Owning Property in Zanzibar as a Foreigner: All You Need to Know
As of 2025, foreign buyers can legally own homes in Zanzibar through long-term leasehold titles, typically up to 99 years, in government-approved developments. Reforms introduced in 2010 opened the door for international owners to hold secure, transferable interests in villas and apartments, with the option to apply for residency through property investment.
This guide explains how Zanzibar’s property laws stand today, what’s required to buy as a foreigner, and why approved projects like Sandbank Villas remain one of the most straightforward, secure, and rewarding routes to ownership in East Africa.
CAN FOREIGNERS OWN A PROPERTY IN ZANZIBAR?
Yes, foreigners can own property in Zanzibar, but there are specific regulations in place to manage this process. The Zanzibar Investment Promotion Authority (ZIPA) oversees foreign investments, including real estate. Foreigners are allowed to purchase property under a leasehold agreement, ensuring they can fully enjoy their investment while adhering to local laws. For more detailed information about buying property in Zanzibar, visit ZIPA’s official website.
Tip: Choose a ZIPA-approved development like Sandbank Villas. All government approvals and title registration are handled for buyers, keeping the process smooth, compliant, and stress-free.
WHAT TYPE OF TITLE DO I GET?
When purchasing property in Zanzibar, you obtain a leasehold title. This means you have a long-term lease from the government, which is the sole landowner in Zanzibar. The lease is typically structured in terms of 33 years, renewable up to three times, providing a total of 99 years. This arrangement allows foreigners to invest in Zanzibar through secure property ownership while respecting Zanzibar’s unique land ownership policies.
WHAT IS LEASEHOLD?
Leasehold ownership has historical roots dating back to British colonial times, where land ownership was reserved for the monarchy. In modern Zanzibar, only the government can own land outright. Foreigners can buy property on a leasehold basis which essentially means they lease the land but have full ownership rights over the buildings and improvements on it. This leasehold model is not unique to Zanzibar; it is also prevalent in countries such as England, Wales, and several other African and Asian nations.
Under the leasehold system, you can enjoy and use your property as if you owned the land, but you pay an annual ground rent to the government. This arrangement ensures that while the land remains under government control, property owners have the freedom to use and develop their land.
WHAT HAPPENS AFTER THE 99 YEARS ARE OVER?
The standard leasehold term is 99 years, and it can be renewed with the relevant authorities. During the lease period, you can also transfer or sell your leasehold interest to another party. The new owner then assumes the remaining lease term and any renewal rights. This flexibility makes Zanzibar investment property appealing for both personal use and long-term portfolio growth.
CAN THE PROPERTY BE INHERITED?
Yes, the leasehold property can be inherited. This means that you can pass on the property to your children, ensuring they enjoy the same rights you had. The inheritance process is governed by the terms of the lease and local laws, which typically allow for a straightforward transfer of the leasehold interest. This makes Zanzibar real estate investment an opportunity not just for you, but for the next generation as well.
WHAT TAXES ARE THERE ON PURCHASING PROPERTY IN ZANZIBAR?
Understanding the costs upfront helps you plan confidently. Here’s a quick overview of the main charges every buyer should know:
| Tax / Fee | Typical Rate | What It Covers |
|---|---|---|
| Stamp Duty | ~ 1% of the property value | Government fee payable on transfer of title |
| Capital Gains Tax (CGT) | 20% on profit from the sale | Paid by the seller on net gain when a property is sold |
| Annual Ground Rent | Set in your lease (usually modest) | Paid to the government each year for the land lease |
For detailed and updated information, it is advisable to consult local legal experts or visit relevant legal resources such as Eden Law Chambers.
CAN I GET RESIDENCY BY INVESTMENT IN ZANZIBAR?
Yes, buying a property in Zanzibar can be a pathway to obtaining a residency permit. The Zanzibar government encourages foreigners investing in Zanzibar and offers various incentives, including residency permits for those who invest in property.
ARE FAMILIES ELIGIBLE FOR A RESIDENCY PERMIT TOO?
Yes, families are also eligible for residency permits through property ownership in Zanzibar. When an individual qualifies for a residency permit due to property investment, their immediate family members, such as a spouse and children, can also apply for residency permits. This ensures that the entire family can legally reside in Zanzibar, enjoying the benefits of living in this beautiful part of the world.
For more detailed information, including the application process and specific eligibility criteria, it is advisable to visit ZIPA’s official website.
Zanzibar real estate investment through a leasehold agreement provides a secure and flexible opportunity. The system is designed to balance foreign investment with local land ownership laws, ensuring that buyers can enjoy their properties as well as peace of mind. For more information, consult with legal experts or visit trusted resources like Tanzania Invest.
TAKE THE NEXT STEP TOWARD OWNERSHIP
For those seeking a balance of lifestyle and investment, Sandbank Villas offers a rare opportunity: a fully approved, design-led development where every detail has already been taken care of.
Learn more about the investment process, or explore our collection of oceanfront villas and take the next step toward owning your place in paradise.
