Introduction: If you’re considering investing in Zanzibar real estate or navigating the complexities of property purchase in Zanzibar, this comprehensive guide will provide you with all the necessary information. From understanding legal definitions to detailed processes and foreign investment opportunities, we’ve got you covered.
Understanding Zanzibar Real Estate: Land Definitions and Ownership Rights
According to the Land Tenure Act of Zanzibar, land includes areas covered by water, all things growing on land, buildings, and other things permanently affixed to the land, except trees when specifically classified and owned separately. Notably, trees are not necessarily part of the land. This is crucial when buying or selling land in Zanzibar.
Who Can Own Property in Zanzibar?
In Zanzibar, all-natural land, whether occupied or unoccupied, is vested and owned by the President for the benefit of the people. Individuals are allowed to own the right to use land or an interest over the land, granted only to Zanzibaris above the age of eighteen through the Right of Occupancy. Foreigners, including Tanzanians from the mainland, cannot be granted a Right of Occupancy by acquisition or purchase.
The Process of Property Purchase with a Right of Occupancy
While there’s no restriction on selling an interest in land, once a Zanzibari is granted the right, they can freely sell, lease, or bequeath their interest. However, sales and gifts to foreigners have restrictions, usually limited to blood relatives in the first and second degrees.
Foreign Investment in Zanzibar Real Estate: Opportunities and Restrictions
Foreigners can purchase land or property in Zanzibar through specific means:
- From a holder of the Right of Occupancy.
- From any person owning an interest over the land via inheritance or purchase, even without a Right of Occupancy.
Additionally, a foreigner can acquire landed property, such as houses or apartments, particularly under the Condominium Act No 10 of 2010, which allows for a 99-year renewable lease.
Restrictions and Legal Framework
Despite the opportunities, there are legal restrictions in place. Foreign investors must adhere to the local laws and regulations, which include limitations on direct land ownership and specific procedures for purchasing property.
Steps for Successful Land Purchase and Transfer in Zanzibar
When buying land, follow these steps for a successful transaction:
- Locate and Negotiate: Identify the land and agree on the purchase price.
- Legal Assistance: Hire a qualified lawyer to assist throughout the process.
- Ownership Verification: Conduct an official search to verify land ownership.
- Purchase Agreement: Prepare, sign, attest, and register the land purchase agreement.
- Site Plan and Beacons: Ensure the land is surveyed, and beacons are placed.
- Registering a Business or Project: Register a Business or Project to be executed on the land. Submit Registration Certificate the registration certificate to the Land Commission for land transfer approval.
- Approval Requests: Apply for land transfer approval and government lease.
- Building Permits: Obtain relevant permits before any development.
Buying a Condominium Property in Zanzibar
The Condominium Act No 10 of 2010 allows both locals and foreigners to purchase units in a condominium property with a 99-year lease, renewable in 33-year phases. Unit owners can rent, resell, or inherit the property, ensuring long-term investment security.
Securing a Residence Permit Through Property Purchase
Non-Tanzanian citizens can obtain a residence permit by purchasing property in ZIPA-approved projects worth at least US$ 100,000. The permit extends to the purchaser, spouse(s), and two children under 18 for up to two years.
Legal Assistance for Land and Property Purchase
For assistance with land or property purchases in Zanzibar, contact Eden Law Chambers. Our experts will guide you through every step, from ownership verification to government lease application. For more information and a fee quote, fill out our form by clicking here.
