Zanzibar has become an increasingly attractive destination for international property investors. Its tourism industry, coastal developments, expanding hospitality sector and strategic position in the Indian Ocean have created opportunities in residential apartments, holiday homes and commercial real estate.
Investors are exploring locations such as Fumba, Paje, Jambiani, Nungwi, Kendwa and the areas surrounding Stone Town. However, buying property in Zanzibar requires more than identifying an attractive development. Foreign buyers must understand the applicable land laws, investment approval requirements, property registration procedures, tax obligations and immigration rules.
A property advertised as foreign-investor friendly is not automatically legally secure. Before making a payment, buyers should independently verify the developer, the underlying land interest, the project’s approvals and the legal instrument that will be registered in the buyer’s name.
This guide explains the principal legal and regulatory considerations for foreigners buying property in Zanzibar.
Buying Property in Zanzibar: Understanding the Legal Framework
Zanzibar has its own land and investment framework. Property transactions are therefore governed by Zanzibar legislation and the relevant institutions of the Revolutionary Government of Zanzibar.
Important legislation includes:
- Land Tenure Act No. 12 of 1992: Establishes the framework for public land and rights of occupancy in Zanzibar.
- Zanzibar Condominium Act No. 10 of 2010: Provides for condominium ownership arrangements in qualifying multi-unit properties.
- Zanzibar Investment Act No. 10 of 2023: Establishes the current investment framework, including investment approval and incentives.
- Zanzibar Investment (General) Regulations, 2025: Provides regulations supporting the implementation of the investment framework.
- Stamp Duty Act No. 7 of 2017: Governs stamp duty on chargeable instruments and transactions.
The relevant authorities may include the Zanzibar Investment Promotion Authority (ZIPA), the Commission for Lands, the Zanzibar Revenue Authority (ZRA), the relevant planning and development authorities, and the institutions responsible for land registration.
The applicable approval and registration route depends on the nature of the property, the development structure and the legal interest being transferred.
Can Foreigners Buy Property in Zanzibar?
Foreigners can participate in qualifying property investment arrangements in Zanzibar, but they should not assume that they can acquire land in the same manner as a Zanzibari citizen.
Under the Land Tenure Act, land is public land and the law distinguishes between the rights available to Zanzibaris and non-Zanzibaris. Foreign investment in property must therefore be structured through a legally recognised arrangement.
For qualifying real-estate developments, the Zanzibar Investment Act, 2023 provides a framework for approved projects and property buyers. The legal structure may involve a lease, an approved investment arrangement or a registered condominium interest, depending on the project.
Foreign buyers should establish precisely what they are acquiring:
- A registered condominium unit;
- A leasehold interest;
- A contractual right to occupy or use a property;
- Shares in a company that owns or operates a development; or
- Another legally recognised investment interest.
These arrangements are not legally identical. A sale agreement, marketing brochure or developer’s investment certificate should never be treated as a substitute for examining the actual title and registration documents.
Understanding the 33-Year Lease and Renewal Provisions
Investors frequently encounter advertisements describing Zanzibar properties as offering 99-year renewable leasehold rights.
However, buyers should not assume that every property automatically carries a 99-year lease. The applicable lease period, renewal conditions, transfer rights and restrictions must be established from the governing legislation and the actual registered lease or title documents.
Before signing, request the underlying land documentation and have the proposed interest independently reviewed.
Condominium Ownership in Zanzibar
The Zanzibar Condominium Act, 2010 provides a legal framework for qualifying multi-unit properties.
A condominium arrangement may allow an individual buyer to acquire a separately recognised unit together with the relevant rights and obligations relating to common areas and the condominium corporation.
Before purchasing an apartment, verify:
- Whether the development qualifies for registration under the Condominium Act;
- Whether the relevant condominium documentation has been prepared and approved;
- Whether the individual unit can be separately registered;
- How common areas and shared facilities are managed;
- Whether the buyer will become a member of a condominium corporation;
- Whether the unit is subject to mortgages, charges, restrictions or other encumbrances.
A developer’s promise to issue a condominium title in the future is not the same as an already registered unit title.
ZIPA Approval and Foreign Property Investment in Zanzibar
The Zanzibar Investment Promotion Authority (ZIPA) is responsible for promoting and facilitating investment in Zanzibar.
For foreign investors, it is important to distinguish between the approval of a real-estate development and the purchase of an individual property within an approved development.
The Zanzibar Investment Act, 2023 provides different investment capital thresholds depending on the investor and sector.
For example, the Act’s Second Schedule sets a minimum investment capital of USD 2.5 million for a foreign investor or qualifying joint venture undertaking a hotel or real-estate investment project. This is a project-level investment threshold for obtaining a Certificate of Investment; it is not the same as the minimum property value applicable to an individual buyer seeking statutory buyer incentives.
