	Higher in beachfront locations

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 Zanzibar. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At TheAfricanVestor, we explore the Zanzibar 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 areas like Stone Town, Nungwi, and Kendwa. 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

✓✓✓

Grace Makoye 🇹🇿

Manager of Operations, Zinza Real Estate

Grace Makoye knows Zanzibar's real estate inside out. As Manager of Operations at Zinza Real Estate, she connects clients with top beachfront homes and commercial spaces. Looking to invest on the island? She'll guide you every step of the way.

What property types can foreigners legally buy in Zanzibar versus locals?

Foreigners can legally purchase private homes, condominiums, apartments, and commercial properties in Zanzibar through leasehold arrangements only.

The key difference is that foreigners cannot own freehold land - they can only acquire leasehold interests for terms of 33, 66, or 99 years. Local Zanzibaris have access to a "Right of Occupancy" which provides stronger ownership rights similar to freehold, while Tanzanian nationals from the mainland face the same leasehold restrictions as foreigners.

Both locals and foreigners can purchase condominium units with government approval, but foreigners are completely prohibited from acquiring agricultural land, village land, or properties near military installations. As of September 2025, all foreign property acquisitions require approval from the Zanzibar Investment Promotion Authority (ZIPA).

Commercial properties including retail spaces, offices, and hospitality developments are available to foreigners under the same leasehold terms, making them attractive for business-minded investors.

The leasehold system provides security of tenure with inheritance and transfer rights, making it a practical ownership alternative despite not being true freehold.

What are the restrictions on land ownership and lease duration for foreigners?

Foreigners face complete prohibition from freehold land ownership in Zanzibar and must work exclusively within the leasehold system.

Standard lease terms are structured as 33, 66, or 99-year periods, with the 99-year option being most popular for residential properties. These leases are renewable subject to government approval, compliance with lease terms, and payment of required renewal fees.

The leases are inheritable and transferable, providing substantial security for long-term investment planning. Lease renewal applications should be submitted well before expiration - typically 2-3 years in advance to ensure continuity.

Restricted areas include agricultural zones, village lands designated for local communities, and buffer zones around military or government installations. Beachfront properties often have additional environmental compliance requirements.

Ground rent is payable annually to the government, with rates varying by location and property type, typically ranging from $50-500 per year depending on the property's value and location.

What residency or visa requirements apply for property ownership in Zanzibar?

Foreign property buyers can qualify for a renewable residence permit through ZIPA's investment program by purchasing property worth $100,000 or more.

This residence permit extends automatically to the buyer's spouse and up to two children under 18 years old. The permit must be renewed every two years and remains valid for the duration of property ownership.

Physical residence in Zanzibar is not required to maintain the permit - it's purely an investment-based visa tied to property ownership. The permit allows multiple entries and exits from Tanzania.

Properties must be in ZIPA-approved developments or meet specific investment criteria to qualify for the residence permit. Not all property purchases automatically qualify - the investment must meet government guidelines.

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

Can property purchases be completed remotely or is physical presence required?

Property purchases in Zanzibar can be handled remotely through power of attorney arrangements, though physical presence is strongly recommended.

Purchase Stage	Remote Possible	Physical Presence Recommended
Property Search & Selection	Yes, via online listings	Yes, for proper inspection
Initial Negotiations	Yes, through local agent	Preferred for direct communication
Due Diligence Review	Yes, through lawyer	Advisable for document verification
Contract Signing	Via power of attorney	Required for witnessing
Banking & Payments	Limited remote options	Usually required for account setup
Government Registration	Through representative	Often required for verification
Final Property Transfer	Possible with POA	Recommended for completion

Banking procedures often require in-person verification for large transactions, and government offices may request buyer presence for identity confirmation during the registration process.

The power of attorney must be notarized and legalized in your home country, then authenticated by the Tanzanian embassy or consulate before use in Zanzibar.

What is the step-by-step property buying process and required documents?

The Zanzibar property purchase process involves eight essential steps that typically take 3-6 months to complete.

