Zanzibar has become one of the most attractive destinations for international real estate investment in East Africa. With beautiful beaches, growing tourism, and investor-friendly policies, many foreigners are interested in buying villas, apartments, and resort properties.
As of 2025, foreigners can legally buy property in Zanzibar through long-term leasehold ownership, usually lasting up to 99 years in government-approved developments.
These investments are regulated by the Zanzibar Investment Promotion Authority (ZIPA), which ensures that foreign property ownership follows the country’s legal framework.
This guide explains how foreigners can buy property in Zanzibar, the legal requirements, and the investment benefits.
Can Foreigners Own Property in Zanzibar?
Yes, foreigners can own property in Zanzibar under a leasehold title system.
Instead of owning the land permanently, foreign investors receive a long-term lease from the government, usually structured as:
- 33-year lease
- Renewable three times
- Total possible period of 99 years
During this lease period, the property owner has full rights to:
- Use the property
- Sell or transfer ownership
- Rent the property
- Pass the property to heirs
This system allows foreign investors to safely invest in Zanzibar real estate while respecting the country’s land ownership laws.
What Is Leasehold Property in Zanzibar?
In Zanzibar, the government is the ultimate owner of all land.
Foreigners, therefore, purchase property through leasehold agreements, meaning they lease the land but fully own the buildings and developments constructed on it.
This system is common in many countries and other international property markets.
Under this arrangement, investors:
- Pay a small annual ground rent
- Enjoy full use of their property
- Have the right to transfer the lease
This makes Zanzibar property investment secure and flexible for international buyers.
What Happens After the 99-Year Lease?
The lease can normally be renewed through the relevant government authorities.
During the lease period, investors may also:
- Sell the property
- Transfer the leasehold interest
- Pass ownership to a new buyer
The new owner simply continues with the remaining lease period and renewal rights.
This flexibility makes Zanzibar real estate attractive for long-term investment portfolios.
Can Property in Zanzibar Be Inherited?
Yes.
Foreign-owned leasehold property can be inherited by family members.
Owners can pass their property rights to:
- Children
- Spouses
- Other legal heirs
The inheritance process follows the terms of the lease agreement and local laws.
This makes property investment in Zanzibar suitable for long-term family wealth planning.
Property Taxes and Costs in Zanzibar
Investors should understand the basic costs involved when purchasing property.
Main Property Taxes
Stamp Duty
- Approximately 1% of the property value
- Paid when the property title is transferred
Capital Gains Tax
- Around 20% on profit from the sale
- Paid by the seller
Annual Ground Rent
- A small yearly fee is paid to the government for leasing the land.
These costs are relatively competitive with those in many international property markets.
Residency Through Property Investment in Zanzibar
One major advantage of property investment in Zanzibar is the possibility of obtaining residency permits.
Foreign investors who purchase approved properties may qualify for residency through investment programs regulated by the Zanzibar Investment Promotion Authority.
This allows investors to legally reside in Zanzibar while managing their property or business.
Can Family Members Also Get Residency?
Yes.
When an investor qualifies for residency through property ownership, family members may also apply, including:
- Spouse
- Children
This allows families to live together in Zanzibar and enjoy the island’s lifestyle and business opportunities.
Why Invest in Property in Zanzibar?
Zanzibar has become one of the fastest-growing real estate markets in East Africa.
Key advantages include:
- Growing tourism industry
- High demand for luxury villas and rentals
- Investor-friendly policies
- Long-term leasehold security
- Residency opportunities for investors
For international buyers seeking tropical property investment with strong growth potential, Zanzibar offers an excellent opportunity.
Professional Property and Investment Assistance
At Gerpat Solutions, we assist international investors with:
- Property investment advisory
- Investment registration with ZIPA
- Company registration in Tanzania and Zanzibar
- Legal compliance for foreign investors
- Immigration and residency permits
Our team helps investors secure their property and investment in Zanzibar quickly and legally.
Should you require assistance, kindly reach out to our team directly at www.gerpatsolutions.co.tz info@gerpatsolutions.co.tz, Mob: +244 742 826 955