Introduction
The Investment Laws in Tanzania 2026 are important for local and international investors seeking to establish, acquire, expand or operate businesses in the country.
Tanzania introduced a major investment reform through the Investment and Special Economic Zones Act, 2025 (Act No. 6 of 2025), which commenced on 1 July 2025. The legislation established the Tanzania Investment and Special Economic Zones Authority (TISEZA), bringing investment promotion and Special Economic Zones functions under one institutional framework.
In 2026, investors must also consider the Finance Act, 2026, updated TISEZA procedures and fees, company registration requirements, tax compliance, land regulations, immigration rules and sector-specific licensing obligations.
Understanding these requirements before committing capital is essential. Company incorporation alone does not authorise every business activity, and an investment certificate does not automatically exempt a business from all taxes or regulatory approvals.
This guide explains the principal investment laws and procedures applicable to investors in the Tanzania Mainland, with a separate explanation of the differences between the Mainland and Zanzibar.
- The Legal Framework Governing Investment in Tanzania
Several laws, regulations and administrative procedures govern investment in Tanzania. The applicable legislation depends on the investor’s ownership structure, business activity, location and sector.
The principal legislation includes:
- Investment and Special Economic Zones Act, 2025 (Act No. 6 of 2025).
- Investment and Special Economic Zones Regulations, 2025.
- Finance Act, 2026.
- Companies Act, Cap. 212.
- Income Tax Act, Cap. 332.
- Value Added Tax Act, 2014.
- Land Act, Cap. 113.
- Village Land Act, Cap. 114.
- Tanzania Citizenship and Immigration legislation.
- Employment and Labour Relations Act, 2004.
- Environmental Management Act, 2004.
- Applicable sector-specific legislation and regulations.
The Investment and Special Economic Zones Act, 2025 repealed the Tanzania Investment Act, 2022, the Export Processing Zones Act, 2002 and the Special Economic Zones Act, 2006.
The English version of the 2025 investment legislation was subsequently published through Government Notice No. 4 of 2026. This publication should not be confused with a separate replacement investment law: the principal investment legislation remains the Act of 2025.
- TISEZA: The Main Investment Facilitation Authority
The Tanzania Investment and Special Economic Zones Authority (TISEZA) is the principal government authority responsible for coordinating investment promotion, facilitation and the development and management of Special Economic Zones.
TISEZA was formed through the consolidation of the former Tanzania Investment Centre (TIC) and Export Processing Zones Authority (EPZA).
Its responsibilities include:
- Promoting domestic and foreign investment.
- Registering investment projects.
- Issuing investment certificates.
- Issuing licences for activities within Special Economic Zones.
- Coordinating investment-related government approvals.
- Facilitating access to land for investment.
- Supporting investors through a One-Stop Facilitation Centre.
- Monitoring registered investment projects.
- Handling investment-related complaints.
- Advising the Government on investment policies and incentives.
The Act also provides for an electronic integrated system intended to connect government institutions involved in issuing licences, permits, approvals and consents.
Must investors register with TISEZA?
Section 15 of the Investment and Special Economic Zones Act, 2025 requires every investor intending to make an investment in Tanzania to register with TISEZA before commencing investment activities, subject to the Act’s application provisions.
Registration and application for a Certificate of Investment are separate matters. An investor should establish which registration category and approval applies to the proposed project.
The Act also excludes certain activities, including specified mining and petroleum operations, from its ordinary application. However, TISEZA may still facilitate investors in obtaining approvals required under other legislation.
- Minimum Investment Capital and Certificate of Incentives
One of the most important issues for foreign investors is determining whether a proposed project qualifies for a TISEZA Certificate of Incentives.
The official TISEZA Certificate of Incentives page currently publishes the following minimum project investment values:
| Investor category | Minimum project investment value |
| Wholly Tanzanian-owned project | USD 50,000 |
| Wholly foreign-owned project | USD 500,000 |
| Joint venture | USD 500,000 |
These are the minimum values published by TISEZA for the Certificate of Incentives. Investors should confirm the current eligibility requirements and applicable application category directly with the Authority before submitting an application.
What documents are required?
The published TISEZA application requirements include:
- Certified copy of the company’s Certificate of Incorporation.
- Memorandum and Articles of Association.
- Completed TISEZA application form.
- Project business plan.
- Evidence of sufficient financing.
- Evidence of the proposed project location.
- Company board resolution approving registration of the project.
- Covering application letter.
Additional documentation may be required depending on the project, ownership structure, financing and location.
