Authored by the expert who managed and guided the team behind the Tanzania Property Pack
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If you're thinking about buying property in Zanzibar as a foreigner in 2026, you're probably wondering how much extra money you'll need beyond the purchase price for taxes, fees, and other costs.
We constantly update this blog post so you always have the freshest information available on Zanzibar property buying costs.
In this guide, we break down every cost you should expect, from stamp duty and property taxes to lawyer fees and agent commissions, all written in plain language.
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.
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
Overall, how much extra should I budget on top of the purchase price in Zanzibar in 2026?
How much are total buyer closing costs in Zanzibar in 2026?
As of early 2026, total buyer closing costs in Zanzibar typically range from 5% to 8% of the purchase price (around TZS 125 million to TZS 200 million on a TZS 2.5 billion property, or roughly USD 50,000 to USD 80,000, or EUR 46,000 to EUR 74,000).
If you keep everything to the bare legal minimum and skip the agent fee, you might get away with around 3% of the purchase price (about TZS 75 million, USD 30,000, or EUR 28,000 on that same property).
On the high end, when you factor in agent commissions, thorough legal checks, valuation, and translation services, you should budget up to 10% to 12% of the purchase price (around TZS 250 million to TZS 300 million, USD 100,000 to USD 120,000, or EUR 92,000 to EUR 111,000).
Whether your costs land at the low or high end in Zanzibar depends mainly on whether you pay an agent fee, how much due diligence your lawyer needs to do on the property's lease or occupancy rights, and whether VAT applies to a developer sale.
What's the usual total % of fees and taxes over the purchase price in Zanzibar?
For most residential property purchases in Zanzibar in 2026, the usual total percentage of fees and taxes over the purchase price is between 4% and 8%, assuming no VAT is charged on top.
The realistic low-to-high range that covers most standard Zanzibar property transactions runs from about 3% (very lean deal, no agent) to around 12% (full agent commission, extensive legal work, developer sale with VAT exposure).
Of that total, government taxes like stamp duty and property tax clearance typically make up about 1% to 2%, while professional service fees (lawyer, valuation, searches, translation) account for the remaining 2% to 6% or more depending on deal complexity.
By the way, you will find much more detailed data in our property pack covering the real estate market in Zanzibar.
What costs are always mandatory when buying in Zanzibar in 2026?
As of early 2026, the mandatory costs when buying property in Zanzibar include stamp duty on the transfer document (around 1% of the purchase price), registration and filing fees at the land registry, and clearance of any outstanding property taxes, plus you will effectively need a conveyancing lawyer to handle the transfer of your lease or occupancy rights.
Optional but highly recommended costs include an independent property valuation (especially if you're financing or want to avoid overpaying), comprehensive legal due diligence on boundaries, encumbrances, permits, and the seller's authority to transfer, and certified translation services if you don't read Swahili or legal English.
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What taxes do I pay when buying a property in Zanzibar in 2026?
What is the property transfer tax rate in Zanzibar in 2026?
As of early 2026, the main transfer tax when buying property in Zanzibar is stamp duty, which is 0.5% on the first TZS 100,000 of value and 1% on everything above that, so for any normal residential property, you're effectively paying about 1% of the purchase price.
The Zanzibar stamp duty schedule does not set a higher rate for foreigners, but foreign buyers often face more documentation and process requirements tied to the lease or occupancy structure, which can increase your professional costs rather than your taxes.
VAT on residential property purchases in Zanzibar is charged at a standard rate of 15%, but whether it actually applies depends on whether your purchase is treated as a taxable supply by a taxable person, which most commonly happens in developer or structured sales rather than simple resales between individuals.
Stamp duty in Zanzibar is tied to the transfer document itself and is typically paid as part of the execution and registration workflow, meaning you settle it before your transfer can be officially completed and registered.
Are there tax exemptions or reduced rates for first-time buyers in Zanzibar?
In Zanzibar in 2026, there is no simple, universal "first-time buyer" stamp duty exemption or reduced rate spelled out in the main tax laws the way some countries offer, though ministerial orders can create category-based treatment, so your lawyer should check for any current-year reliefs.
If you buy property through a company instead of as an individual in Zanzibar, the stamp duty rate itself does not change, but your compliance burden and downstream taxes (like how rental income is handled or capital gains exposure) can shift significantly.
The main tax difference between buying a new-build versus a resale in Zanzibar is VAT exposure, because developer sales can look more like a "business supply" and may attract the 15% VAT where a simple resale between individuals typically would not.
Since there is no standard first-time buyer relief in Zanzibar's stamp duty schedule, there are no specific documentation requirements to meet, but you should always have your lawyer verify whether any current ministerial exemptions or special categories apply to your exact transaction.
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.
Which professional fees will I pay as a buyer in Zanzibar in 2026?