1. **Property identification and negotiation** - Work with a licensed local real estate agent to find suitable properties and negotiate purchase terms2. **Legal representation engagement** - Hire a qualified lawyer for due diligence including title searches, property verification, and legal compliance checks3. **Sale and purchase agreement signing** - Execute the formal contract with proper witnessing and initial registration with relevant authorities4. **Property survey and beacon placement** - Conduct official land survey to confirm boundaries and place government-approved boundary markers5. **Government approvals acquisition** - Obtain ZIPA certificate of no objection for foreign buyers, plus any additional permits required6. **Fee payments and stamp duty** - Pay 5% stamp duty, registration fees, legal costs, and other associated charges7. **Lease registration and title transfer** - Complete formal registration of leasehold interest and obtain official lease certificate8. **Residence permit application** - Apply for investment-based residence permit if property qualifies under ZIPA guidelines**Essential documents required:**- Registered sale-purchase agreement- ZIPA certificate of no objection - Official lease certificate/title deed- Beacon placement and survey certificate- Stamp duty and fee payment receipts- Passport and visa documentation- Proof of funds and bank statements

Is hiring a lawyer or notary mandatory and what do they do?

While not legally mandated, hiring a lawyer is essential for foreign property buyers in Zanzibar to avoid fraud and ensure proper legal compliance.

Lawyers perform critical due diligence including title searches to verify clear ownership, checking for any liens or encumbrances, and confirming the seller's legal right to transfer the property. They also verify that all government approvals are in place and the property complies with zoning regulations.

Legal professionals draft and review purchase contracts, ensuring all terms protect the buyer's interests and comply with Zanzibar property laws. They handle all government submissions including ZIPA applications and registration procedures.

Experienced property lawyers maintain relationships with government offices, expediting the approval process and navigating bureaucratic requirements efficiently. They also coordinate with surveyors, banks, and other professionals required for the transaction.

Legal fees typically range from 1-3% of the property value, which is a worthwhile investment considering the complexity of Zanzibar's property laws and the risk of fraud in the market.

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What taxes, fees, and costs should I expect when buying and owning property?

Total property acquisition costs in Zanzibar typically range from 9-14% of the purchase price when including all mandatory fees and professional services.

**Purchase costs breakdown:**- Stamp duty: 5% of purchase price (mandatory government tax)- Legal fees: 1-3% of purchase price- Registration fees: approximately 0.25% of purchase price - Real estate agent commission: 5-10% of purchase price- Property valuation fee: 0.1% of purchase price- Survey and beacon placement: $500-2,000 depending on property size- Transfer tax: 1% in some cases**Ongoing ownership costs:**- Annual ground rent: $50-500 per year depending on location and property value- Property insurance: 0.1-0.3% of property value annually- Property management: 5-10% of rental income if using professional services- Maintenance and repairs: budget 1-2% of property value annually**Resale costs:**- Capital gains tax: varies based on holding period and profit margins- Legal fees for transfer: 1-2% of sale price- Real estate commission: 5-8% of sale price

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

Are mortgages available for foreigners and what are the conditions?

Mortgage financing for foreigners in Zanzibar is extremely limited, with most international buyers required to make cash purchases.

The few banks offering foreign mortgages typically require 50-70% down payments, significantly higher than domestic lending standards. Interest rates range from 8-15% annually, substantially above international mortgage markets.

Loan terms are usually limited to 10-15 years maximum, and properties must be in recognized developments with clear title documentation. Banks typically require proof of international income, substantial liquid assets, and may request guarantees from international financial institutions.

**Tips for mortgage approval:**- Establish banking relationships in Tanzania before property shopping- Focus on properties in ZIPA-approved developments with strong legal documentation- Maintain substantial liquid assets beyond the required down payment- Consider financing through international banks with Tanzania operations- Explore developer financing options for new construction projects

Most successful foreign buyers arrange international financing secured against assets in their home countries, then purchase Zanzibar properties with cash transfers.

How do property prices vary across different areas of Zanzibar?

Property prices in Zanzibar vary significantly based on location, with beachfront areas commanding premium rates of $20-120 per square meter for land as of September 2025.

Area	Property Type	Price Range (USD)	Market Characteristics
Nungwi	Beachfront land	$80-120/sqm	Premium tourist zone, high demand
Kendwa	Beachfront land	$60-100/sqm	Popular sunset location, resort development
Stone Town	Historic properties	$150-300k complete properties	UNESCO site, cultural significance
Jambiani	Beachfront land	$30-80/sqm	Expat community, emerging market
Paje	Beachfront land	$40-90/sqm	Kitesurfing hub, growing popularity
Matemwe	Beachfront land	$20-60/sqm	Quieter area, development potential
Inland areas	Residential land	$5-25/sqm	Local communities, basic infrastructure

Completed residential properties range from $50,000 for basic inland homes to $500,000+ for luxury beachfront villas, with the majority of foreign purchases falling in the $100,000-250,000 range.