TISEZA Certificate of Incentives facilitation fees
The official TISEZA webpage currently publishes the following fees:
| Shareholding category | Published facilitation fee |
| Local-majority shareholder company | TZS 4,000,000 |
| Foreign-majority or joint-shareholder company | TZS 6,000,000 |
These are published facilitation fees for the Certificate of Incentives process. They should not be confused with BRELA incorporation fees, TRA charges, sector licensing fees or professional service fees.
Applicants should confirm the applicable payment amount and control number with TISEZA before making payment.
- Strategic Investors in Tanzania
The Investment and Special Economic Zones Act, 2025 establishes a separate framework for strategic investors.
Section 21 specifies the following minimum investment capital:
| Investor classification | Minimum investment capital |
| Domestic investor | USD 20 million |
| Foreign investor | USD 50 million |
Capital alone does not automatically qualify a project for strategic investor status. Other considerations include:
- Employment creation.
- Introduction of new or innovative technology.
- Export capacity and foreign exchange generation.
- Location within a Special Economic Zone or a geographically disadvantaged area.
- Other criteria under the applicable legislation and Regulations.
TISEZA may recommend additional incentives for qualifying strategic projects through the statutory approval framework.
Important distinction
The minimum capital for a Certificate of Incentives and the minimum capital for strategic investor status are different.
For example, a foreign-owned project with a value of USD 500,000 may meet the published minimum project value for a Certificate of Incentives. It does not automatically qualify as a strategic investment.
- Foreign Ownership and Company Registration in Tanzania
Foreign investors may establish businesses in Tanzania through appropriate legal structures, subject to company law, sector-specific requirements and restrictions applicable to particular activities.
A common option is to incorporate a private company limited by shares through the Business Registrations and Licensing Agency (BRELA).
Common business structures
- Private company limited by shares
A foreign investor may incorporate a Tanzanian company with foreign shareholders. The company has its own legal personality and is separate from its shareholders.
- Branch of a foreign company
A foreign company may establish a branch in Tanzania and complete the applicable registration and compliance requirements.
- Joint venture
A foreign investor may enter into a joint venture with a Tanzanian partner through a company or another appropriate contractual structure.
Foreign investor classification
Under the Investment and Special Economic Zones Act, 2025, a foreign investor includes a company incorporated in Tanzania where 50% or more of its shares are held by non-citizens. The Act also addresses foreign companies and partnerships with majority foreign ownership.
Ownership classification should be assessed before investment registration because it can affect the applicable investment category and requirements.
Company registration procedure
A typical company incorporation process involves:
- Conducting a company name search.
- Preparing incorporation documents.
- Identifying shareholders and directors.
- Preparing the Memorandum and Articles of Association.
- Filing the incorporation application through BRELA.
- Paying the applicable government fees.
- Obtaining the Certificate of Incorporation.
- Completing tax and post-incorporation registrations.
A company must also obtain the relevant business licence and sector approvals before carrying on regulated business activities.
- Tax Laws and Investment Incentives in Tanzania 2026
Foreign investors must understand Tanzania’s tax framework before establishing or expanding a business.
The Tanzania Revenue Authority (TRA) administers major tax obligations in Tanzania Mainland.
Depending on the nature of the business, obligations may include:
- Taxpayer Identification Number (TIN).
- Corporate income tax.
- Value Added Tax (VAT).
- Withholding tax.
- Pay As You Earn (PAYE).
- Skills and Development Levy, where applicable.
- Electronic fiscal device and invoicing requirements, where applicable.
- Tax returns and payments.
- Accounting records and tax audits.
Finance Act, 2026
The Finance Act, 2026 (Act No. 2 of 2026) was published on 30 June 2026 and commenced on 1 July 2026.
It introduced amendments affecting taxes, duties, levies, fees and other written laws relating to public revenue collection and administration.
Among the matters relevant to businesses are changes affecting tax administration, digital transactions and certain investment-related arrangements.
The 2026 amendments also address the treatment of qualifying government Framework Agreements involving certain mining projects. These provisions should not be treated as general tax exemptions for every mining company or investor.
Businesses should review the Finance Act, 2026 together with the Income Tax Act, VAT legislation and other applicable tax laws when assessing their tax position.
Are investment incentives automatic?
No.
Section 19 of the Investment and Special Economic Zones Act, 2025 provides the framework for investment incentives. The availability and extent of any tax or non-tax incentive depend on the applicable law, the investor’s eligibility, the relevant certificate or licence and any conditions attached to the approval.
An investment certificate should not be treated as a blanket exemption from corporate income tax, VAT, withholding tax or other statutory obligations.