How much does a notary or conveyancing lawyer cost in Zanzibar in 2026?
As of early 2026, a conveyancing lawyer in Zanzibar typically costs between 1% and 2% of the purchase price (for a TZS 2.5 billion property, that's roughly TZS 25 million to TZS 50 million, or USD 10,000 to USD 20,000, or EUR 9,200 to EUR 18,500), with a practical minimum fee for smaller transactions.
Lawyer fees in Zanzibar are usually charged as a percentage of the property price rather than a flat rate, though for high-value villas, lawyers may quote a lower percentage but a higher absolute fee.
Translation and interpreter services for foreign buyers in Zanzibar typically cost between USD 200 and USD 800 (roughly TZS 500,000 to TZS 2 million, or EUR 185 to EUR 740), depending on how many documents need certified translation and whether you need an interpreter across multiple meetings.
If your deal is a straightforward personal purchase, you may not need a separate tax advisor beyond your lawyer, but if you plan to rent out the property (especially short-term), you should budget USD 300 to USD 1,500 (TZS 750,000 to TZS 3.75 million, or EUR 275 to EUR 1,400) for setup and first-year filing support.
We have a whole part dedicated to these topics in our our real estate pack about Zanzibar.
What's the typical real estate agent fee in Zanzibar in 2026?
As of early 2026, the typical real estate agent fee in Zanzibar ranges from 3% to 5% of the purchase price (for a TZS 2.5 billion property, that's roughly TZS 75 million to TZS 125 million, or USD 30,000 to USD 50,000, or EUR 28,000 to EUR 46,000).
In Zanzibar, agent commission is negotiable and who pays it varies by deal: sometimes the seller pays, sometimes the buyer pays (especially with "buyer sourcing" agents or certain developments), so you should clarify this in writing before signing anything.
The realistic low-to-high range for agent fees in Zanzibar runs from about 3% (when you negotiate hard or the seller covers it) to around 5% or slightly more (when the buyer pays and the agent provides sourcing or concierge services).
How much do legal checks cost (title, liens, permits) in Zanzibar?
Legal checks in Zanzibar, including registry searches, boundary and survey verification, permit and building compliance checks, and seller authority verification, typically cost between USD 300 and USD 1,500 (roughly TZS 750,000 to TZS 3.75 million, or EUR 275 to EUR 1,400), depending on property complexity.
A property valuation fee in Zanzibar usually costs between USD 200 and USD 700 (roughly TZS 500,000 to TZS 1.75 million, or EUR 185 to EUR 650) for a standard residential property, with higher fees for complex or remote properties.
The most critical legal check in Zanzibar is verifying the seller's authority to transfer and confirming the property's registration status, because your enforceable rights depend entirely on whether the lease or occupancy interest is correctly registered in your name.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Zanzibar.
Get the full checklist for your due diligence in Zanzibar
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What hidden or surprise costs should I watch for in Zanzibar right now?
What are the most common unexpected fees buyers discover in Zanzibar?
The most common unexpected fees buyers discover in Zanzibar include unpaid property tax arrears that surface late, document "fixing" costs for missing affidavits or consent letters, surprise survey or boundary correction fees, and utility connection or upgrade charges for standalone houses.
You don't technically "inherit" unpaid property taxes when you buy in Zanzibar, but outstanding tax debts can block or delay your transfer and may be secured against the property under enforcement rules, so you should demand proof of payment during due diligence.
Scams in Zanzibar most commonly happen when buyers pay money before verifying the seller's right to transfer or confirming the property's registration status, so your best protection is never paying anything significant until your lawyer confirms in writing what interest is being sold and what registry evidence exists.
Fees that are usually not disclosed upfront in Zanzibar include "processing" and administrative charges that appear late in the registry workflow, extra translation or couriering costs, and last-minute valuation or survey requests from the authorities.
In our property pack covering the property buying process in Zanzibar, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Zanzibar?
If the property you're buying in Zanzibar has a tenant, you should budget for extra costs related to drafting, terminating, or assigning the existing lease, verifying rent arrears and deposit handling, and potential legal fees if there's a dispute, which can add USD 200 to USD 1,000 (roughly TZS 500,000 to TZS 2.5 million, or EUR 185 to EUR 925).
When you buy a tenanted property in Zanzibar, you typically step into the landlord's shoes and inherit the existing lease obligations, meaning you must honor the tenant's rights until the lease expires or is properly terminated.
Terminating an existing lease immediately after purchase in Zanzibar is generally not possible unless the lease allows for early termination or the tenant agrees to leave, so you should review the lease terms carefully before buying if you need vacant possession.
A sitting tenant in Zanzibar can affect your negotiating position: on one hand, it may reduce the pool of interested buyers (giving you leverage), but on the other hand, it can complicate your plans and timeline, so sellers sometimes accept a lower price when a tenant is in place.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Zanzibar.