The USD 100,000 Property Buyer Threshold
The Fifth Schedule of the Zanzibar Investment Act, 2023 provides for incentives that may be granted to qualifying buyers of residential property within ZIPA-approved real-estate investment projects where the property value is at least USD 100,000.
The statutory buyer incentives include provisions relating to residence permits, stamp duty, foreign ownership and repatriation of sale proceeds after tax.
However, the wording of the legislation should not be interpreted as an unconditional guarantee. Eligibility, applicable regulations, project approval, supporting documents and the relevant immigration procedures must be confirmed before the buyer relies on any advertised benefit.
Important distinction: The USD 100,000 buyer threshold should not be confused with the USD 2.5 million foreign-investor threshold for a hotel or real-estate project.
Before purchasing, request evidence that the specific development is approved under the applicable ZIPA framework and confirm that the particular property and proposed buyer qualify for the claimed incentives.
Can Buying Property in Zanzibar Give a Foreign Investor Residence?
The Zanzibar Investment Act, 2023 provides for residence-related incentives for qualifying property buyers in approved real-estate projects.
Nevertheless, a property purchase should not be treated as an automatic residence permit.
Residence permits are issued through the competent immigration authority under the applicable immigration framework. ZIPA’s role in investment facilitation or confirmation of an eligible investment does not replace the immigration application and approval process.
Before committing funds, confirm:
- Whether the specific development is eligible under the applicable buyer incentive provisions;
- Whether the property meets the statutory value requirement;
- Which documents are required to establish the investment;
- Whether the buyer’s spouse and dependants may qualify;
- The applicable residence permit category and duration;
- Whether renewal is permitted and what conditions apply;
- Whether separate authorisation is required to work or operate a business.
A residence permit does not automatically grant permission to undertake every form of employment or commercial activity. Investors intending to work or operate a business should obtain advice on the appropriate immigration and business authorisations.
Why Invest in Zanzibar Real Estate?
Zanzibar offers several potential attractions for property investors.
Tourism and Short-Term Accommodation
Zanzibar’s tourism industry creates demand for hotels, serviced apartments, holiday accommodation and professionally managed residential properties.
Investors may explore short-term rental opportunities, but projected income should be assessed against actual operating costs, occupancy, seasonality, management charges, maintenance and applicable taxes.
Residential and Long-Term Rental Demand
Coastal developments and areas near commercial centres may attract expatriates, professionals, business visitors and other long-term tenants.
The investment case should be supported by evidence of local rental demand rather than assumptions based solely on advertised rental yields.
Investment Diversification
Property may form part of a wider investment portfolio. However, real estate is relatively illiquid and exposes investors to construction, title, market, currency, regulatory and management risks.
Before investing, assess the expected holding period, exit strategy and the legal costs associated with transferring or disposing of the property.
GERPAT’s recommendation: Do not rely on advertised rental returns such as 8%–13% as guaranteed or independently verified performance. Request actual rental records, operating statements and a realistic financial projection.
Best Locations for Buying Property in Zanzibar
The appropriate location depends on the investor’s intended use, target tenant, budget and investment strategy.
Fumba Town
Fumba is associated with planned residential and mixed-use development on Zanzibar’s southwest coast.
Potential considerations include planned infrastructure, residential demand, development quality and the availability of supporting services.
Paje and Jambiani
Paje and Jambiani are known for coastal tourism and water-sports activities, including kite surfing.
Investors considering holiday apartments should assess seasonal occupancy, access, property management and the local rules applicable to short-term accommodation.
Nungwi and Kendwa
Nungwi and Kendwa are established tourism destinations in northern Zanzibar.
Buyers should assess the property’s proximity to the beach, development approvals, coastal conditions, infrastructure and competition from hotels and holiday accommodation providers.
Mbweni and Mazizini
These areas may appeal to buyers seeking residential property with access to Zanzibar Town, the airport and surrounding commercial facilities.
Investors should compare the actual rental market, transport access, neighbourhood infrastructure and property management options.
The attractiveness of a location does not establish that a particular property has a valid title or the necessary development approvals.
Legal Due Diligence When Buying Property in Zanzibar
Independent legal and regulatory due diligence is one of the most important stages of a property purchase.
A buyer should not rely exclusively on information supplied by the developer, sales agent or property marketing company.
- Verify the Developer
Obtain and review the developer’s incorporation documents, company registration information, directors and ownership structure.
Where appropriate, conduct a company search through the relevant business registry.
Also investigate whether the developer has the authority to sell the property and whether the person signing the agreement is properly authorised.
- Verify the Underlying Land Interest
Request the relevant land documents and conduct an appropriate search with the competent land authority.