Investors should obtain a project-specific tax assessment before relying on a proposed incentive.
- Special Economic Zones and Export Processing Zones
Tanzania promotes investment through Special Economic Zones (SEZs) and Export Processing Zones (EPZs).
These arrangements are intended to encourage industrial development, exports, employment, technology transfer and investment in priority economic activities.
The Investment and Special Economic Zones Act, 2025 provides the legal framework for establishing, developing and managing Special Economic Zones.
Special Economic Zones
SEZs may include:
- Industrial parks.
- Free trade zones.
- Free port zones.
- Tourist parks.
- Agricultural zones.
- Science and technology parks.
- Other designated investment zones.
An investor intending to operate within an SEZ must obtain the appropriate TISEZA licence.
The applicable licence depends on whether the investor is developing the zone, operating within it or undertaking production.
Export Processing Zones
EPZ arrangements are intended to support businesses engaged in export-oriented production.
TISEZA’s published guidance identifies minimum annual export turnover of USD 100,000 for local investors and USD 500,000 for foreign investors for new EPZ investment, alongside an export requirement under which at least 80% of goods produced must be exported.
Applicants should confirm the current licence category, qualifying conditions and applicable fees with TISEZA before committing to an EPZ project.
- Land Ownership and Land Rights for Foreign Investors
Land is a critical consideration for foreign investors establishing factories, hotels, agricultural projects, industrial facilities and other businesses.
Under the Mainland Tanzania land framework, all land is public land vested in the President as trustee for the benefit of citizens.
A non-citizen cannot acquire ordinary land ownership in the same manner as a Tanzanian citizen. However, land may be made available for qualifying investment purposes through legally recognised arrangements.
These may include:
- Derivative rights granted for investment purposes.
- Government-granted rights of occupancy where legally permitted.
- Subleases derived from existing rights of occupancy.
- Other investment-related land arrangements permitted by law.
TISEZA land bank
The Investment and Special Economic Zones Act, 2025 provides for a land bank to identify and coordinate land available for investment.
However, investors should not assume that every project must obtain land through the TISEZA land bank. The appropriate route depends on the land category, ownership, project structure and statutory requirements.
Land due diligence
Before acquiring or leasing land, investors should consider:
- Verification of the registered title.
- Confirmation of ownership and land category.
- Searches for mortgages, caveats and other encumbrances.
- Verification of permitted land use.
- Review of lease or sublease terms.
- Assessment of approvals required for foreign investment.
- Environmental and planning requirements.
- Registration and completion requirements.
A foreign investor should not make a substantial payment based solely on an unverified title copy, informal allocation or verbal promise.
- Work Permits and Residence Permits for Foreign Investors
Foreign investors and non-citizen employees must comply with the applicable immigration and employment laws.
The appropriate permits depend on the person’s role, qualifications, employment arrangement, and intended activities.
Common work permit categories include:
- Class A: Generally applicable to investors and self-employed foreign nationals.
- Class B: Applicable to non-citizen employees in prescribed professional categories.
- Class C: Applicable to other eligible categories of non-citizens.
Work permits and residence permits are separate approvals. They must be obtained through the relevant authorities in accordance with the applicable requirements.
A company certificate or TISEZA investment registration does not automatically authorise a foreign shareholder or employee to work or reside in Tanzania.
- Sector-Specific Licences and Regulatory Approvals
Not every business can commence operations immediately after incorporation.
Some activities require additional licences, permits, approvals or registrations from sector regulators.
Examples include:
| Business sector | Relevant authority |
| Mining | Mining Commission |
| Petroleum and oil and gas | Relevant petroleum authorities |
| Pharmaceuticals and medical devices | Tanzania Medicines and Medical Devices Authority (TMDA) |
| Product standards and regulated goods | Tanzania Bureau of Standards (TBS), where applicable |
| Environmental projects | National Environment Management Council (NEMC) |
| Banking and financial services | Bank of Tanzania |
| Telecommunications | Tanzania Communications Regulatory Authority (TCRA) |
| Insurance | Tanzania Insurance Regulatory Authority (TIRA) |
| Workplace safety | Occupational Safety and Health Authority (OSHA) |
This list is illustrative. The relevant regulator depends on the actual business activity.
Mining and petroleum investment
Mining and petroleum activities are subject to their respective sector legislation and approval procedures.
The Investment and Special Economic Zones Act, 2025 excludes specified mining and petroleum operations from its ordinary application. Nevertheless, TISEZA may facilitate investors in obtaining approvals required under other applicable laws.
Investors should therefore assess the Mining Act, Petroleum Act and relevant sector regulations before structuring a mining or petroleum project.