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 fees are negotiable, and who really pays what in Zanzibar?
Which closing costs are negotiable in Zanzibar right now?
The closing costs that are negotiable in Zanzibar include the lawyer's fee structure (flat versus percentage, with caps or staged payments), agent commission, who pays for the valuation or survey, and small administrative or disbursement charges.
The costs that are fixed by law and cannot be negotiated in Zanzibar include stamp duty (set by the Stamp Duty Act at about 1% of purchase price) and the annual property tax rate framework (set by the Property Tax Act at 0.1% for residential property).
On negotiable fees in Zanzibar, buyers can realistically achieve a 10% to 25% reduction on professional services like legal fees if they compare quotes, agree to a flat fee, or bundle services, though agent commissions are the most variable depending on market conditions and your negotiating leverage.
Can I ask the seller to cover some closing costs in Zanzibar?
In Zanzibar, it is moderately common for sellers to agree to cover some closing costs, especially in a slower market or when the property has documentation issues that reduce buyer interest.
The specific closing costs sellers are most commonly willing to cover in Zanzibar include their share of agent commission, curing document defects like missing consents or name corrections, and settling any outstanding property tax arrears before transfer.
Sellers in Zanzibar are more likely to accept covering closing costs when the property has been on the market for a while, when paperwork is imperfect, when the buyer can close quickly, or when there are few competing offers.
Is price bargaining common in Zanzibar in 2026?
As of early 2026, price bargaining is common and expected in Zanzibar, especially for resale homes and properties where paperwork is imperfect or the home needs upgrades.
Buyers in Zanzibar typically negotiate 5% to 10% below the asking price on many resales (for a TZS 2.5 billion property, that's TZS 125 million to TZS 250 million off, or USD 50,000 to USD 100,000, or EUR 46,000 to EUR 92,000), though scarce beachfront or prime inventory may see less flexibility.
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What monthly, quarterly or annual costs will I pay as an owner in Zanzibar?
What's the realistic monthly owner budget in Zanzibar right now?
A realistic monthly owner budget in Zanzibar for a typical residential property runs from about TZS 500,000 to TZS 2 million per month (roughly USD 200 to USD 800, or EUR 185 to EUR 740), excluding any mortgage payments.
The main recurring expense categories that make up this monthly budget in Zanzibar include property tax (budgeted monthly from the annual amount), utilities like electricity, water, and internet, ongoing maintenance (salt air and humidity raise upkeep costs), and security or property management fees if you live overseas.
The realistic low-to-high range for monthly owner costs in Zanzibar is roughly TZS 300,000 to TZS 4 million (USD 120 to USD 1,600, or EUR 110 to EUR 1,500), with the low end for a modest apartment and the high end for a beachfront villa with full property management.
The monthly cost that tends to vary the most in Zanzibar is property management and security, because overseas owners often need more hands-on support, and service charges in managed developments can fluctuate based on amenities and maintenance needs.
You can see how this budget affect your gross and rental yields in Zanzibar here.
What is the annual property tax amount in Zanzibar in 2026?
As of early 2026, the annual property tax rate for residential property in Zanzibar is 0.1% of the property's value, so a home valued at TZS 2.5 billion would owe about TZS 2.5 million per year (roughly USD 1,000, or EUR 920).
The realistic low-to-high range for annual property taxes in Zanzibar depends on your property's value: a TZS 500 million property would pay about TZS 500,000 (USD 200, EUR 185), while a TZS 5 billion property would pay about TZS 5 million (USD 2,000, EUR 1,850).
Property tax in Zanzibar is calculated based on the value of the residential property as determined under the Property Tax Act, though the exact valuation method can involve government assessment rather than pure market price.
The Property Tax Act does allow for special rates or specific amounts for certain categories of property via government process, so exemptions or reductions may be available in specific cases, and your lawyer should check whether any apply to your situation.
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.
If I rent it out, what extra taxes and fees apply in Zanzibar in 2026?
What tax rate applies to rental income in Zanzibar in 2026?
As of early 2026, rental income in Zanzibar is subject to withholding tax at 10% for residents and 15% for non-residents, meaning as a foreign landlord you should assume 15% withholding on gross rent unless your advisor confirms a different treatment.
Whether you can deduct expenses from rental income taxes in Zanzibar depends on how the rent is taxed: if it's through a final withholding mechanism (common for non-residents), deductions may not work the way they do in "net income after expenses" systems, so a short paid consultation with a tax advisor is worth it.
Because of the withholding mechanism, the realistic effective tax rate for typical foreign landlords in Zanzibar is often close to the gross 15% withholding rate, though resident landlords at 10% may have more room to structure things differently.