Price appreciation has been strongest in established tourist areas, with Nungwi and Kendwa seeing 15-25% annual growth in recent years driven by tourism development and infrastructure improvements.

Which areas offer the best opportunities for living, rentals, or investment?

The best areas for foreign property investment in Zanzibar depend on your primary objective - whether prioritizing lifestyle, rental income, or capital appreciation.

**For rental income and tourism exposure:**- Nungwi: Highest rental yields (10-12%) due to premium resort tourism and consistent occupancy rates- Kendwa: Strong short-term rental demand (8-10% yields) with famous sunset beach location- Stone Town: Excellent cultural tourism market (7-9% yields) with year-round demand from heritage tourists**For expat living and community:**- Jambiani: Growing expat community with moderate prices and good infrastructure development- Paje: Active kitesurfing and water sports community, younger international crowd- Matemwe: Quieter lifestyle option with development potential and lower entry costs**For long-term capital appreciation:**- ZIPA-approved developments: Government backing provides security and infrastructure investment- Beachfront properties in emerging areas: Potential for significant appreciation as tourism expands- Stone Town heritage properties: Limited supply and UNESCO protection create scarcity value

Infrastructure development is accelerating in northern areas (Nungwi, Kendwa) with new roads, utilities, and resort projects driving both rental demand and property values upward.

infographics rental yields citiesZanzibar

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 are the current market statistics for livability, yields, and growth forecasts?

Zanzibar's property market shows strong fundamentals with rental yields of 7-12% in popular tourist areas, significantly outperforming many international markets.

Tourism numbers have increased by approximately 15% over the past three years, reaching pre-pandemic levels with continued growth projected through 2026. The government's new tourism initiatives and infrastructure investments are driving sustained visitor increases.

Rental income potential varies by location and property type, with beachfront short-term rentals in Nungwi generating $150-300 per night during peak season (December-March, July-August). Stone Town heritage properties achieve $80-150 per night with higher occupancy rates year-round.

Infrastructure development projects include road improvements, utility upgrades, and new airport facilities scheduled for completion by 2026, which should support continued property value appreciation.

Population growth on the island is approximately 3% annually, creating domestic demand alongside international tourism and investment interest. The emerging middle class is driving demand for modern housing developments.

**Growth forecasts through 2027:**- Tourism arrivals: 8-12% annual growth projected- Property values: 10-20% annual appreciation in prime beachfront areas- Rental yields: Expected to remain stable at 7-12% range- Infrastructure investment: $200+ million government commitment through 2026

What are the most common mistakes foreigners make and how to avoid them?

The most critical mistake foreign buyers make is insufficient due diligence on property titles and legal ownership status, often resulting in significant financial losses.

**Major pitfalls and prevention strategies:**- **Inadequate title verification**: Always conduct comprehensive title searches through qualified lawyers to confirm clear ownership and identify any liens, disputes, or restrictions on the property- **Skipping professional legal representation**: Never attempt to navigate Zanzibar property law without experienced local legal counsel who understands government procedures and potential fraud schemes - **Ignoring government approval requirements**: Ensure ZIPA certificates and all required permits are secured before making any payments or signing binding agreements- **Underestimating total costs**: Budget for the full 9-14% in fees, taxes, and professional services rather than focusing only on the purchase price- **Rushing the purchase process**: Allow 3-6 months minimum for proper due diligence, approvals, and registration - shortcuts often lead to problems- **Failing to understand lease renewal procedures**: Research lease renewal requirements and timeline well before expiration, as renewal is not automatic- **Inadequate property inspection**: Conduct thorough physical inspections including structural, electrical, and water systems, especially for older properties- **Working with unqualified agents or lawyers**: Verify credentials and track record of all professionals involved in your transaction

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

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.

Zanzibar's property market offers compelling opportunities for foreign investors through its leasehold system, with beachfront areas providing strong rental yields of 7-12% and significant appreciation potential.

Success requires careful navigation of legal requirements, proper professional guidance, and realistic budgeting for total acquisition costs of 9-14% of purchase price.