- Investment Guarantees and Repatriation of Profits
The Investment and Special Economic Zones Act, 2025 contains provisions on investment guarantees and the transfer of capital, profits and dividends.
Section 33 provides for the transfer outside Tanzania, through an approved bank and in convertible foreign currency, of specified investment-related payments, subject to applicable legal conditions.
These include:
- Net profits and dividends derived from an investment.
- Repayment of qualifying foreign loans.
- Proceeds from the sale or liquidation of an investment after applicable statutory payments.
- Payments to foreign workers employed in Tanzania.
The Act also provides safeguards against nationalisation or expropriation, subject to its statutory provisions.
Investors should maintain appropriate documentation for capital contributions, foreign loans, dividends and other cross-border transactions.
- Investor Obligations and Ongoing Compliance
Registration and investment approval do not end an investor’s regulatory responsibilities.
Investors must comply with the Investment and Special Economic Zones Act, the conditions attached to their certificates or licences, and all other applicable laws.
Depending on the project, ongoing obligations may include:
- Filing annual returns with BRELA.
- Maintaining statutory company records.
- Filing tax returns and paying applicable taxes.
- Maintaining accounting records.
- Preparing audited financial statements where required.
- Renewing business and sector licences.
- Complying with employment and immigration requirements.
- Meeting social security and workers’ compensation obligations.
- Complying with workplace safety requirements.
- Meeting environmental conditions.
- Submitting required investment progress reports.
- Notifying relevant authorities of material changes to the investment.
Failure to meet regulatory obligations can expose a business to penalties, suspension or cancellation of licences, and loss of incentives where the relevant law permits.
- Investment in Tanzania Mainland and Zanzibar
Investors planning to operate in both Tanzania Mainland and Zanzibar must understand that several areas of business regulation are administered separately.
Zanzibar has its own institutions and legislation governing company registration, investment promotion, tax administration and other non-Union matters.
Tanzania Mainland
Key institutions include:
- BRELA – company registration.
- TISEZA – investment facilitation and Special Economic Zones.
- TRA – tax administration.
- Relevant ministries and sector regulators.
- Labour and Immigration authorities.
Zanzibar
Key institutions include:
- BPRA – business and company registration.
- Zanzibar Investment Promotion Authority (ZIPA) – investment promotion and facilitation.
- Zanzibar Revenue Authority (ZRA) – tax administration.
- Relevant Zanzibar ministries and sector regulators.
An investor intending to establish operations in Zanzibar should assess the applicable Zanzibar investment and company legislation separately.
Mainland company registration, tax registration or investment approval should not automatically be treated as authorisation to carry on a separately regulated business in Zanzibar.
Businesses operating in both jurisdictions should assess the appropriate structure, tax position, licences, employment arrangements and local compliance requirements in each.
- Steps for Establishing a Foreign-Owned Business in Tanzania
The following is a general roadmap for establishing a foreign-owned business in Tanzania Mainland.
Step 1: Define the investment project
Identify the business activity, proposed location, investment amount, ownership structure, financing and expected employment.
Step 2: Conduct a regulatory assessment
Identify foreign ownership restrictions, sector licences, land requirements and approvals.
Step 3: Select the appropriate business structure
Determine whether to incorporate a Tanzanian subsidiary, register a foreign company branch or establish a joint venture.
Step 4: Complete company registration
Register the business through BRELA and obtain the relevant incorporation or registration documents.
Step 5: Complete tax registration
Register with TRA and assess the company’s corporate tax, VAT, PAYE and other tax obligations.
Step 6: Register the investment with TISEZA where required
Determine the applicable investor registration category and whether the project qualifies for a Certificate of Incentives or SEZ licence.
Step 7: Secure land and premises
Verify the land rights, permitted use, lease arrangements and approvals required for the project.
Step 8: Obtain business and sector licences
Secure the relevant business licence and approvals from the responsible regulators.
Step 9: Arrange work and residence permits
Obtain the necessary permits for foreign investors, directors and employees.
Step 10: Establish ongoing compliance procedures
Set up accounting, tax, corporate secretarial, employment, licensing and investment reporting systems.
The order may vary depending on the nature of the investment and the approvals required.
- Common Mistakes Foreign Investors Should Avoid
Foreign investors should avoid the following mistakes:
- Assuming company incorporation is sufficient to commence regulated business operations.
- Confusing TISEZA investor registration with a Certificate of Incentives.
- Using outdated investment thresholds or fees.
- Assuming investment incentives are automatic.
- Acquiring or leasing land without proper due diligence.