Yes, foreign property owners in Zanzibar pay a different rental income tax rate than residents: 15% for non-residents versus 10% for residents, according to the TRA withholding tax schedule.
Do I pay tax on short-term rentals in Zanzibar in 2026?
As of early 2026, short-term rental income in Zanzibar is taxable and can trigger additional layers beyond standard rental withholding, including potential VAT or tourism-related levies if your operation looks like a business or is structured through an operator.
Short-term rental income in Zanzibar can be taxed differently than long-term rental income because the structure often resembles a business activity, which may bring you into VAT territory (15%) and increase your compliance and management costs.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Zanzibar.
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If I sell later, what taxes and fees will I pay in Zanzibar in 2026?
What's the total cost of selling as a % of price in Zanzibar in 2026?
As of early 2026, the total cost of selling a property in Zanzibar typically ranges from about 3% to 8% of the sale price, depending on whether you pay agent commission and how clean your paperwork is.
The realistic low-to-high percentage range for total selling costs in Zanzibar is roughly 3% (if you sell directly without an agent and have clean documentation) to around 8% or more (if you pay full agent commission and need document corrections).
The specific cost categories that typically make up selling expenses in Zanzibar include agent commission (if the seller pays), legal fees for the sale transaction, and any required clearance or document correction costs to make the property transferable.
The single largest contributor to selling expenses in Zanzibar is usually agent commission, which can run 3% to 5% of the sale price if the seller is paying it, dwarfing the other transaction costs.
What capital gains tax applies when selling in Zanzibar in 2026?
As of early 2026, capital gains tax on selling property in Zanzibar is 10% of the gain for residents and 20% of the gain for non-residents, or 3% of the sale proceeds if you lack cost documentation.
There is an exemption to capital gains tax in Zanzibar for a residential house if you've owned it for 3 or more years and lived in it for 3 or more years (continuously or intermittently), and the gain does not exceed TZS 15 million.
Yes, foreigners pay a higher capital gains tax rate when selling property in Zanzibar: 20% of the gain for non-residents versus 10% for residents, which is a significant difference to factor into your investment planning.
Capital gains in Zanzibar are calculated as the sale price (or approved value) minus your original purchase cost, with the 3% of proceeds rule applying when you can't document your acquisition cost properly.
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 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 Revenue Authority - Stamp Duty Act | It's the actual Zanzibar law setting stamp duty rates on property transfers. | We pulled the stamp duty schedule for conveyance and transfer on sale. We then translated it into simple "what you'll pay" ranges for residential buyers. |
| Zanzibar Revenue Authority - Property Tax Act | It's Zanzibar's governing law for annual property tax and compliance at transfer. | We used the residential property tax rate (0.1% of value) and transfer clearance rules. We also flagged unpaid property tax as a common surprise cost to check. |
| Zanzibar Revenue Authority - VAT Act | It's the primary VAT law in Zanzibar including the statutory rate. | We used it to confirm the 15% VAT rate and explain when VAT matters in property transactions. We treat VAT as scenario-based because it depends on sale structure. |
| Tanzania Revenue Authority - Capital Gains Tax | TRA is the national revenue authority summarizing CGT on land and buildings. | We used it to quantify capital gains tax rates affecting pricing when you sell later. We also used its exemption conditions to explain when CGT may not apply. |
| Tanzania Revenue Authority - Withholding Tax | It's an official TRA page publishing withholding tax categories and rates. | We used it to estimate rental income withholding tax rates for residents vs non-residents. We also used payment timing rules to explain cash flow planning. |
| Zanzibar Land Tribunals - Land Tenure Act | It's the primary legal text for Zanzibar land tenure and occupancy rights. | We used it to explain why "ownership" in Zanzibar means registered occupancy or lease rights. We tied that to the practical need for due diligence and registration. |
| ZRA - Acts and Regulations Listing | This is ZRA's official library showing the latest consolidated Zanzibar tax laws. | We used it to verify we were citing the most current Acts available in early 2026. We cross-checked publication dates and titles against the PDFs we relied on. |
| PwC Worldwide Tax Summaries - Tanzania | PwC is a major professional services firm with transparent, maintained tax references. | We used it to triangulate VAT rate context across Tanzania and Zanzibar-specific treatment. We used it as a sanity check alongside the Zanzibar VAT Act itself. |
| RSM Tanzania Tax Guide 2025/26 | RSM is a global tax advisory firm compiling rates and practical compliance notes. | We used it to triangulate common ranges for professional fees and tax handling conventions. We always anchored legal requirements in the official Acts first. |
| FAOLEX - Zanzibar Land Tenure Act | FAOLEX is a reputable international legal database mirroring key national legislation. | We used it as an external cross-check that Zanzibar land is public land administered via occupancy rights. We used it only to corroborate the primary Act text. |
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