The review should establish:
- The identity of the registered holder;
- The nature and duration of the land interest;
- Whether the land has been lawfully allocated or leased;
- Whether the interest is subject to a mortgage, charge or other encumbrance;
- Whether there are disputes, restrictions or competing claims;
- Whether the proposed development and sale are consistent with the underlying land rights.
A ZIPA investment certificate does not, by itself, establish ownership of the underlying land.
- Verify ZIPA Investment Approval
Where the development relies on ZIPA approval, obtain a copy of the relevant Certificate of Investment and verify its authenticity and scope.
Check whether the approval relates to the actual development being marketed and whether the project remains compliant with applicable investment conditions.
Do not assume that approval of a developer’s wider investment project automatically confirms every unit’s eligibility for buyer incentives.
- Verify Planning and Construction Approvals
Request the applicable planning, building and development approvals.
Depending on the project, this may include:
- Approved development plans;
- Building permits;
- Relevant planning permissions;
- Environmental approvals or clearances;
- Development Control Unit documentation, where applicable;
- Evidence of compliance with approved construction conditions.
The buyer should confirm that the completed or proposed building corresponds with the approved plans.
- Verify Condominium and Unit Registration
For apartment purchases, examine whether the development can lawfully be registered under the Zanzibar Condominium Act, 2010.
Confirm whether the unit has a separate registered title or whether the developer is still required to complete the registration process.
If registration is pending, the sale agreement should clearly identify the obligations, deadlines, costs and remedies if registration cannot be completed.
- Review Tax and Payment Obligations
Identify the taxes, stamp duties, registration charges and other transaction costs applicable to the specific purchase.
The Zanzibar Revenue Authority (ZRA) administers relevant Zanzibar tax matters. The Stamp Duty Act, 2017 provides for duties on chargeable instruments, including conveyances and leases.
The applicable rate and any available exemption or concession must be confirmed against the law and the buyer’s circumstances. The statutory buyer incentives under the Zanzibar Investment Act, 2023 may be relevant to qualifying purchases in approved projects.
Obtain the appropriate tax assessment and payment evidence. Do not rely on a developer’s informal statement that all taxes have already been paid.
Step-by-Step Process for Buying Property in Zanzibar
The precise process depends on the property structure and the approvals already obtained. A prudent transaction generally follows these stages.
Step 1: Identify the Property and Verify the Seller
Obtain the property’s full details, developer information, proposed purchase price and the legal structure of the transaction.
Confirm that the seller has the legal authority to sell or transfer the relevant interest.
Step 2: Conduct Independent Property Due Diligence
Before making a substantial or non-refundable payment, verify the land interest, developer, ZIPA approval, planning documents, construction approvals and condominium arrangements where relevant.
Record any outstanding issues and make their resolution a condition of proceeding with the transaction.
Step 3: Review the Reservation Agreement
If a reservation agreement is proposed, examine its terms before signing or paying a deposit.
The document should clearly explain:
- The property being reserved;
- The reservation amount;
- Whether the payment is refundable;
- The period of reservation;
- Conditions for cancellation;
- The circumstances in which the deposit may be retained;
- Whether the reservation is subject to satisfactory due diligence.
Avoid signing a document that creates significant financial obligations before the legal status of the property has been established.
Step 4: Negotiate and Sign the Sale and Purchase Agreement
The Sale and Purchase Agreement (SPA) should accurately describe the property and the legal interest being transferred.
It should address:
- The purchase price and payment currency;
- Payment milestones;
- Conditions precedent;
- The seller’s title and authority to transfer;
- The required approvals and registration documents;
- Completion and handover dates;
- Construction specifications and warranties, where applicable;
- Default, termination and refund provisions;
- Dispute resolution and governing law;
- Responsibility for taxes, stamp duty and registration costs.
For off-plan purchases, payment milestones should be linked to objectively verifiable construction progress and appropriate protections.
Step 5: Arrange Secure Payment
Payments should be made through a properly documented and traceable payment arrangement.
Where escrow is proposed, independently verify the escrow provider, account ownership, release conditions and refund mechanism.
Do not assume that a bank account described as an escrow account offers legal protection without examining the underlying arrangement.
Step 6: Complete Tax and Registration Formalities
Determine the applicable stamp duty and other transaction charges.
Ensure the relevant instruments are properly assessed, executed and submitted to the competent authorities.
Obtain official receipts and evidence of registration or transfer.
Step 7: Obtain the Registered Property Documents
At completion, obtain the final documents evidencing the buyer’s registered interest.
These may include the relevant registered lease, condominium unit title or other applicable instrument.
The buyer should also obtain handover documentation, keys, warranties, building-management information and any applicable service-charge records.