- Commencing regulated operations before obtaining sector licences.
- Assuming a Mainland approval automatically applies in Zanzibar.
- Failing to obtain work and residence permits for foreign personnel.
- Ignoring ongoing tax, corporate and employment compliance.
- Treating an investment certificate as a guarantee against every commercial or regulatory risk.
Proper regulatory planning before committing capital can reduce delays, unexpected costs and compliance exposure.
- How GERPAT Solutions Supports Foreign Investors in Tanzania and Zanzibar
GERPAT Solutions is a Tanzania and Zanzibar business advisory and regulatory compliance firm supporting local and international investors with business establishment, investment facilitation, licensing and corporate compliance.
Our services include:
- Company formation and business registration in Tanzania Mainland and Zanzibar.
- TISEZA and ZIPA investment application coordination.
- Tax registration and compliance coordination.
- Business licensing and sector-specific regulatory coordination.
- Work permit and residence permit application coordination.
- Corporate secretarial and statutory compliance support.
- Land and property investment due diligence coordination.
- Intellectual property registration and brand protection.
- Ongoing corporate and regulatory compliance.
We help investors identify the relevant authorities, understand applicable procedures, prepare documentation, and coordinate regulatory applications.
GERPAT Solutions – Intellectual Property, Business Formation, Licensing & Corporate Compliance in Tanzania & Zanzibar.
Reach to out Team at www.gerpatsolutions.co.tz , info@gerpatsolutions.co.tz, +255 742 816 955
Frequently Asked Questions About Investment Laws in Tanzania 2026
- What is the main investment law in Tanzania in 2026?
The principal legislation is the Investment and Special Economic Zones Act, 2025 (Act No. 6 of 2025), which commenced on 1 July 2025. It continues to provide the main investment framework in 2026.
- What is TISEZA?
TISEZA is the Tanzania Investment and Special Economic Zones Authority. It coordinates investment promotion and facilitation and oversees the development and management of Special Economic Zones.
- What is the minimum investment for a foreign investor to obtain a Certificate of Incentives?
TISEZA’s published Certificate of Incentives page states a minimum project investment value of USD 500,000 for wholly foreign-owned projects and joint ventures.
- What is the minimum investment for a Tanzanian-owned project?
TISEZA’s published Certificate of Incentives page states a minimum project investment value of USD 50,000 for projects wholly owned by Tanzanian citizens.
- What is the minimum investment for strategic investor status?
Section 21 of the Investment and Special Economic Zones Act, 2025 specifies USD 50 million for foreign investors and USD 20 million for domestic investors, subject to additional criteria.
- How much is the TISEZA Certificate of Incentives facilitation fee?
TISEZA currently publishes TZS 4 million for companies with local-majority shareholding and TZS 6 million for companies with foreign-majority or joint shareholding. Applicants should confirm the applicable payment requirements before filing.
- Can foreigners own companies in Tanzania?
Yes. Foreign investors may establish Tanzanian companies or register foreign company branches, subject to applicable company laws, sector restrictions and regulatory requirements.
- Can foreigners own land in Tanzania?
Foreign investors are restricted from acquiring ordinary land ownership in the same way as Tanzanian citizens. However, land can be accessed for qualifying investment purposes through legally recognised arrangements.
- Does a TISEZA Certificate of Incentives automatically exempt a company from tax?
No. Incentives depend on the relevant legislation, eligibility requirements, approvals and conditions. A certificate does not remove every tax obligation.
- Are the investment procedures the same in Mainland Tanzania and Zanzibar?
No. Zanzibar has separate investment, business registration and tax institutions. Investors should assess the applicable requirements in each jurisdiction.
Conclusion
The Investment Laws in Tanzania 2026 provide an important framework for investors seeking to establish or expand businesses in the country.
The Investment and Special Economic Zones Act, 2025 established TISEZA as the principal investment facilitation authority, while the Finance Act, 2026 introduced further changes affecting taxation and public revenue administration.
However, successful investment requires more than company incorporation or an investment certificate. Investors must properly assess ownership, capital requirements, land rights, tax obligations, sector licences, immigration requirements and continuing compliance.
A well-structured investment supported by accurate regulatory assessment can help reduce avoidable delays and regulatory risks.
GERPAT Solutions supports local and international investors with business formation, investment facilitation, licensing and corporate compliance in Tanzania Mainland and Zanzibar.
Disclaimer: This article is for general business and regulatory information. It is not a substitute for project-specific legal, tax or professional advice. Investment thresholds, fees, incentives and approval procedures should be confirmed with the relevant authorities before an application or investment commitment is made.