Essential Risk Mitigation Advice for Foreign Property Buyers
Do Not Rely on Marketing Brochures
A developer’s brochure is not proof of land ownership, investment approval or title registration.
Verify the underlying documents independently.
Do Not Assume Every Property Qualifies for Residence Incentives
The buyer incentives under the Zanzibar Investment Act, 2023 are linked to qualifying properties within approved real-estate investment projects and the applicable statutory conditions.
Obtain confirmation before relying on any residence-related benefit.
Protect Off-Plan Payments
Off-plan developments involve construction and delivery risks.
Use clear payment milestones, independent progress verification and contractual remedies for delays, defects or failure to complete.
Check Property Management Arrangements
If the property will be rented out, review the management agreement, management fees, maintenance obligations, booking arrangements and reporting requirements.
Also establish who is responsible for tax compliance and operational licences.
Plan for Resale and Inheritance
Before purchasing, understand the restrictions and procedures governing transfer, resale, succession and the registration of the relevant property interest.
Do not assume that every interest can be transferred or inherited without regulatory or contractual conditions.
How GERPAT Solutions Supports Property Investors in Zanzibar
GERPAT Solutions is a Tanzania and Zanzibar business advisory and regulatory compliance firm supporting investors with business formation, investment procedures, licensing, intellectual property and corporate compliance.
For foreign investors considering property and real-estate projects in Zanzibar, GERPAT Solutions can assist with coordinating relevant regulatory and business processes, including:
- Company formation and corporate documentation;
- Coordination of ZIPA investment registration and related procedures;
- Regulatory and documentary due diligence coordination;
- Verification coordination with relevant registries and authorities;
- Business licensing and tax registration coordination;
- Immigration and investment documentation coordination;
- Corporate compliance and ongoing administrative support.
Where a transaction requires a formal legal opinion, conveyancing, reserved legal work or court representation, the investor should engage a suitably qualified advocate in the relevant jurisdiction.
Our approach is to help investors understand the regulatory requirements, organise the necessary documentation and coordinate the relevant procedures before committing substantial capital.
Frequently Asked Questions About Buying Property in Zanzibar
Can foreigners buy apartments in Zanzibar?
Foreigners can participate in qualifying property investment arrangements, including approved real-estate developments. The buyer must establish the legal nature of the interest being acquired and confirm that the property and transaction comply with Zanzibar’s land and investment laws.
Is all land in Zanzibar owned by the government?
The Land Tenure Act, 1992 establishes the public-land framework. The rights available to a holder depend on the applicable law and the nature of the interest granted or registered.
What is the minimum property value for buyer incentives?
The Zanzibar Investment Act, 2023 provides for certain buyer incentives where residential property within an approved real-estate investment project has a value of at least USD 100,000, subject to the applicable statutory and regulatory requirements.
Is USD 100,000 the minimum capital for a foreign developer?
No. The USD 100,000 buyer threshold is different from the project-level investment capital requirement. Under the Second Schedule of the Zanzibar Investment Act, 2023, the minimum investment capital for a foreign investor undertaking a hotel or real-estate investment project is USD 2.5 million.
Does buying property automatically give a foreigner a residence permit?
No. The law provides for residence-related incentives for qualifying buyers, but the applicable immigration application and approval process must still be followed. A buyer should obtain confirmation of eligibility and requirements before relying on this benefit.
Is a 99-year lease guaranteed for every foreign buyer?
No. The applicable lease period and renewal rights must be verified from the governing legal framework and the actual registered documents. Buyers should not rely on a general marketing statement as proof of a 99-year interest.
Should I conduct due diligence before paying a deposit?
Yes. At a minimum, establish the seller’s authority, the underlying land interest, the development approvals, the ZIPA position where relevant, and the contractual terms governing the deposit and refund.
Conclusion: Carry Out Proper Due Diligence Before Buying Property in Zanzibar
Zanzibar offers opportunities for residential, hospitality and commercial real-estate investment. However, the attractiveness of a location or the reputation of a developer cannot replace proper legal and regulatory verification.
Foreign buyers should understand the applicable land interest, confirm the project’s investment approval, verify planning and construction documents, review the sale agreement and establish the taxes and registration requirements before transferring substantial funds.
A properly structured purchase begins with reliable documentation and independent verification.
GERPAT Solutions supports investors with business formation, investment procedures, licensing, and regulatory compliance coordination in Tanzania and Zanzibar.
Reach to out Team at www.gerpatsolutions.co.tz , info@gerpatsolutions.co.tz, +255 742 816 955
Disclaimer: This article is provided for general business and regulatory information and does not constitute a legal opinion, property valuation, tax advice or guarantee of investment returns. Property transactions should be assessed individually using current official records and advice from appropriately qualified professionals.